The broker highlighted “subdued market conditions” behind the timid outlook.
Markets quickly reacted to the income estimation as CMC shares plummeted almost 20 percent.
CMC Markets (LON: CMCX) has released a trading update today (Friday), revealing its expectations of a lower net operating income between £250 and £280 million for the fiscal year 2024. It is significantly lower than a consensus estimate of £334.8 million.
CMC Markets Lowers Income Outlook
The London-listed broker highlighted that “subdued market conditions have continued through August with trading and investing net revenues trending 20% lower year-on-year. August, in particular, has seen a more challenging environment with markedly lower monetization of client trading activity due to a higher proportion of lower margin institutional volume.”
However, the broker pointed out that “underlying market activity has the potential to recover.”
Following the trading update, the share price of CMC Markets dropped almost 20 percent as trading opened on Friday morning, before showing some recovery. Year-to-date, CMC stock prices have declined by more than 55 percent.
CMC Markets shares on Friday
Are the Good Days for Brokers Over?
CMC Markets is one of the few publicly listed brokers with a wide range of offerings, including contracts for differences (CFDs), spread betting, stock trading, and even institutional products.
In March 2023, the fiscal year ended with a net income of £288.4 million for CMC, which was an increase of 2 percent from the previous year. The net trading revenue from CFDs and spread betting was £233.1 million, which was only 1 percent more than the last year. However, the net revenue from the investing stream dropped 21 percent to £37.9 million. On the other hand, it earned £13.9 million from interest income, compared to £0.8 million in the year before.
In the latest update, the company said that: “Core KPIs including client money, assets under administration, and active clients across both the trading and investing businesses remain robust with no material change seen through recent weeks.”
Further, the management of the company is expecting “operating costs excluding variable remuneration are unchanged at £240 million.”
CMC Markets (LON: CMCX) has released a trading update today (Friday), revealing its expectations of a lower net operating income between £250 and £280 million for the fiscal year 2024. It is significantly lower than a consensus estimate of £334.8 million.
CMC Markets Lowers Income Outlook
The London-listed broker highlighted that “subdued market conditions have continued through August with trading and investing net revenues trending 20% lower year-on-year. August, in particular, has seen a more challenging environment with markedly lower monetization of client trading activity due to a higher proportion of lower margin institutional volume.”
However, the broker pointed out that “underlying market activity has the potential to recover.”
Following the trading update, the share price of CMC Markets dropped almost 20 percent as trading opened on Friday morning, before showing some recovery. Year-to-date, CMC stock prices have declined by more than 55 percent.
CMC Markets shares on Friday
Are the Good Days for Brokers Over?
CMC Markets is one of the few publicly listed brokers with a wide range of offerings, including contracts for differences (CFDs), spread betting, stock trading, and even institutional products.
In March 2023, the fiscal year ended with a net income of £288.4 million for CMC, which was an increase of 2 percent from the previous year. The net trading revenue from CFDs and spread betting was £233.1 million, which was only 1 percent more than the last year. However, the net revenue from the investing stream dropped 21 percent to £37.9 million. On the other hand, it earned £13.9 million from interest income, compared to £0.8 million in the year before.
In the latest update, the company said that: “Core KPIs including client money, assets under administration, and active clients across both the trading and investing businesses remain robust with no material change seen through recent weeks.”
Further, the management of the company is expecting “operating costs excluding variable remuneration are unchanged at £240 million.”
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Executive Interview | Jas Shah | FMLS:25
Executive Interview | Jas Shah | FMLS:25
Interview with Jas Shah
Builder | Adviser | Fintech Writer | Product Strategist
In this episode, Jonathan Fine sat down with Jas Shah, one of the most thoughtful voices in global fintech. Known for his work across advisory, product, stablecoins, and his widely read writing, Jas brings a rare combination of industry insight and plain-spoken clarity.
We talk about his first impression of the Summit, the projects that keep him busy today, and how they connect to the stablecoin panel he joined. Jas shares his view on the link between fintech, wealthtech and retail brokers, especially as firms like Revolut, eToro and Trading212 blur long-standing lines in the market.
We also explore what stablecoin adoption might look like for retail investment platforms, including a few product and UX angles that are not obvious at first glance.
To close, Jas explains how he thinks about writing, and how he approaches “shipping” pieces that spark debate across the industry.
Interview with Jas Shah
Builder | Adviser | Fintech Writer | Product Strategist
In this episode, Jonathan Fine sat down with Jas Shah, one of the most thoughtful voices in global fintech. Known for his work across advisory, product, stablecoins, and his widely read writing, Jas brings a rare combination of industry insight and plain-spoken clarity.
We talk about his first impression of the Summit, the projects that keep him busy today, and how they connect to the stablecoin panel he joined. Jas shares his view on the link between fintech, wealthtech and retail brokers, especially as firms like Revolut, eToro and Trading212 blur long-standing lines in the market.
We also explore what stablecoin adoption might look like for retail investment platforms, including a few product and UX angles that are not obvious at first glance.
To close, Jas explains how he thinks about writing, and how he approaches “shipping” pieces that spark debate across the industry.
