Plus500 Announces 3Q Profits Indicating Slowdown

The Financial Commission / Media posts / Plus500 Announces 3Q Profits Indicating Slowdown

UK-based online contracts for differences (CFDs) broker Plus500 has published a trading update a few days ago announcing its 3Q 2020 financial performance. The results suggest solid growth year over year, but a slowdown from the record metrics achieved earlier in 2020, as market volatility has subsided from extreme levels.

Revenues generated in the third quarter totaled $216.4 million, a 96% jump as compared with the same quarter of the previous year, but a significant decline from the $316.6 million generated in 1Q 2020 and $249 million in the second quarter. EBITDA during Q3 2020 rose 91% percent year over year to $134.2 million.

The broker’s metrics suggest a slowdown in trader activity and interest in trading as 2020 has progressed. The broker continues to bring on thousands of new traders every quarter, but that number has steadily declined since Q1 2020. Last quarter the brokerage added 46,238 new accounts, which is a 90 increase from the same time last year.

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