Plus500

From Wikipedia, the free encyclopedia

Plus500
TypePublic
Traded as
LSE: PLUS
IndustryOnline trading
Founded2008 (2008)
Headquarters
United Kingdom Edit this on Wikidata
Key people
Jacob Frenkel (Chairman)
David Zruia (CEO)[1]
ServicesOnline trading platform
RevenueIncrease US$ 872.5 million (2020)[2]
Increase US$ $513.6 million (2020)[2]
Net income
Increase US$ $500.1 million (2020)[2]
Websiteplus500.com

Plus500 is a global fintech firm providing online trading services in contracts for difference (CFDs), in more than 2,500 financial instruments.[3] The company is currently in the process of adding share dealing and futures trading to its offering.

The company has subsidiaries in the UK, Cyprus, Australia, Israel, Seychelles, Singapore, Bulgaria, and the United States.

Plus500 is listed on the London Stock Exchange with the ticker "PLUS"[4] and is a constituent of the FTSE 250 Index in the Investment Banking and Broking sector and Investment Services subsector.

History[]

The company was founded in 2008 by six alumni of the Technion - Israel Institute of Technology with an initial investment of only $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, allowing Mac and Linux users to trade online.[3] In 2011, they launched their first app for iPad and iPhone users.[3]

In 2012, Plus500 introduced its Android-based trading platform for Android smartphones and tablets.[3]

In October 2012, Plus500UK Ltd was fined £205,128 by the FCA 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).[5]

In 2013, the company went public on the AIM section of the London Stock Exchange.[6]

In 2014, the company launched its Windows app.[7]

In May 2015, Plus500 was hit with massive value loss when its stock plunged almost 60 percent due to the company's move 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 2 months. The Australian and the Cyprus subsidiaries were not affected.[8][9]

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.[10]

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 Israeli Security Authority (ISA). In that same year, Plus500 released an app for Apple Watch to trade and view account details directly from Apple’s wearable.[11]

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.[12]

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.[13]

In July 2018, shares of Plus500 were listed in the main market of the London Stock Exchange[14] and the company joined the UK FTSE 250 index of leading mid-cap listed companies.[15]

In 2021, Plus500 named Professor Jacob Frenkel, former Chairman of J.P. Morgan Chase International and former governor of the bank of Israel as its new Chairman.[16] Also in 2021, Plus500 signed a deal to acquire Cunningham Commodities LLC. and Cunningham Trading Systems LLC.[17] and in July 2021, Plus500 announced completion of Cunningham’s acquisition,[18] 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 addition, in June 2021, Plus500’s new research and development (“R&D”) center was opened in Tel Aviv, Israel.[20]

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.[21]

Technology[]

Since the company’s inception, Plus500 has utilized proprietary, internally developed technologies. These technologies include the company’s trading platform (available on multiple operating systems, including iOS, Android, Windows, and Surface), risk management tools, customer onboarding, affiliates, back-office systems, marketing, and cashier systems.[22]

Operations[]

Plus500 WebTrader
Plus500 WebTrader

Plus500 trading apps are supported in 32 languages, including English, German, Italian, Spanish, French, Arabic, Chinese and more.[23] 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[24] 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".[25]

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.[26]

Trading licences[]

Plus500UK Ltd., authorised and regulated by the Financial Conduct Authority (FCA), FRN 509909;[27]

Plus500CY Ltd., authorised and regulated by the Cyprus Securities and Exchange Commission (CySEC) SEC registration number 250/14;[28]

Plus500AU Pty Ltd. AFSL #417727, issued by the Australian Securities and Investments Commission (ASIC).[29] In addition, Plus500AU Pty Ltd is authorised to provide its services by the FMA in New Zealand (FSP No. 486026)[30] and the FSCA in South Africa (#47546).[31]

Plus500IL Ltd, authorised and regulated by the Israel Securities Authority (ISA).[32]

Plus500SEY Ltd., authorised and regulated by the Seychelles Financial Services Authority (FSA) with Licence No. SD039.[33]

Plus500SG Pte Ltd., regulated by the Monetary Authority of Singapore (MAS), License No. CMS100648-1.[34]

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.[35] 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.[36] CySec regulated brokers offer a guarantee of funds of 90% of remaining deposit up to €20,000 in case of liquidation of the firm.[37]

Sponsorships[]

To complement its online marketing technology efforts, in January 2015, Plus500 signed a sponsorship deal with Atlético de Madrid Football Club.[38] Later that year, Plus500 became the club's main sponsor. In December 2016, Plus500 became the major sponsor of the Brumbies, an Australian professional rugby union football team.[39] Later, in 2020, Plus500 signed sponsorship agreements with three major football clubs: Swiss Super League champions Young Boys,[40] Poland's champions Legia Warsaw,[41] and Serie A club Atalanta.[42]

References[]

