Plus500: Honest review and user-ratings

Plus500 user-ratings $100
10/10
10 of 10 points 1 reviews
  • Asset varierity - 10/10
    10/10
  • Trading platform - 10/10
    10/10
  • Support - 10/10
    10/10
  • Fees - 10/10
    10/10
  • Deposit/Withdrawal - 10/10
    10/10

Facts about the company:

  • Type: CFD, Stocks and Forex broker
  • Regulation: FCA (UK), CySEC (CY), ASIC / FSCA / FMA (AU), MAS (SG)
  • Minimum deposit: 100 Dollars
  • Demo account: Free
  • Markets: 2000+ CFD, Indices, Forex, Commodities, Stocks, Options, ETF’s, Crypto currencies

 

 

10/10
Comments Rating 10/10 (1 review)

Pros

  • Free demo account without time limit
  • High variety of possible assets 
  • Regulated by multiple official institutions
  • Low minimum deposit of 100 Dollars (except bank transfer)
  • Customer support 24/7 in 32+ languages

Cons

  • High minimum deposit with bank transfer: 500 Dollars
  • Negative headlines a couple of years ago

What’s behind Plus500?

Online Broker Plus500 was founded in 2008 by five students from Israel. It is a CFD platform, which is now also very popular in Germany. The central headquarters of the company is located in London. According to its own statements, the Online Broker currently serves more than 300,000 customers (as of 2018).

Screenshot of the Plus500 Landing Page

The history of Plus500

After customers were only provided with desktop-based trading software in the first few years after the company was founded, Plus500 finally developed a mobile version in 2011, which allowed users to trade on their smartphones. This version could first be downloaded to Apple devices, and from 2012 onwards to Android as well. ETFs were also included in the company’s own trading portfolio. In 2011, the online broker was already able to record over 2 million transactions per month, and in 2013 Plus500 finally went public on the AIM (Alternative Investment Market) sector of the London Stock Exchange.

In the same year, the company also became a global pioneer by introducing the first Bitcoin CFD. In 2015, the online broker entered into a partnership with the Spanish football club Atlético Madrid. Two years later, another cooperation followed with the “Plus500 Brumbies”, “2017 Super Rugby Australian Conference Champions”.

Plus500’s ordinary shares were last listed on the London Stock Exchange in 2018.

Global Branch Offices

Online Broker Plus500 now also has several global branches, allowing clients to trade in more than 50 different nations. These offices include those in Cyprus (Plus500CY), Australia (Plus500AU), England (Plus500UK), and Singapore (Plus500SG). Each branch is subject to the relevant regulatory authorities and has different account functions and criteria. This applies in particular to the leverage effect. Clients can therefore individually select the branch that seems most suitable for their needs.

In the next point, the regulation of branches in the different countries will now be discussed in more detail.

Regulation and deposit insurance

When choosing a broker, the regulation and protection of the paid-in capital always plays an important role. Plus500UK’s UK central office in the UK is controlled and regulated by the UK Financial Services Authority FCA. The Cyprus branch is regulated by CySEC, the Australian branch by ASIC, FSCA, FMA and the Singapore branch is authorised by MAS. Accordingly, Plus500 must comply with the strict requirements of the authorities.

UK branch:FCA
Cyprus branch: CySEC
Australian branch:ASIC, FSCA, FMA
Singapore branch:MAS

Apart from that, the online broker also adheres to the FCA’s legal regulation that customer deposits are stored in segregated accounts to protect them. This means that Plus500 will not touch the client’s capital for any other than appropriate actions. In the event of insolvency of the company, customer deposits up to a sum of 85,000 pounds sterling are protected by the British Financial Services Compensation Scheme (FSCS).

What instruments can be traded at Plus500?

Plus500 Online Broker offers clients a range of different trading instruments that can be traded as CFDs. These will be briefly described below.

Indices

With more than 30 indices, customers already have a wide choice here. Of course, the popular indices like FDAX, USA 500, and US-TECH 100 are also included. In addition, investors receive all relevant streaming prices in real-time on all indices at any time.

In addition to the classic “country indices”, Plus500 also offers so-called “sector indices”. Sector Indices allow “CFDs in a basket of stocks” to be traded, reflecting a complete sector. This allows you to take full advantage of current trends in the stock market. Popular in this context are for example the Crypto 10 Index or the Cannabis Stock Index.

Forex

Furthermore, Plus500 also offers foreign exchange trading. Over 70 different currency pairs can be traded with the online broker with a leverage of up to 1:30. In addition to the classic majors, customers can choose from numerous secondary currency pairs as well as exotic currencies.

Commodities

The next trading instrument at Plus500 is the commodity. This online broker offers over 20 different commodities such as gold, silver, oil, natural gas, copper, etc.

