The Israeli retail forex broker Plus500 has published its trading update for the second quarter, revealing more about the massive drop in revenues
Plus500 second quarter revenues experienced an incredible slowdown, falling by 47.5% over the quarter to only $43 million, much more visible as the first quarter had been stellar. On the annual basis, Q2, 2015 showed a 5% decrease in comparison with the second quarter 2014.
As we see the annual drop much lower as the quarter-on-quarter plunge, this fact only supports the official explanation by Plus500, stating that such decline is caused by seasonability and the second quarter is well-know for lower volumes. Nevertheless, as Plus500 added, 2015 seems to be much better year as the previous one. In the H1 2014 forex brokers sufferred from volumes in the entire industry, as even confirmed by Dukascopy here, in their earnings report.
As for the case of UK frozen accounts, Plus500 announced in the report that all the UK clients, whose accounts were frozen due to needed verification, asked by the UK Financial Conduct Authority (FCA) regulatory body have been cleared. As the Israel-based broker states, total number of such accounts stands at 13,499. According to Plus500, 72% of these clients continued in trading (8,758 clients), while 5,261 or 43% have even deposited additional funds. Only 6% (874 clients) decided to withdraw their trading funds and five accounts have been suspended due to non-compliance with anti-money-laundering pocedures.
Plus500 expects the acquisitions of new clients to continue in the UK in approximately three weeks as the company will hire external consultants due to compliance issues. Moreover, the broker will provide shareholders with a report of key performance indicators (KPI) ahead of the vote in 16th July, related to the acquisition by Playtech.
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