IG has Footsie dreams as the punters flock in

The spread betting boom continues apace, as ever higher numbers of sophisticated investors catch the bug.

IG Group, owner of sector granddaddy IG Index, today unveiled a 16% rise in first-quarter revenue to £79 million.

Chief executive Tim Howkins, who says his typical client is a dentist with an interest in markets, hopes one day to force the company into the FTSE 100.

He has some way to go, but it's not an impossible dream.Today the shares added 1p to 501.5p, valuing the company at £1.8 billion. The revenue gains come across all markets. IG has operations in the UK, Europe, Japan, Singapore and Australia.

The note of caution sounded was that it is hard for the company to predict how customers will react to changing market and economic conditions. They might place more or fewer bets depending on how they feel, in other words.

IG recently unveiled an iPhone app allowing UK customers to trade from their mobiles. Rivals such as CMC Markets have similar products.

IG said: "Growth in the number of active customers and the continued development of the group's offering leave the group well-positioned for further growth."