It’s not surprising really, PLUS 500 shares tanked from highs just shy of 800 when they were reprimanded by the FCA for failing to conduct proper due dilligence checks on new customers. Since then the share price has steadily risen from under 400 back up to 800 again.
Anyone with even the most basic knowledge of charting will see is close to a resistance line. Or, the point at which they will probably go down. Or to put it another way, when the founders were allowed to sell after a lock in period from when playtech came in and took them over.
Plus 500’s chief executive, Elad Even-Chen, said the London-listed firm expected the drop in share price as it reflects the sale price of 650p rather than yesterday’s closing price of 750p.
Plus 500 are not a spread betting broker (despite what a lot of other news reports say), they specialise mainly in CFD Forex trading and main market stocks. Unlike most other UK brokers they don’t offer MT4, opting instead to just offer their own basis online, mobile and downloadable trading platform.
Richard founded the Good Money Guide (previously Good Broker Guide) in 2015 and has been a broker for 20 years most recently at Investors Intelligence and previously a multi-asset derivatives broker at MF Global (Man Financial). Richard started his career working as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson) after interning on the NYMEX oil trading floor in New York and London IPE in 2001 & 2000.