- One of the UK’s largest market trading platforms IG has seen a massive spike in active users and income amid a day trading boom and increased market volatility during the pandemic.
- The trading platform added nearly 100,000 new users during the fiscal year 2020, a 34% increase over the previous year.
- It also saw average daily trading volumes surpass 1 million in March, compared to an average of just 336,000 in the same month in 2019.
- IG’s annual pre-tax profits jumped 52% to $ 374 million, he said.
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IG Group, one of the UK’s largest retail platforms, reported booming financial results for its fiscal year 2020, driven by unbridled growth in day trading and heightened market volatility during the coronavirus pandemic.
The UK-based financial derivatives platform increased its client base by 34% as it welcomed 96,900 new clients during the year. The IG group currently has 239,600 active members, up from 178,000 in the same period last year.
The platform saw average daily trade volumes exceed 1 million in March, down from an average of just 336,000 a year ago.
In the year ending May 31, the trading group generated sales of £ 649million ($ 823million), a 36% increase over the year’s performance last.
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This was bolstered by a 9% increase in trading revenue to £ 389m ($ 493m) in the first three quarters, reflecting an unprecedented level of client activity due to market volatility global.
Pre-tax profit jumped 52% to 295.9 million pounds ($ 374 million).
For next year, IG said it expects market volatility to return to normalized levels. For now, however, it continues to see increased trading activity, although volatility is not as high as its peak in March.
“In FY20, we saw growing demand from customers around the world for IG’s products and services even before the exceptional period of the fourth quarter, and we achieved record results,” said the IG CEO June Felix in a statement.
With its “successful navigation” of the pandemic, the company said it has enabled a smooth transition to remote working while managing “exceptional business volumes and customer onboarding.”
IG Group’s trading boom is similar to that seen in the United States, with retail traders accounting for almost 25% of the stock market.
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This week, TD Ameritrade reported a 62% jump in average daily earnings transactions, while Interactive Brokers posted a 111% jump for the quarter.