Plus500 Broker Review | Pros & Cons in 2021
Plus500 has established itself as one of the leading contracts for difference (CFDs) brokers worldwide, allowing users to trade forex, cryptocurrencies, options, ETFs, shares, and indices. Additionally, the platform is authorized and regulated in numerous countries, making it a trusted entity where traders worldwide can interact with financial instruments.
It has gained popularity among traders thanks to offering access to over 2,000 markets, high security, fast order execution, and around the clock customer support.
Plus500 Review Overview
Plus500 is for traders that seek a wide range of financial instruments they can trade on using leverage. It charges low fees and offers a reliable trading platform where these assets can be traded with tight spreads and no commissions. Several top-tier regulators oversee its operations, and the company shares are even publicly traded, making it highly credible. Well experienced traders that love manual transactions will love this platform since it doesn't allow for automated trading via expert advisors.
3 Reasons to Use Plus500
Access to many markets
Plus500 is one of the few brokers that allows users to access multiple financial markets with over 2,000 tradable assets through CFDs. These instruments can be traded through their proprietary web platform, or mobile application that serves both IOS and Android users.
Access tools to inform your trades
The first thing you will notice on Plus500 is the excellent charting tools where you can access around 119 technical indicators coupled with a great editor. You can also save the charts if you want. There is also a well-designed section with an economic calendar and significant events occurring within markets and the company. In the section, you can gain knowledge of investor sentiment for a given asset in different markets through the sentiment tool, which can help you with your trades.
Highly secure and regulated
Plus500 is one of the few platforms that can boast of being regulated by multiple regulators worldwide, which allows the broker to operate in different locations. Regulation is vital since it gives investors confidence and assurance that they are dealing with a credible platform. The regulation also helps protect users in case of insolvency, ensuring they don't lose their money. Given the risk involved in trading CFDs and the additional threat of scams, regulation assures traders that they are trading on a platform that isn't likely to disappear with their investment.
76.4% of retail CFD account lose money.
What is Plus500?
Plus500 is a platform that allows users to trade securities and multiple asset classes in over 2,000 markets. All the financial instruments on Plus500 are offered through Contracts for Difference (also known as CFDs). It was founded in 2008 by six alumni of Technion; an institute focused on technology in Israel. The founders include Gal Haber, Shimon Sofer, Omer Elazari, Elad Ben-Izhak, Alon Gonen, and Shlomi Weizmann.
Plus500 is a trademark of Plus500 Ltd. Plus500 Ltd operates through the following subsidiaries: Plus500CY Ltd, Plus500UK, Plus500AU, Plus500SEY, and Plus500SG.
And to ensure it operates in different locations smoothly, it's regulated by the Financial Conduct Authority (FCA) in the United Kingdom, the Monetary Authority of Singapore (MAS), the Australian Securities and Investment Commission (ASIC), and also, Plus500CY Ltd authorized & regulated by CySEC (The Company’s CIF license number is 250/14).
In 2010 Plus500 launched a web version that allowed Mac and Linux users to access the broker after the Windows-only platform's initial success. And following the growing popularity, an app for iPad and iPhone users was launched. In 2012 the android version was introduced for devices based on the operating system.
In July 2018, the company's shares were listed on the London Stock Exchange under the tinker PLUS. The broker's trading platform is supported in over 50 nations worldwide.
To boost its brand around the globe, Plus500 has entered into several high profile sponsorship deals. TThe beneficiaries include Atletico de Madrid, Legia Warsaw, BSC Young Boys, Atalanta B.C., and Brumbies, an Australian Rugby outfit.
How Does it Work?
Plus500 offers users access to various markets through a proprietary trading platform where they can manually control their transactions. There are many market order types available, and trade executions are super fast. There are two account types on offer; the retail account and professional account. You can trade with up to 1:30 leverage for the retail account and on the professional account with up to 1:300 leverage. The trading platform can be accessed using a mobile phone, and a web version.
Signing up is easy and straightforward, and to start trading, you need to deposit at least $100. Funding the account is easy, with around 14 base currencies supported.
Fees on the platform are built on spreads, and there are other charges you are likely to incur, like overnight fees and withdrawal fees (Plus500 doesn't charge withdrawal fees for up to 5 withdrawals a month). Also, there are plenty of research tools and educational materials, including videos and guides on how to deal with different aspects of the platform.
How does Plus500 Make Money?
Plus500 relies on spreads to make its money. A spread is the difference between the bid and ask price when trading a CFD product. The platform doesn't charge commissions on trades, and it doesn't have to since it has one of the biggest user bases. Another source of income is overnight fees, which are charged for positions left open overnight. Then there is the currency conversion fee charged for all items denominated in a different currency from your base currency. Finally, there is an inactivity fee where you will be charged up to $10 each month if you go for three months without login into your trading account. If you are wondering why you should be charged while you are not trading, the broker says it's to offset the cost incurred when they make the service available even if it's not used.
