IG hails ‘record’ performance as traders flock to play the markets and takeover of US rival pays off
- Trading platform has continued to build on last year’s momentum
- Active customers jumped 42% to 320,400, thanks to acquisition of Tastytrade
- Net trading revenues up 16% in six months to end of November 2021
IG Group has hailed ‘record’ performance as amateur traders continued to flock to its platform to try and take advantage of stock market volatility.
The online trading platform, which offers CFDs, spread betting and also allows customers to buy and sell shares and ETFs, said it continued to build on the momentum of last year, also aided by the acquisition of Tastytrade in June.
Net trading revenues rose 16 per cent to £471.9million in the six months to the end of November, while pre-tax profit surged 8 per cent to £245.2million.
In demand: IG Group is continuing to see high levels of trading
IG shares rose 5 per cent to 863p in afternoon trading on Thursday.
Active clients increased by 42 per cent to 320,400, reflecting the acquisition of US rival Tastytrade in June 2021 that has allowed it to access the ‘world’s largest listed derivatives markets’.
Tastytrade is used by US investors trading derivatives on US exchanges.
Derivatives are complex financial instruments, which allow investors to bet on the price of an asset such as a share or currency going up or down.
They also allow investors effectively to borrow to increase the size of their trade, meaning both wins and losses can be hugely magnified.
IG said Tastytrade showed strong growth, with revenues rising 34 per cent at constant currency to £52.8million in the five months since acquisition.
Overall, IG signed up 53,600 new clients in the six months.
That was lower than the 60,800 it attracted in the same period in 2020, but well above the 26,400 of 2019.
The group said the slower growth in new clients was expected as market conditions are less volatile than they were last year in the midst of the pandemic.
‘This has been a period of outstanding performance with record revenues and profits,’ said chief executive June Felix.
‘Since we launched our new strategy three years ago, the group has transformed from a UK-centric, CFD focused firm, to a global financial technology company with a multi-product trading platform.
‘The tastytrade acquisition in June 2021 brought about a step-change in our reach and product offering.’