Plus500

The company was founded in 2008 by six alumni of the Technion – Alon Gonen, Gal Haber, Elad Ben-Izhak, Omer Elazari, Shimon Sofer, and Shlomin Weizmann – with an initial investment of $400,000.{{cite web|publisher=Globes|title=Plus500: Absolutely Israeli|url=http://www.globes.co.il/serveen/globes/docview.asp?did=1000872650&fid=1724|date= 2013-08-18|access-date=2018-09-07}}{{Cite web|publisher=Financemagnets.com|title=Plus500 Launch of Plus500 Invest, a New Share Trading Platform|url=https://www.financemagnates.com/thought-leadership/plus500-launch-of-plus500-invest-a-new-share-trading-platform/|date=2021-07-22|access-date=2022-05-15}}{{Cite web|publisher=Morningstar|title=Plus500 completes purchase of Cunningham as it plots US growth|url=https://www.morningstar.co.uk/uk/news/AN_1626772015835053100/plus500-completes-purchase-of-cunningham-as-it-plots-us-growth.aspx|date=2021-07-20|access-date=2022-05-15}}

Its trading platform was a software-application on Windows but it launched a web version in 2010. Its mobile versions for iOS and Android launched in 2011 and 2012, respectively. By January 2013, 40% of transactions were conducted via mobile devices.

In 2013, Plus500 became a publicly traded company on the Alternative Investment Market of the London Stock Exchange. Its market cap was $202 million.{{cite web| url =https://www.financemagnates.com/forex/brokers/cfd-broker-plus500-announces-ipo-plans-on-londons-aim/| title =CFD Broker Plus500 Announces IPO Plans on London's AIM| last =Finberg| first =Ron| date =2013-07-02| publisher = Finance Magnates| access-date =2024-10-29}}{{Cite web|url=https://www.fxempire.com/news/article/plus500-decides-to-go-public-with-ipo-129840|title=Plus500 Decides To Go Public With IPO|website=www.fxempire.com}} By mid-2013, Plus500's website operated in 51 countries across 30 languages, offering over 1,800 assets. The company launched its Windows Store app in 2014.{{cite web|url=http://cdn.plus500.com/media/investors/reports/plus500_annual_report_14.pdf|title=Annual Report 2014|publisher=Plus500|access-date=2018-09-07|page=13}}

In October 2012, Plus500UK Ltd. was fined £205,128 by the UK's Financial Conduct Authority (FCA) for inaccurate transaction reporting between June 2010 and November 2011. The innacuracies impacted 1,332,000 transactions, of which 189,000 went unreported.{{cite web| url =https://www.fca.org.uk/news/press-releases/fsa-issues-fines-totaling-%C2%A3250000-plus500uk-limited-plus500-and-james-sharp-and| title =FSA issues fines totaling £250,000 on Plus500UK Limited (Plus500) and James Sharp and Company (James Sharp)| date =2012-10-24| publisher =FCA | access-date =2024-10-18}}{{Cite web|url=https://www.fca.org.uk/markets/transaction-reporting/transaction-reporting-fines|title= FCA Transaction reporting fines |website=Financial Services Authority|date= 2016-05-30 |language=en|access-date=2018-09-15}} Operating with a high-automation, low-staff model (40 employees in 2013, growing to 80 by 2015 in Tel Aviv), Plus500 lacked adequate systems, documented procedures, and staff training to ensure compliance.{{cite web| url =https://www.ft.com/content/dc9ce455-0853-32bb-af55-67971ce42b73| title =The trading magicians of Plus500| last =McCrum| first =Dan| date =2015-01-26| publisher =Financial Times | access-date =2024-10-22}}

In 2014, the Financial Conduct Authority (FCA) launched a review into how the organization signed up new customers. The investigation came about due to concerns raised by its rivals. Alledgedly, Plus500 only verified client identities when they withdrew funds rather than during account registration.{{Cite web |title=Rivals put Plus500 in regulator's spotlight |url=https://www.thetimes.com/article/rivals-put-plus500-in-regulators-spotlight-cd56dnt2b5p |last=Fletcher |first=Rob |date=2014-09-22 |access-date=2025-02-22 |website=The Times}}

