Plus500’s Strategic Acquisition Fuels US Expansion

Plus500’s strategic acquisition strengthens its US presence, driving market expansion, increased customer deposits, and trading growth. Plus500 (LON: PLUS) ventured into the US futures market in 2021, a move that has since become “strategically important” and “represents a multi-year growth opportunity.” The Israeli broker also identifies “a sizeable earnings opportunity [in the US] in the medium to long-term for both the B2B and B2C businesses.”

Plus500 Strategic Acquisition Boosts Market Growth

Recent data from Plus500 reinforces its confidence in the US market. By the end of 2024, the broker’s futures division managed around $350 million in customer funds, marking a 20 per cent annual increase. Over the past three years, this figure has surged by roughly 600 per cent.

Additionally, the broker revealed that deposit levels continued to rise beyond the accounting period, recording another 50 per cent jump today (Monday) from the end of 2024. Plus500’s strategic acquisition reflects the influx of new customers and heightened trading activity from existing ones.

Plus500 entered the US market through the acquisition of two affiliated entities, Cunningham Commodities and Cunningham Trading Systems, for $30 million, funded entirely from its substantial cash reserves.

Notably, Plus500’s expansion into the US market followed IG Group’s acquisition of tastytrade in a $1 billion deal. While both London-listed brokers leveraged these acquisitions to offer futures trading to US customers, tastytrade provides a more diverse range of assets, including stocks, options, and cryptocurrencies.

“Plus500’s performance in the US futures market during FY 2024 stemmed from its proprietary technology, innovative approach, and substantial financial resources,” the broker stated in its latest financial report. “Its strong operating results illustrate just how successful the business has been in establishing itself in this market.”

Record Customer Growth

As previously reported by Finance Magnates, Plus500 concluded 2024 with a revenue of $768.3 million and an EBITDA of $342.3 million. Additionally, its basic earnings per share rose by 13 per cent to $3.57.

However, the most notable aspect of its financial results was its customer metrics. The broker onboarded 118,010 new customers in 2024, reflecting a 30 per cent rise. The number of active customers also increased by 9 per cent to 254,138, while the average deposit per active customer climbed 17 per cent to approximately $12,000.

Initially recognized for its forex and contracts for differences (CFDs) trading, which are over-the-counter (OTC) instruments, Plus500’s non-OTC business—specifically its US futures segment—accounted for about 10 per cent of its total revenue in 2024 and attracted roughly 15 per cent of its new customers.

“The US business onboarded a record number of new customers, processed significantly higher volumes of trades compared to the previous year, and further established the Group’s position in this growing market,” the broker added.

While Plus500 serves both institutional and retail clients in the US, its primary focus remains on retail traders, making its retail expansion plans particularly significant.

“Since its launch in H2 2023, it has quickly established itself and gained good traction with customers,” the broker noted. “During FY 2025, the businesses will continue to further establish their growing positions, and new products and services will be introduced for customers.”

Retail Trading Expansion

The Israeli broker’s continued success in the non-OTC sector is prompting it to refine its strategy in this area. Disclosing its non-OTC performance, the company emphasized that this segment represents its “future direction.”

Furthermore, Plus500 is actively exploring opportunities to expand its futures offerings into new international markets.

The broker has also been broadening its regulatory reach. With the acquisition of a second UAE licence this year, Plus500 now holds 14 regulatory authorisations worldwide. Its expansion ambitions are further evident from its recent launch of a localized trading platform for Japan’s retail market.

“In FY 2025, the Group will continue to assess opportunities to grow its portfolio of regulatory licences and clearing memberships, focusing on North America and Asia, both organically and through bolt-on acquisitions,” the broker added.

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