Table of Contents
In this extensive Plus500 overview, we will thoroughly analyze their products, educational resources, and customer service, providing you with comprehensive details about their platform, withdrawal process, and deposit options. Together, we will uncover whether Plus500 can genuinely be considered a reliable entity or another scam.
A Short Background About Plus500
With its roots in Israel, Plus500 is a well-regarded online trading platform founded in 2008 and, in June 2018, entered the FTSE 250 index after being registered on the London Stock Exchange.
Plus500 is a market maker that deals exclusively in executing trades with its offices located in London. With numerous branches based in Europe and Asia-Pacific, Plus500 delivers CFDs via its innovative trading platform, allowing access to more than 2800 CFD contracts.
Currently, Plus500 boasts more than 430,000 active users and has handled a trading volume exceeding $1700 billion. Additionally, the company has enabled the opening of over 300 million positions.
Let’s take a moment to swiftly review a few key facts:
- Plus500 operates in 50+ countries.
- It provides access to 2,800+ CFDs on forex, indices, commodities, cryptos, and more.
- This platform is subject to the regulation of the FCA, CySEC, FMA, MAS and other regulatory agencies.
- Plus500 does not support the popular MetaTrader platform.
- The range of order types offered by this is limited.
- The platform provides customer support in multiple languages.
- Plus500 doesn’t accept US clients, but they can access the TradeSniper platform designed for futures trading.
Read more about Plus500 on Wikipedia.
Markets and Products
The platform allows users to trade in numerous markets, including stocks, commodities, indices, forex, and cryptocurrencies. Investors can explore a wide variety of stocks listed on global exchanges, such as Apple, Google, and Amazon, without owning the stocks. Popular commodities like gold, silver, oil, and natural gas are also available, enabling traders to take advantage of price fluctuations without physically owning the commodities.
In addition, Plus500 provides access to major stock market indices like the S&P 500, FTSE 100, and DAX 30. Traders can participate in the performance of entire markets rather than focusing on individual stocks. Forex trading is another key feature, offering an extensive selection of currency pairs such as EUR/USD, GBP/USD, and USD/JPY, allowing users to speculate on exchange rate movements.
When trading with Plus500, users do not own the underlying assets. This means they cannot exercise voting rights or receive dividends associated with stocks, and they cannot physically possess commodities or cryptocurrencies. Some traders prefer platforms allowing direct ownership of the assets they trade.
The platform also supports trading in cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and more. Traders can engage in the volatile crypto market and capitalize on digital currency price movements. While Plus500 previously allowed cryptocurrency trading, UK residents can no longer access these services due to a decision by the UK financial regulator. However, retail clients are the only ones affected by this specification.
As for products, this broker operates primarily as a Contracts for Difference (CFD) provider. Through CFDs, users can speculate on the price movements of various financial instruments without owning the underlying assets. Plus500 also offers options trading on selected stocks and indices, Exchange-Traded Funds (ETFs) to diversify portfolios, index funds to track market performance, and futures contracts on commodities and indices for hedging or speculative purposes.
Plus500 operates as a market maker, meaning trades are executed as Contracts for Difference (CFDs) rather than directly on the underlying markets. This lack of DMA can result in potential limitations in trade execution, price transparency, and liquidity. Keep in mind that the presence of specific markets and products may vary based on regulatory restrictions and geographical location. Traders should be aware that trading CFDs and other derivative products involves a high level of risk and should carefully consider their investment objectives.
- 60 Currency pairs.
- 90 Exchange-traded funds.
- 20 Commodities CFDs.
- 12 global indices.
- 50 USA shares.
Education
From novice to pro traders, Plus500 offers a variety of educational resources to improve trading skills. Although interactive content is not widely available, Plus500 has recently taken steps to improve its educational offering.
While Plus500’s educational tools may have limitations, their most significant benefit is the exceptional demo account feature, providing traders of all levels to learn and practice trading without risking their funds, making it a hands-on and risk-free approach to learning.
Along with risk management resources and market news, Plus500’s Trading Academy provides an extensive collection of educational materials such as eBooks, video guides, and FAQs, helping traders to hone their skills and knowledge.
