Plus500

Last updated

Plus500
Company type Public
Industry Online trading
Founded2008 (2008)
Headquarters
United Kingdom  OOjs UI icon edit-ltr-progressive.svg
Key people
  • Jacob Frenkel (Chairman)
  • David Zruia (CEO)
[1]
Services Online trading platform
RevenueDecrease2.svg US$ 726.2 million (2023) [2]
Decrease2.svg US$ $336.4 million (2023) [2]
Decrease2.svg US$ $271.4 million (2023) [2]
Website plus500.com

Plus500 is a global fintech firm providing online trading services in contracts for difference (CFDs), share dealing, futures trading and options on futures. [3] [4] [5] The company has subsidiaries in the UK, Cyprus, Australia, Israel, Seychelles, Singapore, Bulgaria, Estonia, the United States and Japan. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.

Contents

History

The company was founded in 2008 by six alumni of the Technion - Israel Institute of Technology with an initial investment of $400,000. [3]

The initial platform was based on a Windows OS. In 2010, Plus500 launched a web-based version of its online trading platform. [3] In 2011, it launched its first app for iOS, [3] and Android in 2012. [3]

In October 2012, Plus500UK Ltd. was fined £205,128 by the UK's Financial Conduct Authority (FCA) for failing to report transactions accurately for a year and a half. The company was not able to submit complete and accurate transaction reports because of the absence of appropriate systems and controls, documented procedures, or appropriate training for staff. (Chapter 17 of the FSA’s Supervision Manual and Principle 3 of the FCA’s Principles for Businesses). [6]

In 2013, the company went public on the Alternative Investment Market section of the London Stock Exchange. [7]

In 2014, the company launched its Windows Store app. [8]

In May 2015, Plus500's London-listed shares fell almost 60 percent after the company moved to freeze UK-based trader accounts. The UK Financial Conduct Authority had ordered Plus500UK (the UK subsidiary of Plus500) to freeze the accounts as part of a review into anti-money-laundering controls. Most customers were able to access their funds within two months. The Australian and Cyprus subsidiaries were not affected. [9] [10]

In June 2015, Plus500 agreed to a US$703 million bid from Playtech, an online gambling company that was expanding into trading. However, Playtech walked away from the deal in November 2015 after it failed to get regulatory approval for the takeover. [11]

In 2016, the Israeli operating subsidiary of the company, Plus500IL Ltd. was one of a small number of companies to be granted a Trading Arena Licence by the Israel Securities Authority (ISA). In that same year, Plus500 released an app for Apple Watch to trade and view account details directly from Apple’s wearable. [12]

In early December 2017, Plus500SG Pte Ltd., the Singapore subsidiary of Plus500, was granted a Capital Markets Services license by the Monetary Authority of Singapore (MAS) for dealing in securities and leveraged foreign exchange trading. [13]

In June 2018, Plus500 launched its Economic Calendar, covering major financial events and indicators from all over the world, which are provided by Dow Jones & Company, a subsidiary of News Corp. Plus500’s calendar includes a list of the most highly-affected instruments for each economic event. [14]

In July 2018, shares of Plus500 were listed in the main market of the London Stock Exchange [15] and the company joined the UK FTSE 250 index of leading mid-cap listed companies. [16]

In 2021, Plus500 named Professor Jacob Frenkel, former Chairman of JP MorganChase International and former governor of the Bank of Israel as its new Chairman. [17]

In April 2021, Plus500 signed a deal to acquire Cunningham Commodities LLC. and Cunningham Trading Systems LLC. [18] and in July 2021, Plus500 announced completion of Cunningham’s acquisition, a technology trading platform provider that operates in the futures market in the U.S. as part of the company’s global expansion program. [19]

In June 2021, Plus500’s new research and development center was opened in Tel Aviv, Israel. [20]

In July 2021, Plus500 released its ‘Plus500 Invest’ stock-trading platform, which includes over 2,000 financial trading instruments. [21]

In October 2021, a class action was filed against the Israeli subsidiary of Plus500, claiming that the company paused the trading of certain options for 90 minutes with the aim of preventing Plus500 from incurring losses, violating the Securities Law. [22]

In March 2022, Plus500 acquired the Japanese company EZ Invest Securities - which specialises in the trading of securities and derivatives. [23]

In June 2022, Plus500 launched an advertising campaign featuring actor Kiefer Sutherland in the United Kingdom, Italy, the Netherlands, Germany, and Australia. [24]

In September 2022, Plus500 continued to expand its global footprint by launching TradeSniper, a futures trading app tailored for retail U.S. customers. [25]

Technology

Since the company’s inception, Plus500 has utilized proprietary, internally developed technologies. These technologies include the company’s trading platform, risk management tools, customer onboarding, affiliates, back-office systems, marketing, and cashier systems. [20]

Operations

Metadax WebTrader Webapp-platform-light-modex4.png
Metadax WebTrader

Plus500 trading apps are supported in 32 languages, including English, German, Italian, Spanish, French, Arabic, Chinese and more. [26] It has been reported that 40% of the transactions were made by either Smartphones or tablets. [3]

