A well-regulated broker with competitive spreads, Plus500 is one of the most credible global brands offering CFD and retail forex traders a simple, fast, and easy-to-use platform. With a thorough selection of over 2000 tradable instruments, Plus500 tracks industry leaders in advanced trading tools and market research desired by active traders.
Founded in 2008, this Israel-based company operates via several subsidiaries throughout the Asia-Pacific region and Europe and is registered with other relevant regulatory authorities. However, it doesn’t accept US traders.
Plus500 is for all those customers that seek access to a wide variety of financial markets with a simple and functional platform with low trading costs. Seasoned and novice investors are enticed with the range of trading instruments on its proprietary WebTrader, including competitive spreads and zero commissions.
In this Plus500 review, we will explore this trading platform in detail, including its features, fees, regulation and procedures, along with a discussion of things to consider before you use the broker.
Table of Contents
How to Get Started with Plus500?
Register & Verify Account
Signing up for an account is quick and easy. Traders can register their accounts in minutes. The platform requires an email address and password as the first step to process account opening. It is also possible to log in through Facebook or Google, which provides convenience to investors. To complete the registration process, new traders must submit their ID and proof of their residency document to complete the KYC/AML verification procedure, as required by the brokerage platform. The identification process is only done once.
After the complete registration process, traders can deposit funds into their accounts. The platform has a minimum deposit requirement of $100 using different payment methods. The supported payment methods include Bank Transfer, Credit card, PayPal, iDEAL, and Skrill.
Before processing your deposit, traders must confirm their identity. It only encourages verified customers, preventing them from using the account for money laundering. Also, there is no additional cost involved for depositing money which is a benefit of broker Plus500 as several brokers charge a small fee for depositing funds.
After depositing funds into the account, you can trade only with CFDs including stock index, forex, ETF, stock, commodity and crypto. The broker offers a good range of CFDs which is wider than other brokers like eToro, XTB and others. Novice traders must know that CFDs are complex instruments that involve a high risk of losing money due to leverage. That is why it is necessary to first understand how CFDs work and if you can afford the associated risk.
#1: Plus500 Trading Platform Experience
Plus500’s proprietary platform provides traders with a seamless trading experience that is easy-to-use, stable and accessible from various systems and multiple devices including Windows PCs, web browsers, tablets and smartphones.
With its simple interface, it lets traders create watchlists, monitor trades, and analyse the charts. The charts’ technical analysis offers over 100 indicators that traders can apply to several different time frames, from weekly charts to tick charts. Having several features in the interface, it provides ease in functionality and customisation in options to clients.
The broker simply provides a streamlined WebTrader platform with the same mobile trading apps for iPad, iPhone, and Android devices where clients can trade and monitor them too. Additionally, the platform offers three basic order types - Market, Limit, and Stop, which come with options of attaching, "stop-loss" or "take profit" orders to them. Provided with these options, the users can select both, guaranteed or trailing stop options while filling out the order ticket before execution.
Market: This is the first basic order type where the trader requests the brokerage service to buy or sell the security at the best available price in the current market. It is one of the fastest and most reliable methods to enter or exit a trade, which provides the most feasible method of promptly getting in or out of a trade. This order is well-suited for high-volume securities such as large-cap stocks, ETFs, or futures. Brokers execute market orders when they are willing to buy at the asking price or sell at the bid price.
Limit: This is the second-order type that is to purchase or sell a security at a specified price or better. Such orders guarantee that an order is filled at or better than a specific price level; however, a limit order is not guaranteed to be filled. Such orders control execution price but can be resulted in missed opportunities in fast-moving market conditions. These orders can also be used in combination with stop orders to prevent huge downside losses.
Stop: This is the third type of order that is activated when the stock moves from a predetermined price point. If the price point is beyond it, stop orders are then converted into market orders executed at the best available price. There are various types of stop orders, including sell stop orders, buy stop orders, stop-limit, and stop market. Such orders are used to mitigate losses with lock-in profits or stop-loss using bullish stops.
Expert Tip for Using Plus500“ The most salient advice any expert will give you is to invest in a variety of cryptocurrencies or assets that appear to be promising. This way even if one of your investments doesn't pan out the way you expected, your capital will be safer. You should also do your homework on the assets and cryptocurrencies you are going to invest in. Another important thing to keep in mind is that trading platforms offer a wide range of advanced features. Do not fiddle with or use any tools that you are not familiar with as it can lead to financial loss. ”- Shameel Kazi
#2: Key Considerations about Plus500
Plus500 is one of most highly-regulated brokers in the world which acts as an advantage for traders seeking for a successful trading experience that is based locally. Financial Conduct Authority (FCA) in the UK is the primary regulator, which is considered as the most reliable and strictest Forex brokers in the world. In this brokerage service, traders are secured under the FSCS - Financial Services Compensation Scheme – i.e. up to £85000 based on the regulatory requirements.
