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Plus500 Review

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76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Plus500 is a global high-tech CFD and Forex trading platform founded in 2008. Retail investors around the world trust Plus500 for online trading. Listed on the London Stock Exchange, it is a safe and regulated broker. Their trading platform is one of the best. They offer CFDs on: forex, ETFs, cryptocurrencies, options, indices, shares, commodities and more. ASIC, FCA, FSA, CySec, FSCA, MAS regulate Plus500.

Summary

Plus500 is a trusted online broker best for their great desktop trading platform and one of the best mobile platform. We found that Plus500 is great for CFD traders, customer support, easy to use platform and account opening process. The downside is their markets portfolio, offering only CFDs.

Plus500
Demo account:Yes
Minimum Deposit:$100
Regulated by:FCA, ASIC, CySec, FSCA, FSA, MAS
Copy Trading:No
Minimum Trade:Varies
Markets Available:CFDs on more than 2000 instruments
Mobile App:Yes
Desktop:Yes
Web Trading Platform:No
Countries available:50+
Withdrawals:$0
Islamic Account:Yes
Deposit Methods:Mastercard, Visa, PayPal, Skrill, Bank Transfers
Our Score:4.7/5

Pros and Cons

PROS
CONS
Great proprietary platform
Only Offers CFDs
Mobile App
Education
Fees
Support could be better
Trusted and Regulated
Wide Variety of Instruments

We recommend it for advanced traders, looking for a reliable and trustworthy platform.

Plus500 is listed on the London Stock Exchange (LSE). Read more about the company on Wikipedia.

Why should you read this review?

Choosing the right trading platform is important if you want to become an active trader. This review goes over the pros and cons of Plus500, their fees, trading platform and more. It will help you in assessing and understanding if this trading platform is a good fit for your needs.

What’s best about this broker?

The main advantage of Plus500 is their easy-to-use platform and low trading fees.

The best things are:

  • Traders open a demo account in a few minutes online. Real money accounts need to be verified. The time-frame depends on workload. It takes a few business days.
  • Fees are on the low-end of the industry.
  • This broker is considered safe due to the regulatory coverage.
  • The company is on the London Stock Exchange.
  • Plus500 trading platform is user-friendly and a good fit for advanced traders.

Platform Overview

Plus500 is a leading provider of Contracts for Difference. These innovative financial vehicles allow retail investors to take both long and short positions on a wide variety of financial instruments. These include, but are not limited to, stocks, foreign currency pairs, ETFs, cryptocurrencies, and indexes.

CFDs are an agreement in which the trader benefits from the price movement of the underlying security without taking actual possession of the underlying asset (CFDs are complex instruments and come with a high risk of losing money). If the trader takes a long position, profits come from upward price movements. Short positions generate gains if the price of the underlying security goes down.

All of the financial instruments offered are traded as CFDs.

These are better for day-trading than long-term investments. There are certain additional costs associated with holding these contracts for a period longer than one day.

Web-Based Platform

Web Based Platform - Dark Mode

The web-based trading platform has a user-friendly interface that enjoys positive 4+ ratings from most of its users. It provides an extra layer of security through two-step logins. Plus500’s trading platform provides reports on fees, historical transactions, positions, and other important information regarding the user’s trading account.

The negative side of the Plus500 platform is that it is not customizable. It does not feature advanced charting tools and it has its limits with the screen layout.

Their trading platform is great for beginner to intermediate traders, but lacks for experienced ones.

The search function works and it allows traders to find the security they wish to trade. Plus500 gives traders the possibility of receiving e-mail, SMS, and push notifications. These trigger if the price of a certain asset moves.

Mobile Trading App

Mobile Trading App On Tablet and Phone

Plus500 mobile trading app features most if not all of the tools and options available within the web-based version. This includes its charting tools, search module, and reports.

The mobile trading app is available for iOS, Android, and Windows Phone operating systems. It sends push notifications to smartwatches if you have one. Biometric authentication is available for extra security.

Placing orders through the mobile app is easy. Traders buy and sell securities in a matter of seconds by taking advantage of all its features.

How to Open an Account?

Types Of Accounts Available

Opening a demo account with Plus500 is easy. It takes a few minutes to register and complete the registration. Real money accounts need to be verified. It takes a few days, depending on the workload.

Plus500 accepts investors around the world. There are a few locations that are forbidden from registering. These include Cuba, Iran, and Syria, to name a few. US and Canadaian investors cannot open an account with Plus500. These countries have banned the sale of CFDs to retail investors.

Step-by-step process to open an Plus500 account:

  1. Finish the online registration
  2. Provide proof of residency and documents to verify your identity (national ID, passport, utility bill, etc)
  3. Wait to get approved
  4. Deposit funds to start trading

Minimum Deposit

The minimum deposit at Plus500 is $100. They accept debit cards, credit cards, and electronic wallets. Bank transfer minimum is $500.