In December 2017, European and UK watchdogs announced [27] details of planned restrictions on the spreadbetting and CFD sectors. Plus500 CEO Asaf Elimelech said "the board believes the proposals are unlikely to have a material adverse effect on the group's business, thanks to its highly flexible business model". [28]

In February 2019, The Times reported that in the company's 2017 Annual Report Plus500 had told investors "in 2017, as in 2016 and 2015, the company did not generate net revenues or losses from market P&L", however in February 2019 the company issued a contradictory report stating that it had incurred a $103 million loss from client trading activity in the 2017 financial year. [29]

As of the third quarter of 2021, they had 166,310 active clients (that are actively trading on their platform). This number fluctuates each quarter, and is actually down from the 197,976 active clients in the same period last year. [30]

Trading licences

Plus500UK Ltd., authorised and regulated by the Financial Conduct Authority (FCA), FRN 509909; [31]

Plus500CY Ltd., authorised and regulated by the Cyprus Securities and Exchange Commission (CySEC) SEC registration number 250/14; [32]

Plus500AU Pty Ltd. AFSL #417727, issued by the ASIC). [33] In addition, Plus500AU Pty Ltd is authorised to provide its services by the FMA in New Zealand (FSP No. 486026) [34] and the FSCA in South Africa (#47546). [35]

Plus500IL Ltd, authorised and regulated by the Israel Securities Authority (ISA). [36]

Plus500SEY Ltd., authorised and regulated by the Seychelles Financial Services Authority (FSA) with Licence No. SD039. [37]

Plus500SG Pte Ltd., regulated by the Monetary Authority of Singapore (MAS), License No. CMS100648-1. [38]

Funds protection

According to saferinvestor, as of July 2021, only UK and CySec regulators offer any form of funds protection in case of broker insolvency. [39] If you are regulated in the UK by The FCA you will fall under the purview of The Financial Services Compensation Scheme (FSCS) and have 100% deposit protection up to £85,000. [40] CySec regulated brokers offer a guarantee of funds of 90% of remaining deposit up to €20,000 in case of liquidation of the firm. [41]

Sponsorships

To complement its online marketing technology efforts, in January 2015, Plus500 signed a sponsorship deal with Atlético de Madrid. [42] Later that year, Plus500 became the club's main sponsor and kept that title for the next 7 years until June 2022. [43] In December 2016, Plus500 became the major sponsor of ACT Brumbies of Super Rugby. [44]

Later, in 2020, Plus500 signed sponsorship agreements with three major football clubs: Swiss Super League champions Young Boys, [45] Poland's champions Legia Warsaw, [46] and Serie A club Atalanta. [47] In 2023, French broadcaster beIN Sports was forced to black out telecasts of Atalanta and Young Boys matches due to Plus500's offering of CFDs, as French regulations prohibit the advertising of investment products considered to be high risk by the Autorité des marchés financiers (AMF). [48]

In 2022, Plus500 signed a multi-year sponsorship agreement with the Chicago Bulls of the NBA in an effort to build brand awareness in the U.S. [49]

