Home » Listed Trading Brokers And Should You Buy Their Stocks?
The Covid-19 pandemic significantly changed the global financial market. But even though the pandemic was featured with limits and strict regulations, it had a very good impact on the financial market. Because online space was free from regulations, the interest from society essentially increased. This partly determined the massively increased popularity of financial brokers. With the acceptable volatility, brokers are more actively involved to suggest diverse services or promotions to their auditory.
One of the most positive aspects of the pandemic in the financial market was a bull run in crypto. This is a situation where the prices are massively increasing. As experts say, bull runs have always made history in the crypto world since the first one which was in 2011. In 2021, the price of bitcoin doubled. In the autumn, it increased more and at the beginning of 2022, it dropped to 35 000 USD. This immediate change had a very positive impact on many company stocks. One of them is GME where the stock prices dropped significantly.
These are only some of the positive impacts of a pandemic on interested investors as well as financial brokers. Now, the situation is more stable and the stock prices are also under massive fluctuations. But still, for investors, there are some good alternatives to brokers’ stocks that are worth trying to buy. This is the main thing we will talk about more, down below.
Some Broker Companies That Are Worth Investing In
In this article, we will outline three trusted and popular brokers which are most frequently used during 2022. But we won’t introduce them to their brokerage services or technical features. We will be more focused on showing you a clear picture extracted from the investfox report on the 2022 financial performance of the CMC Markets, IG Group, and Plus500.
Plus500is one of the great online brokerages which is quite successful in the market. Interested investors can completely be calm with the trustworthiness because it is licensed by the prestigious local regulations of the UK.
With the financial performance, the company had pretty positive results compared to the first quarter comparison of 2021 and 2022. More specifically, the revenue change rising equaled 33%. The rate of market capitalization has also increased from 1.60 to 1.78 bln USD. The positive change was in customer count too which was raised up to 3%. The highest growth was a 104% increase YoY in average revenue from each user, where a 64% rise was between the quarters. So, as you can see, Plus500 had a quite successful quarter, financially.
This is another effective online broker which had quite interesting financial results during 2021-2022. If we check their revenue amount changes, there is a 31% decrease between Q1 of 2022 and Q1 of 2021. The same is with profit amounts before tax. Currently, their revenue is about 338 mln USD. On the other hand, the positive tendency is outlined in the market capitalization amount.
The company claims that even though the ongoing year is not the best financially, it is normal because currently the market is in the recovering stages and such an amount of reduction is not a long-term effect. With the stock prices, there was a significant increase in March when it raised from 220 to 290 GBP.
Compared to the previous broker, IG Group had a quite financially positive period till the current quarter. Even though their market capitalization was slightly reduced, net revenue from trading significantly increased. The rising amount of the difference between 2022 and 2021 year was about 30 mln GBP.
A slightly different picture is outlined if we look at the stock price changes. More specifically, according to their records, the prices decreased by 15%. As this broker is focused on increasing the popularity and market positioning, with the reduced stock price, there is more potential for involving more investors. From April till June, the stock decreased by about 170 GBX.
Why Should I Buy Stocks Of These Broker Platforms?
As you could see from the previous description, all these brokers had quite great achievements after the pandemic regulations. As we mentioned, the financial market was significantly impacted positively by the regulations. CMC Markets, IG Group, as well as Plus500 are great examples of brokers which used the created situation as their competitive advantage.
On the other hand, if you are one of those who is looking for a good stock for investing, selecting from these platforms, your beneficial prospect could be increased. As the financial performances of these companies show, investing in their stocks will not be a waste of your time or money. They are quite competitive and have a great tendency of increasing their financial rates more importantly, till the end of 2022. This is why we think that buying stocks of the brokers, especially of Plus500 and IG Group, are quite good options to try.