IG vs CMC Markets Which Is More Profitable?

IG and CMC Markets are two popular trading platforms that allow users to invest in stocks. Both platforms offer a range of features such as real-time market data, research tools, and access to thousands of stocks. However, there are differences between the two platforms in terms of fees, user interface, and customer service. Understanding these differences can help investors make an informed decision when choosing between IG and CMC Markets for trading stocks.

IG or CMC Markets?

When comparing IG and CMC Markets, 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 Markets.

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 4.78%, while CMC Markets has a dividend yield of 0.04%. 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 Markets reports a 5-year dividend growth of -7.66% year and a payout ratio of 4.17%.

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 6.43 and CMC Markets's P/E ratio at 2.22. 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 1.95 while CMC Markets's P/B ratio is 1.81.

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 0.85%, while CMC Markets's is 1.86%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with IG's ROE at 30.53% and CMC Markets's ROE at 86.11%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are £960.00 for IG and £262.50 for CMC Markets. Over the past year, IG's prices ranged from £671.00 to £995.25, with a yearly change of 48.32%. CMC Markets's prices fluctuated between £94.30 and £349.00, with a yearly change of 270.10%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.