UK Trading Platforms – How Do Share Prices Stack Up? (IGG, PLUS, CMCX)

The landscape of online trading platforms in the UK is a dynamic and ever-evolving one, shaped by market volatility, regulatory pressures, and the relentless pursuit of innovation.

The three prominent players in the UK that are publicly traded; IG Group Holdings plc (LON:IGG), Plus500 Ltd (LON:PLUS), and CMC Markets plc (LON:CMCX) each have distinct offerings, with its own strengths, weaknesses, and strategic direction.

IG Group

IG Group, the most established of the three, presents itself as a bastion of stability in a turbulent market. Currently trading around 1,055 GBX, the stock has delivered an impressive 30% return over the past 12 months, a testament to its diversified business model and robust balance sheet.

The company has skillfully leveraged ongoing market volatility, reporting a significant 30% increase in first-half profit in January 2025, fueled by heightened client activity amidst geopolitical tensions and economic uncertainties.

While the number of active clients saw a slight dip, the surge in trading volumes translated into a 12% increase in net trading revenue. Analysts’ price targets, ranging from 1,099 GBX to 1,490 GBX, with an average of 1,221 GBX suggests considerable perceived upside potential, coupled with an attractive dividend yield typically in the 4-5% range. IG Group’s P/E ratio, aligning with sector averages in the low teens, further underscores its stability.

Despite the occasional setback, the company has shown resilience, demonstrating its ability to adapt to regulatory changes. Its strength lies in its diversification, offering a broad range of products and services to cater to diverse investor needs.

Plus500

In contrast, Plus500 operates with a more aggressive growth strategy, prioritizing profitability and capital returns. Currently priced around 3,410 GBX, the stock has outperformed its peers with a 33% return since the start of 2025, and a 54% gain in the past 12 months, driven by higher client activity and a commitment to returning capital to shareholders through share buybacks.

Analysts are yet to catch up with the pace of Plus500 shares, with consensus price target of 3,288 GBX lagging price actions. The company’s flexible cost structure and high operating margins have enabled it to navigate volatile markets effectively, consistently delivering impressive financial results.

A key aspect of Plus500’s strategy is its significant investment in marketing, spending $54.2 million in the first half the year alone. This aggressive marketing approach has contributed to an 8% increase in revenue and a 6% rise in EBITDA during the same period. Plus500 boasts the highest dividend yield among its peers, often exceeding 6%, making it an attractive option for income-seeking investors.

Its P/E ratio is typically slightly below the sector average, reflecting its strong profitability. Plus500’s net cash position is a major strength, providing ample liquidity for future growth initiatives and shareholder returns.

CMC Markets

CMC Markets, on the other hand, faces a more challenging environment. Currently trading a 254.50 GBX, the stock has underperformed its peers with a 2.62% gain over the past year, reflecting lower client trading activity and earnings pressure.

Analysts’ price targets vary, with the average target of 285 GBX, suggesting moderate upside potential from current levels. The company has faced headwinds from declining volatility and reduced retail trading volumes, impacting revenues and profit margins. In response, CMC Markets has implemented cost control measures and invested in technology to diversify its revenue streams, including new platforms and institutional offerings.

However, earnings recovery has lagged behind its competitors. The company’s dividend yield has dropped, now closer to 3-4%, reflecting its recent earnings contraction. Moreover, CMC Markets has faced additional challenges, including a 43% drop in net profits and a 20% decline in operating revenue in 2023. A cost-cutting program resulted in over 220 layoffs globally at the time. The company’s focus on technology investment and cost control may eventually yield positive results, making it an interesting option.