In 2014, co-founder Shimon Sofer sold 1.5 million shares for an estimated £4.1 million, causing an 8.7% drop in the share price.{{cite web| url = https://en.globes.co.il/en/article-plus500-falls-after-founder-sells-15m-shares-1000912767#! | title = Plus500 falls after founder sells 1.5m shares| last =Tsipori| first =Tali| date =2014-01-28| publisher =Globes | access-date =2024-10-29}}

In May 2015, the organisation's UK division faced a major crisis when the FCA ordered a freeze on all UK accounts as part of an anti-money-laundering review.{{cite web|url=http://www.businessinsider.com/israeli-spreadbetting-firm-plus500s-stock-is-bombing-after-freezing-accounts-money-laundering-2015-5|date= 2015-05-18|title= London-listed spreadbetting firm Plus500's stock bombs after freezing accounts|publisher=Business Insider|access-date=2018-09-07}} Unlike traditional brokers, Plus500 allowed customers to start trading with minimal verification and required complete documentation only upon withdrawal, even enabling account creation through Facebook.{{cite web| url =https://www.ft.com/content/2b154373-77ee-3700-bb67-834aa6aabaf8| title =Plus500: the big freeze| last =McCrum| first =Dan| date =2015-05-18| publisher =Financial Times | access-date =2024-10-18}}{{cite web| url =https://www.financemagnates.com/forex/analysis/what-really-caused-plus500s-share-price-to-crash-today/| title =What Really Caused Plus500's Share Price to Crash Today?| last =Mizrahi| first =Avi| date =2015-05-18| publisher =Finance Magnates | access-date =2024-10-29}} The account freeze halved Plus500's market value, dropping its share price from £860 million to £459.6 million.{{cite web| url =https://eu.sj-r.com/story/business/2015/06/05/plus500-may-have-been-brought/34408136007/| title =Plus500 may have been brought down by its rivals, who hated the way it simplified the business| last =Williams-Grut| first =Oscar| date =2015-06-05| publisher =State Journal-Register | access-date =2024-10-29}}{{cite web|url=https://www.ft.com/content/2c19c20e-fd6a-11e4-b072-00144feabdc0|date=2015-05-18|title= Plus500 shares fall 36% after client accounts suspended|publisher=Financial Times|access-date=2024-10-29}} During this crisis, Plus500's management agreed to sell the company to Playtech, an online gambling company that was expanding into trading, for $703 million, roughly half its pre-freeze valuation. However, in November 2015, Playtech withdrew after failing to secure regulatory approval.{{cite web|url=https://www.ft.com/content/25d61e3a-91bf-11e5-94e6-c5413829caa5|title=Playtech folds on Plus500 deal after regulatory concerns|date=2015-11-23|publisher=Financial Times|access-date=2018-09-07}}{{cite web| url =https://www.financemagnates.com/forex/brokers/playtech-abandons-plus500-amid-regulatory-concerns/| title =Breaking: Playtech Abandons Plus500 Deal amid Regulatory Concerns| last =Slav| first =Irina| date =2015-11-23| publisher =Finance Magnates | access-date =2024-10-29}} Following the FCA issues, 72% of affected UK clients resumed trading, though Q2 2015 revenue still declined by 47.5% to $43 million.{{cite web| url =https://www.financemagnates.com/forex/brokers/plus500-revenues-almost-halved-in-q2-compared-to-previous-quarter/| title =Plus500 Revenues Almost Halved in Q2 Compared to Previous Quarter| last =Golovtchenko| first =Victor| date =2015-06-30| publisher =Finance Magnates | access-date =2024-10-29}}

The short seller Simon Cawkwell targeted the company amid its rising post-ipo profits.

