An exchange is a place where trading of various commodities, securities, derivatives and other financial instruments takes place. It ensures that there is a fair and orderly manner of trading with efficient dissemination of prices for the securities traded on that exchange. The financial exchange industry is an industry that provides prices and other related data for a financial instrument reported by a trading venue such as a stock exchange.
Many people rely on financial exchange and data companies for financial information and analysis. Why do they do this? Because they help facilitate the trading of financial securities. They typically provide prices and bids or offers, as well as market volume. You may be wondering why I should invest in financial exchanges stocks.
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Investing in Financial Exchanges stocks can be very profitable; as a trader, it is an excellent addition to your stock portfolio. It can help you build your savings, protect your money from inflation and taxes, and maximize the income from your investments. It would also help you with liquidity and the possibility of dividend payouts.
Coinbase Global Inc. (NASDAQ: COIN)
Coinbase Global Inc, popularly known as Coinbase, is an American company that deals in cryptocurrency. Coinbase was initially located in Chicago until May 2020, when it closed its headquarters and became a distributed company with all employees working remotely, which was largely influenced by the Covid-19 pandemic. The cryptocurrency exchange platform was founded in 2012 by Brian Armstrong and Fred Ehrsam. As of 2022, they had 4,510 employees and owned the following products: bitcoin, bitcoin cash, Ethereum, and litecoin, among others.
Coinbase became a publicly traded company on April 14, 2021. They exist on the NASDAQ exchange as COIN via a direct listing on the American Stock Exchange in New York City. The stock is traded in U.S. dollars and follows the trading hours of 9:30 am to 4:00 pm. Before COIN went public, it had a fixed price of $250 per share by NASDAQ, and at the time was estimated to be worth $47 billion.
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After they went public, they closed their first day of trading at $328.28 per share. Since they were fined $50 million for not having proper compliance checks in place, Coinbase stock price has dropped significantly; in 2022, its stock price started at $251.05 per share, and in March, it dropped to $153.19. In May, it dropped again to $53.72 per share. In August, it rose to $98 per share. But in November, it dropped again to a new low of $45.98 per share. COIN stock closed in 2022 at $32.65 per share.
Now: In January 2023, COIN stock soared 88.27% to a market value of $61.47 per share. On July 8, 2023, COIN stock is worth $78.72, up 0.79% from the previous trading day. The 12-month price projection for Coinbase Global Inc. has a median target of 61.00, with a high estimate of 200.00 and a low estimate of 27.00. According to Traders Union, COIN stock can be worth $257.73 by 2025 and $2264.9 per share by 2034.
In 2022, Coinbase generated $3.1 billion in revenue, down 59.2% from 2021; at the time, it also had 98 million users worldwide and 9 million active exchange users. They also generated a net loss of $2.6 billion and total assets of $89.7 billion. Coinbase Global's revenue for the twelve months ended March 31, 2023, was $2.800 billion, down 61.13% year-over-year, while revenue for the quarter ended March 31, 2023, was $0.773 billion, down 33.77% year-over-year.
Pros of Investing in COIN Stock
- With Coinbase, you can earn interest on various cryptocurrencies.
- Coinbase pays interest on some stablecoins.
- Coinbase allows you to withdraw crypto immediately after you purchase it using flat currency.
Cons of investing in Coinbase Stock
- Coinbase has a relatively high transaction fee.
- There have been several complaints from users about poor customer service from their employees.
- It's not easy to check Coinbase prices in advance.
S&P Global (NYSE: SPGI)
S&P Global Inc. formerly known as McGraw-Hill, Inc. (1964-1995), The-McGraw-Hill Companies Inc.(1995-2013), and McGraw Hill Financial, Inc.(2013-2016), is a company that specializes in financial information and analysis. It is currently headquartered in Manhattan, New York City.
The financial services platform was founded in 1917 by James H. McGraw and John A. Hill. As of 2022, they had 39,950 employees and have the following subsidiaries; S&P Global Ratings, S&P Global Commodity Insights, CRISIL, S&P Dow Jones Indices, and S&P Global Market Intelligence, among others.
