Interest in stock CFDs dropped significantly in 2022.
Brokers’ profits from this business line have fallen too.
Although 2023 started on a solid foot, the stock market’s collapse in 2022 was
impossible not to notice. Substantial discounts on leading indices and a
continuously strengthening dollar have reduced retail investor activity on Wall
Street and almost every other stock trading floor worldwide.
Have
investment firms felt the decline in equities interest? Which instruments may
have proved more attractive last year? Finance Magnates delved into the
reports of publicly listed trading firms and spoke to industry representatives
for answers in the newest Quarterly Industry Report.
After over a decade of almost uninterrupted gains, global stock markets finished 2022
with the steepest declines since the Great Financial Crisis of 2008. The
S&P 500 index lost nearly 20%, the Nasdaq 100 technology index gave back as
much as 33%, and the MSCI World equity index was down 18%.
As a
result, instead of betting on equities, investors looked for a place to hide in
the safe-haven dollar, which gained more than 8% to a basket of currencies. At
one moment in 2022, it rose by 20%, reaching record highs. Bond yields gained
along with the greenback: the US 10-year debt note yield rose 156% and tested
levels above 4.3%, which is the highest since 2007.
Filippo
Ucchino, the Founder and CEO at InvestinGoal, a trading research platform for
retail traders, states that Google Trends shows a visible slump in the popularity
of shares trading amongst CFD traders.
“The
decline in Big Tech stock prices in 2022 was indeed directly related to a loss
of user interest in Equity CFD trading. A keyword analysis on Google Trends
shows that interest in stock CFDs has dropped in a very similar way,” Ucchino
commented.
“While
interest in Big Tech stock price movements remained more or less in line, even
experiencing some spikes (for example, as a result of the various layoff news),
interest in stock CFD trading dropped about 50%, very similar to the -46%
decline by the Big Techs overall,” Ucchino added.
Publicly Listed Brokers
Show Lower Shares Trading Revenues
Looking at
the financial reports of IG Group, CMC Markets and XTB, there is an apparent
slowdown in revenue resulting from trading equities. According to the IG
Groups’ interim results report for the six months ended 30 November 2022, “Stock
trading and investments” accounted for the smallest share of the broker’s revenue,
recording a decline of 30% compared to the same period a year earlier. Total
revenue in H1 FY23 was £11.3 million, which is down from £15.9 million in 2021.
Net trading revenue in stock trading and investment per client also fell 29%
to £122.
The CMC
Markets report, published in November and covering the six months ended 30
September 2022, reached similar conclusions. The broker showed an overall
increase in net operating income of 21% YoY, to £153.5 million, but a 14% fall
in investing net revenue over the same period, to £20.8 million from £24.2
million.
Watch the recent FMLS22 panel discussion on: "What CFDs Traders Value Most & How They Choose Their Brokers."
We can look
for the most up-to-date information regarding the popularity of shares trading
amongst CFD traders in XTB’s 2022 initial financial report, published
in early February. The turnover of equity CFDs amounted to PLN 1.1 million in
the last quarter of 2022, falling by more than 90% compared to the PLN 11.5
million reported in the same period a year earlier. Thus, it is evident that
the trading activity bottomed out with the market itself.
After the Storm, the Sun Comes Out
In 2022,
equities were no longer the favorite instruments of retail investors, including
in the CFD industry. Commodities or currency pairs became way more popular due
to the almost continuously rising dollar.
However,
according to experts interviewed by Finance Magnates, the market storm should
calm down, and the first rays of sunshine will appear again in 2023.
To get
the full article and the bigger picture on equity market valuation and its
influence on CFDs trading popularity, get our Latest Quarterly
Intelligence Report.
Although 2023 started on a solid foot, the stock market’s collapse in 2022 was
impossible not to notice. Substantial discounts on leading indices and a
continuously strengthening dollar have reduced retail investor activity on Wall
Street and almost every other stock trading floor worldwide.
Have
investment firms felt the decline in equities interest? Which instruments may
have proved more attractive last year? Finance Magnates delved into the
reports of publicly listed trading firms and spoke to industry representatives
for answers in the newest Quarterly Industry Report.
After over a decade of almost uninterrupted gains, global stock markets finished 2022
with the steepest declines since the Great Financial Crisis of 2008. The
S&P 500 index lost nearly 20%, the Nasdaq 100 technology index gave back as
much as 33%, and the MSCI World equity index was down 18%.
As a
result, instead of betting on equities, investors looked for a place to hide in
the safe-haven dollar, which gained more than 8% to a basket of currencies. At
one moment in 2022, it rose by 20%, reaching record highs. Bond yields gained
along with the greenback: the US 10-year debt note yield rose 156% and tested
levels above 4.3%, which is the highest since 2007.
Filippo
Ucchino, the Founder and CEO at InvestinGoal, a trading research platform for
retail traders, states that Google Trends shows a visible slump in the popularity
of shares trading amongst CFD traders.
“The
decline in Big Tech stock prices in 2022 was indeed directly related to a loss
of user interest in Equity CFD trading. A keyword analysis on Google Trends
shows that interest in stock CFDs has dropped in a very similar way,” Ucchino
commented.
“While
interest in Big Tech stock price movements remained more or less in line, even
experiencing some spikes (for example, as a result of the various layoff news),
interest in stock CFD trading dropped about 50%, very similar to the -46%
decline by the Big Techs overall,” Ucchino added.
Publicly Listed Brokers
Show Lower Shares Trading Revenues
Looking at
the financial reports of IG Group, CMC Markets and XTB, there is an apparent
slowdown in revenue resulting from trading equities. According to the IG
Groups’ interim results report for the six months ended 30 November 2022, “Stock
trading and investments” accounted for the smallest share of the broker’s revenue,
recording a decline of 30% compared to the same period a year earlier. Total
revenue in H1 FY23 was £11.3 million, which is down from £15.9 million in 2021.
Net trading revenue in stock trading and investment per client also fell 29%
to £122.
The CMC
Markets report, published in November and covering the six months ended 30
September 2022, reached similar conclusions. The broker showed an overall
increase in net operating income of 21% YoY, to £153.5 million, but a 14% fall
in investing net revenue over the same period, to £20.8 million from £24.2
million.
Watch the recent FMLS22 panel discussion on: "What CFDs Traders Value Most & How They Choose Their Brokers."
We can look
for the most up-to-date information regarding the popularity of shares trading
amongst CFD traders in XTB’s 2022 initial financial report, published
in early February. The turnover of equity CFDs amounted to PLN 1.1 million in
the last quarter of 2022, falling by more than 90% compared to the PLN 11.5
million reported in the same period a year earlier. Thus, it is evident that
the trading activity bottomed out with the market itself.
After the Storm, the Sun Comes Out
In 2022,
equities were no longer the favorite instruments of retail investors, including
in the CFD industry. Commodities or currency pairs became way more popular due
to the almost continuously rising dollar.
However,
according to experts interviewed by Finance Magnates, the market storm should
calm down, and the first rays of sunshine will appear again in 2023.
To get
the full article and the bigger picture on equity market valuation and its
influence on CFDs trading popularity, get our Latest Quarterly
Intelligence Report.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
58% of UK Investors Choose Professional Guidance over 'Finfluencers’
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
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▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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