Plus500 Posts Impressive H1 2021 Revenue Growth, but 2020 Demand Vanishes

London-listed Plus500 provided a trading update on its H1 of 2021 performances, showing a sharp correction from the record it achieved last year with the Covid-spurred market Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term.

According to Monday’s update, the Group revenue of the global CFDs broker for the six months, ending on June 30, 2021, came in at $346.2 million, which is down from H1 of 2020's $564.2 million. But, on the positive side, the figure went up by 156 percent from H1 of 2019’s $148 million, which is more relevant for comparison due to the unexpected windfall last year.

Additionally, Plus500 revealed that it had generated $379.2 million from customer income in the period, which remained $556.9 million and $175 million in H1 of 2020 and 2019, respectively.

Plus500 is a publicly listed broker that compels it to publish financials every quarter. In addition, its performance remained impressive in Q2 of 2021 with $157.7 million in customer income and $143 million in group revenue.

“Plus500's excellent performance so far in 2021 was driven by the strength and agility of our technology and its ability to respond rapidly to market developments, news events and customer requirements,” Plus500 CEO, David Zruia said in a statement.

Moreover, the brokerage continued to bring new retail traders on its platform, and the number remains impressive. According to the public update, 47,574 new traders joined the brokerage in Q2 of 2021, taking the total tally in H1 at 136,980.

New Share Dealing Platform

Plus500 revealed that it will launch a share dealing platform, called Plus500 Invest, in the coming months in ‘selected geographies’. The brokerage group acquired US-based Cunningham Commodities, and the deal is expected to boost its geographic footprint and product offering.

Despite its listing in London, Plus500 operates in several major countries with local licenses, and its business is impacted by the events in any of those jurisdictions. It highlighted that despite the regulatory restrictions implemented in Australia on retail trading, Plus500’s performance in the market was in line with the expectations.

“We have multiple opportunities from which to access future growth through both continued organic investment and targeted acquisitions, by expanding our CFD offering, launching new trading products, introducing new financial products and deepening engagement with our customers,” Zruia added.

“Our long-term ambition is to enable simplified, universal access to financial markets as we continue to transition into a global Multi-Asset Multi-Asset Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically Read this Term Fintech Group,” the CEO said.