Plus500

Plus500 is a British international financial firm providing online trading services in contracts for difference (CFDs), across more than 2,000 securities and multiple asset classes.[2] The company is headquartered in Israel and has subsidiaries in UK, Cyprus, Australia, Singapore and Bulgaria.

Plus500
TypePublic
LSE: PLUS
IndustryOnline trading
Founded2008 (2008)
Founder
  • Alon Gonen
  • Gal Haber (MD)
  • Elad Ben-Izhak
  • Omer Elazari
  • Shlomi Weizmann
  • Shimon Sofer
Headquarters
United Kingdom 
Key people
Penelope Judd (Chairman)
David Zruia (CEO)
ServicesOnline trading platform
Revenue US$ 354.5 million (2019)[1]
US$ $190.1 million (2019)[1]
US$ $151.7 million (2019)[1]
Websiteplus500.com

Plus500 is authorised and regulated by the Financial Conduct Authority (FCA),[3] the Cyprus Securities and Exchange Commission (CySEC),[4] the Australian Securities and Investments Commission (ASIC), the Monetary Authority of Singapore (MAS),[5] and the Israel Securities Authority (ISA).[6] It is listed on the London Stock Exchange with the ticker "PLUS"[7] and is a constituent of the FTSE 250 Index.

History

The company was founded in 2008 by six alumni of the Technion - Israel Institute of Technology: Gal Haber, Alon Gonen, Elad Ben-Izhak, Shlomi Weizmann, Omer Elazari and Shimon Sofer), with an initial investment of $400,000 contributed by Gonen.[2]

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.[2] In 2011, they launched their first app for iPad and iPhone users.[2]

In 2012, Plus500 introduced its Android-based trading platform for Android smartphones and tablets.[2]

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).[8]

In 2014, the company launched its Windows app.[9]

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.[10][11]

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.[12]

In 2016, the Israeli operating subsidiary of 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.[13]

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.[14]

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.[15]

In July 2018, shares of Plus500 were listed in the main market of the London Stock Exchange.[16]

Operations
Plus500 Web Trader

Plus500 trading apps are supported in 32 languages, including English, German, Greek, Italian, Spanish, French, Finnish, Danish, Swedish, Estonian, Russian, Romanian, Hebrew, Arabic, and Traditional and Simplified Chinese.[17] It has been reported that 40% of the transactions were made by either Smartphones or tablets.[2]

In December 2017, European and UK watchdogs announced[18] 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".[19]

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.[20]

References
  1. "Annual Results 2019" (PDF). Plus500. Retrieved 3 March 2020.
  2. "Plus500: Absolutely Israeli". Globes. 18 August 2013. Retrieved 7 September 2018.
  3. "FCA Plus500UK Ltd". FCA. Retrieved 1 August 2019.
  4. "CySEC Plus500CY Limited". CySEC. Retrieved 1 August 2019.
  5. "MAS Plus500SG PTE. LTD". MAS. Retrieved 1 August 2019.
  6. "ISA PLUS500IL LTD". ISA. Retrieved 1 August 2019.
  7. "PLUS PLUS500 LTD ORD ILS0.01 (DI)". LSE. Retrieved 1 August 2019.
  8. 1, The Financial Services Authority, 25 The North Colonnade, Canary Wharf, London E14. "FCA Transaction reporting fines". www.fsa.gov.uk. Retrieved 15 September 2018.CS1 maint: numeric names: authors list (link)
  9. "Annual Report 2014" (PDF). Plus500. p. 13. Retrieved 7 September 2018.
  10. "London-listed spreadbetting firm Plus500's stock bombs after freezing accounts". Business Insider. 18 May 2015. Retrieved 7 September 2018.
  11. "Plus500 shares fall 36% after client accounts suspended". Financial Times. 18 May 2015. Retrieved 1 October 2018.
  12. "Playtech folds on Plus500 deal after regulatory concerns". FT. 23 November 2015. Retrieved 7 September 2018.
  13. ""On Sunday we release our supported Apple watch app! plus 500"". Plus 500. Retrieved 7 September 2018.
  14. "Grant of operating licence in Singapore". FT.com. 11 December 2017. Retrieved 7 September 2018.
  15. "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.
  16. "Cryptocurrency surge propels 500 into the main market". Financial Times. Retrieved 3 July 2018.
  17. "Plus500 Ruthlessly Reviewed & Rated at Commodity.com". Commodity.com. Retrieved 22 February 2018.
  18. Gill, Oliver (18 December 2017). "Spreadbetters' shares are down as much as 15pc: Here's why". Retrieved 22 February 2018.
  19. Morrison, Caitlin (14 February 2018). "Plus500 shares surge as it hikes dividend after growing revenue". Retrieved 22 February 2018.
  20. "Plus500 'may have misled shareholders' over losses". The Times. Retrieved 15 February 2019.
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