Investment Trends, one of the key research providers to foreign exchange and CFDs brokers globally, has published its annual UK Leverage Trading Report. The company’s findings are based on the responses of over 13,800 traders and investors and was conducted in May 2017.
According to Investment Trends, trader numbers in the UK during the year have increased materially. In contrast to the typically strong UK spread betting product, the CFDs trading industry marked substantial gains of 21 percent year-on-year. The report states that the driver for this growth has been primarily Plus500.
Commenting on the news, the Research Director of Investment Trends, Irene Guiamatsia, said: “The UK CFD market was this year’s growth leader among eight markets surveyed by Investment Trends.”
“Plus500’s client acquisition machine has caused a noticeable shift in the industry, where CFDs no longer play second fiddle to the traditionally preferred spread betting product,” Guiamatsia elaborated.
IG Leading in Innovation, CMC Markets in Customer Satisfaction
While the overall market is crowded, IG Group and CMC Markets continue to be the most popular brands in the UK. IG Group continued to mark gains in market share, reaching more than a third of the total.
Investment Trends is highlighting the concentration at the top, where number one IG is four times as large as the next biggest firm, CMC Markets. The leader has gained further market share during the past 12 months.
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“IG’s strong brand presence has been an undeniable asset for cementing their leadership,” said Guiamatsia.
A quarter of IG Group clients highlighted a useful innovation which the brokerage has provided them with. The number is several basis points higher than the industry’s average of 16 percent of traders.
CMC Markets has received high points in the client satisfaction area of the survey. The company received the highest satisfaction ratings in 14 out of 19 key service areas including the leading spot in the Overall Satisfaction, Customer Service, Mobile Trading, Platform Features and Education Materials sections.
UK Clients Among Most Satisfied Globally
Clients of leveraged trading providers in the UK are amongst the most-satisfied with the service they are getting. The figures however do not hamper relatively high switching activity, when compared to other markets. Nevertheless, the figure has declined for the second year running.
“UK traders are amongst the most satisfied globally and CMC Markets’ results represent a remarkable feat. The whole industry will undoubtedly continue to lift its game, if only asa defensive measure,” Guiamatsia elaborates.
Education and Support Key as Social Trading Grows
According to Investment Trends, the key differentiator going forward is going to be education and support. Other services which are being provided by the industry and are growing in popularity are social and automated trading.