Introduction to Plus500
Plus500 is an Israeli based CFD broker. As a streamlined broker that has been in operation since 2008 (dealing in both Forex and CFD business).
The firm focuses on trading in a plethora of financial markets, offering low spreads, zero commissions without providing extra services.
Plus500 and its subsidiaries are regulated and authorized by different regulators in the UK, the firm is licensed by the FCA (Financial Conduct Authority) and is listed in the London Stock Exchange’s Main Market.
The CFD and forex broker is considered safe since it’s publicly listed, avails its financials publicly and is adequately regulated. Plus500 offers traders access to a rich product line composed of;
- ETFs and Options
- Forex Stock Indexes
In 2013, Plus500 was the first broker to introduce bitcoin CFD into the market. Because it extends zero commission charges, all the costs are contained in within the spread of the 2,000+ trading instruments offered on its WebTrader platform.
The London Stock Exchange Connection
Plus500 Ltd. trades publicly on the AIM section of the LSE since 2013 and commands a $2.25 billion market capitalization. Clients using this platform spread across 50 nations on the planet.
As a Forex and CFD broker, it’s estimated that 81% of retail investor accounts end up losing funds when dealing CFDs under this broker. It’s, therefore, a high risk platform that works best for risk-takers.
The firm defines scalping as a trading strategy in which a certain number of customer’s positions are opened and closed (by the client) within 120 seconds.
If the company suspects/investigates and finds this to be true, users risk losing their accounts by having them blocked or closed. The platform is ideal for experienced traders that are after excellent user experience on an easy-to-use trading platform.
The company offers traders 2,000 + trading instruments
Traders on this platform can trade in Ethereum, Bitcoin and assorted cryptocurrencies
The firm provides some of the lowest spreads and commissions in the industry
The firm’s WebTrader platform doesn’t pair with other platforms nor other trading tools
The company lacks in-depth educational tools and materials.
Only a bunch of tools are availed to traders for analyzing the over 2,000 + instruments. Neither does it offer auto-trading, not MT4!
Why Use Plus500?
The CFD and Forex broker is registered, licensed and regulated by the following bodies; CySEC, FSCA, FCA, ISA, ASIC, MAS, and FMA, which ensure that it provides accurate financial reports and is public about its affairs.
The firm safeguards clients funds by separating the same from corporate funds, through segregated accounts open in regulated banking institutions.
When at fault, Plus500 is liable for compensating the client’s funds up to $75,000 through the Financial Service Compensation Scheme law.
Should the custodian bank dissolve, clients that loose funds up to $110,000 may also be compensated according to the same law.
Plus500 offers traders negative Balance Protection making sure that they don’t lose more money than what they have deposited.
The firm allows guaranteed stop losses options for specific instruments in some market conditions; however, they’re subjected to a broader spread.
Plus500 has invested on its WebTrader platform. It offers traders the option to use any web-based browsers to access its streamlines trading platform. The interface allows traders to create watchlists, place and monitor trades, and analyze charts.
Users expand the technical analysis charts to fully utilize the 100+ technical indicators on separate timeframes starting with tick charts to weekly charts.
Using the 2,000+ instruments at their disposal, traders can customize technical analysis charts, place their trades all in one window!
Plus500 mobile apps have been designed to incorporate all features traders access via WebTrader. They have access to the trading instruments, charting, and account details on iOS and Android platforms.
Moreover, the apps come with additional security, including fingerprint unlock, and other steps like the 2-step authentication factor. They can deposit and withdraw funds within the application.
Plus500, unfortunately, fails to offer advanced research, tools, analysis, and commentary. They provide few research articles/videos and have not yet incorporated news feeds on their website.
But they compensate with their elaborate earnings calendar which many traders attest that its an excellent feature.
They also provide users with customizable charts in which they carry out technical analysis on any trading instruments they wish to use in their trading.
The website provides traders with a “Trader’s Sentiment” indicator, which shows them the percentage of Plus500 are investing in an instrument. The indicator shows the EUR/USD currency pair, and what percentage mark its selling at.
