EU curbs dampen Plus500 sales surge

A RECORD six months for online trading firm Plus500 has been overshadowed by tough new rules and a warning that the strong run is unlikely to repeat itself.

Shares in the Israeli-based company fell 16.4pc to £16.80 yesterday as a wary outlook offset a near three-fold surge in profits and a 147pc jump in revenues for the first half of the year. The share fall puts an end to a run of good news for the company, which stepped up to London’s main market earlier this year after the frenzy to trade Bitcoin almost quadrupled its market valuation in 12 months.

The company lets people bet on swings in price movements without owning the underlying asset through so-called contracts for difference (CFD) trading, which is subject to a major regulatory clampdown.

Plus500 said the new EU rules, which came into force this month, could affect up to half of its revenues in Europe or 30pc of global revenues in the short term. The strict set of reforms are aimed at protecting amateur investors from losing too much money, as punters can gain or lose far more than they put in.

Asaf Elimelech, the chief executive, told The Daily Telegraph that the new rules do not mean Plus500 will have to turn anyone away, but warned that the new reduction in leverage ratios could impact the business.