PLUS 500 share price continues to outperform IG and CMC Markets

As shares in CFD Broker PLUS 500 have rallied recently on the back of the recent share buyback we take a look at them compared to the other two heavy weights IG and CMC.

If you haven’t used PLUS 500 or don’t know who they are, they are a discount CFD broker offering online only trading and a sippy little £20 no deposit bonus plus excellent affiliate tools to win business from the established brokers already out there.

Plus 500 have stayed away from MT4 and instead focused on building their own trading platform. The firm has only been around since 2008 but amazingly has a market cap of £622m (as of today) and is listed on the LSE.

As with all the other firms PLUS 500 took a knock when the FCA banned bonuses and said that it was reviewing retail client margin facilities.

The PLUS 500 share price dropped from 600 to around 360 after the news, but has since bounced back to 550. Helped mainly due to volatility in the markets increasing trading volumes and the buyback program to help distribute more profits back to share holders.

They already pay out 60% but want to do more.

Even compare to to two market leaders, IG and CMC they have done well. Over 3 months PLUS 500 share price is up 25% compare to IG who is up 10% and CMC only 8%.

Even after you take into account how the firms have performed since the FCA bonus/margin reform talks they are only down 11% versus IG (down 25% and CMC Markets down a whopping 52%) over a year.

PLUS 500 is not quite as diversified as IG who now offer stockbroking and ISA accounts as well as access to new issues, trying to compete with Hargreaves Lansdown (who they provide a spread betting white label to). Or CMC which also offers spread betting (PLUS 500 does not offer spread betting) who have a larger global foot print and their new FX Prime institutional offering.

 

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