IG punters switch from playing forex to Footsie

Punters have switched from betting on foreign exchange volatility and instead have been backing shares in the recent stockmarket rally, City bookie IG Index reported today.

IG said revenues in the summer trading quarter to the end of August were 28% better at £68 million.

Excluding its move into the Japanese forex market, IG said its organic growth in the three months was 17%. Even in its most mature market in London, revenues were up 4% to £39 million.

IG said the number of new acounts opened came in at 21,000 financial accounts representing organic growth of 23% and that contrary to general perception, its customer base is not a load of City boys playing the markets in their spare time.

Rather, the firm says, the typical IG punter is in fact in his or her mid to late-thirties, most likely in a managerial or professional role and playing the market as part of his or her wider investment portfolio.

Last year IG reported a 33% surge in profits to £131 million, the spread-betting specialist today warned the increase in business during the volatility of last autumn's banking crisis will not be repeated. "The group faces more challenging comparatives in the second quarter, as both revenue and account-opening last year were boosted by the volatility of September and October," IG said.