Plus500 looks to add share trading, acquisitions
It has been quite a year for Plus500, with still more than a third of it to go.
The FCA regulated CFD broker, which has risen to take the #1 spot in the UK online, off-market financial trading sector posted a record $564 million in Revenue for the first six months of the year, with an equally eye-popping $320 million in net profit.
The company has been among the most active firms of any kind when it comes to securing top-notch sports sponsorships for its brand, including recent front-of-shirt deals with Italy’s Atalanta BC, Poland’s Legia Warsaw FC, and Swiss Super League champion BSC Young Boys FC. Those go alongside the company’s long-standing sponsorship of Spanish club Atlético de Madrid.

Now comes word that Plus500 is looking to expand on new fronts. Plus500 CEO David Zruia spoke over the weekend with The Mail on Sunday, indicating that Plus500 was looking to solidify its position in the UK market – where it is already very strong – by adding “real” shares trading alongside the contract-for-difference (CFD) trading it already offers on hundreds of UK, US and international equities.
Mr. Zruia indicated that this year particularly has seen a shift in trader behavior away from the company’s core FX product, and into both equities (and equity indices) and commodities, as record volatility has taken hold of both those sectors.
2020 has witnessed a 30%+ crash in equity markets, only to see them recover in record time to set new all-time highs. Stocks popular with the younger generation – Amazon, Netflix, Google, Apple, Telsa – have skyrocketed, bringing record numbers of new, young traders to Plus500 and some of its competitors. Crude oil went negative in price before bouncing back. Gold and other precious metals continued to climb to all-time highs.
In all – great conditions for online brokers, leading to great results.
As there are many traders who want to trade the “real equity” and not just a CFD on stocks, Plus500 is looking to add that product for its large client base later this year. That would position Plus500 much better vis-a-vis its main UK based competitor, IG Group, which already offers share trading. It would also put Plus500 on a collision course with other UK brokers who cater mainly to the “real” share market, such as Hargreaves Lansdown and AJ Bell.
Mr. Zruia also indicated that Plus500 was going to look at using some of its cash hoard ($587.8 million as at June 30, 2020) to consider add-on acquisitions, which could include smaller brokers. Plus500 was apparently active in looking at buying Gain Capital and its Forex.com and City Index brands, but balked on price. Gain Capital was eventually scooped up earlier this year by US broker StoneX for $236 million.