The week brought a mix of regulatory scrutiny, financial
results, strategic expansion and industry analysis across the retail and
institutional trading sectors. Brokers continued to adapt to changing market
conditions while balancing growth initiatives with tighter regulatory
expectations and shifting client behaviour.
Several firms reported strong operational performance
despite currency pressures, while others pursued acquisitions, licensing and
potential public listings. At the same time, Finance Magnates examined broader
structural trends affecting the industry, from the economics of choosing an EU
jurisdiction to changing client acquisition strategies and the outlook for
commodities and alternative investment products.
Breon Corcoran, CEO, IG Group
IG Group agreed to acquire US
prediction markets and fantasy sports operator Underdog for up to approximately
$1.3 billion, making the sector a key pillar of its long-term growth
strategy.
The transaction includes about $1.1 billion in upfront consideration
and a further $200 million earnout linked to performance. IG expects the
acquisition to more
than double its US revenue and increase monthly active customers by more than
tenfold.
The deal also provides the broker with a vertically integrated US
infrastructure spanning brokerage, exchange and clearing, while expanding its
offering beyond sports into financial, cryptocurrency and macroeconomic event
contracts. Completion is expected in late 2026 or early 2027.
Squared Financial’s Offshore Operations Face Fresh
Questions
Squared Financial appeared to have shut
down its Seychelles-based offshore operation about six months after
surrendering its Cyprus licence. Finance Magnates found that new clients could
no longer open accounts through the broker’s website, while online reviews
increasingly cited delayed withdrawals and an inability to contact customer support.
A screenshot of Squared Financial’s onboarding page
Trustpilot also warned that it had removed fake reviews from the firm’s
profile. Former Nigeria Managing Director Temitope Ijibadejo publicly raised
concerns over pending client withdrawals and called for an investigation by
local authorities. Although the Seychelles licence remains active, the broker
did not respond to Finance Magnates’ requests for comment before publication.
Cyprus Tax Advantage May Not Pay Until Brokers Reach
Scale
Finance Magnates analysis found that Cyprus’
reduced corporate tax advantage over Poland has narrowed the financial case
for establishing a brokerage there. Following Cyprus’ tax increase to 15% at
the start of 2026, FM Intelligence modelling suggested a broker may need around
€3 million in annual pre-tax profit before lower taxation offsets higher
operating costs.
The study concluded that staffing, operating expenses and
business location often outweigh tax savings for smaller firms. While Cyprus
retains advantages as a cross-border financial hub, Poland continues to benefit
from lower labour costs, growing domestic investor participation and a rapidly
expanding brokerage market.
Trade Nation Sees Growth Opportunities Despite Tougher EU
Rules
Trade Nation Portugal CEO Luis Dos Santos said stricter
European regulation should ultimately strengthen confidence in regulated
brokers rather than weaken the market. Speaking to Finance Magnates, he said
the company chose Portugal for regulatory stability and long-term expansion
rather than lower operating costs.
Luis Dos Santos, Trade Nation Portugal CEO
The broker recently secured a licence from
Portugal’s CMVM after an authorisation process lasting about a year and is now
expanding its local workforce. Dos Santos also said retail trading demand
continues to grow across Europe despite tighter rules, while artificial
intelligence is being introduced to support operations without replacing
recruitment plans as the company expands across the region.
Investment Products Bring Clients to XTB but CFDs Still
Drive Revenue
XTB’s latest financial results highlighted a
widening gap between how it attracts clients and how it generates earnings.
During the first half of 2026, shares, ETFs and Investment Plans accounted for
nearly 83% of first transactions by new European clients, reflecting the
broker’s continued push into long-term investing.
However, CFDs still generated
about 96% of gross income from financial instruments, with commodity CFDs
contributing more than three-quarters of the total. The broker reported record
financial results, including sharply higher revenue and profit, while
continuing to expand its product range through equity options, Investment Plans
2.0 and Cash ISA services in the UK.
iFOREX Reports Higher Client Growth Despite Currency
Headwinds
Fresh from its London Stock Exchange listing, iFOREX
reported strong first-half
trading despite the strengthening Israeli shekel weighing on reported
earnings. Revenue remained broadly stable year on year while new client
onboarding increased 19% and active clients rose 8%.
Itai Sadeh, the CEO of the iForex Group
On a constant currency
basis, adjusted EBITDA met the company’s expectations, although exchange rate
movements reduced reported profitability. Management expects operating costs to
rise this year because of continued shekel strength.
During the period, iFOREX
also applied for a UAE Category 5 licence, appointed a new chief operating
officer to support greater AI integration and maintained a debt-free balance
sheet.
BlackBull Grows Revenue Ahead of Planned Public Listing
BlackBull’s latest New Zealand filing showed revenue
growth alongside higher client funds as the broker continues preparations
for a proposed dual listing in New Zealand and Australia. Revenue from its
domestic business increased to more than NZ$41 million while client funds rose
almost 87% to nearly NZ$100 million.
