Plus500 enters Japanese market as it buys EZ Invest Securities

Online trading platform Plus500 expands further as it enters Japanese market with acquisition of EZ Invest

  • Plus500 said the acquisition represented a major growth opportunity 
  • The trading platform did not disclose the financial terms of the deal 
  • EZ Invest specialises in the trading of securities and derivatives

Online trading platform Plus500 has made its entry into Japan with the acquisition of EZ Invest Securities, just months after making its first step into the US market.

The FTSE 100-listed Israeli firm said the acquisition represented a major growth opportunity and further strengthened its strategic position ‘as a global multi-asset fintech group’. 

It follows its first move into the US futures and options market with the acquisition of Cunningham Commodities and Cunningham Trading Systems earlier in the year. 

Expansion: Plus500 entry into Japan comes just months after its entry in the US

Plus500 did not disclose the financial terms of the deal to buy EZ Invest, which specialises in the trading of securities and derivatives. 

Plus500 chief executive David Zruia said: ‘This acquisition represents an important strategic step for Plus500 as we continue to strengthen our position as a global multi-asset fintech group, by further diversifying our geographic footprint. 

‘I am excited about the opportunities available in the substantial Japanese retail trading market and, given Plus500’s considerable technological expertise and robust financial capability, I am confident that we will be able to maximise this opportunity.’

Plus500 shares were up 0.5 per cent to £14.65 in early trading on Monday. 

The acquisition comes as Plus500 benefits from recent favourable tax rate changes in Israel, which have boosted its coffers.

However, the meteoric rise in online trading, which began during the early days of the pandemic and boosted firms like Plus500, is beginning to slow down. 

Plus500 reported a 26 per cent fall in pre-tax profit in 2021, as revenues fell 18 per cent.  

However, its performance is still well ahead pre-pandemic levels, with revenues and profits before nasties more than double what it made in 2019.

Customer numbers show a similar picture, as new customers in 2021 declined by a third compared to 2020, while the number of active customers dropped slightly.

However, the group’s active customer base remains at double its pre-pandemic levels.

Plus500 lets investors trade on complex financial instruments such as contracts for difference through its website and mobile app.