In January 2016, Plus500UK resumed onboarding new customers in the UK.{{cite web| url =https://www.financemagnates.com/forex/brokers/plus500-welcomes-back-new-customers-to-uk-entity/| title =Plus500 Welcomes Back New Customers to UK Entity| last =Finberg| first =Ron| date =2016-01-06| publisher =Finance Magnates | access-date =2024-10-31}} In the same year, Plus500IL Ltd., the company's Israeli subsidiary, received a Trading Arena Licence from the Israel Securities Authority (ISA). In September, Plus500 launched an Apple Watch app to trade and view account details.{{cite web|url=https://twitter.com/plus500/status/645893292182372353?lang=en|title="On Sunday we release our supported Apple watch app! plus 500"|publisher=Plus 500|access-date=2018-09-07}}

In the fall of 2016, Plus500's founders sold 13% of the company's shares, raising £100.75 million but causing a 16% stock drop. They retained a 22% stake.{{cite web| url =https://www.financemagnates.com/forex/brokers/breaking-plus500-founders-set-sell-13-companys-shares/| title =Breaking: Plus500 Founders Set to Sell 13% of the Company's Shares| last =Golovtchenko| first =Victor| date =2016-09-28| publisher =Finance Magnates | access-date =2024-10-31}}

In December 2017, Plus500's Singapore subsidiary, Plus500SG Pte Ltd., obtained a Capital Markets Services license from the Monetary Authority of Singapore (MAS) to trade in securities and leveraged forex.{{cite web|url=https://markets.ft.com/data/announce/detail?dockey=1323-13459997-3OCQ6VB9QAVFQ5C9S8GL4HP32F|title=Grant of operating licence in Singapore|publisher=FT.com|date=2017-12-11|access-date=2018-09-07}}

In June 2018, Plus500 launched an Economic Calendar, providing global financial events and indicators in partnership with Dow Jones & Company, along with a list of impacted instruments per event.{{cite web|url=https://twitter.com/Plus500/status/1003613398872084481|title=Check our Economic Calendar to follow financial events, anticipate possible market movements and make trading decisions accordingly|publisher=Plus500|date=2018-06-04|access-date=2018-09-07}} That same month, shares of Plus500 were listed in the main market of the London Stock Exchange, and the company joined the FTSE 250 Index of leading mid-cap firms.{{cite news|url=https://www.ft.com/content/082851a6-7866-11e8-bc55-50daf11b720d|title=Cryptocurrency surge propels 500 into the main market|website=Financial Times|date=2018-06-26|access-date=2018-07-03|last1=Murphy|first1=Hannah}}{{cite web|url=https://www.financemagnates.com/forex/brokers/plus500-officially-joins-ftse-250-index|title=Plus500 Officially Joins FTSE 250 Index|date=2018-09-06|access-date= 2021-05-11}} By 2018, Plus500's trading apps supported 32 languages, including English, German, Italian, Spanish, French, Arabic, and Chinese.{{Cite news|url=https://commodity.com/brokers/plus500-review/|title=Plus500 Ruthlessly Reviewed & Rated at Commodity.com|work=Commodity.com|access-date=2018-02-22|language=en-US}} By the end of 2018, Plus500 reported a 33% increase in revenue, reaching $437.2 million (£314.7 million) compared to $327.9 million in the previous year. Net profit rose by 70% to $199.7 million.{{Cite news|url=http://www.cityam.com/280574/plus500-hikes-dividend-revenues-rise|title=Plus500 shares surge as it hikes dividend after growing revenueJ.P. Morgan Chase International |website=City AM|last=Morrison|first=Caitlin|date=2018-02-14|access-date=2024-10-31|language=en}}

