Plus500 Revenue Crashes by 82%
The low volatility environment for retail brokers has had its doubt in recent months but as of Friday April 12th, it is undisputable anymore. Plus500 revealed to their investors this week that during the first quarter of this year, the revenue for the firm has dropped by a significant 82%
This news however, should be taken lightly and with some caution as Plus500’s first quarter of this year was distorted by a market crash for cryptocurrency back in 2018. The result of the crash effected the first three months of business and created deteriorating market conditions for FX Equities and Bonds. This isn’t favourable for retail investors and caused for the significant drop in revenue.
The total reported losses for Plus500 in the first quarter of this year is $53.9 Million. As of the first week of April, the market continues to look discouraging and continues to deteriorate in conditions. The FX Volatility continues to drop in its all-time lows, regardless of the growing economic picture of the United Stated and the world.
The London Stock Market Reaction
The London Stock Market Exchange didn’t have a positive reaction to this news as shares dropped by more than 44%. It eventually stabilized around 550 Pence per Share, which is still 24% down on the prior day. This is the lowest the stock has been since early 2016.