According to the company's latest annual results, despite a drop in active traders, the broker increased per-client revenue.
Increased focus on institutional, high-value retail clients expected to boost revenues further.
The number of active customers on CMC Markets (LON: CMCX) went down more than 10,000 in FY24 from the previous year according to the company's latest annual results. However, this modest (less than 4%) fall was more than counterbalanced by an 18% increase in average revenue per active customer to £4,685. To put this in context, Plus500’s average revenue per client was approximately $3,115, which in itself was almost twice that of Interactive Brokers and well in excess of the roughly $570 per client earned by Saxo.
CMC Markets’s Solid FY24 Numbers
CMC is a leading global provider of online trading and investing, with a comprehensive retail, B2B and institutional offering across multiple asset classes. The firm’s headline figures for the year ending 31 March made for very pleasant reading for shareholders, particularly in light of previously downbeat guidance.
Net operating income rose 15% to £332.8 million (a big improvement on its late March 2023 guidance of £290-£310 million), and trading revenue was up 11% to £259.1 million.
While stockbroking and related services revenue net of rebates was down by £3.9 million—mainly due to a weaker Australian dollar—this was more than outweighed by a £22.3 million jump in ‘other income’ to £39.7 million.
Cost Cutting Efforts
CMC commenced a wide-reaching cost review programme in the last financial year. “The significance of this review cannot be overstated,” Albert Soleiman, chief financial officer at CMC Markets, told Finance Magnates. “We cut headcount by around 220 staff (making up approximately 18% of our global workforce) which was a difficult but necessary step.”
The review is much wider than headcount and takes in all material spend in areas such as premises costs, vendor rationalisation and capital allocation to ensure the company continues to drive margin expansion, adds Soleiman.
CMC’s Q1 2025 trading update reiterated that management remained focused on opportunities to drive additional cost efficiencies and deliver margin expansion, particularly in the institutional and B2B space.
In the company’s latest annual report, CEO Peter Cruddas referred to ‘making great strides in a huge market segment of B2B and institutional business with limited competition from our peers’.
Laurence Booth, head of capital markets at CMC Markets, told Finance magnates that the introduction of a fully integrated multi-asset, multi-currency platform is absolutely crucial to this strategy.
“Not all clients have the same gaps in their product offering, so we endeavour to cover all bases,” he says. “We have a strong understanding of the D2C space and, therefore, stay ahead of trending demand for asset types. We have access to every asset class via the same infrastructure, so the operational leverage comes at little to no extra cost.”
In common with many of its peers, CMC has done well from higher interest rates on its own cash as well at that of its customers – interest income accounted for £35 million last year.
Adjusted profit before tax was £80 million (compared to £52.6 in 2023), and profit before tax was up 21% to £63.3 million.
Increased Geographical Reach
CMC has also increased the geographical diversity of its business, with 56% of net revenue generated outside the UK and Europe regions compared to 49% in 2023. Key developments in this regard include the launch of CMC Invest Singapore and the expansion of the Dubai subsidiary in the DIFC.
One of the key factors in last year’s growth was the addition of new products across cash equities, index options, cryptocurrencies (including the enablement of cash crypto trading for Australian clients) and money market investments.
“Cash equities is the number one requested asset class from institutional clients,” says Booth. “There is demand across a broader client spectrum for a one-stop financial hub versus a narrow CFD and spread betting offering. Having a multi-asset offering increases flow in the core business.”
CMC has referred to its centralised treasury management division and its global treasury management system as key elements of its efficiency programme.
“Treasury management services is the centralised function that manages and optimises FX, share inventory and cash as well as counterparty exposure,” explains Booth. “We process more than £15 billion of turnover per day, so even the slightest improvement results in meaningful gains. The optimised strategy has returned more than 25% versus our incumbent banking rates whilst reducing concentration with our counterparties.”
One of the few negatives for the last financial year was a drop of £31.8 million in total segregated client money held by the group for trading clients to £517.6 million.
In its Q1 2025 trading update, the firm says good progress is being made on its institutional and B2B strategy, as highlighted by the recent announcement of a partnership with Revolut. The initial onboarding of Revolut clients has commenced, and some clients are now live and trading.
