UK forex market continues growth, IG remains leader amid rising competition – report

UK forex market continues growth, IG remains leader amid rising competition – report

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UK’s forex and CFDs market has risen 14% in terms of number of traders between July 2015 and 2016, shows a report of the Australian research house Investment Trends. According to the data in the period a total of 124 000 UK traders placed at least one spread bet, forex or CFD trade.

The analysis, entitled 2016 UK Leverage Trading Report is based on a survey of 12 600 UK investors and was conducted before and after the Brexit vote. It covers the three key trading categories: financial spread betting, trading in forex and CFDs.

According to the report, quoted by the site Finance Magnates, the undisputed leader in all three categories remains IG Group Holdings (LON:IGG), which has been at the top since the first such analysis was released in 2009.

The latest edition of the report, however, notes that the competition in all three categories hots up. The main contender in the spread betting segment is CMC Markets (LON:CMCX) and in the CFDs sector is Plus500 Ltd (LON:PLUS), which recently obtained an Israeli and New Zealand licenses and reported that its January – September revenue rose 14% on an annual basis.

The UK branch of the US forex brokerage FXCM (NASDAQ:FXCM) is closing in on IG Group in the forex trading segment. All three brokers are seeing significant growth both in client numbers and market share, the Investment Trends report found.

We remind you that just a few days ago FXCM and IG Group finalized the sale of the of news and research service DailyFX for $40 million.

According to the report, the aftermath of the Brexit vote was the main reason 30 000 dormant trading accounts “woke up”, while many first-time traders decided to upgrade from demo to live trading accounts.

The Investment Trends analysis also found that the UK online leverage traders are generally satisfied with the services they are getting with 89% of them saying their broker was “good” or “very good”. “Overall client satisfaction levels were steady, while satisfaction in nearly all individual service areas lifted, sometimes substantially,” said Dr. Irene Guiamatsia, Research Director at Investment Trends. “This is symptomatic of an arms race, where providers must continually improve and innovate to remain competitive.”


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