IG sales fall but grows its customer base despite regulator clampdown plans

 
Oliver Gill
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Institutional traders from IG Markets st
The FCA revealed plans to clamp down on spreadbetting firms at the start of December (Source: Getty)

Shares in spreadbetting firm IG Group fell nearly five per cent today after it reported a fall in quarterly revenues in its all-important UK and Irish divisions.

Sales fell by 3.8 per cent to £117m for the three months to 28 February. Average revenue per client fell 15 per cent in the UK and 23 per cent in Ireland.

Read more: IG Markets waves binaries bye bye

The falling figures were despite IG growing the number of active clients by 13 per cent over the quarter.

At the start of December, UK spreadbetters were surprised by regulator plans to clampdown on spreadbetting.

The Financial Conduct Authority (FCA) proposed new ideas that included mandatory risk disclosures and capping leverage limits. Also tabled were plans to prevent inducement offers for new customers.

IG Markets is the longest established spreadbetting firm having been established in 1974.

Read more: Why it's a cautious start to the week for spreadbetters

It is understood that the tightening of measures will likely not hit IG as badly as some of its listed competitors, CMC and Plus500. IG's churn rate, the proportion of customers that leave, is much lower than many of its rivals.

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