The FTSE 250 houses companies that many investors rely on, such as wealth managers AJ Bell (AJB) and Quilter (QLT). However, the index is also home to ‘leveraged trading platforms’, which cultivate a very different type of customer.
The three main players in this area – CMC Markets (CMCX), IG Group (IGG) and Plus500 (PLUS) – are not particularly well understood by the market, and are often overlooked as a result. Given that Plus500 has been the best performing UK stock since it floated 12 years ago, however, and has even outperformed America’s Magnificent Seven over that time, it is worth paying them some attention.