Plus500 also operated a subsidiary regulated by the CySEC - Cyprus Securities and Exchange Commission. That is why this brokerage service provider is under the MiFID II or Financial Instruments Directive 2014/65/EU and the EU’s 4th Anti-Money Laundering Directive. Traders associated with the platform are secured by the CIF – Investor Compensation Fund with maximum coverage of €20,000, as stated by the EU Directive 2014/49/EU.
Serving traders through regulated entities in Australia, it is regulated by the ASIC – Australian Securities and Investments Commission, in South Africa under the supervision of the FSB - Financial Services Board, in New Zealand, authorised by the FMA – Financial Markets Authority, and in Singapore regulated by the MAS – Monetary Authority of Singapore.
Additionally, the Plus500 brokerage service has an Israeli branch that is authorised by the Israel Securities Administration. The platform is facilitating traders from a structured regulatory framework utilising multiple regulatory frameworks which is why traders consider this brokerage service reliable and trustworthy for their deposits.
It offers one easy-to-use account type, which is called a Retail account. Traders who wish to explore further can apply for a Professional account. However, there are some requirements to meet the criteria of the professional account.
- The trader must have done sufficient trading in the last 12 months
- Must have relevant financial services sector experience
- Must have a financial instrument portfolio of over €500,000
Traders desiring to open a professional account should know that it has higher leverage as compared to the retail account. However, in August 2018, the leverage was reduced to 1:2 from 1:30. And the maximum leverage for professional accounts ranges from 1:300 (for forex) and 1:5 (for options), for the varied instruments, with forex products and indices at the top of the range and options at the bottom.
Research & Education
The platform has a limited yet insightful and dedicated education section labelled as the Trader’s Guide. That education section covers a few interesting videos that can help both novice and seasoned traders get started and know the brokerage platform even better. In addition to in-depth videos, the platform features a fairly comprehensive risk management section that elaborates how traders can mitigate risks while trading at their best.
However, some brokers believe that seasoned traders do not require any education, as they are veterans and already know pretty much about the platform and how to trade, and there is some validity to this claim. Plus500 currently facilitates traders at all levels, but it would be great if the brokerage service expands its educational offerings.
Plus500 enjoys most of its revenue from direct trading costs which include spreads charged on more than 2000 assets. However, the trading is free of commission for the clients, but there are indirect fees that are included, but in general, Plus500 facilitates traders with spread combinations on a few assets with a majority of the assets with higher costs, creating an acceptable balance.
Additionally, there are certain asset classes that are of a higher price than other brokers; that is why it is advised to always check prior to placing your trades while dealing in multiple brokerage accounts. If you do not deal in multiple accounts, then you should know that its charges are fairly low in the industry and some super low-cost assets can balance the expensive ones. That said, Plus500 is known for its full-fledged transparency about all involved costs, enabling quick calculations and comparisons.
Plus500 involves zero withdrawal fees, however, if the trader exceeds the maximum amount of monthly withdrawals, i.e. once, in a month, there may be a small sum of the fee that is going to be charged from them. Additionally, third party fee is dependent on the payment processor and may be charged, as they are out of the brokerage service. It is important for traders to note that the currency other than the account base currency will require currency conversion fees. Also, making more than one withdrawal in a month should be avoided if traders do not want to pay extra costs.
Currency Conversion Fees
As mentioned above, currency conversion fees will be applied every time a trader will request a currency withdrawal that is different from the account base currency. They also applied to every trade done in an asset priced in another currency. For instance, if your base currency is European and you are placing an order using the Facebook CFD which will be in US Dollars, the brokerage service will charge you a currency conversion fee of 0.5% upon trade execution in addition to the exchange rate.
Plus500 receives the majority of its trading fees from the spreads and the difference between the bid and the asking price of every quote instrument. However, the brokerage service does maintain some competitive costs for high-liquid assets such as EUR/USD, with a minimal commission fee spread of 0.6 pips, which makes it lead among the competitors. It also features less liquid assets which have a higher cost, which balances the difference. Traders should create a list of low-cost assets, lesser fee structures, and avoid costly ones, depending on their trading strategy and preferences.
Also known as swap rates, overnight fees apply to leveraged overnight positions. These are considered the interest payments on the lent amount from Plus500 to ensure an open trade. Though most of them are negative, there are times when a positive swap rate applies, and traders can easily earn a small sum for holding the asset in their portfolio. As mentioned above, the platform is transparent about the overnight fees applied to traders, and they can be accessed by clicking on the “Details” button which is right next to the name of the asset on the platform.
If a trader doesn't log in for three months, a sum of $10 for monthly inactivity is applied. Those who want to avoid these charges can periodically access their account, but most traders are not really inactive if they have a reasonable cash balance in their portfolio. Several traders consider this fee annoying, other brokerage service providers charge four times more than Plus500, i.e. $50 for each month as an inactivity fee, so traders associated with this platform still remain on the safer side.
Plus500 doesn’t facilitate traders with a fee calculator, but it does ensure transparency for all direct, and indirect trading fees. Keeping those charges in view, traders can create a spreadsheet of their own and compute accordingly if needed.
