Plus500, a well-known CFD broker located in London, has been approved as a financial services provider in South Africa by the Financial Services Board which is responsible for monitoring the non-banking financial services industry.
The license (FSP #47546) is effective immediately and has no time limitations attached to it.
Attractive destination for major forex brokers
Plus500 group companies hold licenses granted by the relevant authorities in the UK, Cyprus, Australia, New Zealand and Israel. The last two were granted last year.
“This license acquisition is in line with our strategy, stated in our preliminary results this week, to add new licenses in order to expand our customer base globally and diversify our geographical revenues,” said Asaf Elimelech, CEO of Plus500.
Mr. Elimelech added that this license complements their recent sponsorship of Plus500 Brumbies, who as part of the international Super Rugby competition, play teams based in Australia, South Africa, New Zealand, Argentina and Japan.
Many brokers are striving to expand in South Africa in order to take advantage of the growing market. Even though the South Africa’s economic growth is not at its best rate, the forex market is expected to grow due to the increasing population.
Other brokers that recently obtained FSB licenses include HotForex, AvaTrade, FXTM and XTrade.
Strong revenue growth
Plus500 unveiled record preliminary unaudited results for the year to December 31 on Tuesday, with revenues surging 19 percent to $327.9 million.
Net profit stood at $117.2 million, up 21 percent, with earnings per share improving at the same rate to $1.02.
The Atlético Madrid sponsor claimed that it was the industry leader considering customer growth. The number of active customers had risen 14 percent year on year to 155,956, while new customers had increased 23 percent.
Mr. Elimelech emphasized that Plus500 will make the necessary adjustments to comply with regulatory changes announced last year and any future requirements.