Crypto-boom boosts Plus500

In a post-close trading update, Plus500, which is listed on London’s Aim market, said that “strong momentum” in trading meant the company reported record revenues in the final quarter, while full-year revenues and profits will likely beat market expectations. It attracted a record of around 246,000 new clients in 2017, it added, up from 104,432 last year.

This was driven by “strong volumes” in its cryptocurrency derivatives, which it introduced in 2013 but have grown in popularity recently among punters looking for ways to bet on soaring prices. Bitcoin, the most popular, has more than tripled in value over the past three months.

Both EU and UK regulators flagged the “significant risks” associated with leveraged trading of cryptocurrency-based derivatives recently, highlighting the volatility of digital currencies and immaturity of the marketplace. Plus500 said it remained “focused on risk management”.

More broadly, the online retail trading sector faces tough new regulations originating from Europe that are expected to come into force early next year and hit firms’ revenues.

Asaf Elimelech, chief executive, said:

We are pleased to announce another strong period in both revenues and profits. Momentum in the business has continued to be strong with increased interest in our crypto currency CFD offering and record new and active customer numbers, demonstrating our ability to serve our customers’ trading needs through product innovation and technology leadership.