Supported Countries by Plus500
Since 2008, Plus500 has expanded across the globe and is offering its services in more than 50 countries and in more than 30 languages. However, there are some notable exceptions for a few countries. The countries that cannot open their accounts include:
Plus500 has a very supportive customer representative team that is available to serve the traders round the clock. Both the email support and live chat options are reliable and available 24/7. However, there is no phone support but it efficiently serves its customers through live chat and email support.
Traders have used both Plus500 options and have always received on-time support from the team. Also, you can rate the customer support agent instantly after the conversation ends, which is again a good way to share your feedback and help them improve in case of any lacking.
Unlike other brokerage services, email support is quick, replying to customer queries within an hour. In addition to providing good quality and fast service, Plus500 leads among all the brokers for providing round-the-clock customer support which is not the case with several brokers.
Safety, Security and Privacy
Plus500 values traders' privacy and ensures keeping all of their information confidential. But in order to be certain of the brokerage service, traders must check the below-listed facts.
- How are you secured if something goes wrong
- What is the background of the broker?
Plus500 regulates several subsidiaries, and the one that will serve you will depend on your residency. However, the amount of investor protection will be based on the country of the subsidiary you will sign up with. This broker facilitates traders by providing negative balance protection too for CFD trading but only for European retail clients. It means that if a trader account goes in negative territory, they will be protected by Plus500. However, professional and non-EU clients are not covered under this protection policy.
Lastly, it was established in 2008, which means that the longer the track record a broker has, the greater credibility it has to protect and survive the financial crises successfully.
#3: What Makes Plus500 Different from Other Brokers?
Being a simple and intuitive platform, Plus500 permits its clients to trade on a wide variety of instruments. Additionally, this broker is one of the leading service providers of CFDs - Contracts for Difference - to seamlessly deliver trading facilities on forex, shares, commodities, ETFs, options, indices with innovative trading technology.
Here are a few points that set it apart from all other brokerage platforms out there.
- All trading instruments are leveraged
- Round-the-clock customer service assistance including 24/7 email support and live chat options
- Fully authorised and regulated in the jurisdictions in which they operate
- Provide free and unlimited demo account activities
- Incur 0 fees for opening and closing trades when trading
- Easily available in more than 50 countries and in over 30 languages
Another aspect of this broker that is unique from the rest is its easy functionality and usability. Anyone who has used Plus500 will tell you, that this multi-asset broker platform offers a trading experience far better than all others in the market. The innovative interface and structured system ensure a simplified approach for both beginner and professional traders alike.
#4: How to Trade With Plus500?
Trading with Plus500 is hassle-free and can be done in just a few clicks if you follow the mentioned steps. To begin with the trade, firstly, you must log in to your account, choose your desired instrument, click on “buy” or “sell” – based on the direction you think the instrument will move), then choose the amount you wish to trade, then open the trade.
Traders willing to use Plus500 risk management tools can make use of “Close at loss”, “Close at profit”, and “Guaranteed Stop Loss” options and place orders in future when the instrument reaches a certain price.
Explore the Instrument Offerings
Plus500 lets traders access over 2000 financial instruments across a variety of asset classes. Some of them include the following:
- Indices – Country & Sector
- Individual Shares
How to Open a Trade?
In order to open a trade position, you can choose from the trade size and check the value of the position with the required initial margin to open the trade. Traders can also add stop orders in order to close the trade when they find the instrument reaching the predefined price level.
How to View, Edit, or Close a Trade?
Traders who want to view the trade can select the “Open Position” tab. By clicking on the “Edit” button, a screen will pop up which traders can update, set, or stop as needed. By pressing the “Close” button, a popped-up screen will display where traders can end the entire or a part of the position.
#5: Plus500: Pros & Cons
Final Thoughts - Is Plus500 Legit?
Plus500 brokerage service targets all those investors who are seeking a simple and easy-to-use interface for executing trades. The broker has a proprietary WebTrader platform that is intuitively functional in which the spreads are competitive, where the cost is low. Traders of Plus500 UK have an additional benefit of regulation security by the FCA – Financial Conduct Authority.
Though the lack of educational resources and not providing MT4 as an alternate platform are a few cons, traders prefer entering and exiting manually finding the operations trade-off worth the lower expenses.
Frequently Asked Questions
Yes, it is. The UK FCA is the primary regulator. However, the broker is authorised by the CySEC, ASIC, FMA, FSB, and MAS.
Of course! It is possible to make money with Plus500 as 23.6% of the retail investors have accounts that were making money while trading with CFDs.
You can easily withdraw money from Plus500 using different payment methods including Skrill, PayPal, bank wires, debit and credit cards.
Withdrawal from Plus500 can be done within 2 to 3 days. However, PayPal is considered the quickest withdrawal payment method.
Plus500 charges spread on more than 2000 asset markets. Being a brokerage service, the platform benefits from its clients success and generates revenues.