Plus500 Review

Plus500 is a trademark owned by Plus500 Ltd, a company whose primary business is the provision of online trading in contracts for difference (also known as CFDs). These trades are executed on Plus500’s proprietary trading platform, which can be accessed via the web and other electronic channels. Plus500 is a registered trademark.

The Israel-based company began operations in 2008 and currently has multiple subsidiaries across Europe and the Asia-Pacific region. These companies are registered with the applicable regulatory agencies and the company itself is registered with the necessary regulatory authorities. Plus500, just like other CFD brokers, does not work with traders from the United States. For those interested in trading futures, the company does provide a new platform known as TradeSniper. Traders from the United States can utilize this platform.

Disclaimer: Contracts for difference (CFDs) are complicated financial instruments that have a high risk of incurring losses in a short period of time owing to the use of leverage. When it comes to trading CFDs with this supplier, 73% of retail investor accounts end up losing money. You need to ask yourself if you have the financial means to take the significant chance of losing your money. 1

Plus500 Ltd. (PLUS.L) is a publicly traded business that is a component of the FTSE 250 index and has been listed on the London Stock Exchange (LSE). The Financial Conduct Authority (FCA #509909) has granted authorization to and regulates Plus500UK Ltd., a company that operates out of the United Kingdom and has its offices located in the City of London. The parent firm, Plus500 Ltd., has its headquarters in Haifa, which is located in Israel.

The broker provides customers in more than 50 countries with access to a comprehensive product line of CFDs on many different assets, such as cryptocurrencies, FX, stock indexes, individual shares, commodities, ETFs, and options (availability subject to regulation). Additionally, Plus500 was the first broker in 2013 to offer a contract for difference based on Bitcoin. In addition, the broker makes it possible to trade options and CFDs on a wide variety of marketplaces. You are able to bet on the future price of the underlying reference instrument using these, but unlike ordinary options, they are cash settled. This is one way in which they differ from regular options.

KEY TAKEAWAYS

• Customers who are looking for access to a wide variety of financial markets at cheap trading prices and on a platform that is easy to use and functional might consider Plus500 as an option for placing their trades.

• Guaranteed stop loss orders are available through Plus500.

The Financial Conduct Authority (FCA) in the United Kingdom oversees Plus500’s operations.

Who Should Use Plus500 and Why

Plus500 is designed for the individual who is looking for access to a diverse selection of financial markets at cheap trading fees and on a platform that is easy to use and functional in order to place their trades. Plus500’s trading platform provides clients with access to more than 2,800 CFDs, together with attractive spreads and no commission fees. This could pique the interest of the seasoned trader who prefers to conduct transactions manually and values the cheaper costs more than the availability of additional functionality offered by some of the company’s rivals.

Pros

• Access to more than 2,800 contracts for difference

• A platform that is both user-friendly and functional.

• Subject to the jurisdiction of the FCA (U.K.)

• Stop-loss orders with a guaranteed profit margin

• Protection against a negative balance

Cons

• Unsatisfactory levels of customer support

• Does not accept U.S. clients

• The trading platform is not compatible with any additional trading tools or platforms.

The Positives Exposed

• Plus500 provides clients located in more than 50 countries with access to a complete product range of CDFs, which includes CDFs on currency, stock indexes, individual shares, commodities, ETFs, options, and cryptocurrencies (availability subject to regulation).

• The user interface of their trading platform is straightforward and intuitive, allowing users to easily construct watchlists, do technical analysis on charts, as well as place and monitor transactions.

• The Financial Conduct Authority (FCA), which is one of the most important regulatory agencies in the United Kingdom and is highly regarded on a global scale for its stringent approach to ensuring that market practices are fair for both individuals and businesses, oversees Plus500 in its capacity as a regulated organization. To put it another way, having a business that is regulated by a respectable agency that is supported by the government does a great deal to create the credibility of that business.

• Guaranteed stop loss orders, which safeguard the trader from market gap risk, are available on some instruments depending on the conditions of the market; nevertheless, they are subject to a wider spread than standard stop loss orders.

• Plus500 offers negative balance protection, which is required by ESMA rules that entered into effect in 2018. This protection ensures that customers cannot sustain a loss that is greater than the amount of money they have contributed to their account.