Plus500’s research can be a hit or miss. While the economic calendar and charting tools are exceptional for market analysis, the need for recommendations and fundamental data is noticeable. The newsletter, which is critical for Forex traders, needs to be added to the platform.
Recently Plus500 introduced Insights, a real-time data tool that identifies high-yield trades, frequently traded instruments, and other relevant insights to help traders make informed decisions.
Insights is a newly launched complementary feature that delivers instant analysis of countless trades, using the crowd’s intelligence to help make trading decisions with confidence. This innovative tool takes copy trading to the next level by analyzing millions of trades to pinpoint high-yield trades and trader sentiment, potentially providing greater results than traditional copy trading strategies. Among the advanced tools offered by Plus500, this exclusive feature is only accessible to its clients.
While it’s true that Plus500’s educational offerings could be more comprehensive, they still provide a solid foundation for traders looking to improve their skills. Their Trading Academy, eBooks, video guides, FAQs, and other resources offer valuable insights into the world of CFD trading. Their commitment to risk management helps ensure that traders can trade confidently.
Policy
In order to establish a trading environment that is both fair and transparent, Plus500 adheres to a range of policies and guidelines. Let’s take a closer look at several critical components of Plus500’s policies:
When it comes to regulatory compliance, Plus500 is committed to adhering to regulatory requirements in the jurisdictions where it operates. It strives to maintain compliance with applicable laws and regulations to provide a secure trading experience for its users.
An additional key policy is its customer protection policy, which implements measures to safeguard client funds. It typically keeps customer funds segregated from company funds and may offer compensation schemes to provide additional protection to eligible clients.
As part of its policies, Plus500 follows stringent AML and KYC procedures. These measures are put in place to deter and prevent money laundering, terrorist financing, and other illicit activities. Users may be required to provide identification and verification documents to fulfil the KYC requirements.
Plus500 emphasizes the importance of responsible trading and risk management. It typically provides risk management tools, including stop-loss orders and negative balance protection, to help traders manage their positions and potential losses. Also, It aims to execute client orders promptly and efficiently. It typically utilizes advanced trading technology to provide reliable and fast order execution, minimizing slippage and ensuring fair execution of trades.
Plus500 seeks to maintain transparency in its operations. Users are provided with real-time market data, trading history, and account statements to enable them to make informed trading decisions.
It’s worth mentioning that the exact details of Plus500’s policies may vary over time and are subject to change. For comprehensive and up-to-date information on Plus500’s policies, it is recommended to review their official website and consult their terms and conditions or contact their customer support directly.
Financial Policies
To get started on Plus500, you have multiple deposit methods. Funding your account is possible by using credit/debit cards, bank transfers, or electronic wallets like PayPal and Skrill. The minimum deposit amount required may vary depending on your region and account type. Once you submit a deposit, it is typically processed instantly, allowing you to start trading without delay.
You can withdraw funds from your Plus500 account using bank transfers, credit/debit cards, or electronic wallets. However, before initiating a withdrawal, you may be required to undergo a verification process to ensure compliance with anti-money laundering regulations. The withdrawal timeframe can vary based on the chosen method and your location. Bank transfers generally take longer than electronic wallets and credit/debit card withdrawals.
In terms of fees and commissions, While Plus500 operates on a “no commission” basis, they generate revenue through spreads. Some users have mentioned a lack of transparency regarding changes spread during volatile market conditions. Assessing the actual cost of trading can become challenging in such circumstances.
You may be subject to overnight funding fees if you hold positions overnight. These fees are determined by the interest rates of the currencies involved in the trade and the direction of your position (buy or sell). Additionally, Plus500 may charge an inactivity fee if you don’t log into your trading account for a specified period. This fee is usually deducted from your available account balance.
It’s essential to keep in mind that financial policies and fees can change over time. For the latest updated and accurate information regarding Plus500’s specific financial policies, it is advisable to refer to their official website or contact their customer support.
Web & Mobile Trade Platform
The Webtrader web platform offered by Plus500 provides traders with an intuitive and seamless trading experience, accompanied by robust search and alert features. The platform incorporates safety measures such as two-step login and authentication through Google and Facebook for added convenience. However, it’s worth noting that the platform is a closed system, limiting customization options and automated trading. Furthermore, integration with third-party analytical and automation tools is not supported.