CMC ‘traded in line with management’s expectations during the first quarter of FY25’, and guidance remains unchanged with the expectation of net operating income of £320-£360 million for the full year.
The number of active customers on CMC Markets (LON: CMCX) went down more than 10,000 in FY24 from the previous year according to the company's latest annual results. However, this modest (less than 4%) fall was more than counterbalanced by an 18% increase in average revenue per active customer to £4,685. To put this in context, Plus500’s average revenue per client was approximately $3,115, which in itself was almost twice that of Interactive Brokers and well in excess of the roughly $570 per client earned by Saxo.
CMC Markets’s Solid FY24 Numbers
CMC is a leading global provider of online trading and investing, with a comprehensive retail, B2B and institutional offering across multiple asset classes. The firm’s headline figures for the year ending 31 March made for very pleasant reading for shareholders, particularly in light of previously downbeat guidance.
Net operating income rose 15% to £332.8 million (a big improvement on its late March 2023 guidance of £290-£310 million), and trading revenue was up 11% to £259.1 million.
While stockbroking and related services revenue net of rebates was down by £3.9 million—mainly due to a weaker Australian dollar—this was more than outweighed by a £22.3 million jump in ‘other income’ to £39.7 million.
Cost Cutting Efforts
CMC commenced a wide-reaching cost review programme in the last financial year. “The significance of this review cannot be overstated,” Albert Soleiman, chief financial officer at CMC Markets, told Finance Magnates. “We cut headcount by around 220 staff (making up approximately 18% of our global workforce) which was a difficult but necessary step.”
The review is much wider than headcount and takes in all material spend in areas such as premises costs, vendor rationalisation and capital allocation to ensure the company continues to drive margin expansion, adds Soleiman.
CMC’s Q1 2025 trading update reiterated that management remained focused on opportunities to drive additional cost efficiencies and deliver margin expansion, particularly in the institutional and B2B space.
In the company’s latest annual report, CEO Peter Cruddas referred to ‘making great strides in a huge market segment of B2B and institutional business with limited competition from our peers’.
Laurence Booth, head of capital markets at CMC Markets, told Finance magnates that the introduction of a fully integrated multi-asset, multi-currency platform is absolutely crucial to this strategy.
“Not all clients have the same gaps in their product offering, so we endeavour to cover all bases,” he says. “We have a strong understanding of the D2C space and, therefore, stay ahead of trending demand for asset types. We have access to every asset class via the same infrastructure, so the operational leverage comes at little to no extra cost.”
In common with many of its peers, CMC has done well from higher interest rates on its own cash as well at that of its customers – interest income accounted for £35 million last year.
Adjusted profit before tax was £80 million (compared to £52.6 in 2023), and profit before tax was up 21% to £63.3 million.
Increased Geographical Reach
CMC has also increased the geographical diversity of its business, with 56% of net revenue generated outside the UK and Europe regions compared to 49% in 2023. Key developments in this regard include the launch of CMC Invest Singapore and the expansion of the Dubai subsidiary in the DIFC.
One of the key factors in last year’s growth was the addition of new products across cash equities, index options, cryptocurrencies (including the enablement of cash crypto trading for Australian clients) and money market investments.
“Cash equities is the number one requested asset class from institutional clients,” says Booth. “There is demand across a broader client spectrum for a one-stop financial hub versus a narrow CFD and spread betting offering. Having a multi-asset offering increases flow in the core business.”
CMC has referred to its centralised treasury management division and its global treasury management system as key elements of its efficiency programme.
“Treasury management services is the centralised function that manages and optimises FX, share inventory and cash as well as counterparty exposure,” explains Booth. “We process more than £15 billion of turnover per day, so even the slightest improvement results in meaningful gains. The optimised strategy has returned more than 25% versus our incumbent banking rates whilst reducing concentration with our counterparties.”
One of the few negatives for the last financial year was a drop of £31.8 million in total segregated client money held by the group for trading clients to £517.6 million.
