IG vs CMC Which Performs Better?

IG and CMC Markets are two popular online trading platforms that allow users to buy and sell stocks, as well as trade other financial instruments such as forex, cryptocurrencies, and commodities. Both platforms offer a wide range of features and tools for traders, but there are some key differences between the two. IG is known for its user-friendly interface and educational resources, while CMC Markets is favored for its lower fees and advanced trading technology. Understanding the pros and cons of each platform can help traders make informed decisions when it comes to investing in stocks.

IG or CMC?

When comparing IG and CMC, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between IG and CMC.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. IG has a dividend yield of 4.97%, while CMC has a dividend yield of 3.14%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. IG reports a 5-year dividend growth of 0.91% year and a payout ratio of 31.14%. On the other hand, CMC reports a 5-year dividend growth of 1.09% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with IG P/E ratio at 6.23 and CMC's P/E ratio at 11.67. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. IG P/B ratio is 1.89 while CMC's P/B ratio is 0.94.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, IG has seen a 5-year revenue growth of 0.97%, while CMC's is 0.08%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with IG's ROE at 30.53% and CMC's ROE at 8.28%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are £915.50 for IG and ¥1390.00 for CMC. Over the past year, IG's prices ranged from £656.00 to £995.25, with a yearly change of 51.71%. CMC's prices fluctuated between ¥1040.00 and ¥1492.00, with a yearly change of 43.46%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.