IG stock trading levels dwindle in the past few months

Online investing platform IG saw stock trading levels fall sharply in its third quarter compared to a year ago, fresh figures show.

But the group, which benefited from the pandemic-induced retail trading boom, saw its active customer numbers rise to 292,200 in the three months to 28 February, up from 220,900 a year earlier.  

The FTSE 250-listed group expects to ‘moderately exceed’ market expectations for the full year, but a sluggish options trading market in the US meant growth in its ‘tastytrade’ subsidiary could be below previous guidance of between 25 to 30 per cent. 

Boss June Felix, said: ‘I’m delighted to be reporting another quarter of outstanding performance driven by a record number of clients trading in the period.

‘Today, we have more clients and a broader range of products to trade than ever before in our history. 

‘But we aren’t stopping here – a new IG is emerging, and we’re excited by the opportunities ahead of us, building on our strengths and track record of delivery.’

In its third quarter, total revenues were up around 13 per cent at £257.2million.

A 4 per cent increase in OTC leveraged derivatives revenue to £219.3million helped to offset the 54 per cent dive in stock trading and investments revenue, which fell to £6.6million. 

First trades in its first quarter of 25,600 were down 32 per cent on the previous year and IG was unable to replicate the ‘meme stock’ frenzy of last year, when massive liquidity flowed into the market from retail investors.

A rise in exchange-traded derivatives from £1.9million in 2021 to £31.3million in 2022 was responsible for most of the outperformance. 

The group said: ‘Overall, the Group remains well positioned for the future and our medium-term revenue guidance remains unchanged.’

IG shares have fallen today and were down 1.98 per cent or 15.50p to 767.50p in late morning trading. The group’s share price has fallen by nearly 10 per cent in the past year.