S&P Global became a publicly held company on February 14, 1929. S&P Global's common stock began trading on April 28, 2016, under its current ticker symbol "SPGI". They are listed on the NYSE: SPGI on the American Stock Exchange in New York City. The stock is denominated in U.S. dollars and follows the 9:30 a.m. to 4:00 p.m. trading hours.
The stock performance of S&P Global Inc. since they were listed as SPGI in 2016 is as follows: SPGI stock price closed at $101.113 per share in 2016. In 2017, they closed at $161.08 per share, up $59.31 from the previous year. In 2018 they closed at $163.27 per share, $1.36 more than the previous year; in 2019 they closed at $264.93, $62.26 more than the previous year. SPGI stock price closed 2020 at $321.64 per share, an increase of $21.41. In 2021, they closed at $465.37 per share, and in 2022, SPGI stock price closed at $333.24 per share, an increase of $28.38 over the previous year. As of July 8, 2023, SPGI stock is worth $393.25, which is 0.52% less than the last day's trading.
When it comes to SPGI stock ratings, analysts have issued positive assessments. The 12-month price forecasts for S&P Global Inc. have a median target of 420.00, with a high estimate of 506.00 and a low estimate of 340.00. The median estimate is a +6.81% increase from the last price of 393.24.
In 2022, they reported revenue growth of 35% to $11.18 billion. Their GAAP net income increased 7% to $3.25 billion, and GAAP diluted earnings per share decreased 18% to $10.20.
For the twelve months ended March 31, 2023, they had revenue of $11.952 billion, an increase of 37.85% year over year, while for the quarter ended March 31, 2023, they had revenue of $3.160 billion, an increase of 32.27% year over year.
Pros of Investing in SPGI Stock
- They have an impressive history of earnings surprises.
- Their position allows them to benefit from the growing demand for business information services.
- They have multiple revenue streams and have delivered strong returns to investors.
Cons of Investing in S&P Global Stock
- They may be vulnerable to lawsuits and investigations.
CME Group (NASDAQ: CME)
What is CME?
CME Group Inc. is the world's largest operator of specialized financial exchanges. They operate several financial derivatives exchanges, including the Chicago Mercantile Exchange, the Chicago Board of Trade, the New York Mercantile Exchange and The Commodity Exchange. They are currently headquartered in Chicago. The exchanges are platforms for trading agricultural products, currencies, energy, interest rates, metals, futures contracts, options, stock indexes, and cryptocurrency futures. The financial derivatives platform was founded in 1898 by Terrence A. Duffy and Lynne Fitzpatrick.
As of 2022, they had 3,460 employees and have the following subsidiaries: Chicago Mercantile Exchange, Chicago Board of Trade, New York Mercantile Exchange, and Commodities Exchange Inc. In 2002, CME Group became a public company through an initial public offering. It is listed on the NASDAQ Stock Market in New York City under the symbol CME. The stock is traded in U.S. dollars and follows the trading hours of 9:30 am to 4:00 pm. On July 12, 2007, the CME completed a merger with its historic rival, the Chicago Board of Trade, in an $8 billion deal that created the world's largest financial market.
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CME stock closed at $92.67 per share in 2016; it closed at $122.63 per share in 2017, up $32.33 from the previous year. In 2018, it closed at $162.02 per share, $32.12 more than the previous year; in 2019, it closed at $177.70, $9.67 more than the previous year. CME stock price closed 2020 at $166.44 per share, a decrease of $6.34. In 2021, they closed at $215.47 per share, and in 2022, they closed at $166.13 per share, a decrease of $22.9 from the previous year. As of July 8, 2023, CME stock is worth $181.95, 0.71% less than the last day's trading.
The 12-month price forecasts for CME Group Inc. have a median target of 208.00, with a high estimate of 250.00 and a low estimate of 155.00. The median estimate is up +14.34% from the last price of 181.91.
CME Group's annual net income for 2022 was $2.657B, an increase of 1.53% from 2021; their total assets for 2022 were $174.176B, a decrease of 11.49% from 2021, their total revenues were $5.019B, and their operating income was $3.0B in 2022.
