Online trading firms lift guidance as market conditions improve
CMC Markets and Plus500 said they had both performed stronger than expected in recent months.
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Your support makes all the difference.Two of London’s largest online trading firms have strengthened their outlook amid an improvement in market conditions.
CMC Markets and Plus500 said they had both performed stronger than expected in recent months.
Shares in both companies made strong gains in early trading on Monday as a result.
CMC Markets told its shareholders that it delivered a “strong performance” over the past three months.
It highlighted a positive performance in its business-to-business and institutional arms as the financial markets saw positive conditions.
As a result, the company said it expects to record between £290 million and £310 million in net operating income for the current financial year.
CMC had previously guided towards a range to £250 million to £280 million.
Elsewhere, rival Plus500 also provided an upbeat update for shareholders.
The FTSE 250 company said it delivered results for 2023 “significantly ahead” of market forecasts after operational and strategic progress during the year.
Plus500 said its performance was boosted by the expansion of its US futures businesses, the launch of a localised retail trading platform in Japan and further progress in the UAE following the grant of a regulatory licence earlier last year.
As a result, the firm generated around 725 million US dollars (£571 million) in revenue over the year to December 31, surpassing financial targets.
It also said earnings for the year will be around 340 million dollars (£268 million), also well ahead of market expectations.
The company said: “As the group remains well positioned to continue executing against its strategic objectives, enabled by its market-leading technology and supported by its strong financial position, the board looks to the year ahead with confidence.”