Plus500, a major Europe-regulated forex and CFD broker announced it is expecting a strong performance in the first half of this year and that the revenues and profits for the year ending 31 December 2017 will be significantly ahead of current market expectations.
According to the broker’s statement, the first two quarters of the year saw very positive trading which has exceeded the Board’s expectations with strong new customer sign ups and reduced customer acquisition cost. This has resulted in a higher EBITDA margin, compared to the same period of last year.
“We have had a very successful half year, significantly ahead of our expectations. This puts us in a strong position for the remainder of the year”, said Asaf Elimelech Plus500 CEO. “We are confident that our flexible business model will enable us to adapt to the upcoming regulatory changes and gives us a competitive advantage that will enable us to deliver another excellent performance this year.”
Plus500 notes that the outcome of 2017 would be the result of the balance between positive trading conditions and the possible negative impact of the expected regulatory changes in some of the countries where the broker operates, including the pending ruling of the Financial Conduct Authority (FCA).
On the other hand, Plus500 said it actually supports the pending changes to the regulation and that it would enable the industry to become more sustainable with only compliant providers.
We remind you that last Friday, the European Securities and Markets Authority (ESMA) said it is considering product intervention in CFDs, rolling spot forex and binary options, while FCA said it is postponing the eventual introduction of new limitations to the offering of CFDs to retail clients, in expectation of ESMA’s decision.