Defining the Drawbacks

• The customer service alternatives provided by Plus500 are restricted to WhatsApp chat and email assistance. The absence of a telephone number, even for sales enquiries, is the most conspicuous absence of all.

• Due to the fact that CFD trading is generally not allowed in the United States, Plus500 does not accept customers from such countries. For those interested in trading futures, the company does provide a new platform known as TradeSniper. Traders from the United States can utilize this platform.

• Experienced traders who depend on the incorporation of third-party analytical and automation tools in their trading process will be dissatisfied because none of these products can be integrated directly with WebTrader. In addition to that, the functionality of back-testing is not available either.

Costs

Plus500’s primary source of revenue comes from customer trades that “cross” the bid/ask spread, which are considered to be highly competitive within the market. This practice is standard in the brokerage sector. The organization does not levy commissions on any of its customers’ financial dealings. The spread remains constant regardless of the size of the trade, but it is still payable on each unit.

Additionally, the broker generates revenues by charging premiums, which are basically a financing charge, on positions held overnight by customers. These premiums may be subject to currency conversion charges if the customers trade in a currency that is different than the account’s base currency. In addition, there are costs associated with “guaranteed stop loss orders” (GSLO), and “inactivity fees” begin to accrue on an account once the user has not logged in for three consecutive months.

Traders that meet the requirements can open a “professional” account, which has a larger leverage but maintains the same trading expenses. When it comes to certain instruments, investors who have a professional account have the ability to extend their maximum leverage to as much as 1:300.

The fact that Plus500 does not charge any ancillary fees to its customers’ accounts is one of the company’s selling features. It does not cost anything to close an account or make a withdrawal under typical circumstances. The underlying instrument determines the minimum amount of capital that must be invested in order to trade. The following methods can be used to fund your account: debit or credit cards issued by Visa or MasterCard; e-wallets (such as PayPal or Skrill); and wire transfers from your bank.

Trade Experience

Plus500’s unique trading platform, WebTrader, provides users with a streamlined trading experience that is dependable and simple to use from a wide variety of devices and operating systems (Windows PCs, web browsers, smartphones, and tablets).

You are able to build watchlists, perform analysis on charts, as well as place and monitor transactions with the help of WebTrader’s user-friendly and uncomplicated interface. The charts provided by the technical analysis offer a wide variety of technical indicators that may be used to a wide variety of time periods, ranging from tick charts to weekly charts. Plus500, on the other hand, in contrast to a good number of its rivals, does not provide clients with access to the immensely popular MetaTrader 4 (MT4) platform. This is despite the fact that MT4 is an alternative platform that would give customers more functionalities and opportunities for customization.

The fact that the Plus500 WebTrader and other versions of their platform are simple to use and have layouts that experienced traders will recognize is the aspect of the platform that stands out as being the most enticing. Within the same window, clients can select from more than 2,000 instruments, examine their choice on a technical analysis chart that can be customized to their preferences, and place their trade in a matter of clicks all without leaving the window. Regrettably, Plus500 operates within a closed environment. Because none of these tools can be incorporated directly, advanced traders who rely on the incorporation of third-party analytical and automation tools in their trading process will be disappointed.

Plus500 WebTrader.

Plus500 does not provide any of the specialized features that are generally offered by other online CFD brokers. These features include: It does not provide back-testing functionality, it does not permit automated trading through the use of expert advisors or other trading algorithms, and it does not permit clients to manage third-party funds through the use of PAMM or MAM trading platforms. Those are the limitations placed on this trading platform. Clients can place and monitor trades using the company’s simplified WebTrader platform as well as equivalent mobile trading apps for iPhone, iPad, and Android devices. These apps are available for download from the company’s website.

Guaranteed stops are an option in certain markets; however, they come with a wider spread and cannot be added to trades that have already been initiated.

Plus500 has three fundamental order types, each of which can have a “take profit” and/or “stop loss” order attached to it at the trader’s discretion. In addition, prior to the actual execution of the order, the trader has the choice of selecting either a guaranteed stop or a trailing stop when filling out the order ticket.

• Market is the most basic type of order, in which a trader indicates that they want their trade request to be carried out at the current market pricing.

