Plus500

Comprehensive review & analysis. 

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Initial cost
Compared to other brokers 96%
the system
User-friendliness level 94%
platforms
Ddiversity and utility 93%
Instruments
Variety and availability 91%
customer service
Knowledge and helpfulness 65%
additional features
Added value for traders 91%

Can Plus500 be considered a worthy online broker? Based in the UK, Plus500 is a leading online broker that accepts a wide range of instruments. With over 2,000 assets under its belt, it continues to grow its market share.

Online investing has become easier than ever before, and the first step in becoming a successful trader is choosing a broker. Brokers are the gateway to the financial system, connecting buyers and sellers and facilitating transactions.

Choosing the right broker is very important to ensure that you’re getting the best possible service and that you’re getting the most out of your money. With the increasing number of people trading and investing, opening an online account with a reputable broker is more important than ever.

In this review, we’ll talk about one of the most prominent online brokers in the market today.

What is Plus500?

Plus500 is a global platform that provides its clients with a variety of options for trading, such as contracts for difference (CFDs). As an online leading broker, it has offices in over 50 countries and is able to offer its clients a wide range of products and services. Following its establishment in 2008, the broker quickly expanded its operations in Asia-Pacific and Europe.

Furthermore, Plus500 is a regulated broker that offers low trading commissions and a high level of trust. Therefore, it can be described as a reliable and trustworthy alternative to other online brokers. Its overall trust score of 97% is well above the industry average

With a wide variety of features and a low commission rate, Plus500 is a great choice for online traders. They can also access a variety of trading instruments such as share trading and CFDs. Although this online broker’s platform is designed for beginner traders, its limited selection of market research and educational content will leave active participants wanting more.

Here are the pros and cons of Plus500;

Pros

  • Easy-to-use platform even for beginners
  • Fast account opening process
  • Great customer support
  • Guaranteed stop-loss order
  • Broad asset selection in equities and options
  • Well-regulated globally

Cons

  • You can only trade CFD products
  • Fees could be smaller
  • Customer support lacking
  • Does not accept U.S. clients
  • Trading platform cannot be paired with other trading tools or platforms

Pros overview

With over 50 countries covered by its product line, plus500’s clients can easily access its CDFs, such as those on foreign exchange, stock indices, options, and cryptocurrencies. Its trading platform has an easy-to-use interface that lets them create and manage their multiple trading platforms.

Being regulated by the UK’s Financial Conduct Authority (FCA) is a vital part of Plus500’s success. This agency is known for being very strict when it comes to ensuring that market practices are conducted in a manner that is fair for both individuals and businesses. Having a well-established and government-backed agency such as the FCA helps establish a firm’s credibility. One of the most important factors that a company can consider when it comes to establishing its credibility is having a guarantee stop-loss order.

Due to the regulations introduced by the European Securities and Markets Authority (ESMA) in 2018, plus500 has been able to provide its clients with negative balance protection.

Cons overview

Besides regular email and WhatsApp support, Plus500 also doesn’t have a dedicated telephone number for its customer service. This is a major issue since many of its sales inquiries are handled through these methods.

Due to the fact that trading in foreign currencies is not allowed in the U.S., Plus500 does not accept US clients.

Aside from not being able to perform analytical functions, third-party tools that are used by advanced traders will also not be able to integrate with WebTrader. This means that they will not be able to perform back-testing and other functions.

Although it lacks the necessary algorithmic capabilities, all in all the Plus500 webtrader is a good alternative for beginner traders who are looking for a lightweight platform with support for various trading solutions. Its features such as push notifications and market events are also well-executed.

How safe is Plus500?

Most people don’t talk about the risks involved in trading in the financial markets. Most of the time, they don’t mention the associated risks with the brokerage that you’re considering. When it comes to choosing a financial institution to trade with, safety is your main concern.

The trust score of Plus500 is considered low-risk because it does not operate as a bank and is publicly traded. Moreover, it is authorized by four regulators, and it has an average trust rating of 99 out of 99.

