IG Vs Plus500

Trading in financial markets provides investors with an opportunity to invest in profitable assets. Among all the assets traded, forex, and contract for difference (CFD) has been helpful to traders of all proficiencies. Since financial markets are huge and have different operating hours, it becomes challenging for investors to keep track. But forex trading software made it easy with their innovative and advanced analytical tools. In this article, we will compare two leading online forex and CFD brokers – IG Markets and Plus500. Having started in 1974, IG Markets serves clients with award-winning platforms and market-leading services. The broker offers a wide range of assets, including forex, CFDs, spread betting, indices, shares, and commodities. Investors gain access to tremendous trading opportunities by exploring more than 17,000 global financial markets. The company operates in 14 countries with more than 190,000 clients.

Plus500, offered by Plus500CY Ltd., allows trading forex, CFDs, shares, indices, exchange-traded funds, options, commodities, and cryptocurrency. Since its inception in 2008, the broker has been consistent in providing innovative trading technology with a best-in-class user experience. Because of its breadth of over 2,000 assets and low transaction costs, the broker has been able to build a loyal and engaged customer base of more than 200,000 clients.

Both IG and Plus500 are listed on the London Stock Exchange and are regulated by renowned international financial authorities like the Financial Conduct Authority and the Cyprus Securities and Exchange Commission. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Make sure you understand how CFDs work, and if you can afford to take the high risk of losing your money.

Comparison: IG Vs Plus500

FEATURES

IG

PLUS500

Regulations
ASIC (Australia)
BaFin (Germany)
CFTC (US)
CYSEC (Cyprus)
Dubai (DFSA)
FCA (UK)
FINMA (Switzerland)
FMA (New Zealand)
FSCA (South Africa)
ISA (Israel)
JFSA (Japan)
MAS (Singapore)
Financial Instruments
Forex
Spread Bets
CFDs
Shares
Indices
ETFs
Commodities
Precious Metals
Energy
Cryptocurrencies
Major Currency Pairs
GBP/USD
USD/JPY
EUR/USD
USD/CHF
USD/CAD
NZD/USD
AUD/USD
Trading Platforms
Automated Trading
Proprietary Platform
MetaTrader 4 (MT4)
Mobile Trading
Trading Accounts
Standard
Professional
Demo Account
Deposit and Withdrawal
Minimum Deposit 0 on bank transfers and $300 on credit/debit cards or PayPal $100 on credit/debit cards or electronic wallets and $300 on bank transfers
Minimum Withdrawal
Payment Methods
Credit/Debit Card
Bank Transfer
e-Wallets
Spreads/Commissions/Fees
Fixed Spreads
Variable Spreads
Commissions
Deposit Fee Varies
Withdrawal Fee
Overnight/Swap Fees
Inactivity Fees $18 (Monthly) $10 (One off)
Risk Management Features
Guaranteed Stop Loss
Negative Balance Protection
Limit Order
Take Profit
Hedging
Scalping
STP Broker
Maximum Leverage 1:30 (Standard Account) and 1:200 (Professional Account) 1:30 (Standard Account) and 1:300 (Professional Account)
Trading Tools
Research Newsfeeds, trading signals, trading ideas, economic calendar, and AutoChartist Technical analysis charts, Economic Calendar, and Trader’s Guide
Education Live educational courses, tutorial videos, and webinars
Customer Support
Live Chat
Email
Phone
Social Media
FAQ

Pros and Cons: IG Vs Plus500

IG

Pros Cons
      The advanced web platform for trading       High stock CFDs trading fees
      Competitive tight spreads       Limited payment methods
      Several deposit and withdrawal options       No fixed spreads
      Multiple platforms for trading       No micro lots
      No required minimum initial deposit       Slow customer service
      Regulated in multiple jurisdictions
      Wide range of trading instruments  

Plus500

Pros Cons
      Customizable technical analysis charts       Supports only CFDs
      Guaranteed stop loss       Lack of enhanced security measures
      Highly regulated       Limited research materials
      Zero-balance protection       No automated trading
      No commissions fees on CFDs       No educational resource
      User-friendly platform       No MT4
        No hedging/scalping
        No phone support

Tradable Instruments

IG Markets offers an extensive product range of over 17,000 assets in six different asset classes, including forex, CFDs, indices, shares, commodities, and cryptocurrencies. Also, retail traders can benefit from its major currency pairs, 24/7 pricing on these instruments, and extended trading hours for over 70 key US stocks. 

