IG Group, one of the biggest forex, CFD, and option brokers in the world, expects to have a strong performance in 2022. As a result, the company’s share price has jumped to the highest level since January and is up by over 31% from its lowest level this year.
IG Group business is booming
IG Group is a leading London-listed forex and CFD exchange that operates globally. The company operates several brands, including IG, IG Prime, tastytrade, tastyworks, DailyFx, Spectrum Markets, and Raydius.
IG Group business is booming as demand for its products and services jumped. The company published its full year results this week. In FY22, the firm’s revenue rose to £973.1 million, which was higher than the previous £837.6 million. Its profit before tax jumped from £446 million to over £477 million.
This growth happened as the number of active customers jumped to over 381k during the year. It also rose as the company integrated tastytrade and tastyworks revenue in its books. The firm acquired tastytrade in 2021 for $1 billion. In a statement, Mike McTighe, the company’s CEO said:
“The acquisition of tastytrade during the year provided a step-change towards achieving our diversification strategy, while the sale of North American Derivatives Exchange, Inc. (Nadex) and Small Exchange Inc. exemplifies our focus on areas where we see significant room for growth.”
Forex and CFD companies doing well
Recent results from publicly traded companies show that forex and CFD firms are doing better than other exchanges. For example, this week, Plus500, a leading London-listed company, said that its revenue jumped in the first half of the year. As a result, it announced a $60 million share buyback plan.
Similarly, as we reported on Thursday, Exness, a leading exchange said that its total volume rose to above $2 trillion for the fifth straight month. The firm’s number of customers have also grown substantially.
In contrast, companies like Robinhood, Schwab, WeBull, and SoFi have seen a sharp decline in trading volume.