Plus500 has started off 2020 with a bang, with announcing this Friday in a trading update that it has experienced a period of heightened market activity.
In particular, the contracts for difference (CFD) trading provider has seen heightened volumes of trading across the global markets, which has led to a significant uptick in customer trading activity.
Because of this, the London-listed company explained that its financial performance in the first quarter of 2020 to date is trending substantially ahead of the final quarter of last year.
In the trading update published through the (LSE) news service, Plus500 said: “It is too early to say what impact this outperformance in the current quarter will have on the outcome for 2020 given heightened levels of volatility in the market may not persist, whilst the impact of Australian regulatory changes previously referred to is yet to be quantified.”
Is coronavirus to thank?
In the trading update, the company has not given specific details as to the uptick in trading, so it is not clear how much trading has increased and what exact period the trading provider experienced the heightened activity.
However, Reuters has pointed out that the boosted trading is a result of Coronavirus, as fears of a pandemic have seen the CBOE Volatility Index, widely considered to be Wall Street’s fear gauge, climbing to a two-year high in the last session.
As , Plus500 managed to close out 2019 on strong footing, after a weak first half of the year. For H2 of 2019, revenues increased by 40 per cent to reach $206.5 million, up from $148.0 million in H1 of 2019.
Net profit in the second half of 2019 increased dramatically, climbing from $51.6 million in to $100.1 million in H2, representing an increase of 94 per cent.