Yes that’s right, little old Plus 500 who was for years nipping at the heals of the industry is now worth over £1bn.
The statement, which somewhat representative of their brokerage services offered nothing other than the bare essentials read:
Plus500, a leading online service provider for retail customers to trade CFDs internationally, is pleased to announce that its business continues to trade strongly. Accordingly, the Board anticipates that revenues and profits for the year ending 31 December 2017 will be ahead of market expectations.
Further details will be announced in the Company’s scheduled third quarter trading update which will be issued on 31 October 2017.
You can see the RNS released by the London Stock Exchange here.
Obviously this got a lot of press with most of the national paper saying that spread betting broker Plus 500 blah blah blah. It really gets my goat, Plus 500 are not a spread betting broker, never have been.
Plus 500 share price is up 130%, IG 29% and CMC 45%. Not bad, but particularly good as Plus 500 is the only broker to recover from the FCA’s clamp down on excessive bonuses and leverage. Over 12 months IG is down 28%, CMC Markets 24%, but Plus 500 is up almost 19%.
So why have then remained so popular and resilient to the market conditions?
I don’t know but a few reasons may be the fact that they embrace the new cryptocurrencies and are one of the only brokers to offer trading on Bitcoin, Ethereum, Ripple, NEM, Monero, Litecoin, Dash and Bitcoin Cash.