Unlike other trading platforms, Plus500 accords traders a legal requirement, KID “Key Information Document.” The KID provides the necessary info on every instrument available and the risks it holds should users choose to trade with it.
KID provides traders with summary info on cryptocurrencies, commodities, indexes, equities, ETFs, forex, and options.
In a nutshell, Plus500 expects to deal with professional traders that know and have the experience in trading and can source their material elsewhere.
The only particular function Plus500 offers a streamlines WebTrader platform that is backed by mobile applications for various smart devices operating on iOS and Android platforms.
Traders, use either or both the WebTrader and Apps to place and monitor trades. Plus500 is a trading platform for professional traders looking for a mechanism they can use to execute trades without the hobnob of advanced functionality.
Plus500 allows Guaranteed stops on various markets; however, they command increased spreads, and they can’t be incorporated into previously opened trades.
Plus500 Investment Products
Fortunately, Plus500 charges zero commissions on all trades. It accrues its costs in the spread for every one of the 2,000+ trading instruments supported by the WebTrader platform.
Traders trading large volumes are not offered any discount, and the spread remains the same, whether its one lot or multiple lots. Plus500 doesn’t front charges for regular withdrawals, nor does it charge users who close down accounts.
Users that leave their accounts idle for three months get charged an inactivity fee. Newbies on the platform can open new accounts and deposit as little as $100.
Traders that do well often qualify for the “professional account” that grants them higher maximum leverage levels; however, the costs remain standard.
Professional account holders are allowed to increase maximum leverage by the tenfold. Case in point; 1:50 can grow to 1:500. The firm grants traders access to options trading in lots of markets.
The options trading slots are similar to open call and put options that get traded on exchanges. However, they’re not standardized; this means, traders can customize them for strategic objectives and risk tolerance.
Commission and Fees
Plus500 offers the lowest spreads in the forex and CFDs, brokerage platform. The downside being investors access a platform with limited research and analysis tools, and one that offers inflexible trading. The most prominent fees on Plus500 include;
Overnight Funding: The Plus500 overnight fee is either added or subtracted from users’ accounts when positions remain open at specific periods.
Inactivity Fee: For failure of using their accounts for 90 days, users are charged $10 for each inactive account.
The charges apply on real money accounts and when and if traders have enough funds in these accounts. To avoid paying the fee, traders should log-in periodically every 20 or so days!
The customer support services offered are also limited. The most prominent functions are email support and online chat activities that run 24/7.
They don’t avail a phone number and the only way to make inquiries, ask questions, or seek further information is by emailing or using the live chat option.
Fortunately; they make up for their limited support by offering prompt service once requested. After sending an email or using the chat support, traders are responded to within minutes!
The chatbot links to the FAQs page when it detects that the questions relate to the FAQs if not, they provide simple answers. Users that require personal assistance can reach support with ease.
To reiterate; the FAQs section operates as a search engine and has a vast array of topics that relate to the inquiries entered.
Plus500 is a platform that works best for the cost-conscious user. The low spreads are quite competitive and need a seasoned trader. The platform also doesn’t offer MT4, nor auto-trading features.
Users choosing this platform should know another way to consult experts as this too isn’t offered. For seasoned, sharp, and competent fortune traders preferring to enter and exit trades manually need to give Plus500 a try, the lower expenses could appeal to them.
For traders trading within the United Kingdom, or using an account set up in the UK can go to bed smiling knowing that their accounts have additional regulation security. The UK’s Financial Conduct Authority will ensure their funds remain safe.
Moreover; Plus500 makes it possible for traders to access vanilla call and place options in numerous markets. The options function like exchange-traded versions other than they remain un-standardized.
We can end by stating that Plus500 options are customizable and can be adjusted to meet a trader’s strategic goals and risk tolerance!
David is a financial expert who graduated from the University of Fordham (Master in Finance) in 2001. He has 10+ years of experience in private equity and wealth management. With strong expertise in senior-level financial planning, personal financial analysis, and mortgages, David knows his way around personal finance. Before working at CCR he used to be a financial analyst at McKinsey.
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