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Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Trading platforms see surge in demand amid market volatility

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Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Market volatility is rarely good news for investors but it has been a significant positive for trading platforms as the latest updates from Plus500 (PLUS) and CMC Markets (CMCX) demonstrate.
Big swings in markets create more opportunities to make short-term profit even if this comes with significantly elevated levels of risk.
At a time when many businesses are cutting dividends Shore Capital has nearly doubled its dividend per share forecast for CMC from 8p to 15p for the financial year ending 31 March 2020.
Trading revenue is expected to have doubled year-on-year with new clients joining and existing clients reactivating accounts.
Plus500’s own first quarter release on 7 April was perhaps even more eye-catching with revenue up 487% to $316.6m or in other words 89% of the revenue it generated in the whole of 2019.
The number of active customers has doubled to more than 180,000. Crucially the rate of customer wins has significantly outpaced marketing spend over the period.
The strong operational performance has been reflected in CMC’s and Plus500’s share price rallies. Both stocks are firmly higher year-to-date against a weak market backdrop.
The challenge for these businesses will be to hold on to clients when things calm down, and there is evidence this is already beginning to happen. The VIX index, which measures volatility, is at just over half the levels it was in mid-March.
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Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
The value of your investments can go down as well as up and you may get back less than you originally invested. We don't offer advice, so it's important you understand the risks, if you're unsure please consult a suitably qualified financial adviser. Tax treatment depends on your individual circumstances and rules may change. Past performance is not a guide to future performance and some investments need to be held for the long term.
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