etail investors stuck at home in Covid’s locks and trying their hand at trading the financial markets are getting a rare run of good fortune as commodities and stock prices thrive, hitting on profit margins for Plus500 trading platform.
Retail investors typically lose 76.4% of the time when trading contracts for difference (CFDs) with Plus500, but in the last quarter and into 2021, they were winners , according to Israeli full-year results today.
Profit margins that are typically around 60% in the fourth quarter fell to 22% as the numbers of land buyer gains gained.
The company ‘s most popular bets are based on commodities, currencies and equities, and have all gone through a major setback following the emergence of positive vaccine news in October.
Plus500 would not go into detail about the lines of business they were pursuing, simply stating that its strong performance was offset by “higher and higher trends in Consumer Trade Performance, as is usual. in normal market conditions. ”
The group has seen previous quarters of costly benefits to customers and shows that the numbers are even out over time.
In the year to December 31, Plus500 margins were at 59% despite a sharp fall in the fourth quarter.
Total revenue for the year rose 146% to $ 872.5 million with a basic profit of 168% to $ 515.9 million as the company benefited from the overall increase in interest in playing the game. markets.
Customer trades went from 35 million to 82 million, reflecting the successful interest in trading from the public.
Despite the margin hit in the last quarter, the company said it took more focused action to hedge against market risks during the year.
Usage of the platform remains “on the rise” until 2021, the company said.
Plus500 today pledged to return at least 50% of net profits to shareholders through shares and share purchases, with half of those in shares. That was down from the 60% returned in 2020.
The plan would allow the group to continue to invest in developing the company’s technology to allow them to offer more results in the future.