Not familiar with the name in detail. But surely spreadbetting/CFD where IG lead are small markets in the US due to lack of CGT benefits over there? Hence I'm not sure why you would acquire a subscale US broker, that can't compete on cost with Interactive (etc.) and saw a massive benefit from COVID. Or am I missing something?
Agree with you that the US is not the right place for spread betting/CFDs. Though there are few CGT benefits for CFDs anywhere, not just in the US!
Interactive is the best for professionals and large accounts but there are plenty of decent US brokerages apart from that, with distinct offerings. Tastytrade has its own identity but I think you're right to be sceptical in terms of what IGG might do with it. I'm still very sceptical myself - as I hope I conveyed in the article - but I'm hopeful that even if it was a mistake, it's something they can recover from. We'll see.
Not familiar with the name in detail. But surely spreadbetting/CFD where IG lead are small markets in the US due to lack of CGT benefits over there? Hence I'm not sure why you would acquire a subscale US broker, that can't compete on cost with Interactive (etc.) and saw a massive benefit from COVID. Or am I missing something?
Agree with you that the US is not the right place for spread betting/CFDs. Though there are few CGT benefits for CFDs anywhere, not just in the US!
Interactive is the best for professionals and large accounts but there are plenty of decent US brokerages apart from that, with distinct offerings. Tastytrade has its own identity but I think you're right to be sceptical in terms of what IGG might do with it. I'm still very sceptical myself - as I hope I conveyed in the article - but I'm hopeful that even if it was a mistake, it's something they can recover from. We'll see.
Thanks for the comment. G
Slightly quixotic to issue 61m new shares then immediately do a share buyback …
Agreed!