IG Binary Revenues Up

IG made £3.4 million from financial binaries in the first half of this year.
Up from £2.5 million for the same period last year.

http://www.iggroup.com/content/files...ion_july07.pdf

Just goes to show that much like buying options, retail clients don't (on balance) profit from binaries. Money for old rope to the SB firms. Why not spread bet instead (or, gasp, trade the underlying)? Nice dividend announcement though.

I was thinking thats its good they make a decent profit and are growing these profits.

There is always the concern that because the SBs dont hedge binaries they will be out to ban winners.

Now they aint going to like it if you win and will play silly games to distrupt you, but i dont think they are going to ban anyone who gets lucky and makes upto 100K a year from binaries. But someone who makes 100s of thousands, now that starts to become a larger percentage of the total binary profits ...

Lurkerlurker - I tried to answer this one in another thread (from my perspective) http://www.trade2win.com/boards/fixed-odds-binary-betting/25297-binaries-vs-cfds-warrants-spreadbetting-options-etc.html on this board (not sure if I've got the link right - its the one started as a poll and headed "binaries v CFDs ... etc" started by Telcobert.

Can anyone explain more how binarybets turnover is worked out.Ive looked at the sheets and am lost. If I buy at£10 pp at 50 does that mean my contribution to their revenue is £500. What if I get out for a profit later how do they count that in. It seems if that is the case their turnover is small and their profits massive. Thanks

I think in this case the numbers quoted are profits. Where they say revenue I guess that its gains minus losses.

Just goes to show how important that it is to remain number one in your line of business. Even with the overheads they still pull in around twice what they spend. Almost 3 million on market data.... wow. I wonder how all this compares to the other firms. I guess the next biggest would be City Index (since they bought Finspreads) or CMC? Will any of them get near IG? Do CMC do any Binary products?

Steve.

CMC dont to binaries but are probably biggest for spreads and cfds. Id like to know how BBs profits are worked out. Their net profit per hour seems to be about £5000 according to my brief calculation. That would mean £100,000( 50,000 each side would mean 5000 profit) in bets every hour based over all of their products. That then means that a bet of £25 pp would be quite large. I thought they would be taking more than that.

If you like binaries, try options. Similar enough concept, and they are actually regulated by the FSA. Take a good look at options on IG.

FWIW, I wouldn't touch non-FSA (and FOS, FSCS) fixed odds financial betting.