The US unit of Plus500 (LON: PLUS) has strengthened its presence in the country by joining the Futures Industry Association (FIA) as a primary member. The membership came more than a couple of years after the broker entered the US market with an acquisition.
A Strategic Move for Plus500
Established in 1955, the FIA represents the interests of the futures, options, and derivatives markets, including futures commission merchants and principal traders. The broker has joined other clearing firms, exchanges, clearing houses, trading firms, and commodities specialists by becoming a member of the FIA.
Plus500’s CEO, David Zruia, highlighted that the FIA membership represents “the Group’s continued execution against our strategic roadmap in the US,” adding: “Our membership of this highly respected, leading global organization represents another milestone for Plus500 as we harness our differentiated technological capabilities to seize the compelling growth opportunities in the US futures market.”
Expanding in the US
Listed in London, the Israeli broker is known for its retail trading services offerings with forex and contracts for differences (CFDs) instruments. In the US market, with its acquisition of Cunningham Commodities, it is making its name in the futures market, which, according to the company, “represents a major multi-year growth opportunity.”
The focus of the brokerage group in the US can also be determined by its high-profile sponsorship deal with the Chicago Bulls, a popular professional basketball team in the country. The sports sponsorship deal in the US was inked after Plus500 ended its long-term contract with Spanish football club Athletico Madrid as the main shirt sponsor.
Plus500 is also diversifying its US business with both B2B and B2C offerings. According to the company, it offers B2B market infrastructure services for institutional clients in the US futures market.
As Finance Magnates reported in October, the brokerage ended the third quarter of 2023 with a revenue of $168.1 million, 5 percent higher than the previous quarter but 14 percent down year-over-year. In the three months, it generated $153.7 million from trading income.
This article was written by Arnab Shome at www.financemagnates.com.
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