Plus500, on the other hand, supports over 2,000 instruments, including forex, CFDs, shares, indices, commodities, exchange-traded funds, options, and cryptocurrencies. This wide variety enables traders to diversify their investment portfolios.

CFDs are complex risky instruments. Consider whether you understand how CFDs work, or you can afford to take the high risk of losing your money.

Trading Platforms

IG Markets offers a selection of top-notch customizable trading platforms built around the trader’s needs. You can choose from its proprietary platform or web-based ProRealTime or the DMA platform L2 Dealer or MetaTrader 4 (MT4) or mobile trading apps. ProRealTime facilitates automated trading and is equipped with charting tools and technical indicators, while L2 Dealer supports auto trading and features functions like Watchlist Pro, live charts, and news feeds. The industry-standard MT4 is a good option for professional traders.

Compared to IG Markets, Plus500 offers only one trading platform in the form of FxPro. The intuitive trading platform works across all leading devices, including computers and smartphones. Some of its unique features include displaying real-time prices of derivatives, open positions, pending orders, trading history, and the ability to switch between the live account and the demo account. Unfortunately, there is no option for automated trading at Plus500, and the most popular trading platform MT4 is also missing from the scene.

Trading Accounts

IG Markets offers two types of trading accounts based on the instruments traded and the jurisdiction. The Standard account grants access to all risk management tools except guaranteed stop loss. High volume professional traders can open the Professional account and use the guaranteed stop loss.

Plus500 also provides two options to open trading accounts with different leverage ratios – Standard account and Professional account. On the downside, none of them allows algorithmic trading.

Both IG and Plus500 offer free demo accounts that novice traders can take advantage of to familiarise themselves with the basics of online forex trading.

Minimum Initial Deposit

IG Markets members need not pay any minimum initial deposit on making payments through bank transfers. However, those paying via credit/debit cards or PayPal have to deposit a minimum of $300.

Plus500 offers minimum deposit requirements depending on the payment methods chosen. For instance, the minimum deposit required from traders paying through credit/debit cards or e-Wallets is $100, while paying through bank transfers requires a minimum initial deposit of $300.

Payment Methods

IG Markets supports multiple payment methods for making deposits and withdrawals. You can choose to pay via credit/debit cards (Visa and MasterCard) or wire transfer or e-Wallets, such as PayPal, BPay, and China UnionPay. 76% of retail investor accounts lose money when trading spread bets and CFDs with this provider.

Plus500 allows deposits and withdrawals through traditional payment methods, including credit/debit cards (Master Card, Visa, & Maestro), wire transfer, and e-Wallets, such as Skrill and PayPal. 76.4% of retail investor accounts lose money when trading CFDs with this provider.

Spreads, Commissions, and Fees

IG Markets generates revenue by charging competitive low and variable spreads on non-share CFDs and minimum commissions on CFDs, shares, and options. 76% of retail investor accounts lose money (losing your money is not good, many brokers face such issues) when trading spread bets and CFDs with this provider.

Plus500 offers instrument-specific fixed spreads but does not charge commission fees on trading CFDs. 76.4% of retail CFD accounts lose money when trading CFDs with Plus500.

Both IG and Plus500 charge no hidden fee on making deposits and withdrawals. But traders might require paying extra fees for overnight funding, account inactivity, direct market access (DMA), guaranteed stop loss, and currency conversion.

CFDs are risky complex instruments. Consider whether you understand how CFDs work and if you can afford to take the risk (CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage).

Maximum Leverage

IG Vs Plus500, the maximum leverage offered at IG Markets varies with the trading accounts – 1:30 (Standard) and 1:200 (Professional). 76% of retail investor accounts lose money when trading spread bets and CFDs with this provider.

Plus500 provides traders with the maximum leverages of up to 1:30 and 1:300 for Standard and Professional accounts, respectively. 76.4% of retail CFD accounts lose money when trading CFDs with Plus500.

The leverage ratio at Plus500 and IG depends on the asset classes. Currency trading (like eur, usd and more) on margin involves high risk and is not suitable for all investors. As a leveraged product, your capital is at risk. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Consider whether you understand how CFDs work (76% retail investor accounts lose money when trading spread bets and CFDs, remaining retail investor accounts also have high risk of losing money but they take the high risk with money when trading CFDs), or you can afford to take the high risk of losing your money with provider you should consider trustful.

