Plus500 has published a trading update this Monday, revealing that heightened levels of market volatility have persisted and, therefore, the broker has continued to see record levels of customer trading activity in the second quarter of 2020.
The surge of interest in the trading markets, which has seen a wave of new traders enter the markets for the first time, as well as dormant traders returning to the space, has led to a positive boost for Plus500’s operations, with the company stating that its financial and operational KPIs remain strong.
Since the beginning of the second quarter, the London listed broker has added 100,574 new customers. This number is already ahead of the firm’s expectations for the entire quarter and is in excess of the 82,951 new clients which joined in the first quarter.
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Revenue from Customer Income also remains at record levels for the broker, having generated approximately $249.0 million in the second quarter to date. Furthermore, in recent weeks, especially for the week ended on the 5th of June 2020, Plus500’s Customer Trading Performance for the year now represents a gain for customers. Because of this, the total revenue for the second quarter of 2020 to date is now approximately $102.5 million.
Plus500: uncertainty remains
However, as highlighted by the Israel-based broker, uncertainty remains about how long current levels of volatility will remain. Because of this, as well as the additional uncertainty of the potential impact of regulatory changes in Australia, revenue and profitability for the full year is currently expected to be in-line with consensus expectations.
Commenting on the announcement, David Zruia, Interim Chief Executive Officer, said in the update: “We are pleased the business has continued to generate record levels of Customer Income, added over 100,000 new customers so far in Q2 and has materially grown the net client deposits balance to almost half a billion dollars.
“We have consistently stated that Customer Trading Performance2 is subject to significant market movements and is therefore likely to fluctuate. This is magnified during periods of heightened market volatility such as those we are currently experiencing and given the growing scale of the business. Nonetheless we continue to expect this performance to revert to a medium-term historic level of near zero and our outlook for the year remains unchanged.”