For the twelve months ended March 31, 2023, their revenue was $5.114B, an increase of 6.93% year over year, while the quarter ended March 31, 2023, was $1.442B, an increase of 7.05% year over year.
Pros of Investing in CME Stock
- Their membership allows investors to trade specific products at lower fees.
- They allow member firms to receive preferential Exchange fees and performance bond rates.
- As a member, you will receive preferred benefit rates and an opportunity to receive complimentary benefits benchmarking.
Cons of Investing in CME Stock
- They can be vulnerable to fines firms and individuals and suspends and bans them from their markets for violations.
Nasdaq Inc. (NASDAQ: NDAQ)
Nasdaq Inc. is an American multinational financial services company. This company owns and operates three major stock exchanges in the United States, namely the Nasdaq Stock Exchange, the Philadelphia Stock Exchange, and the Boston Stock Exchange. They also own and operate seven exchanges in Europe: Nasdaq Copenhagen, Nasdaq Helsinki, Nasdaq Iceland, Nasdaq Riga, Nasdaq Stockholm, Nasdaq Tallinn, and Nasdaq Vilnius. They are currently headquartered in New York City.
On February 8, 1971, the financial services platform was established by the National Association of Securities Dealers (NASD), now known as the Financial Industry Regulatory Authority. They had 6,377 employees as of December 2022 and have the following subsidiaries: International Securities Exchange, Nasdaq, Nasdaq Nordic, and Verafin.
On July 2, 2002, Nasdaq Inc. became a public company through an initial public offering. They are listed on the NASDAQ Stock Market as NDAQ on the American Stock Exchange in New York City. The stock is traded in U.S. dollars and follows the trading hours of 9:30 am to 4:00 pm.
As for NSDQ's stock performance, its stock price closed in 2016 at $5,383.12 per share; in 2017, it closed at $6,903.39 per share, which is 28.24% more than the previous year. In 2018, NDAQ stock price closed at $6,635.28 per share, 3.88% less than the previous year; in 2019, they closed at $8,972.61, 35.23% more than the previous year. In 2020, they closed at $12,888.28 per share, an increase of 43.64%. In 2021, they closed at $15,644.97 per share, and in 2022, stock price of NDAQ closed at $10,466.48 per share, a 33.10% decrease from the previous year. As of July 8, 2023, NDAQ stock is worth 48.97 USD, 0.041% less than the previous day's trading.
The 12-month price forecasts for NDAQ stock have a median target of 61.00, with a high estimate of 82.00 and a low estimate of 51.00. The median estimate represents a +24.59% increase from the last price of 48.96.
In 2022, NDAQ's net revenues were $3,582 million, an increase of $162 million, or 5%, from 2021, with total assets for 2022 of $20.868 billion, an increase of 3.74% from 2021. As of 2022, Nasdaq is the world's leading franchise serving corporate issuers and the investment community, with more than 10,000 corporate clients and 5,000 clients across the investment management ecosystem.
For the twelve months ended March 31, 2023, their revenue was $6.224 billion, an increase of 7.87% over the prior year, and for the twelve months ended March 31, 2023, their revenue was $6.224 billion, an increase of 7.87% over the prior year.
Pros of Investing in NDAQ Stock
- They have lower listing fees and lower minimum requirements to qualify for a listing.
- Nasdaq offers all-electronic trading.
- asdaq stocks give you access to multinational stocks/companies..
Cons of Investing in NDAQ Stock
- NDAQ stock prices can be risky and volatile
- Currency exchange rates can be unfavorable
- Situations in the U.S. may affect your investment
Comparison of Key Metrics
All four financial services companies have their strengths and weaknesses, and depending on various metrics, are among the top companies in the financial exchange and data industry.
Now: Let's look at all the companies using the following metrics: market capitalization, revenue growth, profit margins, and P/E ratio.
Market Cap
- Coinbase Global (NASDAQ: COIN): $18.46 billion
- S&P Global Inc. (NYSE: SPGI): $126.15 billion
- CME Group Inc. (NASDAQ: CME): $65.45 billion
- Nasdaq Inc. (NASDAQ: NDAQ): $24.03 billion
In terms of market capitalization, S&P Global Inc. has the highest.