Pros & Cons of Plus500
Breaking Down Plus500: Our Analysis and Review
This section will take a more in-depth look at other aspects of this broker, like regulation and additional features that make the platform stand out from the rest.
Regulation, Licenses and Security
The Plus500 platform is authorised and regulated by several organisations across the globe. These include the Financial Conduct Authority (FCA) in the United Kingdom, the Australian Securities and Investment Commission (ASIC), the Monetary Authority of Singapore (MAS), and the Cyprus Securities and Exchange Commission (CySEC). Additionally, the broker is an authorised financial services provider in South Africa and has a derivatives issuer permit in New Zealand.
Supported Countries on Plus500
Plus500 is a global platform that offers its services in many countries. Currently, the broker serves over 50 nations where it's allowed to operate. Unfortunately, users in the United States, Canada, Iran, Cuba, Kenya, Syria, and a few other nations have no access to this platform since it's not permitted to operate in those regions. You can confirm if your country is supported by visiting the official website and clicking on "Start Trading." If the service is available, it will take you to the registration form or let you know it's not available.
Is Plus500 Secure?
Plus500 has seen over $1310 billion traded over the years it has been around, with over 35 million positions opened and over 200,000 active customers. That is a lot of money, and this makes it attractive to hackers. However, the platform has its website secured through SSL security, which are cryptographic protocols designed to offer communication security over networks. As an additional security measure, user funds are stored in segregated bank accounts, ensuring individuals don't lose money in case of a breach.
Key Services and Additional Features
Plus500 offers several unique features that help it stand out from other trading platforms. These unique properties have made it one of the top brokers in the world. Also, to maintain its edge, this platform keeps adding on the available features. Let's take a look at some of them in the section below.
Access different account types
The platform offers two account types; the first and the most common option you will find is the retail account. The other is a professional account that can be applied for if you meet the following criteria; have sufficient trading activity for the past one year, have a portfolio of over 500,000 euros, and have enough experience within the financial service sector.
Professional accounts let you trade with high leverage compared to the standard account. Here you can trade with up to 1:300 leverage for forex and other instruments on offer.
High security and protection
Plus500 is excellent for how well it protects user funds from hackers. Users have advanced risk management tools, and their funds are stored in segregated bank accounts to eliminate the chance of a loss if anything happens to the platform.
An easy to use trading platform
Plus500 offers a simple and intuitive trading platform that serves the needs of new and experienced traders well. It can be accessed from the mobile phone, or via the web. Whichever way you choose to access the platform, the functionalities are similar and excellent.
Given that you will be placing many trades, the fees can add up over time, taking a huge chunk of your profits. But, Plus500 ensures you have to pay the least amounts possible for its services compared to other platforms.
Excellent customer support
The customer support for Plus500 is incredible. They are fast to respond to queries and offer assistance. You can reach them through live chat, or email.
Supported Cryptocurrency CFDs on Plus500
On Plus500, you can trade up to 14 top cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), NEO, Ripple (XRP), IOTA, EOS, Bitcoin Cash (BCH), Cardano (ADA), Tron (TRX), and privacy-focused Monero (XMR). Please note that the 1:30 leverage is the maximum for the platform as a whole and the leverage for cryptocurrencies is 1:2.
Plus500 offers a trading platform that is appealing to the eyes and easy to use. The platform is available in over 30 languages, including English, Spanish, German, French, etc. The trading dashboard is clean, well designed, and easy to use. Even beginner traders can comfortably navigate without experiencing any problems. There is a two-step login process to secure the account, and you can use 2FA authentication through Google or Facebook. You will see a bar on the dashboard to search for different markets you want to trade-in. Markets and other features are well categorised, making it easy to scroll around and well labelled to avoid confusion. As for placing orders, you have five order types, including market, limit, stop, trailing stop, and guaranteed stop.
The guaranteed stop will close your position even if there is a huge market movement, and it will cost you higher spreads. The platform also offers alerts and notifications that can be received through email, SMS, and push notifications. You can also see clear reports on your portfolio and fees involved, like overnight fees.
On the dashboard, you have access to multiple charts. You can use up to nine charts at a go on the WebTrader, a unique offering only available in only a few trading platforms.
Plus500 Trading Platform at a Glance
Plus500 trading platform is available through the web, and mobile application. All the versions offer the same functionalities with similar abilities. The mobile application is available for iOS and Android users and can be assessed through a smartwatch.