Fortunately, Plus500 is regulated by various financial institutions. These regulators are the four tier-1 and two tier-2 regulators, along with the UK’s Financial Conduct Authority and Australia’s ASIC. They are known for being some of the most prominent financial firms globally. They are able to enforce the highest standards when it comes to overseeing the operations of financial firms. Aside from its various features, such as negative balance protection and biometric authentication, Plus500 also provides its clients with financial compensation schemes in their local jurisdictions.

Compared to other online brokers, Plus500 is more secure. As a result, a comparative analysis of eToro and Plus500 shows that both are regulated by some of the best agencies in the world. Despite the fact that both companies operate in fewer countries, Plus500 is able to maintain its high level of regulation and prevent scams.

Although Plus500 has a licence from the Financial Services Commission of Australia (FSCA), South Africans will be trading through its subsidiary, Plus500AU Pvt Ltd, which is regulated and approved by the Australian Securities and Investment Commission (ASIC). It’s not clear why the online broker would want to operate in another jurisdiction and would require a license from the FSCA.

The regulations of the FSCA restrict the maximum leverage that a broker can offer its customers in the foreign exchange market to 30:1 and prevent them from losing more money than they have in their accounts. It also prohibits them from offering promotions and bonuses. As per the regulations, all of Plus500’s client funds are segregated and are protected from unauthorized withdrawals. It also has a negative balance policy.

See also  Ellevest

Despite the protection offered by the regulation, some South African investors might find it hard to get around the low leverage levels.

Although it doesn’t publicize its achievements, Plus500 has been recognized for its services by various industry organizations. We believe that Plus500 is a safe and reliable online broker. Its long track record and strict regulatory requirements make it an ideal choice for South African investors.

Regulation and Security Findings

When it comes to choosing a broker, it is important to choose one that is regulated. This ensures that clients are protected from potential fraud and malpractice. To check for regulation, traders should first check the license of the company they are dealing with. Plus500 has a wide selection of regulated entities.

Take into consideration that Plus500 has a wide selection of licenses that allow traders to choose between a more regulated environment and a more business-friendly one. Additionally, the online broker is also a publicly-traded company in the UK and is a member of the London Stock Exchange’s FTSE 250 Index. Since it was first listed on the LSE in 2018, Plus500 has maintained a clean regulatory record.

Apart from being regulated, Plus500 also provides various protection measures for its clients. In the UK and Cyprus, the broker’s subsidiaries offer investor protection funds, which are 100% of deposits up to £85,000 and 90% of deposits up to 20,000. Therefore, these funds are designed to help traders avoid getting victimized by unfavorable trading conditions.

Looking at the broker’s Seychelles subsidiary, it has proven that it is a great choice for active traders due to its high leverage, flexible trading conditions, and more business-friendly environment. Although it does not have an investor compensation fund, I do not think that this issue would increase the risk of trading with Plus500. Its reputation and corporate image also help minimize the risks associated with its operations.

Does Plus500 offer investments?

Yes, Plus500 offers investments. Unlike other brokers that only offer non-deliverable spot foreign exchange, Plus500 does not offer a rolling contract. Instead, all of its clients trade through its various products, such as CFDs. The table below shows the multiple investment options that are available to Plus500 clients.

Although cryptocurrencies are available through various types of financial instruments, such as CFDs, they are not available to retail investors directly from the U.K. or to U.K. residents.

Platform and features you can use

The Plus500 platform is intended to provide its users with a variety of features and functions across different devices. One of the most popular features of the platform is its online WebTrader. This allows users to conduct trading through the platform. It features an intuitive interface that is designed to provide a simple and efficient trading experience for both experienced and novice traders.

Although the platform is mainly focused on providing its users with a variety of financial instruments, it also allows them to trade cryptocurrencies. Through an exchange wallet, users can now enjoy the benefits of cryptocurrencies.

Users can also access the platform through a mobile or tablet device. The Plus500 app, which is available for download on various platforms such as Android and iOS, features all the necessary functionality of the desktop version.