However, both pre-tax and net profit
declined as operating expenses increased, including platform costs, reseller
fees and marketing expenditure. Previous investor materials showed
significantly stronger group-wide financial performance than the New Zealand
entity alone, underlining the importance of the broker’s international
operations as it advances plans to become one of the few listed global CFD
brokers.
LMAX Explores Strategic Options as Valuation Reaches $5
Billion
David Mercer, Group Chief Executive, LMAX
LMAX Group is reportedly considering strategic options that could
value the company at up to $5 billion, with a Nasdaq listing emerging as
the preferred route alongside alternatives including a sale, SPAC merger or
European IPO. According to CoinDesk, Morgan Stanley and KBW are advising the
process.
The reported valuation would represent a substantial increase from the
company’s estimated $1 billion valuation in 2021 despite earnings growing at a
much slower pace over the period. While LMAX has reported strong trading volume
growth, its latest publicly available financial statements still relate to
2024, leaving investors waiting for updated earnings.
MAS Markets Moves Closer to Full Acquisition of Solid
MAS Group acquired a strategic equity
stake in institutional spot FX specialist Solid, with both companies
describing the transaction as the first step towards a full acquisition over
the coming years. The deal reverses a relationship that began in 2022 when
Solid purchased a minority stake in what was then BidX Markets.
Simon Blackledge, CEO of MAS Group, Source: LinkedIn
MAS said the
investment broadens its institutional presence beyond margin trading while
giving Solid’s clients access to its FCA-regulated infrastructure and wider
product offering. Neither company disclosed the financial terms or the size of
the acquired stake, although both confirmed that client relationships and
services would remain unchanged during the integration.
Gold Cools While Faith-Based Investing Faces Structural
Challenges
Beyond the brokerage sector, Paul Golden examined two
broader investment themes. Gold
and silver retreated sharply after their early-2026 rallies, with analysts
suggesting both metals remain supported over the longer term despite easing
supply pressures and changing investor sentiment.
Gold continues to respond to
geopolitical developments and central bank buying, particularly in China, while
silver’s outlook remains tied to industrial demand. Separately, analysis of
faith-based investment funds found that despite serving a potentially vast
global audience, the sector continues to face challenges including higher
costs, inconsistent screening standards, limited passive products and mixed
long-term performance.
The week brought a mix of regulatory scrutiny, financial
results, strategic expansion and industry analysis across the retail and
institutional trading sectors. Brokers continued to adapt to changing market
conditions while balancing growth initiatives with tighter regulatory
expectations and shifting client behaviour.
Several firms reported strong operational performance
despite currency pressures, while others pursued acquisitions, licensing and
potential public listings. At the same time, Finance Magnates examined broader
structural trends affecting the industry, from the economics of choosing an EU
jurisdiction to changing client acquisition strategies and the outlook for
commodities and alternative investment products.
Breon Corcoran, CEO, IG Group
IG Group agreed to acquire US
prediction markets and fantasy sports operator Underdog for up to approximately
$1.3 billion, making the sector a key pillar of its long-term growth
strategy.
The transaction includes about $1.1 billion in upfront consideration
and a further $200 million earnout linked to performance. IG expects the
acquisition to more
than double its US revenue and increase monthly active customers by more than
tenfold.
The deal also provides the broker with a vertically integrated US
infrastructure spanning brokerage, exchange and clearing, while expanding its
offering beyond sports into financial, cryptocurrency and macroeconomic event
contracts. Completion is expected in late 2026 or early 2027.
Squared Financial’s Offshore Operations Face Fresh
Questions
Squared Financial appeared to have shut
down its Seychelles-based offshore operation about six months after
surrendering its Cyprus licence. Finance Magnates found that new clients could
no longer open accounts through the broker’s website, while online reviews
increasingly cited delayed withdrawals and an inability to contact customer support.
A screenshot of Squared Financial’s onboarding page
Trustpilot also warned that it had removed fake reviews from the firm’s
profile. Former Nigeria Managing Director Temitope Ijibadejo publicly raised
concerns over pending client withdrawals and called for an investigation by
local authorities. Although the Seychelles licence remains active, the broker
did not respond to Finance Magnates’ requests for comment before publication.
Cyprus Tax Advantage May Not Pay Until Brokers Reach
Scale
Finance Magnates analysis found that Cyprus’
reduced corporate tax advantage over Poland has narrowed the financial case
for establishing a brokerage there. Following Cyprus’ tax increase to 15% at
the start of 2026, FM Intelligence modelling suggested a broker may need around
€3 million in annual pre-tax profit before lower taxation offsets higher
operating costs.