• A limit order is a pending order in which the entry price is set at a specified point that is either lower than or higher than the current market rate, depending on whether the order is to buy or sell. The trader also has the option of determining when this order will be cancelled out of their account.

• A stop order is a pending order in which the entry is made at a predefined point that is either higher than or lower than the rate that is currently prevalent in the market, depending on whether the order is to buy or sell. The trader also has the option of determining when this order will be cancelled out of their account.

Plus500 Pending Order w/GSLO.

All of the features that are available in the desktop version of the Plus500 application are also included in the mobile versions. Traders using Android, iOS, or Windows 10 can access the whole product catalog, account details, conditional orders, and charting (complete with technical indicators) offered by Plus500.

During the analysis process, the dynamic charts can be enlarged to fill the entire screen in order to provide a higher level of clarity. Customers also have the option to make deposits and withdrawals directly from the mobile app. However, some traders may be concerned about the absence of improved security safeguards, particularly given the fact that mobile applications enable direct access to funded accounts. In addition, customers are unable to use the MT4 mobile application, which boasts a larger range of capabilities and has an interface that is likely to be more comfortable for seasoned traders.

In addition, Plus500 provides customers with a Multiple Charts View that enables them to view up to nine distinct charts at the same time.

Variety of Services and Products

Access to more than 2,000 CFDs across a diverse range of asset classes is made available through Plus500. These asset classes include:

• Indices Broken Down by Country and Industry

• Forex

• Commodities

• Privately held company stock

• ETFs

• Options

• Cryptocurrencies (availability subject to regulation)

Options known as calls and puts Plus500’s Contracts for Difference (CFDs) function in a manner that is analogous to that of exchange-traded standard options; however, the primary distinction is that CFDs are cash settled. You are not allowed to carry out the trade on the underlying asset since you do not have the permission to do so.

Assistance to Customers

The customer care alternatives provided by Plus500 are restricted to email and WhatsApp chat, both of which are accessible around the clock. Even for questions about purchases, there is no telephone number listed on the website, which is the most blatant omission. Both prospective customers and existing customers are required to submit questions either via a chat messaging system or an email ticketing system that is open around the clock. Despite the limited number of customer care alternatives, Crypto Review was able to respond to each of the chats and emails that were sent within a few minutes, which is a quite rapid response time. There is no personal assistance that can be provided.

We put the email service through its paces. Their response to our request for information about the average spread on EUR/USD and USD/JPY was a little unusual in the sense that they were not ready to share this information. Plus500 claims that its money comes from the spread, which would imply that this data would be collected and should be shared to prospective customers in the same way that its competitors do. Plus500 also states that its revenue comes from the spread. The following is what the email response read:

“We regret to inform you that we are unable to supply the information that you have requested. In any event, these two foreign exchange pairs are provided with a dynamic spread, which follows the market spread and is put on top of it. This spread serves as the primary form of remuneration for our services and follows the spread that is currently being given.”

Education

Plus500 gives you access to a few different materials that will assist you in getting started with trading CFDs on the platform. The company also provides a Trading Academy, which makes trading easier for novice as well as experienced investors by making available a variety of educational items such as eBooks, video trader’s guides, and frequently asked questions (FAQs). In addition to that, they provide resources for risk management as well as market news. The broker does offer the obligatory “Key Information Document” (KID), in which the fundamentals of each offered instrument and the dangers connected with trading them are outlined. This document is required by law. The KID contains a summary of information on equities, indexes, options, currency, indices, and commodities. The availability of cryptocurrencies is contingent upon applicable regulations. The educational resources made available by Plus500 are about par for the course; nonetheless, considering the potentially high-risk nature of CFD trading, it is strongly recommended that users look for additional resources elsewhere.

Portfolio Analysis

There is no built-in tool that allows for in-depth analysis of trading activity; nevertheless, there is access to fundamental, real-time information about your account, such as balances, transaction activity, and breakdowns of profits and losses. The Plus500 trading platform does not include a trading log or tax accounting features for its users.

Investigate the Facilities

Plus500 does not provide much in the way of research, analysis, tools, or opinion on its website. There aren’t many in-house research publications or videos available from this company. However, the broker does give economic and earnings calendars, which are helpful tools for investors. A news and market insights section is also included here for your convenience.