Mobile users can easily access the platform and start trading with its various financial instruments. New customers can also start trading with the platform’s various financial instruments through the mobile version. They can also make a deposit and start their account with the platform.

One of the most popular features of the Plus500 platform is its free demo account, which is designed to provide novice traders with a taste of the market. It allows them to test their trading skills before they place their first real capital at risk.

The online broker is also committed to providing its users with the necessary tools and resources to improve their trading abilities. In addition to this, it also offers a free demo account and educational materials designed to help its most junior traders develop their trading skills.

The economic calendar and newsfeed feature of the Plus500 platform is designed to allow its users to keep up with the latest economic data and news releases without having to exit their accounts.

Unfortunately, the Plus500 platform does not support the use of the popular MetaTrader 4 platform. However, its users can still enjoy the necessary technical indicators and analysis tools that are designed to help them perform their trading.

Key findings on the fees and commissions

We can all agree that Plus500 is not the cheapest broker on the market, however, it is still competitive with its fees. At the time of writing, they do not charge commissions on trades. Their minimum deposit is just $100.

Despite offering a commission-free environment, Plus500 still compensates its customers with higher spreads. For instance, the EUR/USD starts with a minimum mark-up of 0.8 pips, which is significantly higher than the prices offered by other brokers.

See the general fees;

  • Opening/Closing Trades – $0
  • Withdrawals/Deposits – $0
  • Currency Conversion Fee – 0.7%
  • Inactivity Fee – $10 per month

Apart from being able to provide you with the usual fees, Plus500 also generates income from its trading spreads. These are either fixed or variable. It’s not always possible to provide you with exact spreads for each of their instruments, but they can be adjusted throughout the course of the day.

Even though most assets are the same, some of them remain competitive. For instance, oil and some index CFDs are both very low-cost. However, it’s important to compare these assets to other brokers to see which one suits your needs the best.

One of the most overlooked trading costs is the swap rate on leveraged overnight positions. This can be a significant fee depending on the strategy used. It’s also important to check these costs before making a final decision.

Plus500 traders can access swap rates from their platform by following these steps:

1. Click on the  symbol of desired assets in the trading platform, located on the far-right in the instrument row.

2. Scroll down until you see overnight funding -buy and overnight funding-sell.

See also  E*trade

The commission-free trading costs offered by Plus500 are better than those of other competitors. They also rank among the better ones when compared to other commission-based platforms.

One of the main factors that set Plus500 apart from other platforms is its currency conversion fee. This fee applies to every trade that’s settled in a different currency. It also offers stop-loss orders, which are only available during market hours. For instance, if a trader wants to close a trade with a margin of $10.50, then the platform’s additional costs are $10.

For those who have not used the platform for a long time, Plus500 charges a $10 fee every three months. This fee is automatically deducted from the account’s balance each month.

Trading assets on Plus500

With over 2,500 financial instruments to choose from, Plus500 is a great choice for investors. Let’s take a look at the various asset classes that they have available to trade.

Stocks – In the stock market, the ownership rights of a company are usually divided among its stockholders. Online stock trading is the process of buying and selling shares of a company, which is usually done through a stock exchange such as the New York Stock Exchange, the London Stock Exchange, or the Tokyo Stock Exchange.

The price of a stock is computed by the total number of shares that a company has created, which is usually calculated in the currency of the stock exchange where it is listed. For instance, a company’s stock price in the UK is computed in pounds sterling, euro, or US dollars.

Online stock trading is the process of buying and selling shares of a company, which is usually done through a stock exchange such as the New York Stock Exchange, the London Stock Exchange, or the Tokyo Stock Exchange. With a type of trading known as CFD share trading, you can trade the prices of various publicly-traded companies such as Facebook, Apple, and Tesla without having to own the underlying stock.

