Plus500 - past success & FOS/FCA user complaintsI noticed a few comments online relating to plus500 business conduct, so here is what I found to be the case along with a predicted conclusion.
Plus500 showed incredible growth during the peak of crytpocurrency trading by taking advantage of the lack of regulations on leverage, high volatility and a surge of new, inexperienced traders. The leverage has since been reduced significantly, as has the volatility on which they are able to capitalise.
They previously had the advantage of being one of very few mobile apps which were newcomer friendly, however with strong competition from XTrend, CMC etc, this is no longer the case.
There have been increasing user reports of dissatisfaction with the platform, including requests for investigation by the financial ombudsman services, mostly regarding deviation from actual stock values to the benefit of Plus500. It is written into the user agreement that the prices Plus500 set are based on 3rd parties, which they are not required to disclose.
Combined, I would expect these factors to have a negative effect on the share price as per the chart in the short term. It is also worth watching for a long term short, as the reported ombudsman investigations are likely to unsettle investors.
PLUS trade ideas
Plus 500 Up 82 PointsLast post: June 8th. See chart .
Review: Price had just broken the previous resistance level.
Update: Price has now clearly broken that area and is making new highs.
Conclusion: We need to wait for price to close above the previous high before looking to go long.
Any comments or questions, do not hesitate to leave them below. Give us the thumbs up if you share our sentiments!
Sublime Trading
Plus 500 Ready To Make A BreakThis stock is featuring for the first time on our TradingView blogs.
Current setup: Price is hovering around the resistance level, struggling to break above it.
Conclusion: Once we see price continue to move above the resistance level, we will look for long opportunities but we will be standing aside until that happens.
Any comments or questions, do not hesitate to leave them below. Give us the thumbs up if you share our sentiments!
Sublime Trading
Short Plus500 StockPlus 500 Stock - Short. ( London Stock Exchange listed)
Careful as this is an AIM share and carries a higher risk than normal financial instruments due to low market-cap and (I believe) lower liquidity (more volatility- this is dangerous-)
Why go short?
Because European legislation is lowering down Leveraging capabilities for Traders from 300:1 buying power to 30:1 buying power. (for Plus500 users)
Revenues will be slashed, just wait for the quarterly earnings report that follows the European crackdown on trading brokerages.
Side note: Yes I am aware that Plus500 state they are a market-maker, where the majority of their earnings derive from Spread charges, commission and long-term position holders.. But of course they make money from the uninformed average retail traders, who get destroyed in the markets on a day to day basis.
ALSO, I believe Serious traders would (ideally) move their money over to brokers, exempt from European laws, in order to bypass the leveraging cap + general Margin increases. This directly affects profits for Plus500's investors in a negative manner.
Shorting instruments is dangerous, but good luck anyway.
(Not psychic)