In 2021, Plus500 appointed Jacob A. Frenkel, former chairman of JP MorganChase International and former governor of the Bank of Israel, as chairman.{{cite web|url=https://www.calcalistech.com/ctech/articles/0,7340,L-3901380,00.html|title=Online trading platform Plus500 appoints Jacob Frenkel as its new chairman|publisher=Calcalistech.com|date=2021-03-25|access-date=2021-05-10}} the company announced its agreement to acquire Cunningham Commodities LLC and Cunningham Trading Systems LLC, finalizing the acquisition by July as part of its expansion into the U.S. futures market.{{cite web|url=https://cdn.plus500.com/media/Investors/Reports/Plus500_Cunningham_Acquisition_Announcement.pdf|title=Cunningham Acquisition Announcement|publisher=plus500.com|access-date=15 August 2021}}{{cite web|url=https://bitfinance.news/en/plus500-enters-the-market-with-the-purchase-of-cunningham/|title=Plus500 enters the market with the purchase of Cunningham|publisher=bitfinance.news|date=21 April 2021|access-date=11 May 2021}}

During the summer of 2021, Plus500 opened a new R&D center in Tel Aviv{{cite web|url=https://www.financemagnates.com/thought-leadership/plus500-to-establish-rd-centre-in-tech-hub-tel-aviv/|title=Plus500 to Establish R&D Centre in Tech Hub Tel Aviv|date=4 March 2021|publisher= Finance Magnates|access-date=2024-10-31}} and introduced "Plus500 Invest," a stock-trading platform featuring over 2,000 instruments.{{Cite web |date=2021-07-22 |title=Plus500 Launch of Plus500 Invest, a New Share Trading Platform |url=https://www.financemagnates.com/thought-leadership/plus500-launch-of-plus500-invest-a-new-share-trading-platform|access-date=2024-10-31 |website= Finance Magnates}} By the third quarter of 2021, the company reported having 166,310 active clients{{Cite web|date=2021-12-30|title=Scam Broker Investigator; Plus500 Review Pros & Cons|url=https://scambroker.com/plus500/|access-date=2021-12-30|website=Scam Broker Investigator|language=en-US}}

In March 2022, Plus500 acquired Japan-based EZ Invest Securities, specializing in securities and derivatives trading.{{Cite web |date=2022-03-21 |title=Plus500 enters Japan with acquisition of EZ Invest Securities |url=https://www.morningstar.co.uk/uk/news/AN_1647851195143790800/http%3a%2f%2fwww.morningstar.co.uk%2fvirtual%2fSolrNews%2fAllianceNews.aspx%3fSite%3duk%26DocId%3dAN_1647851195143790800 |access-date=2022-03-21 |website=MorningstarUK |language=en-GB}} Later, in September, it launched TradeSniper, a futures trading app for U.S. retail clients.{{Cite web |date=2022-09-22 |title=Plus500's Management Team Held the Company's First Ever Capital Markets Day Event |url=https://www.financemagnates.com/thought-leadership/plus500s-management-team-held-the-companys-first-ever-capital-markets-day-event/|access-date=2024-10-31 |website= Finance Magnates}}

In August 2024, Plus500 announced plans to return $185.5 million to shareholders through a $110 million share buyback and $75.5 million in dividends. The company benefited from global volatility driven by events like the Covid-19 pandemic, 2022 Russian Invasion of Ukraine, and a conflict in Gaza since 7 October 2023 and expects to benefit from the U.S. elections in November 2024. Plus 500 also intends to focus on expanding into the U.S., UAE, and Japanese markets.{{cite web| url =https://www.reuters.com/business/online-trading-platform-plus500-expects-annual-results-ahead-market-view-2024-08-19/| title =Plus500 sees annual results above market view, shares hit record high| last =Kalia| first =Yamini| date =2024-08-19| publisher =Reuters | access-date =2024-10-31}}{{cite web| url =https://www.sharesmagazine.co.uk/news/shares/plus500-powers-to-all-time-high-on-guidance-upgrade-and-bumper-returns-promise| title =Plus500 powers to all-time high on guidance upgrade and bumper returns promise| last =| first =| date =2024-08-19| publisher =Shares Magazine Co UK | access-date =2024-10-31}}

