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.
