IG Group reports revenue jump on strong client trading

(Reuters) - Online trading platform IG Group IGG.L on Thursday reported a surge in first-quarter revenue as the coronavirus crisis and fears of its impact on the global economy continued to drive up volatility and trading volumes on financial markets.

IG, which provides retail investors access to trade over 17,000 financial markets through its dealing platform and mobile apps, said net trading revenue for the three months ended Aug. 31 jumped to 209 million pounds ($270.51 million) from 129.1 million pounds last year.

“New client acquisition remained strong as a result of continued demand and improved marketing effectiveness across multiple channels, with 34,600 new clients placing a first trade in the quarter, 129% higher than the prior year,” the company said.

IG and other industry players Plus500 PLUSP.L and CMC Markets CMCX.L have benefited from record levels of volatility in financial markets, first in a widespread global sell-off in February and March, and then in the strong recovery that has brought stock markets back to life since.

IG’s positive tone on its performance was in line with Plus500, which earlier this week said revenue has remained strong in its second half to date due to growth in customer numbers as “macroeconomic and sector-specific newsflow continue to provide significant trading opportunities”.

Reporting by Muvija M in Bengaluru; Editing by Anil D’Silva and Sherry Jacob-Phillips