(Reuters) - Online trading platform Plus500 Ltd (PLUSP.L) reported a jump in third-quarter revenue on Tuesday, as more customers signed up to trade in a volatile period for financial markets driven by the U.S.-China trade spat and Brexit.
The company’s revenue rose 10% to $110.6 million in the three months ended Sept. 30 from a year earlier, while the number of new customers surged to 24,359 from 20,684.
“The period benefited from geopolitical events in the quarter, with this heightened activity reflected in trading patterns,” said Plus500, adding that it was on track for annual targets.
The strong update pointed to a recovery for the company, which saw profits tank last year when regulators in Europe and Britain cracked down on trading of some high-risk financial products.
As amateur clients were restricted from trading in contracts for differences (CFDs), Plus500 saw a slowdown in active customer growth in 2018 after rampant growth for at least five years.
Plus500 offers a platform for investors to trade CFDs, which expose investors to price movements in securities without owning the underlying asset.
Over the last few months, the equity markets have seen increased volatility amid major headlines related to tariffs dispute between the United States and China as well as the European Union agreeing to a Brexit deal with the UK.
Plus500’s peer IG Group (IGG.L) had last month said it added more clients and saw improved trading activity in August.
Reporting by Muvija M in Bengaluru; Editing by Arun Koyyur