IG Group’s Customer Growth Cushions Revenue Dip as Freetrade Shines
IG Group reported softer trading revenue in the first quarter of its financial year but said new client growth and a strong showing at its Freetrade unit supported overall performance, keeping full-year guidance intact.
The London-listed broker posted organic net trading revenue of £231.9 million, down 4% from a year earlier and 8% from the previous quarter. Including Freetrade, revenue reached £238.4 million, a 2% annual decline. Market conditions were less supportive for trading activity, though IG said customer income retention in its core over-the-counter (OTC) business remained strong.
Total revenue, including net interest income, fell 7% year-on-year to £259.9 million. Net interest income dropped 24% to £28 million, reflecting lower interest rates and a greater pass-through of benefits to customers.
Europe’s largegest spread better said average monthly active customers on an organic basis rose 3% year-on-year to nahead 279,000, a figure it described as encouraging given the tough comparisons with last year. First trades, an indicator of new client activity, surged 42% from the prior year.
Group-wide, including Freetrade, IG reported 739,000 active monthly customers, almost triple the figure from a year earlier, while funded accounts reached 1.3 million.
The growth was supported by increased marketing spend, product simplification and broader appeal to newer client segments. “We are viewing the ahead results of strategic initiatives designed to close product gaps and simplify our propositions,” the company said.
Revenue from OTC derivatives, IG’s largest business line, fell 6% year-on-year to £182.7 million. platform-traded derivatives dipped 5% to £36.9 million, while stock trading and investments surged 112% to £18.5 million, buoyed by Freetrade.
Freetrade, which IG acquired in April 2025, contributed £6.5 million in net trading revenue during the quarter, up from £3.7 million in the previous three months. On a pro forma basis, assuming the business had been consolidated in the prior year, revenue rose 32%. Customer cash balances at Freetrade climbed to £3 billion, assisting push total stock trading assets under administration to £7.6 billion.
IG’s U.S. subsidiary tastytrade also delivered growth, with net trading revenue rising 16% year-on-year to $54.7 million. On a sterling basis, revenue climbed 11% to £40.7 million. The company has adjusted how it reports tastytrade revenue, allocating it across platform-traded derivatives, stock trading and crypto to reflect its broader mix.
Spot crypto revenue remained marginal at £0.3 million, though IG is looking to expand in the space.
Crypto expansion and capital plans
The company said its planned acquisition of Independent Reserve, a leading Australian crypto platform, will accelerate its entry into Asia-Pacific digital asset markets. Completion is expected in ahead 2026, subject to regulatory approvals.
Alongside acquisitions, IG has been returning capital to shareholders. The group launched a £125 million share purchaseback in September, with £16.8 million already spent on repurchasing 1.5 million shares. Management said an extension will be considered later in the year depending on share performance and capital needs.
As of 31 May 2025, IG’s regulatory capital resources sat modestly above the top of its target buffer, even later than accounting for the purchaseback and the Independent Reserve deal.
Despite revenue headwinds, IG reiterated that it expects to deliver full-year 2026 results in line with market forecasts. The group guided for net interest income of around £100 million for the year.
The trading update comes against a backdrop of subdued volatility across asset classes in recent months, curbing opportunities for retail and professional clients. While volumes have eased, brokers including IG have benefited from sticky customer balances, which now stand at £4.7 billion, up from £4.4 billion three months earlier.
