RECOMMENDED FOREX BROKERS
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It appears that the forex brokers’ prudence and pre-EU referendum measures have paid off and neither they, nor their clients have been severely affected by the extreme market volatility and the British pound’s plunge on Friday.
Plus500 (LON:PLUS), a UK-based forex and CFD brokerage, for example, announced it has set a number of significant records on Friday, namely most signups (17 000) and most new customers (1600) in a single day. Furthermore, the broker said, the market dislocation and extreme volatility has not adversely affected the Group’s financial position. On the contrary, it saw record spread revenue.
According to Plus500, the company’s stable positions was mostly thanks to its proprietary risk management system, which ensures that overall exposures to a single instrument are unlikely to have a significant impact on the company’s financial position.
“The UK represented 15% of 2015 revenue and we continue to have a diverse international customer base,” the broker said in a statement on the impact of the EU referendum posted on the website of the London Stock Exchange where its shares are traded.
Plus500 is among the several large global forex brokers, such as Gain Capital, Saxo Bank, AxiTrader and Dukascopy, who have already announced the Friday market volatility did not affect them in a negative way.
Plus500 offers trading in forex, options, contracts for difference (CFDs), commodities, indices, and exchange-traded funds (ETFs). It operates its own online trading platform for CFDs available in over 31 languages on desktop and Android, Windows and iOS mobile operating systems. According to Investment Trends report from July 2015, it is the second largest CFD provider in the UK.
Plus500 is licensed by three regulators – the Cyprus Securities and Exchange Commission (CySEC), UK’s Financial Conduct Authority (FCA), and the Australian Securities and Investments Commission (ASIC). The broker operates in the European Economic Area (EU member states, plus Norway, Lichtenstein and Iceland), Gibraltar, Australia and certain other jurisdictions across Asia, the Middle East and elsewhere. Its subsidiaries include Plus500UK, Plus500AU, Plus500CY and Plus500IL.