IG vs SelfWealth Which Is More Profitable?

When it comes to investing in the stock market, two popular platforms that are often compared are IG and SelfWealth. IG, a well-established online trading platform, offers a wide range of financial instruments including stocks, indices, commodities, and forex trading. On the other hand, SelfWealth is a newer player in the market that prides itself on its low-cost brokerage fees and unique social trading features. Both platforms have their own strengths and weaknesses, making it important for investors to carefully compare and choose the one that best fits their needs and preferences.

IG or SelfWealth?

When comparing IG and SelfWealth, 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 SelfWealth.

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 SelfWealth has a dividend yield of -%. 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, SelfWealth reports a 5-year dividend growth of 0.00% 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 SelfWealth's P/E ratio at 8.23. 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 SelfWealth's P/B ratio is 2.04.

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 SelfWealth's is 12.93%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with IG's ROE at 30.53% and SelfWealth's ROE at 26.07%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are £915.50 for IG and A$0.12 for SelfWealth. Over the past year, IG's prices ranged from £656.00 to £995.25, with a yearly change of 51.71%. SelfWealth's prices fluctuated between A$0.10 and A$0.17, with a yearly change of 66.67%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.