In its Q1 2025 trading update, the firm says good progress is being made on its institutional and B2B strategy, as highlighted by the recent announcement of a partnership with Revolut. The initial onboarding of Revolut clients has commenced, and some clients are now live and trading.
CMC ‘traded in line with management’s expectations during the first quarter of FY25’, and guidance remains unchanged with the expectation of net operating income of £320-£360 million for the full year.
Voting Underway for FMAA - The Industry’s Most Transparent Awards
Transformation in the APAC Trading Landscape and Beyond | FMPS:24
Transformation in the APAC Trading Landscape and Beyond | FMPS:24
As the financial services industry experiences rapid and transformative changes, leading fintech experts and policymakers come together to discuss the present and future of retail trading and the evolving regulatory landscape. Join this insightful session for a forward-looking perspective on the trends, innovations, and trader needs that are shaping the future of offerings on a global scale.
Speakers:
Eric Blewitt, CEO, Investment Trends
Rhys Bollen, Senior Executive Leader, Digital Assets, Australian Securities and Investments Commission (ASIC)
Michael Bogoevski, Head of Institutional Sales, CMC Connect
Karin Setchell, General Manager, Product & Investing Solutions, CommSec
#fmps #fmps24 #fmevents #RetailTrading #FintechInnovation #FinancialRegulation #DigitalAssets #GlobalFinance
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As the financial services industry experiences rapid and transformative changes, leading fintech experts and policymakers come together to discuss the present and future of retail trading and the evolving regulatory landscape. Join this insightful session for a forward-looking perspective on the trends, innovations, and trader needs that are shaping the future of offerings on a global scale.
Speakers:
Eric Blewitt, CEO, Investment Trends
Rhys Bollen, Senior Executive Leader, Digital Assets, Australian Securities and Investments Commission (ASIC)
Michael Bogoevski, Head of Institutional Sales, CMC Connect
Karin Setchell, General Manager, Product & Investing Solutions, CommSec
#fmps #fmps24 #fmevents #RetailTrading #FintechInnovation #FinancialRegulation #DigitalAssets #GlobalFinance
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
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Executive Interviews with Joe Li & Simon Naish | ATFX | FMPS:24
Executive Interviews with Joe Li & Simon Naish | ATFX | FMPS:24
In this Finance Magnates Executive Interview, Joe Li, Chairman at ATFX and Simon Naish, Country Head of Australia at ATFX Connect, discuss ATFX’s strategic growth in the APAC region, particularly focusing on their institutional arm, ATFX Connect. They highlight the importance of Australia as a strategic hub, the challenges of operating in a highly competitive and regulated market, and their plans for regional expansion across APAC. The conversation touches on the integration of advanced technology and multi-asset offerings, the significance of optimal execution tools, and the importance of tailoring solutions to meet the sophisticated demands of institutional clients. They also emphasize their strong regulatory compliance and their commitment to enhancing client experience through innovative tools and infrastructure.
#fmps #fmps24 #fmevents #ATFXConnect #APACFinance #InstitutionalTrading #FinancialTechnology #MarketExpansion
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
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In this Finance Magnates Executive Interview, Joe Li, Chairman at ATFX and Simon Naish, Country Head of Australia at ATFX Connect, discuss ATFX’s strategic growth in the APAC region, particularly focusing on their institutional arm, ATFX Connect. They highlight the importance of Australia as a strategic hub, the challenges of operating in a highly competitive and regulated market, and their plans for regional expansion across APAC. The conversation touches on the integration of advanced technology and multi-asset offerings, the significance of optimal execution tools, and the importance of tailoring solutions to meet the sophisticated demands of institutional clients. They also emphasize their strong regulatory compliance and their commitment to enhancing client experience through innovative tools and infrastructure.
#fmps #fmps24 #fmevents #ATFXConnect #APACFinance #InstitutionalTrading #FinancialTechnology #MarketExpansion
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
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🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Ready to Scale? Regtech in Australia, A Global View | FMPS:24
Ready to Scale? Regtech in Australia, A Global View | FMPS:24
In the effort to elevate Australian fintech on the global stage, RegTech presents a unique and compelling case. Despite the increasing demand for robust compliance solutions, Australia's RegTech sector—ranked third-largest globally—remains underfunded. Join this insightful fireside chat to explore the future of Australia’s RegTech hub and its global potential.