Research and Education

IG Markets boasts comprehensive research and educational resources that aim at helping traders to up their trading skills. The industry-leading research section contains news feeds, trading signals, trade ideas, AutoChartist, and an economic calendar. The educational materials are well-organized and include online trading courses, webinars, infographics, and tutorial videos.

In contrast with IG, Plus500 offers limited research tools, such as technical analysis charts, economic calendar, and Trader’s Guide. The forex broker lacks the education section altogether.

Licensing and Regulation

IG is a low-risk publicly listed broker that is authorized and regulated by the Bermuda Monetary Authority, the UK Financial Conduct Authority (FCA), and the Federal Financial Supervisory Authority of Germany (BaFin).

Plus500 is highly duly regulated by the Cyprus Securities and Exchange Commission (CySEC), the Australian Securities and Investments Commission (ASIC), the UK Financial Conduct Authority (FCA), the Seychelles Financial Services Authority (FSA), the Monetary Authority of Singapore (MAS), and the Israel Securities Authority (ISA).

Security of Funds

Being the FX Global Code of Conduct signatory, IG is committed to providing a secure trading environment. 76% of retail investor accounts lose money when trading spread bets and CFDs with this provider, you should consider a few things before you start trading with eur, usd or any other currency.

Likewise, Plus500 is one of the largest UK forex brokers in terms of market capitalization and regularly discloses financial information. 76.4% of retail CFD accounts lose money when trading CFDs with this provider (this provider you should consider one of the best with risk warning).

Both Plus500 and IG are trustworthy online brokers and apply to strict regulatory standards. Traders at Plus500, IG  and other platforms are protected under the Financial Services Compensation Scheme (FSCS) in case the brokers go bankrupt. The UK Financial Conduct Authority (FCA)-regulated brokers secure trader funds by keeping them in segregated accounts.

Risk Management Tools: IG Vs Plus500

Guaranteed Stop Loss

To reduce the high risk of potential losses when trading CFDs, IG and Plus500 offer the guaranteed stop-loss feature for a small fee. It is useful as the feature guarantees that the order is executed at the limit set by the trader.

Zero-Balance Protection

With this investment protection feature, both Plus500 and IG Academy ensure that investors never lose more than their investments. By activating this feature, traders instruct the broker to stop the trade once the account balance reaches zero due to the volatile market.

Customer Support

IG Academy is backed by excellent 24/7 customer service compared to other brokers that we have reviewed, you can reach through live chat, email, the phone, or social media like Twitter. Also, it offers a bundle of self-service tools, such as FAQs, forums, glossaries, and user guides, to help traders with basic queries.

With its 24/7 reliable customer service compared to other brokers, Plus500 provides relevant solutions to every problem. Unlike IG, the trader can contact customer care representatives via live chat and email support only. The broker hosts Trader’s Guides to assist traders with required trading knowledge.

The Verdict

IG has been trusted by traders all over the world for more than 40 years with a clean regulatory track record. The broker has become a pioneer in the online forex trading brokers industry with its vast instrument offerings and competitive trading conditions. With licenses from international regulatory agencies, IG is considered a reliable and secure platform for trading forex and CFDs. It offers a variety of trading platforms that traders can choose from as per their experience levels. The option of automated trading is best suited for expert traders, as the broker integrates the most popular MT4. Besides, new traders will find it convenient to trade manually using the proprietary or direct market access (DMA) trading platform.

Plus500 is a relatively new yet reputable online broker for CFD trading. This decade-old broker has been remarkable in offering a combination of innovative instruments and transparent trading services. Despite all this, Plus500 lags far behind IG in many aspects. There is just one trading platform to serve traders’ needs and without automated trading support. Insufficient research and educational resources might make it hard for new traders to get the latest updates on the markets or learn new trading techniques. Finally, limited customer support can take longer to respond to any queries. Most notably, Plus500 has a history of fines for reporting inaccurate transactions.

Online brokers like Plus500, IG, and other platforms enable investors to navigate the highly liquid and volatile financial markets. In our comparison, IG fared pretty well than Plus500 due to several reasons. IG is an outstanding platform to explore different trading opportunities and try innovative trading tools. Even so, you can opt for Plus500 if your trading preferences are limited.

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