UK retail trading is booming for some brokers while IG struggles

The headlines about UK retail trading this week were dominated by IG Group's 22 percent share price crash. But filings published by smaller brokers tell a different story. ThinkMarkets' UK entity grew its active client base by 40 percent in 2025, compared with 12 percent growth in 2024, and first-time depositors surged 123 percent as it returned to a small profit of about 14,000 pounds, Finance Magnates reported. EC Markets doubled its 2025 UK revenue to more than 6.3 million dollars and grew its headcount to 18. The UK retail market is not shrinking. It is redistributing.

What ThinkMarkets' numbers show

A 123 percent jump in first-time depositors is a striking acquisition result in a mature, heavily regulated market. ThinkMarkets attributed its growth to continued investment in marketing. The fact that active clients rose 40 percent, far faster than in the previous year, suggests those new depositors are staying and trading rather than signing up and leaving.

The profit figure is modest, around 14,000 pounds, and turnover reportedly declined. That combination is common for a broker in growth mode: heavy marketing spend brings in clients whose lifetime value will be realised later, while near-term profit stays thin. The question for ThinkMarkets is whether those clients become profitable over the next two years.

The broader point is that a mid-sized broker can still win share in the UK if it invests in acquisition and offers a competitive product. Market saturation is often cited as a reason growth is impossible in mature markets. ThinkMarkets' filing suggests otherwise.

The comparison with the previous year is important. Active client growth of 12 percent in 2024 rose to 40 percent in 2025, a sharp acceleration rather than a steady trend. That suggests the firm changed something meaningful in its marketing or product, and that the change worked.

EC Markets and the institutional angle

EC Markets' growth comes from a somewhat different model. The firm focuses heavily on institutional and professional clients, including liquidity services. Doubling UK revenue to more than 6.3 million dollars with a team of 18 shows how efficient a focused, technology-driven broker can be.

That fits a trend across the industry. Firms serving professional and institutional clients, or providing liquidity to other brokers, often enjoy steadier revenue than those relying purely on retail CFD flow. Hantec Prime, for example, reported volume growth of more than 300 percent and over 42 new institutional clients this year.

For smaller firms, institutional services offer a way to grow without competing head-on with the marketing budgets of the largest retail brokers. The trade-off is that institutional clients demand reliable execution, deep liquidity and strong risk management.

Efficiency stands out in EC Markets' numbers. Generating more than 6.3 million dollars in UK revenue with 18 staff means revenue per employee well above many retail-focused brokers, which typically need large marketing and support teams. Technology-led institutional models can scale without proportional headcount growth.

• ThinkMarkets UK active clients: up 40 percent in 2025, versus 12 percent in 2024
• ThinkMarkets UK first-time depositors: up 123 percent
• ThinkMarkets UK profit: about 14,000 pounds, after a loss
• EC Markets 2025 UK revenue: more than 6.3 million dollars, doubled
• EC Markets headcount: 18

Why the giants and the challengers diverge

IG's problem was not a lack of clients. It was revenue retention: in its third quarter it kept only about 70 percent of client trading revenue, down from an 80 percent average, because more of its clients made money. That is a risk management and business model issue specific to firms that internalise large amounts of retail flow.

Smaller brokers face the same risk in principle, but their filings cover the full year 2025, a different period from IG's third quarter of 2026. Their growth shows that client acquisition remains possible. Whether they would have suffered similar retention pressure in IG's difficult quarter is unknown.

What the filings do show is that the UK market rewards focus. Brokers that invest in a clear product, targeted marketing and efficient operations can grow even when the largest firms are under pressure. We explored this divergence in our analysis of NAGA and iFOREX.

Scale can also be a burden. Large listed brokers must report quarterly, meet investor expectations and manage complex operations across many markets. Smaller private firms can make decisions faster, accept short-term losses to grow and focus on fewer markets, which gives them flexibility the largest firms lack.

What it means for brokers in Asia and the Gulf

Many brokers with UK entities also serve clients in Asia and the Middle East through other licences. The marketing strategies that drive UK growth, including educational content, social media and partnerships, are increasingly used across regions. A broker that learns how to acquire clients efficiently under the UK's strict rules often finds it easier to compete elsewhere.

For Asian brokers watching from outside, the message is that regulated growth is possible. Strict regulation raises costs, but it also builds trust that attracts clients who want a safe place to trade. Brokers that combine strong regulation with effective marketing tend to outperform those that rely on light regulation and aggressive promotion.

The UK's strict regime can also serve as a credential. A broker with a strong record under FCA supervision can use that reputation when entering markets in Asia and the Gulf, where clients often look for evidence that a firm is properly regulated before depositing.

Brokers expanding from the UK into Asia often find that client expectations differ. Asian clients may prefer different platforms, funding methods and communication styles. Firms that adapt their UK playbook to local preferences, rather than copying it unchanged, tend to grow faster in new regions.

The UK retail market is not shrinking. It is redistributing.

How smaller brokers compete on acquisition

Smaller brokers cannot match the advertising budgets of the largest firms, so they compete differently. Many invest in educational content, webinars and social media communities that attract traders through useful information rather than paid ads. Others focus on partnerships with introducing brokers and affiliates who bring clients from specific niches.

Product focus helps too. A broker that specialises in a particular platform, asset class or client type can become the obvious choice for that audience. ThinkMarkets, for example, is known for its own platform alongside popular third-party ones, which gives it a distinctive offer in a crowded market.

Service is another lever. Smaller brokers can offer faster, more personal support than large firms, which matters to active traders who need quick answers when markets move. Those advantages are harder to advertise but often show up in retention and referrals.

Regulatory reputation can also be a selling point. In the UK, every broker is FCA regulated, so firms differentiate on track record, complaint handling and transparency. Brokers that publish clear information on costs and execution quality win trust from clients who compare carefully before opening accounts.

The sustainability question

Growth driven by marketing must eventually pay for itself. Brokers that acquire clients quickly need to keep them, serve them well and earn enough over time to cover acquisition costs. The next round of filings will show whether ThinkMarkets' surge in new clients translates into stronger profits.

Cost discipline will matter as much as growth. Brokers that track the cost of acquiring each client against the revenue that client generates over time can adjust spending before it becomes unsustainable. Those that chase growth without that discipline often face painful corrections later. The next set of annual filings will show which of today's fast growers turned new clients into lasting profit.

Recruitment tells a similar story. Growing brokers are hiring in marketing, compliance and support, while some larger firms are cutting costs. That shift in talent reflects where growth is actually happening in the UK market today.

The UK retail trading market looks very different depending on where you stand. For the largest listed broker, it delivered a painful quarter and a share price crash. For several smaller, focused firms, it delivered strong growth. The lesson for brokers everywhere is that size alone is no guarantee of success, and that a clear strategy executed well can still win clients in even the most competitive market.