Plus500 also offers traders the ability to do technical analysis on any of the instruments that are up for consideration by providing traders with charts that are fully customizable. In addition to that, it offers a “Traders’ Sentiment” indicator that tells traders what percentage of Plus500 clients are buying and selling an instrument, as well as a “Live Statistics” indicator that shows the performance of the instrument for 5-minute, 60-minute, and 1-day time frames. Both of these indicators can be found on the platform.

Security

This firm takes the role of principal and hedges its exposure with that of its parent company in order to remove market risk and guarantee that it will not be subject to significant losses. Plus500 is registered with the various regulatory agencies across Europe and the Asia-Pacific region, despite the fact that it does not offer supplementary deposit insurance:

The Financial Conduct Authority has granted Plus500UK Ltd. authorization and regulation under their supervision (FCA #509909). Plus500UK Ltd., 8 Angel Court, Copthall Avenue, London EC2R 7HJ is the address of the company’s office.

• The Cyprus Securities and Exchange Commission has issued Plus500CY Ltd. with authorization and regulates the company’s activities (License No. 250/14)

• Plus500AU Pty Ltd is licensed with the Australian Securities and Investments Commission (ASIC) under number 417727, the Financial Markets Authority (FMA) of New Zealand under number 486026, and the Financial Sector Conduct Authority (FSCA) of South Africa under number 47546.

• The Seychelles Financial Services Authority has granted Plus500SEY Ltd authorization and regulates the company’s activities (License No. SD039)

• Plus500SG Pte Ltd (UEN 201422211Z), which engages in the trading of various financial instruments, is in possession of a capital markets services license issued by the Monetary Authority of Singapore (License No. CMS100648-1)

Plus500 is required, in accordance with the client money rules established by the U.K. Financial Conduct Authority (FCA), to take measures to ensure that client funds are not commingled with corporate funds. This protects client money and assets in the event that the company goes bankrupt by keeping client funds in separate accounts at banks that are subject to regulatory oversight.

3 In the event that Plus500 goes bankrupt, the Financial Services Compensation Scheme will reimburse customers for any shortfall in funds up to the limit of £85,000. (FSCS). 4

Plus500 also offers negative balance protection, which is required by ESMA rules that entered into effect in 2018. This protection ensures that customers cannot incur losses that are greater than the amount of money they have contributed to their accounts.

2 Guaranteed stop loss orders can be placed on certain assets based on the current market conditions; however, these orders are subject to a greater spread than other stop loss orders.

Both the web-based and mobile applications have a timer that will automatically log the user out if they have not been used for a certain amount of time.

Verdict

Plus500 is unmistakably geared toward those individuals who are seeking an interface for carrying out transactions but do not require the presence of advanced capabilities. The spreads offered by the broker are among the lowest in the industry, which helps to keep expenses down, and the firm’s own trading interface, WebTrader, is user-friendly and intuitive. Customers of Plus500 in the United Kingdom get the added peace of mind that comes with being regulated by the Financial Conduct Authority.

This broker is not appropriate for technically focused traders because it does not provide MT4 as an alternative platform, and it does not offer auto-trading. In addition, due to the complexity and high risk associated with trading CFDs, Plus500 is not the most user-friendly trading platform for newcomers. On the other hand, experienced traders who prefer to enter and exit their deals manually may find that the reduced functionality is more than compensated for by the reduced costs.

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Mobile trading apps

The Plus500 trading app closely resembles the WebTrader browser platform in terms of its appearance and feel as well as its functionality. This provides a transition that is satisfyingly smooth between the two platforms.

Having said that, the Plus500 trading software, much like its WebTrader equivalent, is lacking the sophisticated tools and comprehensive functionality necessary to compete with the giants of the market. In the case of Plus500, for instance, the web charts do not synchronize with the mobile app, which is a feature that can be found in trading apps offered by Saxo Bank and TD Ameritrade (U.S. residents only).

Plus500 has made substantial improvements to its charting, which now includes over 20 drawing tools and 109 indicators. Trading tools Plus500’s trading tools include: However, there is still a lot of potential for development, and one thing I’d like to see is an increase in the number of features, such as news, research, and advanced trading tools, which aren’t available in the Plus500 mobile app at the moment.

