What can we learn from Plus500 stock raising by 1439% in 10 years

Plus500 is a popular forex and CFD broker that has been offering its services to a global audience of clients for over 15 years - cementing itself as one of the top-rated brokerage firms on the market. 

The company also trades its stock on the London stock Exchange, under the PLUS ticker symbol. What is worth noting however, is the explosive growth experienced by the company’s stock, which has risen by over 1,400% over the past decade, and is still going strong in 2024

For those interested in the capital markets and how brokerage businesses operate, Plus500 is an important case study due to the core reasons for its amazing stock growth and long-term returns to shareholders. 

Reasons behind Plus500’s rising stock price

As already mentioned, there are multiple factors that have contributed to the success of Plus500 on the LSE, becoming a part of the FTSE 250 index in the process. 

Effective promotional campaigns

Plus500 is known for its various promotional offerings, such as welcome bonuses, trading competitions, and more. 

Such campaigns reward loyal customers and give new customers the necessary incentive to choose Plus500 over its competitors. 

Retaining and growing the client base is essential for the growth of any fintech firm, especially during the early stages of the company’s life cycle. 

A sizable talent pool

Plus500 is headquartered in Israel, which means that the company has access to a talent pool of highly qualified professionals to recruit. 

The country is home to thousands of qualified programmers and finance professionals, which gives Plus500 a lot of choices when it comes to human resources and recruitment. 

That being said, Plus500’s team is relatively smaller in headcount than other forex brokerage firms, which also saves the company some money. 

Many fintech companies are based in Israel, thanks to the broader technological focus of the country and a developed tech startup ecosystem. 

Streamlined operations

We have already mentioned Plus500’s relatively lower headcount and this is not where the company's efficiency ends. 

Plus500 also partners with tech providers to bolster its trading solutions, such as new features, new charting capabilities, analytical tools, and design updates. 

Having a smaller team focused on continuous improvement and innovation gives Plus500 a cost-effective growth strategy that it has been pursuing for over a decade - resulting in consistent stock price growth. 

Multiple licenses in different jurisdictions

Plus500 holds forex brokerage licenses from different jurisdictions by top-tier regulatory agencies, such as:

These are only a portion of the regulators that Plus500 holds a license from, which increases the safety and security of the brokerage and boosts client confidence. 

Forex regulations are important for traders and investors, as they include financial levers to protect clients if the broker becomes insolvent. 

A healthy balance sheet

Plus500’s stock growth can also be attributed to the company’s financials. Plus500 has a strong balance sheet with cash and equivalents of $936 million according to the 2022 annual report filed by the company. 

This gives Plus500 the ability to finance its operations and long-term growth without excess debt, which gives the firm more flexibility and provides increased shareholder value.

Stock buyback programs

Plus500 frequently executes share buybacks, which reduces the number of outstanding shares and increases the price for existing shareholders - delivering more shareholder value in the process. 

The company’s most recent share repurchase took place on the 22nd of February, 2024, which saw Plus500 repurchase $100 million worth of its own shares. 

Share repurchases are commonplace among public companies and help boost the price of existing shares on the market. This strategy has played into the amazing rise of Plus500 stock over the years. 

What to take away from Plus500’s growth

Plus500’s success is a great example of how reinvesting profits and managing a smaller, but more dynamic team can help fintech companies in the long run.

From humble beginnings, Plus500 has become one of the largest CFD brokerage firms in the world, with multiple brand sponsorship deals and billions of dollars in annual revenues.