  1. ^ "Interview With Plus500 Manager David Zruia". Retrieved 14 September 2011.
  2. ^ a b c "Annual Results 2020" (PDF). Plus500. Retrieved 2 March 2021.
  3. ^ a b c d e f "Plus500: Absolutely Israeli". Globes. 18 August 2013. Retrieved 7 September 2018.
  4. ^ "PLUS PLUS500 LTD ORD ILS0.01 (DI)". LSE. Retrieved 1 August 2019.
  5. ^ 1, The Financial Services Authority, 25 The North Colonnade, Canary Wharf, London E14 (30 May 2016). "FCA Transaction reporting fines". www.fsa.gov.uk. Retrieved 15 September 2018.CS1 maint: numeric names: authors list (link)
  6. ^ "Plus500 Decides To Go Public With IPO". www.fxempire.com.
  7. ^ "Annual Report 2014" (PDF). Plus500. p. 13. Retrieved 7 September 2018.
  8. ^ "London-listed spreadbetting firm Plus500's stock bombs after freezing accounts". Business Insider. 18 May 2015. Retrieved 7 September 2018.
  9. ^ "Plus500 shares fall 36% after client accounts suspended". Financial Times. 18 May 2015. Retrieved 1 October 2018.
  10. ^ "Playtech folds on Plus500 deal after regulatory concerns". FT. 23 November 2015. Retrieved 7 September 2018.
  11. ^ ""On Sunday we release our supported Apple watch app! plus 500"". Plus 500. Retrieved 7 September 2018.
  12. ^ "Grant of operating licence in Singapore". FT.com. 11 December 2017. Retrieved 7 September 2018.
  13. ^ "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.
  14. ^ Murphy, Hannah (26 June 2018). "Cryptocurrency surge propels 500 into the main market". Financial Times. Retrieved 3 July 2018.
  15. ^ "Plus500 Officially Joins FTSE 250 Index". 6 September 2018. Retrieved 11 May 2021.
  16. ^ "Online trading platform Plus500 appoints Jacob Frenkel as its new chairman". Calcalistech.com. 25 March 2021. Retrieved 10 May 2021.
  17. ^ "Cunningham Acquisition Announcement" (PDF). plus500.com. Retrieved 15 August 2021.
  18. ^ "Plus500 Announces Completion of Cunningham's Acquisition". trustpedia.io. Retrieved 15 August 2021.
  19. ^ "Plus500 enters the market with the purchase of Cunningham". bitfinance.news. 21 April 2021. Retrieved 11 May 2021.
  20. ^ "Plus500 to Establish R&D Centre in Tech Hub Tel Aviv". financemagnates.com. 4 March 2021. Retrieved 22 June 2021.
  21. ^ Greenzweig, Avishai (25 October 2021). "Court approves class action on alleged Plus500 manipulation". Globes. Retrieved 26 October 2021.
  22. ^ "Plus500 to Establish R&D Centre in Tech Hub Tel Aviv". financemagnates.com. 4 March 2021. Retrieved 22 June 2021.
  23. ^ "Plus500 Ruthlessly Reviewed & Rated at Commodity.com". Commodity.com. Retrieved 22 February 2018.
  24. ^ Gill, Oliver (18 December 2017). "Spreadbetters' shares are down as much as 15pc: Here's why". Retrieved 22 February 2018.
  25. ^ Morrison, Caitlin (14 February 2018). "Plus500 shares surge as it hikes dividend after growing revenue". Retrieved 22 February 2018.
  26. ^ Hosking, Ben Martin. "Plus500 'may have misled shareholders' over losses". The Times. Retrieved 15 February 2019.
  27. ^ "FCA Plus500UK Ltd". FCA. Retrieved 1 August 2019.
  28. ^ "CySEC Plus500CY Limited". CySEC. Retrieved 1 August 2019.
  29. ^ "ASIC Connect - Plus500AU PTY. LTD". ASIC. Retrieved 18 May 2021.
  30. ^ "Plus500 Granted Operating License by New Zealand FMA". financemagnates.com. 3 October 2016. Retrieved 18 May 2021.
  31. ^ "Forex Brokers Regulated By FSCA 2021". compareforexbrokers.com. Retrieved 18 May 2021.
  32. ^ "ISA PLUS500IL LTD". ISA. Retrieved 1 August 2019.
  33. ^ "Plus500 Secures Seychelles Licence, Closes 2019 on Strong Footing". financemagnates.com. 12 February 2020. Retrieved 18 May 2021.
  34. ^ "MAS Plus500SG PTE. LTD". MAS. Retrieved 1 August 2019.
  35. ^ "Plus500 Review 2021 - Is it a Safe and Trusted Broker?". Safer Investor. Retrieved 10 July 2021.
  36. ^ "Home". Financial Services Compensation Scheme Ltd. Retrieved 10 July 2021.
  37. ^ "Plus500 Review 2021 - Is it a Safe and Trusted Broker?". Safer Investor. Retrieved 10 July 2021.
  38. ^ "Atlético de Madrid Main Partner". Atletico de Madrid. Retrieved 30 May 2021.
  39. ^ "Plus500 Signs Official Sponsor of Brumbies". Financial Times. Retrieved 30 May 2021.
  40. ^ "BSC Young Boys secures Plus500 partnership". Insider Sport. 4 June 2020. Retrieved 30 May 2021.
  41. ^ "Plus500 reaches sponsorship deal with Legia Warsaw". Share Cast. Retrieved 30 May 2021.
  42. ^ "Plus500 is Atalanta B.C. main sponsor". Atalanta. 19 August 2020.

External links[]

Retrieved from ""