Additional trading marketplaces

WebTrader, the web trading platform offered by Plus500, is an ideal option for casual investors due to the fact that it is simple to use and focuses on giving only the most important features. Plus500 has, over the course of its existence, made consistent, incremental changes to its platform. As a result of the accumulation of these improvements, Plus500 has inched closer and closer to being able to compete with the market leaders in this category.

Plus500’s web trading platform is continually being improved, and it now includes pre-defined watchlists, the ability to add alerts on client sentiment data, an economic calendar that displays related news powered by Dow Jones, and instrument information from Yahoo Finance that appears when viewing a given symbol. In addition, Plus500’s web trading platform has an economic calendar that displays related news powered by Yahoo Finance.

Although support for the desktop version of the application has been discontinued, the web-based version of the application satisfies the criteria for a progressive web app and can be downloaded and installed as a Chrome app.

Charting is provided on the Plus500 web platform, which includes over 20 drawing tools, 110 indicators, and a total of 13 distinct chart kinds. Even if indicators are not routinely preserved within the software, you can get around this problem by saving your chart templates instead. It is also important to note that the settings you choose for your charts will not sync with the Plus500 mobile app, which means that they will not be preserved across devices. In all, I was rather impressed, and I found the Plus500 charts to be an experience that was both smooth and responsive.

Ease of use: Plus500’s browser-based WebTrader is an excellent beginning point for less experienced traders before progressing to a more complicated trading platform. WebTrader has a streamlined appearance and places an emphasis on being easy to use. Trailing stops and guaranteed stop-loss orders (GSLO) are two of the few complex features that are included with Plus500’s main trading platform. Both of these techniques might be helpful for casual traders looking to minimize their risk.

Plus500 does not offer algorithmic trading, social copy trading, or the MetaTrader suite of platforms; however, it does have its own unique trading platform. In addition, Plus500 does not accept copy trading.

Research on the market

The investment research offered by Plus500 leaves a lot to be desired, particularly when compared to the analysis offered by industry heavyweights like CMC Markets, Saxo Bank, and IG. Plus500 has started adding fresh content to this area by publishing daily articles that feature market analysis and commentary. However, the company does not yet provide forex news headlines or weekly webinars.

An overview of the research: The Plus500 web trading platform includes client sentiment data as well as an economic calendar that is powered by Dow Jones and includes connections to Yahoo Finance for each trade symbol. These two elements make up the research section. There are no news headlines, and neither a fundamental nor a technical analysis can be found.

Plus500 publishes a new article every day, Sunday through Thursday, as part of its News and Market Insights category. This category highlights high-quality reporting and includes market news and analysis. Having said that, I discovered that the content was primarily centered on fundamental research, and it lacked charts and technical analysis, which are features and information that are available with the finest brokers in this category.

Alerts: The alert capabilities of Plus500 allow you to follow your data with both precision and creativity, giving you more options than ever before. For instance, you can set up alerts on the basis of percentage shifts in the data pertaining to client attitude. This is an innovative addition that is a step above from the standard price alerts that you would normally receive. I found it to be quite creative. It would be wonderful if Plus500 were to take the next natural step and begin providing notifications for various indications.

Education

When compared to industry leaders in educational content provision like City Index, IG, or CMC Markets, Plus500’s offering of educational material for traders is lacking in scope and depth. Plus500 should, without a doubt, make it a priority to broaden the range of instructional content it provides in this category in order to remain competitive with its industry contemporaries.

Plus500’s educational resources may be found in the Trader’s Guide section of the website. Here, you’ll find a few articles and close to a dozen instructional videos. When compared to the most reputable brokers in this field, Plus500’s educational resources for the financial markets are lacking, with the exception of a few articles and an eBook. This is especially true when considering the extent to which other brokers excel in this field.

There is room for improvement: Plus500 could greatly broaden the scope of its instructional offering by expanding the variety of videos and articles available on its website. The natural next step for Plus500 to take in order to further improve the educational content it offers would be to add interactive courses that track students’ progress and contain multiple-choice questions. It is important to point out that the films included in the Trader’s Guide series are of high quality; nonetheless, the majority of them have the sense of being platform instructional.

