Trading platform CMC Markets, owned by Tory peer Lord Cruddas, warned of a predicted drop in full-year profit amid reduced activity.
In a statement made on Friday, the firm said subdued trading activity from July persisted in August, with net revenues dropping by 20%. Retail trading in particular was said to have slowed down on the platform, which also CFD and spread betting trading.
The firm previously predicted operating income for the year to be £280m, however, after a continued slowdown of trading, that number could drop to around £250m.
CMC Markets said: “August in particular has seen a more challenging environment with markedly lower monetisation of client trading activity due to a higher proportion of lower margin institutional volume.”
Shares in the firm are down around 50% over the past year, with today alone seeing a more than 10% dip.
Tory peer and vocal ally of former prime minister, Boris Johnson, owns 59% of the company.
Analysts from Peel Hunt said: “The share price has been weak of late and whilst a range of strategic initiatives should deliver longer-term growth, as things stand the group clearly continues to face significant market headwinds.”
Despite the increasingly challenging market conditions, the firm has maintained its annual operating costs outlook of £240m.