Our business model
Our business enablers
1.
Technology and product
Technology and product has always been key to the success of CMC Markets and this has won the business recognition as the leader in our industry for innovation and service. Recognising that innovation is key to retaining this reputation, the Group has continued to invest significantly across the business to deliver new products and offerings to our clients, with numerous new products made available to clients during 2023.
2.
'Our Tomorrow: taking a positive position’ sustainability strategy
Our sustainability strategy, launched in 2022, has shaped sustainability activity for the Group in 2023 and beyond. We have continued to drive a sustainable business model through our five core pillars, which highlight how we protect, empower, innovate and adapt to be a responsible business, committed to the needs of people and our planet.
3.
Financial strength
We aim to maintain our secure capital and liquidity structure, ensuring that it is appropriate for the future growth and success of the Group. This includes maintaining long-term levels of capital to withstand the demands of fluctuations in the financial markets and access to a healthy level of surplus liquid resources in line with the size of our business and the growth opportunities.
4.
Risk management
The Group's business activities naturally expose it to strategic, financial and operational risks inherent in the nature of the business it undertakes and the financial, market and regulatory environments in which it operates. The Group recognises the importance of understanding and managing these risks and that it cannot place a cap or limit on all of the risks to which the Group is exposed. However, effective risk management ensures that risks are managed to an acceptable level.
Our client offerings
Our clients are at the heart of everything that we do.
Who our clients are
- Sophisticated
- High Value
- Experienced
What we offer them
- Cutting-edge technology
- Competitive pricing
- Excellent client service
- Diverse product suite
Trading
- Contracts for difference
- Spread betting
- White-label solutions
- Mulit-asset class liquidity
Institutional + Retail
Investing
- Invest platforms
(Australia, UK and Singapore) - White-label solutions
Technology platforms and risk management
Our superior platforms1 and technology, combined with our risk management, deliver a best-in-class trading experience for our clients and partners. Our trade and risk systems generate real-time pricing, automate trade execution and optimise our risk management process through better aggregation of client flows. They also bring scale and stability to our platforms, especially during volatile market conditions. This enhances the client trading experience and lessens the risk of price quotation outages.
How we make money
Trading
Gross client income
£303.5m
Spreads
Revenue earned through maintaining a transactional spread (the difference between the buy and sell price) on CFD and spread bet products.
Commissions
These are charged on both CFD equity trades and institutional DMA trades. Clients are either charged a minimum commission or a percentage based on the value of the trade.
Financing
Positions held by clients overnight may be subject to financing costs, which can be positive or negative depending on the direction of their holding and the applicable financing rate.
Rebates and levies
£(20.4m)
Volume-based rebates paid to professional, high value retail and institutional clients and introducing brokers on selected asset classes.
Risk management gains/(losses)
£(50.0m)
Revenue or losses from management of client positions that the Group inherits. This consists of gains or losses which accrue to the Group through client positions and, secondly, the gains or losses which accrue to the Group through the hedge positions entered into by the Group, including hedge transaction costs.
Retained client income
77%
The percentage of CFD gross client income retained after rebates and gains or losses from risk-management activities.
Investing
£37.9m
Net revenue in Australia predominantly earned through brokerage charged for the execution of exchange traded products, options, warrants, ETFs, managed funds, interest rate securities and bonds. Further, we earn fees including FX revenue on international shares, and equity capital markets (“ECM”) income.
Interest income – trading and investing
£13.9m
Interest income from the Group’s own cash and client deposits.
Other income
£3.5m
Primarily income from charges on dormant accounts and market data costs passed on to B2B clients
How we add value
1 / 3
- 1No.1 Web Platform, ForexBrokers.com Awards 2023; No.1 Platform Technology, ForexBrokers.com Awards 2022; Best Mobile Trading Platform, ADVFN International Financial Awards 2022.
- 2CultureAmp internal survey. Percentage of employees with full engagement.