Cryptocurrencies – With a cryptocurrency CFD, you are able to trade the price of an asset with the funds in your account. Unlike other types of financial instruments, such as stocks, you do not need a special wallet to store your digital assets. With the various cryptocurrencies that are offered by the platform, it is easy to speculate on high-valued assets, such as Bitcoin. Aside from Bitcoin, other popular cryptocurrencies such as Ethereum, Bitcoin Cash, and Crypto 10 are also available on the Plus500 trading platform.

Indices – A stock market index is a measure of a country’s economy or a sector within it. For instance, the London Stock Exchange’s FTSE 100 index is made up of the largest companies in the UK. On the other hand, the Tokyo Stock Exchange’s NIKKEI 225 is composed of the country’s largest companies.

A market index is considered to be a good measure of the current state of the market. If a company’s share price is included in the index, then the value of the entire basket increases.

If the price of a company’s shares goes down, the index will also fall. This is because investors are effectively buying and selling the stock to avoid factors that can affect the performance of the company. For instance, if a company’s market volume is low, then the price of its shares will also fall.

Forex – The foreign exchange market (Forex) is a decentralized exchange marketplace that allows people to trade one currency for another. It has a daily trading volume of around $6 trillion. The most common currencies that are traded are the US Dollar, the Euro, the Japanese Yen, the British Pound Sterling, and the Australian Dollar.

Using a trading system known as a forex broker, you can look at the price changes in the exchange rate of a currency. For instance, in a pair of currencies, the value of one Euro is compared to the US dollar. On the other hand, in a GBP/CHF pair, the value of one British pound is compared to the Swiss Franc. If you believe that the exchange rate will rise, you can open a buy position. On the other hand, if you think it will fall, you can sell.

Commodities – Natural products, such as fruits and vegetables, are known as commodities. They are used as inputs in the manufacturing process, which means their prices can affect various national and global economies. Aside from being used in the manufacturing industry, commodities also play a vital role in the financial markets.

One of the most common ways to trade commodities is by buying or selling a futures contract. This type of contract sets the price of an underlying asset, such as oil, gold, or natural gas. It is standardized, and the quantity of the underlying instrument appears the same for all market participants. The futures exchanges that are located in the US are known as the world’s leading markets for commodities.

Plus500 provides various types of contracts, such as commodity futures, based on the prices of the underlying asset. These types of contracts are very accessible to lower initial and position sizes.

How to Trade With Plus500

You can easily search for an instrument and then click “Buy” or “Sell” to make a trade. Depending on the direction the price of the instrument will go, you can set a limit or trade at a specified amount.

You can also use our various risk management tools to make a trade. These include “Close at Profit,” “Close at Loss,” and “Guaranteed Stop Loss.” You can also place future orders that will allow you to profit from the price of the instrument when it reaches a certain point.

An easier way to open a trade account

To open an account with Plus500, it should take no more than a day. To start, go to their website and click the “Start an Account” button.

On the home page of Plus500, click the “Start trading now” button. You will then be taken to the login page, where you can choose to create an account. There, you will be able to create an account with either Apple ID or Facebook.

After you have opened an account with Plus500, you will then need to deposit funds. This process can be done by clicking the “Money” menu item on the left side of the screen. In the image above, you will see that this menu item allows you to both deposit and withdraw money.

See also  Wealthfront

Before you can deposit money into your account with Plus500, you will need to provide the necessary information about yourself. This will include details about your financial background and trading experience.

In addition to this, you will also need to comply with various Know Your Customer (KYC) regulations. These regulations require that you use your ID, address, and tax ID number to confirm your identity. Once you have complied with all of these requirements, you will be able to start depositing money into your account.

How to view, edit or close a trade?

To view your trade, click the “Open Positions” tab. You will then be able to set or update your stop orders. By clicking the “Edit” button, a screen will open and allow you to set or update your orders.

You can click the “Close” button to close all or a portion of your position. For instance, if you have a buy position of 500 oil barrels, you can close 300 barrels and leave with a smaller position of 200.

