IG stock trading levels have declined in recent months

Online investing platform IG saw stock trading levels fall sharply in the third quarter from a year ago, new figures show.

But the group, which has benefited from the pandemic-induced retail boom, saw its number of active customers rise to 292,200 in the three months to February 28, from 220,900 a year earlier.

The FTSE 250-listed group expects to ‘moderately beat’ market expectations for the full year, but a sluggish US options market means growth at its ‘tastytrade’ subsidiary could be lower than previous forecasts of 25 to 30%.

Boss June Felix said: “I am delighted to report another quarter of outstanding performance driven by a record number of customers trading during the period.

“Today we have more customers and a wider product line than ever before in our history.

“But we’re not stopping there – a new IG is emerging, and we’re excited about the opportunities ahead of us, building on our strengths and delivery track record.”

In the third quarter, total revenue rose around 13% to £257.2m.

A 4% increase in leveraged OTC derivatives revenue to £219.3m offset a 54% decline in equity trading and investment revenue, which fell to 6, £6 million.

Its first quarter transactions of 25,600 were down 32% from a year earlier and IG was unable to replicate last year’s “meme stock” frenzy, when massive liquidity flocked to the market from retail investors.

An increase in exchange-traded derivatives from £1.9m in 2021 to £31.3m in 2022 was responsible for most of the outperformance.

The group said: “Overall, the group remains well positioned for the future and our medium-term revenue guidance remains unchanged.”

IG Shares were up 0.77% or 6.0p at 789.00p this afternoon. The group’s share price has fallen nearly 10% over the past year.