Plus500 the Forex broker descent to hell

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  • Plus500 the Forex broker descent to hell

Plus500 group is listed in London. Specializing in CFD, the Group Plus500 had a dark week, falling by 67% in stock.

Until recently the adventure of Plus500 had everything of a success story. But the online broker specialized in CFD (derivatives following the behavior of an index or action) has for some time been trough a living hell.

The Israeli-born group, listed on AIM in London, fell 67% in stock, in the space of a single week. The stock price was suspended on Friday, for a while. Plus500 is in the cross hairs of the British regulator, the FCA, in recent months.

On Friday, the group gave details in a statement, explaining that the FCA had asked its British subsidiary Plus500 UK a review of some of its procedures, particularly regarding anti-money laundering. The commission also ordered the subsequently freezing of a part of its customer accounts.

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Plus500 Hedge funds and analysts worries

The company still discreet in France and US, but famous in the UK, has also been subject to attacks of analysts and market professionals. Thus, several hedge funds were concerned and openly said go short and sold positions, as the US hedge fund Cable Car Capital. On his website, Plus500 explains that the action can go to 76 British pounds, while it is 248 pounds today!

Gotham City Research, which was responsible for the collapse and bankruptcy of Gowex Spanish, also drew a red line on the online broker Plus500. The mysterious research firm, which has short selling positions, said they were “suspicious” on Twitter and should publish more information later today.

Before this dark week Plus500 caught the attention of the British media. It was one of the few online brokers to indicate publicly not to have suffered from the sudden movement of the Swiss franc against the euro, in January. The tremendous rise of the Group of Haifa in Israel had not left marble competitors.

Rifts regulation

The group Plus500 released under a 2014 revenue of $ 229 million. A rise of 99%, and nearly 106,000 so-called “active” customers. It has developed enormously over Europe lately with aggressive marketing techniques. Plus500 took particular differences in European regulation, choosing instead to follow the rules of the Cyprus regulator Cysec to open some new accounts.

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Plus500 saw their shares multiplied by 7 between its Introduction in July 2013 in stocks and its record of late April. Plus500 is one of the authorized Forex broker in France however not in the US market.

Plus500 the Forex broker descent to hell | Netnewstimes

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