Demo Account

Before a client deposits money, they should first practice trading with the Plus500 demo account. This is because the platform is different from other providers, and it’s important that new clients get comfortable with it before they commit to a deposit. Although the demo account is designed to give traders a taste of the Plus500 platform, it’s also possible to choose a more traditional layout.

Although it only offers a single live account, Plus500 is a great choice for people who are looking for a variety of assets and low deposit requirements.

What to know about Plus500’s deposits and withdrawals

Compared to other providers, Plus500 offers low deposit and withdrawal fees. It also has a wide variety of withdrawal methods.

Plus500 charges a low deposit and withdrawal fee compared to other providers. It also has a wide variety of withdrawal methods.

Plus500 is a well-regulated company that adheres to all of the regulations and anti-money laundering rules. All of its non-profit funds are immediately returned to the original depositor. No matter which method you choose to make your withdrawal, all profits must be transferred to a bank account in the name of the client.

With Plus500, deposits and withdrawals can be made using various types of financial instruments such as credit and debit cards, bank wire transfers, and PayPal and Skrill. It does not charge a deposit or withdrawal fee.

Although its deposit and withdrawal methods are generally commission-free, Plus500 requires a certain amount of money to be withdrawn. This amount includes a minimum withdrawal of 1500 ZAR for PayPal, credit cards, and bank transfers. Its average processing time is around three days.

The right way to trade crypto on Plus500

After you have made a deposit, you are ready to start trading with Plus500. In the left-hand side menu, you will be able to access all of the company’s instruments. You can either search for them by clicking the search button or manually navigate through the list of available instruments.

Education

On the Plus500 website, you can find a variety of educational tools that are designed to help you manage your risk and improve your trading experience. In addition, there are also videos that cover various aspects of payment verification. These are useful for anyone who is looking to avoid getting ripped off by this type of provider.

Before you start trading with Plus500, it’s important that you first try out the demo platform. This is because it will allow you to test out the features and perform some of the trading without the risk of losing money.

Unfortunately, the educational materials on the Plus500 website are not well-organized. There were also no videos that were designed to help traders improve their trading experience.

What are the risk warnings?

CFDs are complex instruments that come with a high risk of loss. Many retail investors lose money when trading with this provider.

Before investing in a new financial instrument such as a CFD, it’s important that you understand the risks associated with it. Take into consideration the following;

  • Free-of-charge risk management tools known as Close at Profit and Close at Loss are available to help manage your trades. These tools can be used when you open a new position or edit an existing one.
  • These stop orders allow you to set the rate at which you will close your position. This is done to protect your profit and minimize the risk of losing money. It can also be done to avoid losing money in the case of “Close at Profit.”
  • Although the “Close at Profit” and “Close at Loss” orders can be used to guarantee the exact price level that you have specified, they do not guarantee that your position will close at that level. You can also add a “Guaranteed Stop” which limits the amount of money that you can lose.

Our verdict on Plus500

Established in 2008, Plus500 is a regulated market maker that offers a wide range of instruments, including multiple types of financial instruments such as foreign exchange, cryptocurrencies, and indices. It also has a variety of options and shares.

Although it only offers one live account, Plus500’s trading costs are competitive with those of other providers. Its minimum deposit requirement is 1500 ZAR, and it has no commissions.

Unlike other providers that provide support for multiple platforms, such as MT4, MT5, and cTrader, Plus500 only supports its own proprietary trading system. This means that it does not offer copy trading, hedging, or scalping. Its web-based platform does not require any download or setup.

Despite its lack of educational materials, Plus500 is still considered a good choice for beginner traders. Its award-winning customer service department is available 24 hours a day, which is exceptional in an industry that typically offers only 5 hours of support.

Conclusion

Besides its well-designed platform and competitive fees, Plus500 also provides a variety of tools and resources to help you become a successful trader. These include its educational tools and a wide selection of products. Its broad product offerings are ideal for any level of experience.

This review is useful for anyone who’s looking to find the best broker for their needs. It also helps compare the various offerings of different companies.

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