Deposits and Withdrawals on Plus500
On Plus500, deposits can be made in 14 base currencies, including USD, EUR, GBP, CHF, AUD, JPY, PLN, CZK, HUF, CAD, SEK, SGD, NOK, and TRY. And you will realise your account currency will be set by default, depending on where you are located. The availability of many base currencies saves one from being charged conversion fees. This fee will be around 0.5% for all tradable assets, and the only way to avoid it is by opening a multi-currency bank account.
There are no fees charged for depositing on the platform, but you may incur some costs depending on your service provider. Depending on the payment mode you choose, the period taken for funds to get into your account will differ. E-wallets and credit/debit cards are faster than bank transfers that can take up to 5 business days.
The first five withdrawals you make every month are free, and after that, you will be charged $10 per withdrawal, and it's a competitive fee compared to most brokers that charge standard withdrawal fees. Also, there is a minimum withdrawal limit. For PayPal, it's $50, and for credit/debit cards and bank transfers, it's $100.
Payment Methods Accepted by Plus500
Plus500 is a global platform, and to serve its diverse user base, there are plenty of payment methods supported suitable to anyone no matter where you are located.
- Credit/debit cards
- Bank transfers
However, it should be noted that the payment and withdrawal methods available can vary depending on your country of location.
Minimum Deposit Required by Plus500
The minimum deposit on Plus500 is $100, or it’s equivalent in the based currency of your choice. It's quite a low sum compared to other brokers. But, for bank transfers, the amount rises to $500.
Minimum Trade Size for Cryptocurrencies on Plus500
On Plus500, the least amount of cryptocurrency you can trade is one unit of the coin of your choice. Please note that the 1:30 leverage is the maximum for the platform as a whole.
Plus500 Fees and Spreads
The non-trading fees are quite average compared to other platforms. For cryptocurrencies, the spread values are variable and depend on the specific coin that you want to trade. In general, crypto coins use to have higher spreads than other trading instruments. Then there is the inactivity fee of $10 per month if you go past three months without login to your account. This fee is quite average, but its charged too early compared to a few other brokers who have to wait for at least 12 months.
Plus500 Registration Process
Registering on Plus500 is quite simple and straightforward. You will have to enter personal details, including an email address, name, phone number, place of residence, your net worth, and trading experience. Once you submit this information, you will have to verify your identity by submitting photos of your national ID or, in some locations, even the driver's license. Then you have to submit a document that verifies your place of residence, such as a utility bill. These documents will be reviewed, and if everything checks out, the account will be verified within a day.
Valid proof of address documents are as follows:
- Bank statement
- Credit card statement
- Electricity, water, or gas bill
- Council Tax bill
- Tax letter or bill
- Phone bill
- Internet bill
Cryptocurrency CFD on Plus500
There are five necessary steps required to trade cryptocurrencies on Plus500:
Step 1 – Open a Plus500 account.
Step 2 – Search for one one of the available cryptocurrencies on Plus500.
Step 3 – Click on "Trade."
Step 4 – Insert your desired investment amount.
Step 5 – Click on "Open Trade."
Our Plus500 Conclusion
Plus500 is an excellent platform for traders that love to be in control of their trades. Also, it's a risky activity trading with Plus500 that isn't suitable for inexperienced traders. Accessing different markets is easy since its search functions are excellent with a well-designed GUI that is quite appealing to the eyes. There is a demo account for new traders where they can practice trading until they have enough confidence to execute real trades. Also, there are plenty of educational resources that equip one with all the necessary knowledge. In case you feel stuck, you can always seek the help of customer support through a live chat. You will also love the many research tools, including the economic calendar that keeps you up to pace with the latest happenings likely to impact asset prices, risk management tips, alerts, and even the trader's guide. Every aspect of this platform is designed to help you make the most of the financial markets.
Frequently Asked Questions
First of all, you can trade with a leverage of up to 1:30 on this broker. Then you don't need an exchange account or a special wallet. Additionally, you can profit from positive and negative price movements, and the cryptocurrency market is available 24/7.
Yes. The Plus500 website is secured through SSL encryption, and there is a biometric authentication if you use the mobile application. Additionally, a timer logs you out of both the web and mobile app if you go for a period without using the platforms.
You can make withdrawals any time you like on this platform, with all requests processed within 24 hours. Also, how fast the funds will get to your account will depend on the payment mode you choose. For e-wallets, it could take a few hours, but for bank transfers, it can take 1-3 days.
Securing your account is of uttermost importance to avoid losing your funds. You can take a few steps to ensure your account is well secured, including setting a strong password when signing up. The go-to the settings tab and activate 2FA authentication, which allows you to enter a code when making transfers or signing in. additional security measures include having an antivirus on your devices and using a single browser when accessing the web trader.