The study concluded that staffing, operating expenses and
business location often outweigh tax savings for smaller firms. While Cyprus
retains advantages as a cross-border financial hub, Poland continues to benefit
from lower labour costs, growing domestic investor participation and a rapidly
expanding brokerage market.
Trade Nation Sees Growth Opportunities Despite Tougher EU
Rules
Trade Nation Portugal CEO Luis Dos Santos said stricter
European regulation should ultimately strengthen confidence in regulated
brokers rather than weaken the market. Speaking to Finance Magnates, he said
the company chose Portugal for regulatory stability and long-term expansion
rather than lower operating costs.
Luis Dos Santos, Trade Nation Portugal CEO
The broker recently secured a licence from
Portugal’s CMVM after an authorisation process lasting about a year and is now
expanding its local workforce. Dos Santos also said retail trading demand
continues to grow across Europe despite tighter rules, while artificial
intelligence is being introduced to support operations without replacing
recruitment plans as the company expands across the region.
Investment Products Bring Clients to XTB but CFDs Still
Drive Revenue
XTB’s latest financial results highlighted a
widening gap between how it attracts clients and how it generates earnings.
During the first half of 2026, shares, ETFs and Investment Plans accounted for
nearly 83% of first transactions by new European clients, reflecting the
broker’s continued push into long-term investing.
However, CFDs still generated
about 96% of gross income from financial instruments, with commodity CFDs
contributing more than three-quarters of the total. The broker reported record
financial results, including sharply higher revenue and profit, while
continuing to expand its product range through equity options, Investment Plans
2.0 and Cash ISA services in the UK.
iFOREX Reports Higher Client Growth Despite Currency
Headwinds
Fresh from its London Stock Exchange listing, iFOREX
reported strong first-half
trading despite the strengthening Israeli shekel weighing on reported
earnings. Revenue remained broadly stable year on year while new client
onboarding increased 19% and active clients rose 8%.
Itai Sadeh, the CEO of the iForex Group
On a constant currency
basis, adjusted EBITDA met the company’s expectations, although exchange rate
movements reduced reported profitability. Management expects operating costs to
rise this year because of continued shekel strength.
During the period, iFOREX
also applied for a UAE Category 5 licence, appointed a new chief operating
officer to support greater AI integration and maintained a debt-free balance
sheet.
BlackBull Grows Revenue Ahead of Planned Public Listing
BlackBull’s latest New Zealand filing showed revenue
growth alongside higher client funds as the broker continues preparations
for a proposed dual listing in New Zealand and Australia. Revenue from its
domestic business increased to more than NZ$41 million while client funds rose
almost 87% to nearly NZ$100 million.
However, both pre-tax and net profit
declined as operating expenses increased, including platform costs, reseller
fees and marketing expenditure. Previous investor materials showed
significantly stronger group-wide financial performance than the New Zealand
entity alone, underlining the importance of the broker’s international
operations as it advances plans to become one of the few listed global CFD
brokers.
LMAX Explores Strategic Options as Valuation Reaches $5
Billion
David Mercer, Group Chief Executive, LMAX
LMAX Group is reportedly considering strategic options that could
value the company at up to $5 billion, with a Nasdaq listing emerging as
the preferred route alongside alternatives including a sale, SPAC merger or
European IPO. According to CoinDesk, Morgan Stanley and KBW are advising the
process.
The reported valuation would represent a substantial increase from the
company’s estimated $1 billion valuation in 2021 despite earnings growing at a
much slower pace over the period. While LMAX has reported strong trading volume
growth, its latest publicly available financial statements still relate to
2024, leaving investors waiting for updated earnings.
MAS Markets Moves Closer to Full Acquisition of Solid
MAS Group acquired a strategic equity
stake in institutional spot FX specialist Solid, with both companies
describing the transaction as the first step towards a full acquisition over
the coming years. The deal reverses a relationship that began in 2022 when
Solid purchased a minority stake in what was then BidX Markets.
Simon Blackledge, CEO of MAS Group, Source: LinkedIn
MAS said the
investment broadens its institutional presence beyond margin trading while
giving Solid’s clients access to its FCA-regulated infrastructure and wider
product offering. Neither company disclosed the financial terms or the size of
the acquired stake, although both confirmed that client relationships and
services would remain unchanged during the integration.
Gold Cools While Faith-Based Investing Faces Structural
Challenges
Beyond the brokerage sector, Paul Golden examined two
broader investment themes. Gold
and silver retreated sharply after their early-2026 rallies, with analysts
suggesting both metals remain supported over the longer term despite easing
supply pressures and changing investor sentiment.
Gold continues to respond to
geopolitical developments and central bank buying, particularly in China, while
silver’s outlook remains tied to industrial demand. Separately, analysis of
faith-based investment funds found that despite serving a potentially vast
global audience, the sector continues to face challenges including higher
costs, inconsistent screening standards, limited passive products and mixed
long-term performance.