Plus500 Deposit Methods and Options

Plus500 deposit methods:

  • Bank transfers
  • Credit or debit card
  • Electronic Wallet
  • PayPal
  • Skrill
Deposit Options

Bank transfers may take several days to be cleared. Deposits made with debit cards, credit cards, and electronic wallets are instant. You will find the instructions in the Funds Management section of Plus500 trading platform. Plus500 doesn’t not charge deposits fees. There are 10 different base currencies for their accounts.

Types of Accounts

There are two types of accounts available at Plus500:

Both accounts – Retail and Pro accounts – are the same in most aspects. The main difference between them is that the retail account features lower leverage ratios compared to the Pro account. Professional clients do not have ICF rights.

In order to be eligible for a Pro account, the trader has to have a certain minimum amount of net assets or a certain minimum amount of income. Traders have to answer a few questions to verify that they understand the risks involved in using higher leverage ratios.

Markets & Products Offered

Plus500 trading platform offers traders CFDs on all popular markets, and forex trading. The range of markets is good, compared to their competitors. They offer low spreads and leverage.

  • 1,800 Stock CFDs
  • 33 Stock Index CFDs
  • 92 ETF CFDs
  • 22 Commodity CFDs
  • 14 Cryptocurrency CFDs
  • 70 Spot Currency Pairs

Order Types

Plus500 has four different types of trading orders:

  • Market order – this order is executed at the current market price of the security
  • Limit order – a limit order sets a maximum price at which you are willing to buy the securities or a minimum price at which you are willing to sell the securities. The order will only be executed at the limit price or better.
  • Stop order – a stop order limits losses in case the market price falls below the stop price. The order will become a market order once that price is reached.
  • Trailing-stop order – a trailing-stop order allows traders to gain from any favorable price movement until the trend reverses and the price falls by a certain percentage or down to a certain price.

While limit, stop, and trailing-stop orders work by setting a limit or stop price. Plus500 does not guarantee the order is executed at that exact price. That is due to slippage.

Slippage occurs when the market price of a security experiences significant volatility and the broker is unable to secure the price established in the order.

While the platform will do its best to fulfill the order based on those price targets, if it is unable to do so they cannot be held responsible for any slippage occurred in the process of buying and selling the securities.

Trading Fees

Plus500 has low trading fees compared to several of its rivals. They don’t charge a withdrawal fee on the first 5 withdrawals per month, this is a plus for traders with small amounts of capital. Plus500 doesn’t charge commission fees or trading fees. They make money form the bid/ask spread of the CFDs they sell and the currency pairs they offer.

The spread means that you’ll pay a certain amount above the quoted price for buyers or receive a bit less than the price quoted.

The average spreads charged for some of the financial instruments available:

  • S&P500 CFDs – average spread cost 0.45.
  • Europe 50 CFDs – average spread cost 1.
  • Forex – cost per EUR USD trade is typically 0.6 pips.

It is a bit difficult to list all the fees per trade based on the information that is available. Spreads vary per each of the financial instruments the trading platform offers.

Based on hypothetical calculations on the trading leverage used, the amount of capital invested, and the type of position held, fees are low. The average cost per trade is on the low-end of most trading platforms available.

Inactivity Fee

Plus500 charges an inactivity fee. Customers who have not logged into the account for more than 3 months are subject to inactivity fee. The fee is $10 per quarter after this 3-month period has passed.

The inactivity fee is triggered for not logging in. Some brokers charge inactivity fees for not trading, so this is a plus.

Overnight Funding Fee

If you hold securities overnight, an overnight funding fee is charged. Read about it here. The overnight funding amount is either added to or subtracted from your account. That is if a position is left open after a certain cut-off time. Fees are a percentage of the amount of leverage associated with the position. The percentage is quoted next to the price of the financial asset.

Leverage

Leverage levels available for traders vary depending on where traders are located and the particular laws.

Leverage levels for retail accounts:

  • Stock index CFDs – 20:1 leverage
  • Stock CFDs – 5:1 leverage
  • Forex – 30:1

A 30:1 leverage means you are able to borrow $30 per each $1 committed.

One of the downsides is that leverage levels are fixed. Leverage cannot be modified in case the trader wants to reduce risk associated with the position.

Research Tools

The research tools available within Plus500 trading platform are limited. Its charting tools are good for beginners. There are 107 technical indicators that are be applied to the charts. Both the webtrader and the mobile app of Plus500 offer charting tools. The charts in the mobile trading app don’t look as nice as in the webtrader due to the lack of space.

Charts are saved after the trader has applied all the indicators to it. This is nice, considering the high number of different securities a day-trader may analyze during a single session. There’s a news feed comprised of an economic calendar and a corporate events calendar. There is no real-time news feed featuring major news outlets such as Reuters or CNN Money are available within the platform. That’s a downside for traders.

A “Trader’s Sentiment” tool is also embedded within the overview section of the different assets offered by Plus500. It indicates the percentage of traders that are buying/selling the security during the session ie. 41% sellers vs. 59% buyers.

Another point worth noting for the Plus500 platform is that no data on the fundamentals of each of the stocks are available for traders. This means that they have to do their own research outside the trading platform.

