Publicly traded FX/CFD brokers see shares flat in 2023, but with (very!) mixed results
A good barometer of what’s going on overall in the global FX and CFDs brokerage sector is taking a look at the publicly traded brokers.
A good barometer of what’s going on overall in the global FX and CFDs brokerage sector is taking a look at the publicly traded brokers.
At the current share price, CMC Markets has a market capitalization of just over £300 million (USD $379 million).
It was (overall) a good market for FX/CFD brokers in 1H-2023, but with some brokers clearly doing better than others.
At its current share price of £15.68, Plus500 is trading at multiples of 2023e consensus results of 3.0x Revenue and 8.1x Profit.
European exchanges are off by between 2-3% on Monday, playing some catch-up to the Friday declines in the US.
It was very much a haves versus the have-nots Retail FX/CFDs industry in 2022.
Investors and traders seem to be selling last year’s “did well” stocks, without much regard to current performance and outlook.
While equity markets globally are taking a hit today, a number of Retail FX firms have reacted especially harshly.
Two of 2021’s market darlings among public traded Retail FX brokers – Swissquote and NAGA.com – have performed the worst YTD in 2022.
The big winners in 2021, as far as share price goes, were Swissquote (SWX:SQN) and Naga Group (FRA:N4G).