Plus500 Review 2020

Plus500 is an industry pioneer providing CFDs (Contracts for Difference) and trading facilities for forex, cryptocurrency, ETFs, options, commodities, and indices. Plus500CY Ltd offers a Plus500 trading platform that is authorized and regulated by the Cyprus Securities and Exchange Commission (250/14). The company is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) to offer CFDs in various products. Subsidiaries of Plus500 are approved and directed by various regulators, including top-level controllers like the Financial Conduct Authority (FCA) from the UK.

Background

  • Plus500 has 10 years track record and was established in 2008. Additionally, Plus500 is listed on the Main Market of the London Stock Exchange, which is a major advantage with regards to security.
  • Beginning from 9th March 2018, the largest owners of the organization were big investment banks and asset management organizations, such as Morgan Stanley and JPMorgan.
  • Brighttech Investments is considered as the biggest owner, having a stake of 9.99 percent. Additionally, one of the founders, Alon Gonen, was also amongst the largest owners through Sparta24 Limited.

Features

  • The organization offers access to extensive product lines.
  • Besides, Plus500 does not charge commissions on any of its trades. All expenses are confined within the spread for over 2,000 trading instruments which are offered on Plus500’s WebTrader platform.
  • Plus500 has a wide range of tradable instruments, which includes 50 forex sets, together with a minimum deposit to open a live account. Plus500 allows new market participants with videos to learn more about online trading.
  • Plus500 is part of the FTSE 250 Index of leading mid-cap listed companies who have licenses in important financial hubs including, the United Kingdom, New Zealand, Australia, Singapore, and Israel.
  • For trading in Plus500 in its product offering, users can select from its web-based, and mobile trading platforms.

Platforms

  • Plus500 deploys WebTrader platform and a proprietary trading platform.
  • The Plus500 trading platform is accessible from anywhere. One of the reasons why this platform is unique in that it stays consistent in all versions. Users can switch between the platforms with ease without having to re-assemble.
  • Plus500’s offers a free demo account that can be utilized for an unlimited measure of time. The demo account is particularly important for new or inexperienced users who are looking to venture into trading or try out their trading strategies before investing.

Plus500 Website

Plus500 website is very organized and user-friendly which makes it an enjoyable trading experience for new and experienced users. Moreover, the site is accessible in 32 distinct languages; and the traders are systematically redirected to their preferred webpage to their preferred language, regardless of whether they had been browsing earlier in some other language. Users can switch back to another language whenever the need arises.

No Automated Trading

Special features are not provided by Plus500. Further, it does not allow for automated trading through expert advisors or any other trading algorithms for that matter. Plus500 does not give back-testing functionality or enable its customers to manage external funds through MAM or PAMM trading platforms. The organization essentially furnishes a streamlined WebTrader platform alongside similar mobile trading applications for iPad, iPhone, and Android gadgets where customers can place a trade and monitor them.

Plus500 WebTrader

  • Plus500 platform allows traders to use their demo account for an unlimited period. This feature is not usual for CFD suppliers who ordinarily limit their demo accounts for 2–3 months. The live and demo account have real-time streaming quotes and they offer up to 1:30 leverage.
  • Further, Plus500 Webtrader permits single click activities for opening and closing trades, setting entry and stop limits, setting the limit and stop-loss, placing direct orders, and charting, where no downloading is needed.

WebTrader Experience

  • Plus500’s WebTrader platform is a streamlined trading platform that is steady and simple to access from any browser. Suffice to say, WebTrader has a simple and functional interface that gives the trader to make watch lists, analyze the technical charts, and supervise trades.
  • Moreover, the technical charts can be extended to full screen and offer over 100 specialized indicators that the trader can apply to various time frames.
  • However, compared to other brokers, Plus500 does not offer the MetaTrader4 platform option which would give the users greater functionality and adaptability.

Mobile Experience

  • Plus500 mobile applications comprise of all the functionality. Traders can access plus500’s conditional orders, account details, 2,000+ trading instruments, charting all including 100 plus technical indicators from the iPhone, Android, or iPad mobile applications.
  • Plus500 security measures comprise fingerprint unlock, in addition to other things, to open the application. Moreover, the charts can be extended to full screen to give greater clarity during the technical analysis.
  • Traders can deposit and withdraw money from the mobile application. Besides, few traders will be worried about the absence of improved safety measures, particularly since these applications give an immediate line of access to funds account.

