By financen | May 26, 2020 - 4:40 pm - Posted in Online Trading

Due to the coronavirus pandemic and the resultant uncertainty looming across the globe, the market is highly volatile. A huge boost in trading volumes is witnessed as investors scramble to move away from their respective positions, amidst fears of a global recession. The popular online trading platform Plus500 Ltd, doubled its customer base in the first three months of 2020, which means a whopping six times rise in its revenue. The number of active customers increased from 97,921 to 194,024.

The first-quarter revenue of Plus500 Ltd. soared as customers traded in the highly volatile market. Plus500 is a company based in Israel and is best known for sponsoring Spain’s Atletico Madrid Soccer team. It deals with CFD’s or contracts – derivatives, which are hugely banned in the United States. These are used by traders to wager on stocks, commodities, and bonds.

Plus500 Ltd. is a mobile trading platform which enables customers to make leveraged bets on different financial markets, which include currencies and oil as well.

Plus500 jumped close to 500% in the 1st quarter. The broker reported a huge revenue of $316.6, in the first quarter of March 2020. This exceeded the expectations of the analysts hugely who had put forward a figure of $185m up from $53.9 which was noted in the same time, the previous year. This amount is said to be almost 90% of the company’s total revenue in the year 2019.

According to Plus500, this surge was due to the significant increase in volatility throughout the global financial markets. This has resulted in higher levels of customer trading activities along with increase in new customer acquisition.

The Remaining Quarters of 2020 – An Expected Surge

It is expected that the profits of 2020, will be substantially ahead and beyond expectations, though it is quite a challenge to make predictions amidst the pandemic. According to Asaf Elimelech, Chief Executive – “As we remain at an early stage in the financial year, and there are global markets uncertainties as well as ongoing regulatory changes, it remains difficult to predict the outcome for the full year,”

Several professional traders with day jobs have multiple personal accounts on the trading platform and on rival platforms. This is an effort to earn some additional money after their office hours. Plus500 does not reveal any details about the traders who sign up to the platform. With the cancellation of most sporting events across the globe, more and more people are now turning towards financial betting as an option to earn money.

Plus500 has given an upbeat forecast and hinted that the current surge, which was seen in the first quarter of 2020, will be repeated in other quarters as well!

This entry was posted on Tuesday, May 26th, 2020 at 4:40 pm and is filed under Online Trading. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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