Conclusions and musings

Plus500 is an excellent choice for less-experienced traders that prioritize ease of use and simplicity despite the absence of educational content on the platform. Plus500 came out on top in three different categories in 2022, including Ease of Use (1st place), Trust Score, and Best for Beginners. It was awarded the title of Best in Class (1st place).

The Plus500 web platform has been upgraded with the addition of an integrated economic calendar as well as updated charts; nonetheless, active traders who are interested in market research will be disappointed to learn that Plus500 mostly lacks this feature. Think about using IG or CMC Markets if you want a more advanced level of trading expertise.

Plus500 makes it simple for newcomers to the market to get a feel for online trading by offering nearly two thousand different contracts for difference (CFDs) to trade in addition to having a low required minimum deposit to start a live account.

What is the lowest amount that can be deposited into Plus500?

The minimum deposit required to open an account with Plus500 is typically 100 units of currency, which is comparable to $100 USD. This amount, however, might vary based on the denomination of your account and the payment method you choose from the client dashboard.

If your account balance is in euros, for instance, the minimum deposit required to fund your Plus500 account will be 100 euros if you choose to fund it through Skrill, PayPal, or debit/credit cards. On the other hand, the minimum deposit required to fund your Plus500 account through a bank transfer (wire) will be $500.

Is Plus500 a suitable site for novices to use?

Despite the fact that Plus500 only offers a limited selection of training materials at the moment, it is still a fantastic option for novice traders because the program is so simple to use. In comparison to the complicated trading platforms provided by other brokers, the Plus500 trading platform has a straightforward and uncomplicated layout, making it simple for novice traders to browse and become familiar with the program.

Utilizing a trading platform that is less complicated is essential for novice traders who wish to reduce the steepness of their initial learning curve. This, however, is not a guarantee that you will be successful.

Is Plus500 a reliable broker to use?

With a growing array of trading tools and advanced charting on its trading platform suite, Plus500 is a well-rounded broker that continues to expand its offering for novice traders as well as advanced traders. Plus500’s trading platform suite also features advanced charting.

The fact that Plus500 has been in business since 2008 and holds many regulatory licenses in Tier-1 jurisdictions, such as the United Kingdom, the European Union, Australia, and Singapore, both contribute to the company’s reputation as a reliable broker. The broker was had to comply with certain reporting standards when it was required to be listed on the London Stock Exchange (under the ticker code LSE: PLUS) in 2013. It is now one of the largest 250 public businesses and is included on the FTSE 250 index.

About Plus500

Plus500 was established in 2008 and is currently included in the FTSE 250 Index in addition to being publicly traded on the London Stock Exchange (LSE: PLUS). Plus500’s regulated companies, which possess licenses in key financial centres like as the United Kingdom, Australia, New Zealand, Israel, and Singapore, provide services to online traders. Plus500 is headquartered in the United States. Plus500 provided support for more than 430,000 active customer accounts in 2019, which resulted in 85 million opened positions and a total of $1.7 trillion in value transacted. Check out the Plus500 Wikipedia page for more information about the company.

Plus500AU Pty Ltd (ACN 153301681) has been granted a license by the Australian Securities and Investments Commission (ASIC) in Australia (AFSL #417727), the Financial Markets Authority (FMA) in New Zealand (FSP #486026), and the Authorised Financial Services Provider in South Africa (FSP #47546). When you trade contracts for difference (CFDs) at Plus500, neither you nor the company will hold the underlying assets, nor will you have any rights to them. Please see the Disclosure documents that are located on the website for further information.

Methodology of the 2022 Review

Over the course of three months, we evaluated, ranked, and reviewed 39 worldwide forex brokers to provide over 50,000 words of published research for our 2022 Forex Broker Review.

The performance of each broker was evaluated based on 113 distinct criteria, one of which was our individualized Trust Score formula. This cutting-edge score methodology assigns a level of trustworthiness to each broker based on criteria such as the type of licenses it holds, the regulations it abides by, and the organizational structure it maintains.

All of our brokers were given the chance, as part of our annual review process, to offer updates and significant milestones, as well as to complete an in-depth data profile, which we then examined by hand to ensure its accuracy.

In the end, the thoroughness of our data validation procedure results in an error rate that is less than.1% every year. This ensures that the data provided to site users is accurate and reliable.