Despite these limitations, the search functionality of Plus500 is commendable, enabling traders to locate any desired asset quickly. The platform’s alert and notification system is noteworthy, allowing users to receive notifications via email, SMS, and push notifications. Traders can set up alerts to be notified of price changes in selected assets or when trader sentiment reaches a specific level.
The platform provides access to basic real-time account information, including balances, transaction activity, and profit/loss breakdowns. However, it does not include an in-built tool for comprehensive trading activity analysis, such as a trading journal or tax accounting tools.
On the positive side, the platform offers transparent reports that keep traders informed about overnight fees and the composition of their portfolios. Technical analysis charts are available, with the ability to apply over 100 technical indicators to multiple time frames, ranging from tick charts to weekly charts. A recent update has allowed traders to utilize up to nine charts simultaneously.
In summary, the Webtrader web platform of Plus500 offers an intuitive interface for executing trades, supported by valuable features like alerts and search functions. Additionally, Plus500’s mobile trading platform shares similar features and tools with its web-based counterpart, including biometric ID and a two-step login process. Still, it’s essential to consider that the platform may not offer integration options with third-party tools or services, limiting the ability to incorporate external trading or analytical tools into the Plus500 platform.
Customer service
Plus500 offers various communication channels for customer assistance, such as email support and a live chat feature on its website. The live chat option enables real-time conversations with customer service representatives and is a popular choice for immediate support.
A notable advantage of Plus500’s customer service is its 24/7 availability, ensuring users can seek assistance anytime, regardless of location or time zone. To accommodate its global customer base, Plus500 provides customer service in multiple languages.
We must note that Plus500 does not offer personal account managers for customers. This means that users may not have a dedicated point of contact for ongoing assistance or personalized guidance, which some traders may find limiting. Plus500 aims to provide timely responses to customer inquiries. While response times may vary based on the volume of inquiries, the platform promptly addresses customer concerns. Live chat support often yields quicker responses compared to email communication.
Feedback and complaints are taken seriously by Plus500. The platform maintains a dedicated team to handle customer complaints and strives to resolve them fairly and efficiently. Users can report issues or express their concerns through customer service channels. On the other hand, Plus500 does not have an official community forum or user discussion platform. Traders may prefer to interact with other traders and share insights or experiences, which can be beneficial in terms of learning and support.
Note that individual experiences with Plus500’s customer service may vary. Factors such as the complexity of an issue, the timing of assistance, and the user’s location can all influence the customer service experience. Nevertheless, Plus500 aims to deliver reliable and efficient support as users navigate the world of online trading.
Pros & Cons
Pros:
- Plus500 offers commission-free trading.
- Plus500 is a regulated broker authorized and supervised by multiple financial authorities.
- Plus500 provides a free demo account that allows users to practice trading with virtual funds.
Cons:
- Customer service may have limitations when it comes to addressing complex technical issues.
- Plus500 does not assign personal account managers to customers.
- Plus500 doesn’t support the popular MetaTrader trading platform.
Our thoughts
With its solid regulatory oversight, Plus500 ensures a secure trading environment. This broker offers traders a comprehensive trading platform with diverse markets and products, including stocks, commodities, indices, forex, and cryptocurrencies. The platform’s popularity among traders is mainly due to its commission-free trading, lifetime demo account, and negative balance protection features. However, it’s worth noting that limited customer support options and the inability to integrate with analytical and automation tools may be a disadvantage for more experienced traders.
As a market maker, Plus500 provides access to over 2,800 CFD contracts. Although not extensive, the platform’s educational resources provide an essential foundation for traders. The recently introduced Insights feature adds innovation to copy trading strategies. Yet, it’s important to consider a few limitations. The platform has a limited range of order types and does not support the popular MetaTrader platform. While customer service is available 24/7 and in multiple languages, it may have limitations in addressing complex technical issues. Ultimately, traders should carefully evaluate their needs, goals, and preferences to determine if Plus500 meets their individual trading requirements.
Written: Gloria Simone
Edited: Olive Harper
Fact-checked: Ella Sparks
Decoding AvaTrade: Your Phenomenal Breakthrough or A Risky Gamble?