Key discussion points include uncovering the hidden opportunities in RegTech that VCs are overlooking, the necessary steps for increased governmental support, the readiness of the local ecosystem to collaborate across global regulatory regimes, and lessons learned from other leading fintech hubs around the world.
Speakers:
Dickie Currer, National Lead, Tech Australia Advocates
Deborah Young, CEO, The RegTech Association
#fmps #fmps24 #fmevents #RegTech #Fintech #AustralianFintech #GlobalCompliance #TechInnovation
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In the effort to elevate Australian fintech on the global stage, RegTech presents a unique and compelling case. Despite the increasing demand for robust compliance solutions, Australia's RegTech sector—ranked third-largest globally—remains underfunded. Join this insightful fireside chat to explore the future of Australia’s RegTech hub and its global potential.
Key discussion points include uncovering the hidden opportunities in RegTech that VCs are overlooking, the necessary steps for increased governmental support, the readiness of the local ecosystem to collaborate across global regulatory regimes, and lessons learned from other leading fintech hubs around the world.
Speakers:
Dickie Currer, National Lead, Tech Australia Advocates
Deborah Young, CEO, The RegTech Association
#fmps #fmps24 #fmevents #RegTech #Fintech #AustralianFintech #GlobalCompliance #TechInnovation
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
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Resilience in Trading: From Third Class To World Class | FMPS:24
Resilience in Trading: From Third Class To World Class | FMPS:24
Join Mario Singh, Founder and Chairman of Fullerton Markets, as he shares his life story, highlighting the traits that were required starting without financial knowledge to become a financial and trading expert recognised by world-renowned media like CNBC & Bloomberg.
#fmps #fmps24 #fmevents #trading #onlinetrading #tradingexpert #tradingjourney
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Don't miss out on our latest videos, interviews, and event coverage.
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Join Mario Singh, Founder and Chairman of Fullerton Markets, as he shares his life story, highlighting the traits that were required starting without financial knowledge to become a financial and trading expert recognised by world-renowned media like CNBC & Bloomberg.
#fmps #fmps24 #fmevents #trading #onlinetrading #tradingexpert #tradingjourney
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IBs and Brokers: The Good, The Bad, The Ugly | FMPS:24
IBs and Brokers: The Good, The Bad, The Ugly | FMPS:24
For most brokers, IBs and trading educators are invaluable partners, driving highly targeted traffic from key regions. However, without proper management, these relationships can quickly turn sour. In this session, gain an insider’s perspective on the types of licenses IBs need in APAC, the crucial details in IB agreements that both parties must scrutinize, common disputes between IBs and brokers and effective resolutions, and the pros and cons of transitioning from IB to broker.
Speakers:
Melody Gao, Senior Lawyer, Sophie Grace
James Perry-Keene, Head of Strategic Partnerships, Pepperstone
Christopher Balanzategui, CEO, N3tworx
#fmps #fmps24 #fmevents #IBAgreements #BrokerPartnerships #TradingIndustry #APACFinance #FinancialRegulation
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For most brokers, IBs and trading educators are invaluable partners, driving highly targeted traffic from key regions. However, without proper management, these relationships can quickly turn sour. In this session, gain an insider’s perspective on the types of licenses IBs need in APAC, the crucial details in IB agreements that both parties must scrutinize, common disputes between IBs and brokers and effective resolutions, and the pros and cons of transitioning from IB to broker.
Speakers:
Melody Gao, Senior Lawyer, Sophie Grace
James Perry-Keene, Head of Strategic Partnerships, Pepperstone
Christopher Balanzategui, CEO, N3tworx
#fmps #fmps24 #fmevents #IBAgreements #BrokerPartnerships #TradingIndustry #APACFinance #FinancialRegulation
📣 Stay updated with the latest in finance and trading!
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