CFD and Spreadbet Trading Continue to Reach Record Levels

Investment assets, in the fourth quarter, grew by 0.4%, which was ahead of the market with the FTSE/APCIMS Balanced Index only increasing by 0.2%. However, new advisory and discretionary business continued to fall quarter on quarter. 

Despite disappointing performances in the third quarter, 2007 has been a successful year following a good recovery in the fourth quarter and a strong first half of the year. This continues and improves on the exceptional performance of 2006.

Trading volumes of CFDs are reaching record levels each quarter, and in the fourth quarter were 49% up on the equivalent quarter of 2006. Volumes of trades in collectives and other instruments are also very strong, and considerably up on what they were last year. Spreadbet trading has now come of age, with over 200,000 trades being conducted in the final quarter of 2007, more than 45% up on the number trades conducted in the whole duration of 2006. Securities trading levels have remained consistent throughout 2007, but as a proportion of total trades are decreasing, indicating the move away from the cash market and towards CFDs and Spreadbets.   

The fourth quarter has seen a strong performance from a large number of firms with revenues up 3.9% on the third quarter and 16.6% up on what they were at the end of 2006. Profit margins are up on 2006, especially for execution only stockbrokers.