IG vs Plus500 Which Offers More Value?

IG and Plus500 are two popular trading platforms for trading stocks, offering users the opportunity to trade a wide range of assets, including stocks, indices, and commodities. Both platforms have their own unique features and benefits, making them attractive options for both new and experienced traders. IG is a well-established platform with a strong reputation in the industry, while Plus500 is known for its user-friendly interface and competitive spreads. Each platform has its own strengths and weaknesses, so it's important to carefully consider your trading goals and preferences before choosing between the two.

IG or Plus500?

When comparing IG and Plus500, 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 Plus500.

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 Plus500 has a dividend yield of 3.33%. 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, Plus500 reports a 5-year dividend growth of -25.76% year and a payout ratio of 32.81%.

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 Plus500's P/E ratio at 9.07. 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 Plus500's P/B ratio is 3.54.

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 Plus500's is 0.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with IG's ROE at 30.53% and Plus500's ROE at 39.06%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are £915.50 for IG and £2334.00 for Plus500. Over the past year, IG's prices ranged from £656.00 to £995.25, with a yearly change of 51.71%. Plus500's prices fluctuated between £1424.00 and £2684.00, with a yearly change of 88.48%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.