Online forex and CFDs brokerage Plus500 Ltd (LON:PLUS) has announced that the company on-boarded 1,600 new clients last Friday which is a new record for the firm. Just as Finance Magnates outlined in the aftermath of the Brexit vote, the immediate impact for the industry could be very positive with risk appetite for retail clients coming back to the table.
That said, long-term implications will be more complex and to a certain extent unpredictable, due to the challenges emanating from the negotiations of the actual exit of the U.K. from the European Union.
Plus500 Ltd (LON:PLUS) has further outlined that the company has not been affected in any material way from the massive volatility around the Brexit event and expects its diverse international client base to mitigate the risks related to its exposure to the United Kingdom, where 15 per cent of the company’s clients are located.
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The company has also highlighted another couple of records that were broken – most signups on record and the highest spreads. The lack of liquidity in the immediate hours after the Brexit vote have prompted spreads on GBP pairs rising to more than half a cent at many brokerages.
In its statement filed with the London Stock Exchange, the firm elaborated: “The Company’s proprietary risk management system ensures that overall exposures to a single instrument are unlikely to have a material impact on the Company’s financial position. No credit exposure was incurred due to the fact that Plus500’s customers cannot lose more than they deposit.”