Stocks

At Plus500, shares of all popular financial markets worldwide can be traded. Spreads are kept fair (more on this later) and a number of tools are provided to help you better manage your stock trading.

Options

In addition, the online broker also offers call and put options, including on Germany 30, Apple, and oil.

ETFs

Clients can also trade a range of ETFs on fair terms. Examples include the ETFs VXX Volatility, GLD Gold, and the USO Oil Fund.

Cryptocurrencies

Last but not least, Plus500 also allows trading with cryptocurrencies. Interested investors and traders can leverage the popular digital currencies such as Bitcoin, Ethereum, Ripple & Co. with this online broker and trade around the clock. Currently, the list of tradable digital currencies at Plus500 includes 14 cryptocurrencies.

Deposit and withdrawal at Plus500

Before we take a closer look at the fees for the respective trading instruments in the next step, we would like to take a quick look at the deposit and withdrawal at Online Broker Plus500.

For the deposit, the client is offered several different options. In principle, a deposit can be made using the following payment methods:

  • Debit/credit card – Visa or Mastercard
  • Electronic purse – PayPal
  • Classic bank transfer
  • Skrill (after the first successful deposit)

Furthermore, a minimum deposit sum must be observed. With the exception of bank transfer (here it is 593 Dollars), this is 119 Dollars for all payment methods.

Minimum deposit sum:119 Dollars (except bank transfer)
Minimum deposit sum bank transfer:593 Dollars

As a rule, the payout is made in the same way as the deposit. This is usually initiated by the company within 1-3 working days.

Making deposits or withdrawals is always free of charge.

The fees and trading conditions at Plus500

Now that the trading instruments offered by Plus500 have been briefly introduced, the fees and trading conditions of the online broker will be discussed in more detail. In principle, Plus500 does not charge any fees in the form of commissions or the provision of real-time foreign exchange rates.

Live price quotes on stock CFDs, dynamic charts, and graphs, as well as a roll-over of the position are also generally free of charge. The main cost factor is the spread, which is integrated into the prices offered and represents a small cost premium on the prices.

Spreads, margin, and leverage at Plus500

Online Broker Plus500 charges its fees in the form of a buy/sell spread. Whenever a position is opened, the spread is charged as a small price premium.

As each instrument has its own individual spread, the following is a selection of some of the more popular instruments. The respective buying spread is considered below. In addition, we will also take a look at the margins to be achieved and the possible levers.

Overview of spreads, margins and leverage

IndicesForeign ExchangeRaw
materials
Crypto currenciesSharesOptionsETFs
Leverage1:201:301:201:2 1:51:51:5
Margin5-20%3.33-5%5-10%50%10-20%20%20%
Germany 30 (FDAX)0.99 pips
USA 500 (ES) 0.45 pips
US-TECH-100 (NQ)1.7 pips
EUR/USD0.00006 pips
EUR/JPY0.015 pips
GBP/USD0.00011 pips
Gold (XAU)0.28 pips
Crude oil (CL)0.02 pips
Silver (XAG)0.018 pips
Bitcoin (BTC)55.01 pips
Ethereum (ETH)2 pips
Litecoin (LTC)0.62 pips
BMW0.25 pips
Commerz-bank0.04 pips
Apple0.06 pips
Call 11900 | Sep | Germany 303.12 pips
Call 53.5 | Oct | Oil0.06 pips
Call 2950 | Sep | USA 5000.73 pips
USO Oil Fund0.02 pips
GLD Gold0.26 pips
VXX0.15 pips

The complete list of all trading instruments and all associated fees and margins can be viewed on the website under “All Trading Instruments” if you are interested.

Additional fees

Apart from the spreads, there are some additional trading fees, which vary according to the activities carried out by the client. The following fees should be mentioned in this context:

  • Overnight financing
    First, there is a potential cost factor of overnight financing. This is deducted according to the customer’s account if a position has been held over a certain period of time.
  • Guaranteed stop order
    Guaranteed Stop Order is a special type of order that allows the client to avoid major financial risks by guaranteeing a stop loss level. Consequently, this order function is also associated with a correspondingly higher spread.
  • Fee for inactivity
    Plus500 also charges an inactivity fee if a customer has not logged in for a period of three months. This fee, which is $10 per month if no login is made, will be charged on a monthly basis.

Trading platforms at Plus500

With WebTrader, Plus500 offers its customers a specially designed trading platform, which is clearly structured and contains all the necessary elements for efficient trading.

These elements include the provision of professional charts, a variety of useful technical indicators, and a number of interesting order types, which will be discussed in more detail in the following section.

In addition, the platform also provides some assistance, which is particularly useful for beginners. Meanwhile, the in-house platform is also available for all devices, you can download it from the App store as well as from Android. And also a Windows App as well as the Windows 10 Trader are offered.

What order types does Plus500 offer?