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References

  1. ↑ "Interview With Plus500 Manager David Zruia" . Retrieved 14 September 2011.
  2. 1 2 3 "Annual Results 2023" (PDF). Plus500. Retrieved 19 February 2024.
  3. 1 2 3 4 5 6 "Plus500: Absolutely Israeli". Globes. 18 August 2013. Retrieved 7 September 2018.
  4. ↑ "Plus500 Launch of Plus500 Invest, a New Share Trading Platform". Financemagnets.com. 22 July 2021. Retrieved 15 May 2022.
  5. ↑ "Plus500 completes purchase of Cunningham as it plots US growth". Morningstar. 20 July 2021. Retrieved 15 May 2022.
  6. ↑ "FCA Transaction reporting fines". Financial Services Authority . 30 May 2016. Retrieved 15 September 2018.
  7. ↑ "Plus500 Decides To Go Public With IPO". www.fxempire.com.
  8. ↑ "Annual Report 2014" (PDF). Plus500. p. 13. Retrieved 7 September 2018.
  9. ↑ "London-listed spreadbetting firm Plus500's stock bombs after freezing accounts". Business Insider. 18 May 2015. Retrieved 7 September 2018.
  10. ↑ "Plus500 shares fall 36% after client accounts suspended". Financial Times. 18 May 2015. Retrieved 1 October 2018.
  11. ↑ "Playtech folds on Plus500 deal after regulatory concerns". Financial Times. 23 November 2015. Retrieved 7 September 2018.
  12. ↑ ""On Sunday we release our supported Apple watch app! plus 500"". Plus 500. Retrieved 7 September 2018.
  13. ↑ "Grant of operating licence in Singapore". FT.com. 11 December 2017. Retrieved 7 September 2018.
  14. ↑ "Check our Economic Calendar to follow financial events, anticipate possible market movements and make trading decisions accordingly". Plus500. 4 June 2018. Retrieved 7 September 2018.
  15. ↑ Murphy, Hannah (26 June 2018). "Cryptocurrency surge propels 500 into the main market". Financial Times . Retrieved 3 July 2018.
  16. ↑ "Plus500 Officially Joins FTSE 250 Index". 6 September 2018. Retrieved 11 May 2021.
  17. ↑ "Online trading platform Plus500 appoints Jacob Frenkel as its new chairman". Calcalistech.com. 25 March 2021. Retrieved 10 May 2021.
  18. ↑ "Cunningham Acquisition Announcement" (PDF). plus500.com. Retrieved 15 August 2021.
  19. ↑ "Plus500 enters the market with the purchase of Cunningham". bitfinance.news. 21 April 2021. Retrieved 11 May 2021.
  20. 1 2 "Plus500 to Establish R&D Centre in Tech Hub Tel Aviv". financemagnates.com. 4 March 2021. Retrieved 22 June 2021.
  21. ↑ "Plus500 Launch of Plus500 Invest, a New Share Trading Platform". financemagnates. 22 July 2021. Retrieved 16 September 2022.
  22. ↑ Greenzweig, Avishai (25 October 2021). "Court approves class action on alleged Plus500 manipulation". Globes. Retrieved 26 October 2021.
  23. ↑ "Plus500 enters Japan with acquisition of EZ Invest Securities". MorningstarUK. 21 March 2022. Retrieved 21 March 2022.
  24. ↑ "Kiefer Sutherland to Front New International Advertising Campaign for Plus500". financemagnates. 14 June 2022. Retrieved 16 September 2022.
  25. ↑ "Plus500's Management Team Held the Company's First Ever Capital Markets Day Event". financemagnates. 22 September 2022. Retrieved 4 October 2022.
  26. ↑ "Plus500 Ruthlessly Reviewed & Rated at Commodity.com". Commodity.com. Retrieved 22 February 2018.
  27. ↑ Gill, Oliver (18 December 2017). "Spreadbetters' shares are down as much as 15pc: Here's why" . Retrieved 22 February 2018.
  28. ↑ Morrison, Caitlin (14 February 2018). "Plus500 shares surge as it hikes dividend after growing revenueJ.P. Morgan Chase International". City AM . Retrieved 22 February 2018.
  29. ↑ Hosking, Ben Martin. "Plus500 'may have misled shareholders' over losses". The Times . Retrieved 15 February 2019.
  30. ↑ "Scam Broker Investigator; Plus500 Review Pros & Cons". Scam Broker Investigator. 30 December 2021. Retrieved 30 December 2021.
  31. ↑ "FCA Plus500UK Ltd". Financial Conduct Authority . Retrieved 1 August 2019.
  32. ↑ "CySEC Plus500CY Limited". CySEC. Retrieved 1 August 2019.
  33. ↑ "ASIC Connect - Plus500AU PTY. LTD". Australian Securities & Investments Commission . Retrieved 18 May 2021.
  34. ↑ "Plus500 Granted Operating License by New Zealand FMA". financemagnates.com. 3 October 2016. Retrieved 18 May 2021.
  35. ↑ "Forex Brokers Regulated By FSCA 2021". compareforexbrokers.com. Retrieved 18 May 2021.
  36. ↑ "ISA PLUS500IL LTD". ISA. Retrieved 1 August 2019.
  37. ↑ "Plus500 Secures Seychelles Licence, Closes 2019 on Strong Footing". financemagnates.com. 12 February 2020. Retrieved 18 May 2021.
  38. ↑ "MAS Plus500SG PTE. LTD". MAS. Retrieved 1 August 2019.
  39. ↑ "Plus500 Review 2021 - Is it a Safe and Trusted Broker?". Safer Investor. Retrieved 10 July 2021.
  40. ↑ "Home". Financial Services Compensation Scheme Ltd. Retrieved 10 July 2021.
  41. ↑ "Plus500 Review 2021 - Is it a Safe and Trusted Broker?". Safer Investor. Retrieved 10 July 2021.
  42. ↑ "Atlético de Madrid Main Partner". Atletico de Madrid. Retrieved 30 May 2021.
  43. ↑ "Plus500 and Atletico Madrid end long term relationship". Finance Magnets. 14 June 2022. Retrieved 8 August 2022.
  44. ↑ "Plus500 Signs Official Sponsor of Brumbies". Financial Times. Retrieved 30 May 2021.
  45. ↑ "BSC Young Boys secures Plus500 partnership". Insider Sport. 4 June 2020. Retrieved 30 May 2021.
  46. ↑ "Plus500 reaches sponsorship deal with Legia Warsaw". Share Cast. Retrieved 30 May 2021.
  47. ↑ "Plus500 is Atalanta B.C. main sponsor". Atalanta. 19 August 2020.
  48. ↑ "BeIN hampered by French legislation over Plus500 sponsorship in Champions League". SportBusiness. 19 September 2023. Retrieved 25 February 2024.
  49. ↑ "Plus500 and Chicago Bulls announce multi-year global partnership". Calcalist. 4 October 2022.
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