Top-5 Forex Public Brokers: Post-COVID-19 Results, Activity & Forecast

8 min read

Dear traders,

According to Investopedia’s latest review on the Forex public brokers, there is a range of companies that offer improved services even in the period of post COVID-19 times. 

The review outlines five of them and presents each broker with their core advantage for the user and trader.  

In this article, we will review the list of brokers with the description of their specifications. We will also cite their latest reports in order to show a forecast for each of them. 

Top 5 Forex Brokers as Public Companies

Here are the top-5 companies from the list of the public forex brokers traded as public companies made by Investopedia. A short description of the investors’ experience and demands has been added:  

  • CMC Markets: Best Overall Forex Broker and Best for Range of Offerings
  • London Capital Group (LCG): Best Forex Broker for Beginners
  • Saxo Capital Markets: Best Forex Broker for Advanced Traders
  • XTB Online Trading: Best Forex Broker for Low Costs
  • IG: Best Forex Broker for U.S. Traders

In the following passages, we will make an overview of their competency and offer a forecast for each company mentioned in Investopedia’s review. 

CMC Markets

The latest report of CMC Markets presents the growth of its numbers in the post-COVID-19 period. The review of Seeking Alpha mentions that the results are “showing a 93% increase in net trading revenue”. The company proceeds with the focus on the investments to D2D technology that predict continuous profit for investments. The report also underlines the volatility which is expected to remain a key factor in the markets with unforeseeable changes.

London Capital Group (LCG)

The answer on how to invest in the stock of Forex Brokers can be found in the latest updates of the London Capital Group. During the post-COVID-19 period, LCG launched “the complimentary trading webinars” which focus on mastering stock investments. With the educational activity, they offer a range of topics preparing their clients for investing in Forex brokers

Their webinars concern the following topics of the stock analysis Supermarket Share Trading; Trade Tesla & Auto Shares; Trade the Fitness industry; 7 Tips For Trading At Home; Beer Industry Trading; Trade Fintech Shares; Trading “Defensive Shares; Direct FX Intervention; Breakout Trading Strategy; 5 Steps to Trading Discipline; Trading a Falling Market.” 

With the mentioned educational approach they offer options for investors to advance their knowledge in risk-taking operations. The company tries to present itself as a guide in uncertain times balancing the market with the experience of stock volatility. 

XTB Online Trading

As the company mentions in the report of the half a year results: “The significant factors determining the level of revenues were above-average volatility on financial and commodity markets caused by among others coronavirus COVID-19 global pandemic and a constantly growing client base combined with their high transaction activity noted in the number of concluded transactions in lots.” 

The heavy market participation also meant that volume steeply increased: “As a consequence the transaction volume in CFD instruments amounted to 1 613,9 thousand lots (H1 2019: 779,7 thousand lots) and a profitability per lot reached PLN 321 (H1 2019: PLN 114).” 

As The Management Board of the X-Trade Brokers Dom Maklerski S.A continues: “XTB has a solid foundation in the form of a constantly growing client base and the number of active clients. In the first half of 2020 the Group reported a new record in the number of new clients amounted to 52 434 compared to 16 089 a year earlier… (and) similarly to the number of new clients, the number of active clients was also record high (increasing) from 23 688 to 52 084, i.e. by 119,9% y/y.”

 Though the market seems to have unpredictable direction of the development, the numbers mentioned in XTB report show the significant potential in investing in Forex brokers post Covid-19 period.

IG Group

The annual results showed the effectiveness of their business model and emphasized the positive forecast of the company. June Felix, the CEO of IG Group mentions this: “Our model of internalising or netting client flows and hedging the residual risk in each market, remains unchanged, as does our Board approved market risk limits. These both served IG and its clients very well through this volatile period.” 

Going deeper in the details of their activity, Felix mentions the numbers presenting the stock analysis: “Our Q4 revenue performance reflects the increase in client activity from both existing and new clients. Here’s further evidence of our strong performance, in Q4. A £259.5m record revenue, 86% higher than Q3. Nearly 200,000 unique clients trading, up 39% on Q3. Over 51,000 new clients onboarded, up 204% on Q3. Nearly £2bn of client money balance at the end of the year, up 31% on the end of Q3”. 

Saxo Capital Markets

In their Q3 report, Saxo Group summarizes the changes in the economy. It explains that the world is moving into the direction of localization, away from globalization. This can significantly influence the stock market. Steen Jakobsen, Chief Economist & CIO of Saxo Group reports that “the S&P 500 has just had its worst session since March and the VIX has exploded higher, so the impact from Covid-19 is far from over. Our economy and financial system remain very fragile.”

Saxo offers the strategy for the post covid investments characterized by the following idea: “One theme that makes sense in this transition is investing in small caps with a domestic revenue profile in non-cyclical parts of the economy (healthcare, consumer staples and utilities).” Jakobsen continues by saying that “the transition to a more localised global economy will create an uncertain path for many companies and therefore the good old strategy of investing in high-quality companies with low financial leverage is also attractive in our view.” Hence, evidently, the company will focus its activity on the mentioned investments. 

Conclusion

Though the global market suffers from the results of post-COVID-19 period, the Forex market shows its growth. Though the reviewed list can be widened with the range of the companies, these five present the increase of their numbers and offer the opportunities for the investors to advance their levels in risk-taking operations and manage the sources even in the times of changes. 

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