Online trading

IG Group’s global expansion in the age of e-commerce

This week we have June Felix, CEO of the £3.5bn IG Group (LSE:IGG) on the podcast. IG Group is a FTSE 250 stock and online commerce and technology giant, which recently posted strong results.

IG Group has been an established name in the e-commerce segment in the UK and internationally for decades. It is arguably one of the leading trading and investment brands globally. We had a lively discussion with June about how the broker and tech company fared during the pandemic and why companies like IG were able to attract so many new traders during this time.

June Felix was a good choice as CEO to take IG to the next level. The business was already a leading name in financial spread betting and CFD trading before he joined, but Felix recognized the need to diversify the business into new investment areas and also put the focus on its evolution into a technology company. Like many other brokers, IG has moved from focusing on OTC CFDs/derivatives to offering physical stock trading as well. But Felix saw another potential here.

On the podcast, we talk about some of the major themes affecting e-commerce and businesses like IG. This includes the thousands of young traders who started in the markets following the meme stock mania of 2020 and how the pandemic has served to open the door to trade for a whole new generation. What do they want to get out of it? What sort of demands do they make of brokers?

Expand IG Group’s global footprint

IG Group has also been on the acquisition trail under Felix’s leadership. For example, in June 2021, IG completed the $1 billion acquisition of tastytrade, an American trading and education platform with over 105,000 active investor accounts. Major spread betting brokers have eyed the huge US options and futures market for years. Felix saw the deal as an opportunity to tap into the huge US e-commerce market, with its 1.5 million retail merchants. The timing was also excellent, as IG gained a foothold at a time when online commerce was booming in the United States.

We discuss the international expansion of the IG Group and how this is likely to work in practice, and how technological innovation is affecting online commerce. The elephant in the room here is digital currencies, of course, and we get to the potential cryptocurrencies that are now set to change the world of commerce, with so many thousands of traders now fully dedicated to the crypto markets.

Prior to joining IG, Felix was President of Verifone Europe. She talks about her experience at the highest levels of dynamic companies and the lessons she learned there that she applied at IG. For example, Felix has worked in the financial digital sector in leadership positions at JP Morgan Chase, Citi, IBM and Deutsche Bank during a time of transformation for these companies.

Finally, we end with his thoughts on the ongoing conflict in Ukraine and the implications for the IG Group, its employees and its customers.