Plus500 Revenue Declined in 2021, CEO Said New Products May Be Launched

The Plus500 audited annual financial report for 2021 reveals that the forex broker Forex Broker In the forex space, a broker is any company that can provide traders with access to a platform that permits the buying and selling of multiple currencies.The retail forex industry has grown over the past two decades to include every major jurisdiction, which in turn has necessitated new regulatory oversight. Relative to the institutional sector, retail brokers are rather small portion of the greater forex market. However, traders can rely on brokers for leveraged trading in a 24-hour-a-day marke In the forex space, a broker is any company that can provide traders with access to a platform that permits the buying and selling of multiple currencies.The retail forex industry has grown over the past two decades to include every major jurisdiction, which in turn has necessitated new regulatory oversight. Relative to the institutional sector, retail brokers are rather small portion of the greater forex market. However, traders can rely on brokers for leveraged trading in a 24-hour-a-day marke Read this Term revenue declined. Covid-19 has had an impact on Plus500 in the past year. However, due to the current volatility in the markets, it may rekindle traders' interest.

David Zruia, the CEO of Plus500, said, "Of course, volatility is good for us. Whenever there is volatility, there is interest from customers, both from new customers to register and existing customers, to trade.

“We hope for peace. But, we do enjoy the volatility that is being driven by all this news. History shows that always extraordinary global events, invasions, wars, usually cause higher volatility.”

Pre-tax profits have declined to $386.4 million from $523.3 million in the past year. Also, the number of new clients dropped to 196,336 (approximately 30%). The cash balance at year-end reached $749.5 million. Further, the average revenue per client dropped by 12% to $1,764.

Regulatory Licenses and New Products

Plus500 obtained a new regulatory license in 2022. The Financial Supervision Authority (FSA) has approved Plus500 in Estonia, allowing the broker to operate as an investment firm.

"On 7 February, Finantsinspektsioon issued authorisation to Plus500EE AS to operate as an investment firm, giving it the right to provide various investment services and ancillary services to investment services.

"The company will have the right under the authorisation to accept securities orders and to send them, to execute securities orders in the name of clients or in its own name, and to trade with securities on its own account.

"The ancillary services to investment services give the company the right to hold and manage the securities of clients and to provide services relating to foreign exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term if they are linked to the provision of investment services. The members of the management board of Plus500EE AS are Kerli Lõhmus and Sigrid Aljas."

source: FSA

The CEO of Plus500 added that among its goals is 'obtaining new operating licenses and launching new products'. Despite the fall in profits, Pluss500 announced a $55 million share buyback.