Revenues plus 500 fell 82% in the first quarter of the year
Revenues totaled $ 53.9 million • The number of active users was cut by 55% to only 97,921 • The main reason for the decline is regulation that came into force in Europe about a year ago
Revenue from the online trading platform Plus 500 plummeted 82% in the first quarter of this year. Revenue totaled only $ 53.9 million. The number of active users dropped 55% to 97,921. In response, the Plus 500 stock
Dropping in trade.
The reason for the sharp decline is mainly the regulation of the European Securities Authority, which came into effect last August. The new rules impose limits on the leverage of customers and protect investors from heavy losses. The restrictions have been on the market for a year, but only now are they beginning to affect the results of Plus 500 and the competing companies like IG and CMC Markets.
Plus 500, led by CEO Assaf Elimelech, operates an online trading platform on CFDs on world leading stock indices, forex (currency rates), digital currencies and commodities, as well as prominent stocks, and charges a commission for the difference between the purchase price and the selling price “The company’s customers typically use very high leverage (using additional credit on equity), so they can earn or lose their entire original investment quickly.