Trading platform Plus500 has helped dispel fears that its lockdown-related success is due to come to a juddering halt by upping revenue guidance for the full year alongside first half results.
“Profit for the half year fell, which was expected given the comparison with a period in the early stages of the pandemic which, thanks to significant market volatility, created lots of opportunities for traders,” says AJ Bell’s Russ Mould,
“Covid restrictions meant there were more people at home with the time to put money to work in the markets and Plus500 seems to have done a decent job of hanging on to a decent portion of these new customers.
“However, there were some less positive elements of today’s update with Plus500 not giving guidance on profit and seeing customer acquisition costs going up – a trend it notably expects to continue.
“For now the market is giving the company the benefit of the doubt but that may change if momentum stalls and the threat of increased regulation remains a pretty constant cloud on the horizon as the authorities look to ensure people are protected from racking up substantial losses.”