Plus500 revenue rises amid coronavirus

Despite the fact that coronavirus makes significant uncertainty in the financial markets, over-the-counter forex and CFD brokers benefit from the growing volatility and, as a result, the trading activity of clients. In particular, Plus500 managed to capitalize on this.

CFD online trading solutions provider has stated through the London Stock Exchange News Service, which reports an increased level of customer trading activity.

In particular, the broker noted that, since the last report published on February 28, 2020, the company noted a significantly increased level of customer trading activity along with powerful dynamics across all financial and operational KPIs.

It also added that revenue from customer income had grown significantly due to the increased level of volatility in the market. The company also noted profit growth due to the effectiveness of client trading operations. 

Plus500 is ahead of forecasts

The company emphasizes that the year has just begun. In addition, a variety of uncertainties, including those associated with coronavirus, can affect profit margins. However, Plus500 believes that revenue and full-year profitability will be well ahead of average forecasts.

Coronavirus is fraught with danger

Meanwhile, panic and volatility in the financial market are not only about profit growth. Significant price fluctuations can cause problems for brokers and traders. In June 2016, after voting on Brexit, many brokers did not cope with customer requests amid a sharp drop in liquidity.

Flash crashes can be disastrous for brokers. Historically, such situations have led customers to receive close positions with negative balances.

Besides, significant fluctuations in major currencies could result in losses of hundreds of millions, as was the case when the Swiss National Bank loosened control of the Swiss franc (CHF) in 2015 and removed the pegging from the euro. 

The situation in the world is very tough at the present moment as countries struggle to contain coronavirus. It severely affected financial markets and resulted in decreasing values of cryptocurrencies. Many prominent events were also cancelled, which were predicted to bring colossal revenue.