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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
Go to Proactive UK
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Investments and investor services

Plus 500 revenues slide as new trading regulations bite

Total sales for the three-month period dropped 14% to US$100mln

Futures specialist Plus500 PLC (LON:PLUS) has raised profit expectations for 2018 due to the recent volatility in equity and commodities markets, even though customer acquisition costs have soared.

Third quarter revenues also fell as tighter regulation meant average income per customer dropped by 20%.

READ: Plus500 sees up huge profits surge as crypto trading drives activity

Total sales for the three-month period dropped 14% to US$100mln.

Active customer numbers rose by 8% to just over 102,000 in the three months to September, but the cost of shifting people into the professional category meant acquisition costs more than doubled to US$1,581.

To be able to trade without restrictions, customers now have to be classified as elected professionals.

The company said approximately 8% of customers have now elected to become professional clients representing approximately 38% of revenues compared with 5% of customers and approximately 20% of revenues at the end of the second quarter.

Plus500 ended the period with cash of US$371mln and has started a share buyback programme of US$10mln.

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