It comes a month after they had announced their intention to move onto the London Stock Exchange and there has been some speculation as to whether it would be allowed. However, with clearance from the FCA in the bag its shares are already trading on the LSE and early signs suggest it is going well.
Shares rose by 1% in early trading taking it close to its all time high.
“We are thrilled to confirm our listing and admission to trading on the London Stock Exchange’s Main Market,” said Asaf Elimelech, Plus 500’s Chief Executive Officer. “Our move up today represents the next chapter in our growth story, as we continue to expand and diversify our sources of earnings by adding new international licences.”
The move is the latest in a series of good news stories for the broker. In Q1 it reported its best every quarterly revenues with profits being boosted by a growing interest in cryptocurrencies.
They say they hope it will improve liquidity in their shares and more accurately reflect the global nature of its business. It certainly boosts their stature and sees them operating at a similar level to giants such as IG Capital, Gain Capital and CMC Markets. It is, then, a big moment for what is, in relative terms, a scrappy upstart as it steps onto the same platforms as the big establishment figures in electronic trading.
Of course, listing on the London Stock Exchange is not always greeted with overwhelming enthusiasm. Back in 2016, CMC Markets saw its share price take a hit when it when public at the lower range of its value range at $691million.
That came at a challenging time for CFD brokers. The FCA had just penned an open ‘Dear CEO’ letter to spread betting firms warning them over their treatment of customers.
Even though, Plus 500 is not a spread betting broker, as they are often incorrectly reported as being.
Likewise, the Plus 500 move comes at a time when brokers are deciding how to react to the onset of new and tougher regulations from the EU.
Even so, the underlying market for trading brokers is promising. Revenues are continuing to rise and CFD and spread betting platforms continue to grow in popularity.
Tom Cropper has been writing for us since 2015. Tom is a financial journalist and his work has appeared in titles such as the Guardian, Euromoney and many others.