Trading Instruments

  • Plus500 offer trading instruments with their CFD services, which include cryptocurrencies, indices, shares, options, commodities, and ETFs.
  • We can find a complete list of trading instruments on its site through the trading Instruments button in the main navigation bar. This list comprises of 27 indices, 65 forex sets, 10 cryptocurrency pairs, 20 commodities, and 81 ETFs.
  • Moreover, options are classified into popular options, in addition to 23 different classes, like Alphabet, Germany 30, and the USA 500. Further, shares are segmented into popular shares from 21 different nations.

Crypto Trading

  • Traders having interest in cryptocurrency will be excited to know that supported cryptocurrency sets on Plus500 are, BTC/USD, ETH/BTC, LTC/USD, BCH/USD, NEO/USD, ETH/USD, IOT/USD, XRP/USD, XMR/USD, and EOS/USD. Moreover, there is support for sets that include Ethereum, Bitcoin Cash, Bitcoin, NEO, Litecoin, IOTA, Monero, Ripple, and EOS.
  • Plus500, like most CFD suppliers, offers crypto trading restricted leverage. Over and above, the leverage on the cryptocurrency trading is constrained to shield brokers from the instability that can cause extreme losses.
  • Few noteworthy benefits of trading Bitcoin or other cryptocurrencies with Plus500 are their Traders Sentiment instrument which is included predominantly on every digital currency page. This instrument shows what percentage of traders are purchasing and selling every cryptocurrency so that the user can consider patterns before buying.

Plus500 Fees

Few of the services from Plus500 incur no fees or commissions. There are zero charges from Plus500 related to real-time forex quotes, deposits, withdrawals, live share CFD prices, rolling positions, opening or closing trades, or dynamic graphs and charts. But users might have to pay some fees for exceeding the maximum number of monthly withdrawals

The user might have to pay fees when transferring money to and from your Plus500 account2. These charges are levied on rare instances by users’ payment issuer or bank, and not by Plus500.

Plus500 makes its profits through the Buy/Sell (Bid/Ask) spread. So, when a trader opens a position, they actually “pay” the spread. This spread is not an additional charge or fee to be paid by the traders; it is incorporated into the Plus500 quoted rates itself.

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, however, charges additional fees on 3 main occasions.

  • Overnight Funding
  • Currency Conversion Fee
  • Guaranteed Stop Order
  • Inactivity fee

Plus500 – is it Suitable for Beginners?

  • The CFD trading provided by the platform is much more advanced than traditional trading; hence the platform is not suited for beginners. Moreover, the leveraged trades can bring about more losses that have calculated initially.
  • Even though CFDs seem to be an incredible financial instrument, they are highly risky and are most appropriate for experienced traders.
  • Succinctly, beginners should keep away from CFDs as they include a lot of research, and expertise identified with limiting leverage and selecting the right trade positions.

Plus500 Demo Accounts

Plus500 offers a demo account, which is completely risk-free, as there is no chance of losing money. Demo accounts are free, and the user can choose the kind of account while registering. The difference between the demo and the real account is that the trader in the demo account cannot use real money. Everything else, from the trade conditions to the platform setup remains the same.

Plus500 Account Types

Plus500 suggests its customers open a single trading account and the organization maintains the right to close other opened accounts. Nonetheless, it assesses each case independently. Even though Plus500 permits to add an account, customers will not be able to move assets between the accounts; the accounts would function separately.

Non-trading Fees

Plus500’s non-trading charges and withdrawal charges are normal. Traders can proceed with five free withdrawals each month. Besides, bank transfer withdrawals are consistently 6 dollars. Exceptionally, inactivity charges are very high; following 3 months there is a 10 dollars quarterly charge.

Security

Plus500 handles a lot of sensitive information, like personal identification documents, bank and credit card details. All information is submitted on the organization’s website or platform and is encrypted during the process. There is a chance that the client data being transmitted paves the way to be misused or intercepted by hackers.

Research Tools

  • Plus500 does not have more information, yet it offers very little information with regards to analysis, research, commentary, and tools. The organization gives little in-house research videos or articles and there are no news feeds on the website. Moreover, they do offer an Economic Calendar where most of the other websites offer on their site.
  • Plus500 provides customizable charts, where it helps traders to conduct technical analysis on any of the instruments while considering for trading.
  • Also, it provides the Traders “Sentiment” indicator that shows traders what level of Plus500 customers are purchasing an instrument, similar to the EUR/USD currency set, and at what rate they are selling it.

Education

Several brokers provide courses, digital books, videos, quizzes, and more support to help their clients learn about the sectors in which they are investing. Nonetheless, Plus500 provides none of these services. This broker provides one lawfully required “Key Information Document” (KID) which outlines the fundamentals of each accessible instrument and the risks related to trading with it. The KID has summary data on equities, options, indexes, forex, ETFs, cryptocurrencies and commodities.

