Plus500 stands as an online provider when it comes to trading CFDs or Contracts for Difference. The company has recently published a trading update in regards to the first quarter of 2020. Within this report, it showed that the Isreal-based broker had experienced an incredible amount of revenue.
Even according to Plus500 itself, the company has managed to achieve “exceptional Q1 Revenues.” When one compares these revenues to the same period of time within 2019, you can really appreciate the sheer increase that had occurred. When you crunch the numbers, the revenues, clocking in at $3166 million, is 487% higher than its 2019 counterpart.
The number gets even more impressive when it’s realized that the company managed to gain 89% of the company’s entire revenue within 2019, within the first quarter of this year. When Q1 2020’s numbers were measured against Q4 2019’s, there’s an increase of a staggering 230%.
Opportunities In Unexpected Places
The reason for the company’s overwhelming success is a rather grim one, however. The massive amount of revenues was achieved primarily due to the incredible amount of market volatility within the global financial markets. This volatility was, in turn, attributed to the coronavirus pandemic causing the entire market to crash across the world. It’s funny how things work out, sometimes, since the massive volatility caused a considerable spike in client trading activities, some exchanges outright crashing from the traffic.
Within the first quarter of 2020, the total amount of active customers skyrocketed to 194,024. When one compares it to Q1 2019’s number, it’s a rise of 98%, almost double the last year’s numbers. Added to this, the numbers when it comes to New Customer acquisition has been boosted by an incredible 289% when you review it compared to Q1 2019
Great Start, Uncertain End
Even the average deposit per active customer had an increase. Whereas Q1 2019 had the number at about $2,153 on average, Q1 2020 had that number increase dramatically. For Q1 2020, Plus500 managed to push that average deposit for active users up all the way to $3,595.
The company gave a public statement in regards to the events, stating that the overall profitability, revenue, and performance of 2020 is expected to be considerably more than what current expectations are. However, the company was aware that the financial year was just beginning, and there is a range of uncertainties and ongoing regulatory changes that could lead to unpredictable results.