Financial Markets have fluctuated drastically with the increasing pandemic surrounding Covid-19. It’s created uncertainty amongst traders, with various markets seeing escalations in their trading volumes and standard financial institutions experiencing lower profit margins. Cryptocurrency and blockchain markets are seeing boosts in their popularity, with one brokerage expressing that they’ve seen a month-to-month increase in volumes since February. This brokerage includes Plus500, who confirmed that they’d had increased customer activity since their last trading update. These updates are provided through the London Stock Exchange News Service.
The brokerage’s official statement with the London Stock Exchange read: “Following the Trading Update issued on 28 February 2020, the Company has continued to see a significantly increased level of customer trading activity alongside strong momentum across all financial and operational KPIs. Revenue from Customer Income has been solid due to the heightened levels of market volatility. The Company also has experienced gains from Customer Trading Performance which is expected to be neutral over time.”
Plus500 Revenue Forecasts Exceeded
Representatives with Plus500 noted that the 2020 fiscal year began with considerable uncertainty. Market analysts working for this brokerage believe that coronavirus concerns with self-isolation will prompt increased market volatility, which would respectively increase the revenue streams earned for Plus500. Minimal operators will be provided with this opportunity in the coming months, with this brokerage having excellent brand management. Plus500 is quoted with acquiring a large percentage of the clientele across England and Europe. It should be mentioned that Plus500 operates on the global platform, with each respective market earning an influx of profits from increased customer activity or acquisition.
The onslaught of Covid-19 hasn’t been the only benefit in assisting with Plus500s growth throughout 2020. Major currencies like the American Dollar and Euro have begun to fluctuate, which could prompt multiple investors to bring their respective trades over to the blockchain or cryptocurrency space. This similarly happened with Brexit was first confirmed in June 2016, with Plus500 having a 23.9% increase in customer acquisition. “Flash Events” of this nature always prompt indecisive moves for investors and traders. Historically, the predictions provided by Plus500 are typically correct.
Cryptocurrencies markets in the European Union could see themselves becoming pivotal influencers throughout the financial market. Conventional currencies are depleting in value at fast valuations, which extends to the Swiss Franc. Considering that the Swiss Franc isn’t ever altered under any global conditions, the announcement that valuations were depleting shocked financial analysts.
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