Revenue Growth
- Coinbase Global (NASDAQ: COIN): Coinbase Global's revenue for the twelve months ended March 31, 2023 was $2.800 billion, a decrease of 61.13% year-over-year.
- S&P Global Inc (NYSE: SPGI): S&P Global's revenue for the twelve months ended March 31, 2023 was $11.952B, an increase of 37.85% year over year.
- CME Group Inc (NASDAQ: CME): CME Group's revenue for the quarter ended March 31, 2023, was $1.442B, a 7.05% increase year-over-year.
- Nasdaq Inc (NASDAQ: NDAQ): Nasdaq had revenue of $6.22B for the twelve months ended March 31, 2023, a growth of 7.85% year over year.
In terms of revenue growth, S&P Global Inc. has higher revenue growth.
Profit Margin (March 31, 2023)
- Coinbase Global (NASDAQ: COIN): -81.21%
- S&P Global Inc. (NYSE: SPGI): 23.5%
- CME Group Inc. (NASDAQ: CME): 55.99%
- Nasdaq Inc. (NASDAQ: NDAQ): 18.38%
In terms of profit margins, the CME Group has the highest rates of profit margins.
P/E Ratios (July 3, 2023)
Coinbase Global (NASDAQ: COIN): 0.00
S&P Global Inc. (NYSE: SPGI): 34.59
CME Group Inc. (NASDAQ: CME): 23.4
Nasdaq Inc. (NASDAQ: NDAQ): 21.0
In terms of the price-to-earnings ratio, S&P Global Inc. has the highest price-to-earnings ratio.
Based on the above valuations, S&P Global Inc. appears to be the most undervalued.
Factors to Consider When Choosing Financial Exchanges and Data Stocks
When considering or deciding which financial exchange and data stock to trade, there are a few things to look into and have adequate knowledge about. These include:
- Trading Fees and Costs: The trading fees and costs for each financial exchange and data stock are different. Depending on how much you are willing to invest or your long-term plan, the fee and cost of each stock are very worth considering.
- Market Liquidity and Trading Volume: The country or location where you are trading from the stock market can be a major factor in influencing which financial exchange and data stock you choose.
- Regulatory compliance and transparency: Some companies may not be completely transparent because they must follow several rules to protect sensitive information.
- Access to different financial instruments: You need to consider which company or stock gives you the best access to different financial instruments that would help build your portfolio.
Trade Financial Exchanges and Data Stocks CFD with VSTAR
You may be wondering why you should trade your Financial Exchanges stocks CFD with VSTAR. Here are the reasons:
- VSTAR is one of the top trading platforms for Financial Exchange stocks CFDs.
- VSTAR is a globally recognized and regulated trading platform that offers low trading fees, deep liquidity, and institutional-level trading experience.
- VSTAR allows you to trade CFDs on over 1000 markets, including currencies, indices, commodities, crypto, US and HK stocks.
To Trade Financial Exchanges stocks CFDs with VSTAR, all you need to do is:
- Download the VSTAR app and register for an account.
- Deposit funds into your account using one of the payment methods supported and accepted by VSTAR, such as Visa, Mastercard, Tether, Skrill, Neteller, SticPay, or Perfect Money. The minimum deposit you can make is only $50.
- Choose a Financial Exchange stock option you want to trade and open a buy or sell position depending on your market view.
- Monitor your trade and close it when you want to lock in your profit or loss.
- You want to know the best part; you can withdraw your funds whenever you want using the same payment method you used to make your initial deposit..
Conclusion
Trading financial exchanges stocks allows investors to trade in one of the most important sectors of the global economy. In this article, we have discussed the top four best financial exchanges stocks to trade, their pros and cons, their various metrics, and their stock performance and forecasts. There are many great investment opportunities in the financial services industry, investors need to know where to look.
Remember that trading financial exchanges stocks with VSTAR is one of the easiest and most rewarding platforms where you can enjoy a great trading experience. You should start investing in financial exchanges stocks today and take advantage of the opportunities in the industry.