Plus500's customers trade contracts for difference (CFDs) on their smartphones or computers. Some consider CFDs to be high risk. While companies operating in high-risk sectors use hedging to limit their exposure to market volatility, Plus500's model relies less on this practice than comparable businesses in this sector. Therefore, their customer's losses are their gains and vice versa.{{Cite web |title=Plus500 makes £25m betting against its own customers |url=https://www.thetimes.com/article/plus500-makes-25m-betting-against-its-own-customers-rmmp3nhgz |last=Martin |first=Ben |date=2024-04-17 |access-date=2025-02-23 |website=The Times}}{{short description|British international financial firm}}

Plus500 has faced numerous complaints over platform failures and questionable practices, with reports of clients wrongly accused of market abuse and profitable trades canceled.{{cite web| url =https://www.giambronelaw.com/site/news-articles-press/news/giambrone-calls-for-claimants-in-global-fight-against-plus500| title =Giambrone calls for claimants in global fight against Plus500| date =2017-09-19| publisher =Giambrone | access-date =2024-10-31}}

In February 2019, The Times highlighted discrepancies in Plus500's financial reporting. While the company's 2017 Annual Report stated it had no net revenues or losses from market P&L in 2015-2017, a later report revealed a $103 million loss from client trading activity in 2017.{{cite news |title=Plus500 'may have misled shareholders' over losses |url=https://www.thetimes.com/business-money/markets/article/plus500-may-have-misled-shareholders-over-losses-n8cmxsrqw |website=The Times |access-date=15 February 2019|last1=Hosking |first1=Ben Martin }}

In October 2017, several hundred former clients filed a lawsuit against Plus500, accusing the broker of failing to manage their money adequately. In addition, the broker's platform operated with numerous failures, due to which clients were often unable to close positions when they wanted to.{{cite web| url =https://www.abc.net.au/news/2017-10-22/plus500-contract-for-difference-more-like-gambling-than-trading/9069640| title =Bitcoin and share trading app Plus500 faces litigation over 'rigging' claims| date =2017-10-21| publisher =ABC | access-date =2024-10-31}}

In April 2017, Plus500 paid a €550,000 fine to Belgium's FSMA for offering CFDs without the required prospectus and failing to submit ads to the regulator. Although Plus500 denied any wrongdoing, it complied with FSMA's demand to close its Belgian website and inform Belgian clients of the issue, offering free account closures.{{cite web| url =https://www.financemagnates.com/forex/brokers/breaking-plus500-settles-belgium-regulator-e550k/| title =Breaking: Plus500 Settles with Belgium Regulator for €550K| last =Patterson| first =Jeff| date =2017-04-25| publisher =Finance Magnates | access-date =2024-10-31}}

In 2021, the Tel Aviv District Court approved a $29 million class action against Plus500 Israel. It was alleged that during the Brexit referendum's volatile aftermath, Plus500 restricted trading in put options for 90 minutes, selectively allowing call options, to prevent customer profits.{{cite news| url =https://en.globes.co.il/en/article-court-approves-class-action-on-alleged-plus500-manipulation-1001388525| title =Court approves class action on alleged Plus500 manipulation| last =Grinzaig| first =Avishai| date =2021-10-25| newspaper = Globes| access-date =2024-10-31}}{{cite web| url =https://www.calcalistech.com/ctech/articles/0,7340,L-3734931,00.html| title =Trading Firm Plus500 Facing $29 million Class Action Lawsuit| date =2018-03-26| publisher =Calcalist | access-date =2024-10-31}}{{cite web| url =https://www.dailyforex.com/forex-figures/2021/10/class-action-suit-against-major-broker-moves-forward-october-26-2021/169897| title =Class Action Suit Against Major Broker Moves Forward| last =Sherman| first =Gabriel| date =2021-10-26| publisher = Daily Forex| access-date =2024-10-31}}

