Plus500 Share Discussion Threads

[sogoesit] 15/8/2018 08:56

Yep, overnight charges are high relative to others : 0.0304% per night on initial margin. Equating to a simple annual rate of about 11%.

Off Topic:
If you want to look at a good value (low fee) broker who also offers margin on held assets take a look at degiro.co.uk .

[metis20] 15/8/2018 08:49

"Our safe and secure trading platform already incorporates a number of the trading controls that regulators are seeking to introduce: we were among the first to offer a trading platform where customers cannot lose more than their account balance, and in 2017, as in 2016 and 2015, there was no net gain from market P&L. The latter reflects the efficiency of our internal risk management systems and we believe it meets the expectations of the regulators that aim to prevent industry participants from being dependent on client losses. Indeed, our revenues continue to be principally derived from spreads and overnight charges."

Above from
(under CEO's comments)

[malcolmmm] 15/8/2018 08:41

Instead of profiting from client losses, Plus500 profits primarily from the spread it applies to the prices offered to customers. They also regulate the size .The company presentation says "when limits are reached, no further trades accepted."
So they have strict regulations anyway

[chucko1] 15/8/2018 08:38

IG is both a “bookie” and a stockbroker. They have stated they wish to expand the stockbroking/asset management side. However, the latter is becoming an increasingly tough business. More and more regulation relating to fees (some of it quite insane).

[malcolmmm] 15/8/2018 08:29

Plus500's PR agent says that Plus does not make money directly from client losses.

[shaker44] 15/8/2018 08:26

you need to explain what you mean as that is exactly my experience as an ig bookie client

[gettingrichslow] 15/8/2018 08:25

sb888, I've used IG for many years - it's basically as Shaker describes except it has a stockbroking service (and not a very good one) added on. If you think there is a more significant difference I'd be interested to hear it?

[sb888] 15/8/2018 08:09

shaker. That is not true. You should know the difference

[sogoesit] 15/8/2018 07:53

It's clear that most people lose money. This is PLUS500's risk warning on the opening account page of their web site:

"CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80.6% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money."

This is in fact quite a normal probability for high risk ventures eg new businesses, new ventures, venture capital etc. in most market sectors (the oil&gas industry being a prime example). Doing better than 50/50 is pretty good.
Individual stocks also fall into this category. It's a well known risk that an equity investment itself can lose you all your money.

Then you have government: they actively regulate so that you can lose money after taking your own money in the first place. They regulate the banking system which every now and then blows up. They're currently regulating the energy markets which has ensured "Fuel Poverty".
Etc.

But, the "middlemen" "usually" get to make money.

What you can be 100% certain of is that, if you have any money, someone else will want some or all of it!

Will Mr Market make us LUCKY today?

[shaker44] 15/8/2018 07:22

ig also bookie. you go short you go long you get lucky or you get hosed. most get hosed

[sb888] 15/8/2018 07:07

Their business model relies on mug punters losing £2k at a time, with high client churn. This could be the end of the growth cycle, with many regulatory hurdles in the way now too

It is a bookies. Thats why you cant compare to IG

[aakash30] 15/8/2018 07:05

@brokenbuckles the low number of active customers likely had more to do with them focusing on higher value clients (likely professional) with higher lifetime value- their ARPU is highest this quarter in history, Maybe with the goal of reducing churn over time

I agree it was surprising to the downside, yet as I said if you assume only 20k customers per quarter in future, I still get a FV of 15 so downside limited IMO

Comps from H1 2018 don't really matter I feel, everyone knows and management had reiterated multiple times it was an exceptional one off

[f15jcm] 14/8/2018 23:34

Where can the Liberum guidance be found? Is it publicly available on their website?

[jplus] 14/8/2018 17:24

If only you could trade plus on Plus500

[sb888] 14/8/2018 17:16

Well worth keeping an eye on this in the next few days.

See if that selling was shorters

[burn248] 14/8/2018 17:10

Couldn't of predicted what happened yesterday David. In past results after announcing ahead it usually goes up a lot then falls back.

[sogoesit] 14/8/2018 17:09

Buying again today and paying 9.5x half-year's earnings seems reasonable to me.

It also looks like there's some cash to payout as well for a 6%+ yield (my threshold for income stocks).
Who knows, if they come back from holiday between now and the end of the year there might be more money made... if there are any customers left.

I added 1 to their customer count today, switching from City Index so, hopefully, that will help ;-).

GLA

[davebdavid] 14/8/2018 16:55

Glad it did not break 16. I know we should expect losses but 20% in days would have been tough to take.
I for one have learned a few lessons from this ride, it's my first year trading and basics I should have stuck to I didn't.
Hopefully upwards tomorrow or at least above 17.

[malcolmmm] 14/8/2018 16:07

Yes and mostly buyers

[noujay] 14/8/2018 15:51

It's certainly great to see so much volume in the trading for the second day

[fenners66] 14/8/2018 14:43

As opposed to perhaps the majority being admitted longs so by definition adding only positivity.....

I always like to see both sides - even longs have to decide whether to sell sometime....

[f15jcm] 14/8/2018 13:05

Is this better info? hxxps://www.marketscreener.com/PLUS500-LTD-13705514/financials/

[rackers1] 14/8/2018 12:52

An admitted shorter is sb888. So by definition the loser adds negativity. Good luck longs with this moron.

[davebdavid] 14/8/2018 12:35

Leave it Rackers, sb888 is adding to the conversation. Don't need arguments now, we need to learn!