The pandemic has not been kind to businesses across the world. Many small-scale startups both in crypto and mainstream industries have gone out of business, and established firms have faced a significant fall in revenue due to the impacts of the coronavirus. Joining this list is Plus500, a forex broker that has slid nearly by $150 million according to the annual reports for 2021. Nonetheless, the firm expects to rejuvenate the business amidst the current dip in the market, which occurred following the war brewing between Russia and Ukraine.
Based in Israel, Plus500 is a trading firm that offers its services to clients across the globe to trade with CFDs. Moreover, the firm offers more than 2000 assets and securities to be traded on the platform. The firm, however, has a strong foothold in the forex market and established its primary business there. The nod from multiple regulators, including Singapore, Cyprus, Australia, and Israel, has made it alone the most sought-after forex broker currently in business. With a market cap that exceeds $2 billion, Plus500 brings deals from prominent points like the London Stock Exchange. Check out this well-investigated review of Plus500 to know more about the trading options.
The firm’s annual reports for 2021 have been released recently, and to everyone’s surprise, the numbers look stomped by the influence of the pandemic in 2021. The firm’s revenue dropped to $386 million from a staggering $523 million in the previous year. The reason for such a fall is reported to be the decrease in the trading platform’s client base. Yes, Plus500 lost nearly 30% of its customers in 2021, leading to this unignorable loss in revenue. These numbers are prior to taxation and are expected to drop even lower.
As the broker’s balance sheet towards the year-end stayed at $750 million, the per capita profit on the platform dropped by 12% and stayed at $1,764. But CEO David Zruia believes that this dip in the market would help the business get back up soon. In the past, “global invasions and wars” have been the factors of volatility in the market, he added. It could help not only with the acquisition of new customers but also encourage existing customers to invest more.
The platform has plans to introduce more products and services in the future to sustain its relevance in the market. The Estonian regulator has recently approved the form to operate as an investment firm. Now the firm will be able to offer more services towards securities trading through its own account. This is also expected to enhance the forex experience on the platform. The firm plans to acquire more such licenses and bring attractive offers, products, and services to its clients.