CMC Markets keeps up strong client numbers

CMC Markets PLC is a leading global provider of online retail financial services complete with a comprehensive institutional offering.

The company enables clients to trade a broad range of financial instruments through its award-winning Next Generation trading platform, supported by sophisticated charting, competitive pricing and automated execution.

(, ) acquired more than 500,000 () (ANZ) share investing client accounts for A$25mln.

The clients transferring across to the CMC platform comprise assets of more than A$45bn.

With this transaction, the existing white-label technology partnership, which has seen CMC’s trading technology power ANZ’s share investing business since 2018, will come to an end, CMC said.

The existing white label partnership generated GBP39.5mln in net trading revenue for CMC in fiscal 2021. The CMC platform will offer clients a wide range of additional benefits currently unavailable with ANZ. These include access to enhanced, market-leading mobile apps and complementary education tools and resources. Following the transition, ANZ Share Investing clients will benefit from lower brokerage charges across four major international markets as well as the local Australian market and will give CMC the opportunity to drive greater value from its enlarged client base.

(, ) said it entered the current financial year with significant momentum following a year of record performance.

Underlying fundamentals remain robust with overall monthly active client numbers similar to 2021, which were up around a third from pre-pandemic levels. Client assets under management also are at near-record levels.

(, ) said trading activity had continued at healthy Ievels in the first three months of its current fiscal year albeit below the exceptional volumes seen in the previous twelve months.

Monthly active client numbers remain at similar levels to 2021, which were up by around a third from pre-pandemic levels, the spread betting firm said in a trading update.

As an operator of a trading platform, () does not give investment advice to its customers.

Founder and chief executive Peter Cruddas, however, has no hesitation in offering advice to investors at large about his company’s own shares.

() has had its price target hiked to 463p from 326p by (, ).

The broker sees both upside and downside risks for the spread betting platform operator, which has just enjoyed a record year for client acquisition and profitability.

The potential downside risk could come from a greater decline in gross income per CFD (contracts for difference) in fiscal 2022 (FY22) than the 3% fall the broker is currently forecasting, due to lower market volatility and the impact of leverage restrictions in Australia.

(, )’s () CFO Euan Marshall talks to Proactive London’s Katie Pilbeam about their trading activity which has continued at healthy Levels in the first three months of its current fiscal year albeit below the exceptional volumes seen in the previous twelve months.

Monthly active client numbers remain at similar levels to 2021, which were up by around a third from pre-pandemic levels. And Client income retention remains in excess of 80%, but below the levels reported for the year just ended, as previously guided.