On 14 September 2023, a second class action was filed in Australia, alleging that Plus500 engaged in misleading and unconscionable conduct by selling high-risk investments that led clients to financial losses from November 2017 to March 2021.{{cite web| url =https://www.financemagnates.com/forex/brokers/cfds-at-trial-ic-markets-faces-class-action-lawsuit-in-australia/| title =CFDs on Trial: IC Markets Faces Class-Action Lawsuit in Australia| last =Shome| first =Arnab| date =2024-02-08| publisher =Finance Markets | access-date =2024-10-31}}{{cite web| url =https://www.casl.com.au/project/plus500-class-action/| title =Plus500 Class Action| publisher =CASL Governance Ltd | access-date =2024-10-18}}{{cite web| url =https://www.lawyerly.com.au/new-class-action-targets-online-trader-plus500-over-cfds/| title =New class action targets online trader Plus500 over CFDs| date =19 September 2023| publisher =Lawyerly | access-date =2024-10-31}}

Plus500 uses an affiliate marketing model and to target potential clients on social media platforms like Facebook and Instagram. The organisation's aggressive affiliate marketing programme has attracted scrutiny from the financial industry. Their affiliate marketing programme allowed website owners to earn commissions for new client referals.

In 2015, Plus500 became the Atlético de Madrid's main sponsor and kept that title for the next 7 years until June 2022.{{cite web|url=https://www.financemagnates.com/forex/brokers/plus500-and-atletico-madrid-end-long-term-partnership/|title=Plus500 and Atletico Madrid end long term relationship|date=14 June 2022 |publisher=Finance Magnets|access-date=8 August 2022}} The company expanded its sports sponsorships in 2016 with the ACT Brumbies of Super Rugby,{{cite web|url=https://markets.ft.com/data/announce/detail?dockey=1323-13055605-3VO28M0JHAIMG94R6B7FJINA3D|title=Plus500 Signs Official Sponsor of Brumbies|publisher=Financial Times|access-date=30 May 2021}} in 2020, signed with three football clubs: Swiss Super League champions Young Boys,{{cite web|url=https://insidersport.com/2020/06/04/bsc-young-boys-secures-plus500-partnership/|title=BSC Young Boys secures Plus500 partnership|date=4 June 2020|publisher=Insider Sport|access-date=30 May 2021}} and Poland's champions Legia Warsaw.{{cite web|url=https://www.sharecast.com/news/news-and-announcements/plus500-reaches-sponsorship-deal-with-legia-warsaw--7602920.html|title=Plus500 reaches sponsorship deal with Legia Warsaw|publisher=Share Cast|access-date=30 May 2021}} In 2023 beIN Sports blacked out Serie A club Atalanta and Young Boys broadcasts due restrictions on CFD advertising by the Autorité des marchés financiers (AMF).{{Cite web |date=2023-09-19 |title=BeIN hampered by French legislation over Plus500 sponsorship in Champions League |url=https://www.sportbusiness.com/news/bein-broadcast-woes-in-france-resurface-over-plus500-sponsorship-in-champions-league/ |access-date=2024-10-29 |website=SportBusiness |language=en-US}}

In 2022, Plus500 entered a multi-year partnership with the NBA's Chicago Bulls{{cite web|url=https://www.calcalist.co.il/ctechnews/article/hkzetrdfs|title=Plus500 and Chicago Bulls announce multi-year global partnership |publisher=Calcalist |date=4 October 2022}} and launched an advertising campaign featuring actor Kiefer Sutherland in the United Kingdom, Italy, the Netherlands, Germany, and Australia.{{Cite web |date=2022-06-14 |title=Kiefer Sutherland to Front New International Advertising Campaign for Plus500 |url=https://www.financemagnates.com/thought-leadership/kiefer-sutherland-to-front-new-international-advertising-campaign-for-plus500/|access-date=2024-10-29 |website= Finance Magnates}}

{{reflist|2}}

• [https://www.plus500.com/ Official site]

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Category:Financial services companies based in the City of London

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