Educational Tools

Education and training ins’t the best at Plus500. The company has a demo account for traders who want to try out the platform before they deposit money into it. Experimenting with the demo account is great for beginners who don’t have trading experience.

Plus500 website has a section called “Trader’s Guide” featuring 6 short videos:

  • Slippage when opening a position
  • How to trade?
  • Popular trading strategies
  • What is a Rollover?
  • What are options?

These videos are tutorials on how the trading platform works. These educational tools aren’t for traders who want to boost the performance and results of their portfolios.

Plus500 has a Risk Management section. It explains each of the types of orders available and how they help traders in minimizing risk.

There’s also a FAQ section:

  • Account verification process
  • Bonuses
  • Deposits
  • Fees & Charges
  • Financial instruments
  • Opening an account
  • Regulators
  • Submitting identification documents
  • Trading
  • Withdrawals

There are materials that guide the trader through the platform. None of the educational resources help traders improving their skills.

Customer Support

Plus500 customer support enjoys positive reviews from traders within their platform. The Plus500 platform has live chat customer service and e-mail customer support and representatives are available 24/7. They help traders in solving any potential issues they may encounter during their trading activities.

Users reported that e-mail responses take up to an hour, though response times vary depending on the complexity of the issue. Traders report that this broker is transparent with disclosing their rates and fees.

Plus500 doesn’t offer phone customer service.

Withdrawals Options and Fees

Plus500 withdrawal is easy and straightforward. They allow traders to withdraw money five times a month without any fees. After, the withdrawal fee is $10. There’s a minimum withdrawal amount of $50 for PayPal withdrawals and $100 for bank transfers. If the amount is lower than the minimum, it costs $10 to withdraw.

Withdrawal Methods

There a variety of withdrawal options available:

  • Credit or Debit Card
  • Wire/Bank Transfer
  • e-Wallets (PayPal or Skrill)

Withdrawals made to a credit/debit card and bank account take up to 2 business days.

Is This Trading Platform Safe?

Plus500 is a safe online broker. It is regulated by various top-tier financial authorities including the Financial Conduct Authority (FCA) in the United Kingdom (traders are protected under the Financial Services Compensation Scheme (FSCS), the Monetary Authority of Singapore (MAS), and the Australian Securities and Investment Commission (ASIC). Plus500CY Ltd is authorized & regulated by CySEC (#250/14).

The company is listed on the London Stock Exchange. This adds a significant degree of transparency to its operations and to the company’s solvency and liquidity. This is crucial to protect the money it holds for its investors.

The firm is regulated by top-tier institutions worldwide. This lowers risk, as these regulatory bodies promote transparency and a certain degree of reliability to the company’s operations.

Balance Protection

Residence
Balance Protection Amount
Regulated by
Entity
UK
£85,000
Regulated by the Financial Conduct Authority (FRN 509909)
Plus500 UK Ltd
South Africa, New Zealand and South Africa
No balance protection
ASIC (AFSL #417727), Financial Markets Authority (FSP #486026), and FSCA (FSP #47546)
Plus500 AU Pty Ltd
EU, Norway, Switzerland (EEA)
€20,000
Cyprus Securities and Exchange Commission (#250/14)
Plus500 CY Ltd
Israel
No balance protection
Israel Securities Authority (#515233914)
Plus500 IL Ltd
Singapore
No balance protection
Monetary Authority of Singapore (#CMS100648-1) and the IE Singapore (#PLUS/CBL/2018)
Plus500 SG Pte Ltd

How safe is it to trade CFDs?

According to the Financial Conduct Authority (FCA), the UK’s financial regulatory body, and the European Securities and Markets Authority (ESMA), investors who trade CFDs are exposed to a high risk, as trading CFDs involves taking short-term positions in volatile financial instruments. Research shows that more than 76.4% of investors who trade CFDs through Plus500 lose money when trading. High costs associated with these transactions, the amount of leverage used, and volatility of the markets tend to evaporate their account balances.

In March 2019, ESMA decided to renew a restriction that forbids the marketing, distribution, and sale of CFD products to retail clients in Europe for a period of three months starting on May 1, 2019. These restrictions included a limit on the degree of leverage on various types of CFDs, the minimum required margin that would trigger a margin call, and a restriction on the incentives offered to trade CFDs. The institution enforced the publication of risk warnings to inform investors about the potential of losing money.

Before you trade CFDs with this provider, you should make sure you understand CFDs. Investors are advised to invest money they can afford, as they are exposed to high risk.

Conclusion

Plus500 is an excellent online broker for advanced traders looking to trade CFDs. It is regulated by tier-1 authorities and listed on a stock exchange. This makes it a safe broker for trading securities on their platform. Plus500 is on the low-end when it comes to trading fees. The user interface of its web-based and mobile platforms are great. Minimum deposits are low. Pro account provide significant levels of leverage for Forex traders.

Plus500 is among the best platforms available. This review should provide enough details for you to know what to expect when you sign up for their trading platform.

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76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

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