Risk Management Offerings

  • Plus500 offers various risk management tools for its traders. Equity and Total position value can be seen from the Account Snapshot page which can be accessed from the main trading window.
  • Moreover, traders can also set ensured ‘Close at Profit’ [Limit] or ‘Close at Loss’ [Stop loss] value levels for exclusive instruments which can restrict the trader’s risk. This is an important feature we generally search for and one not offered by most of the CFD suppliers.

Additional Features

  • The Plus500 site can be viewed in 32 different languages and users might be consequently redirected to the website in the language they prefer. This language switch is intended to make the traders more comfortable and ensure a good trading experience.
  • Plus500 is best for the cost-conscious user. Moreover, this broker has extremely focused spreads, which minimizes expenses.
  • Additional features like MT4, auto-trading, and expert advisors are not accessible. More experienced traders who want to enter and leave their trades physically may find the functionality tradeoff worth the lower costs.

Alerts for Traders

  • To assist traders to minimize their losses and make apt trading decisions, Plus500 offers the support to set up a range of alerts. Moreover, alerts are free and easy to set up and can be utilized on all devices.
  • Alerts can be set up through the main trading screen by clicking on the alert button. The traders can likewise view, edit or remove the alerts through the alerts tab that is given on the application menu.
  • The trader needs to specify the details of the alert, including values and will consequently receive a notice in real-time when those conditions are met. The alerts can also be sent by email, push notifications or through SMS messages.

Economic Calendar

  • As every broker offers an economic calendar on their trading website, so does Plus500. The information on the economic calendar originates from Dow Jones.
  • For every event, we can view the time, nation/currency affected related instruments, title of the event, and rates for actual forecasts. Moreover, at the top of the calendar, the trader can change the view to a corporate events calendar.

Margin Trading

Plus500 trades are proceeded with margins, so traders must comprehend the margin estimations. Traders should keep in mind the margin prerequisites, which will differ for each financial instrument. Besides, Plus500 offers simple guidelines for these margin calculations in the FAQ section.

Few Thoughts of Concern

  • Brokers on Plus500 are not given various choices with regards to executing their trades. They can place and screen their trades physically on Plus500’s web-based or mobile trading platform. This platform is focused on those individuals who simply need a structure for executing trades.
  • Plus500 is most appropriate for traders who mean to carry out most of their research and analysis somewhere else. Guaranteed stops are accessible on certain business sectors; moreover, they come with and shall not be added to earlier opened trades.
  • Customer instruction materials are generally missing from the Plus500 platform and the trading platform which are accessible is light when compared to Plus500’s rivals.
  • CFDs are complicated instruments and accompany a high danger of losing money quickly because of leverage. Before proceeding, one should think about whether they are ready to take the risk of losing funds or not.
  • The Plus500 trading platform is simple to use. However, they lack the latest trading tools and features and offer just the basics. Also, copy trading is not provided.

Limitations

  • Plus500 has a constrained item portfolio– gives only CFDs, which have high financing rates. Some standard research devices similar to recommendations, news feeds, fundamental information, are absent on the Plus 500 platform.
  • The broker charges financing rates if the trader holds a leveraged position for over one day.
  • Financing rates of Plus500 are published only on the trading platform, and the estimation technique is not straightforward.
  • Plus500 can change the rates without caution. This can impact the trading fees without question if the trader tends to hold positions for a longer time.

Wrap Up

Plus500 can be a perfect decision for less-experienced users as the platform is clear to make sense and intended to make the trading experience smooth and hasslefree. Plus500 has a straightforward, simple-to-utilize mobile trading platform that is particularly well structured. Moreover, the account opening procedure is completely advanced and digital. Spreads are combative and Plus500 has various innovative solutions like cryptocurrency CFDs. Concerning pricing, Plus500 offers few spreads that were priced competitively, while spreads on different sets are not. Lastly, Plus500 is not an appropriate choice for high-volume or active traders.

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

8.9

PAYMENT OPTIONS

8.9/10

SUPPORT

7.8/10

USER EXPERIENCE

9.6/10

REPUTATION

8.5/10

SECURITY

9.5/10

Pros

  • Plus500 does not charge commissions on any of its trades
  • Plus500 has a wide range of tradable instruments.
  • Plus500 is part of the FTSE 250 Index.
  • For trading in Plus500 in its product offering, users can select from its web-based, and mobile trading platforms.

Cons

  • Plus500 has a constrained item portfolio– gives only CFDs, which have high financing rates.
  • The broker charges financing rates if the trader holds a leveraged position for over one day.
  • Financing rates of Plus500 are published only on the trading platform.
  • Plus500 can change the rates without caution.