The range of order types is also interesting for both prospective and advanced investors when choosing a broker. Plus500 offers its clients four different stop order options to support their trading process. These are described in more detail below.

Stop Loss Order

Initially, the classic stop loss is offered. Here, a price can be determined at which a corresponding position is to be closed so that the financial risk can be limited. However, volatile price movements may cause deviations in the exact price marker. The function can be used free of charge.

Stop Limit Order

The same function is also available in reverse for the safe collection of winnings. As soon as a previously set mark is exceeded, the corresponding position is closed. This function is also free of charge.

Trailing stop order

A trailing stop order is used to hedge the profit on the one hand and to limit the financial risk on the other. If the price rises, the stop-loss mark moves up accordingly. If, for example, the price subsequently falls again to a certain extent, the position is then closed at the new stop loss marker. The function can be used again free of charge.

Guaranteed stop order

Finally, the online broker offers a special type of order with the guaranteed stop order. While a normal stop-loss order can lead to undesired deviations in the course of very high volatility, as mentioned before, this is not the case here. The guaranteed stop order forces the corresponding position to be closed at the specified price, even if the market price was exceeded. The following example should help you to understand this:

The buy/sell rate of a trading instrument is 1186 USD / 1183 USD. In this example, 10 shares are purchased with a widespread of 12 USD, the guaranteed stop is set at 1067. Afterward, the selling price falls to 948 USD. In this case, the position is still closed at 1067 USD.

  • Loss with guaranteed stop: (1067 USD – 1186 USD)10 – 12 USD = – 1197 USD
  • Loss without guaranteed stop: (948 USD – 1186 USD)10 = -2371 USD

The difference is clear, the loss without the guaranteed stop is almost twice as high.

However, it should also be noted that this function is not available for all trading instruments offered. Furthermore, a higher spread is calculated for the execution of this order type.

Tools at Plus500

In addition, Plus500 also offers a number of trading tools on its website to assist its customers in trading. These will also be briefly introduced and explained.

Economic Calendar

First, the online broker provides all interested traders with an economic calendar. This regularly publishes current relevant economic news and data, which customers can include in their trading activities.

Risk management

The risk management tools at Plus500 basically refer to the different types of orders, which have already been presented in the previous chapter. These are designed to minimize the financial risk of customers when trading as far as possible.

Alarms

Finally, Plus500 also allows the use of different alarm types. These alarms are notified in real-time via email, SMS, and push notifications and are available on all devices.

Firstly, a price-related alarm can be set to notify the user when a trading instrument reaches a certain buy or sell price. In addition, there is also the option of displaying the percentage changes of corresponding trading instruments at hourly or daily intervals. And last but not least, an alarm can be set to reflect the traders’ opinions. This means the percentage ratio of buyers and sellers of a certain trading instrument.

The demo account at Plus500

Online Broker Plus500 also offers a free demo account on its website. Interested users can trade here under real market conditions in real-time and without any financial risk.

Duration:Virtual credit balance
No time limit47,418 Dollars

The demo account is equipped with a virtual credit balance of 47,418 Dollars, which is replenished again and again if the 237 Dollars limit is undercut. A special feature is that the demo account has no time limit and can therefore be used permanently (also parallel to the live account for example). This means that even users who are already trading in a live account can test and develop new trading strategies without financial risk in the demo account.

Retail Account vs. Professional Account

Plus500 also gives investors the opportunity to trade like a professional trader. The online broker offers its professional customers virtually the same level of protection that customers with a retail account benefit from.

As a customer with a professional account, trading is possible with significantly higher leverage. However, to apply for a professional trading account, two of the following three criteria must be met. These criteria include a portfolio with a value of over 592,725 Dollars, relevant experience in the financial services sector, and a correspondingly high level of investment activity over the past year.

Portfolio:Minimum value of 592,726 Dollars
Experience:Financial services sector
Investment activity of the past year:High

Plus500 customer service

At this point, we will also briefly discuss the customer service at Plus500. In principle, the online broker offers three different ways to contact them. The first is the classic option of sending an e-mail. Secondly, there is also a live chat integrated on the website, where you can usually get a quick and competent answer to your request. The third way to contact them is Whatsapp. However, Plus500 does not offer telephone support.

Support available: 24/7
Telephone:Not available
Address:support@plus500.com
Languages:32+ Languages

Conclusion

Various online broker testers on the Internet have given the product a predominantly positive rating. A positive feature of the CFD broker is the wide range of tradable instruments. And also the unlimited use demo account definitely speaks for itself.

In spring 2015, however, there were also negative headlines about the online broker. Here, more than half of all customer accounts were frozen because, according to FCA statements, the company had not complied with the relevant regulations for “prevention of money laundering”. As a result, the share price of the Online Broker fell significantly by almost 60 percent of its original value.


Most asked questions:

Where is Plus500 based?

The headquarters of this online broker are in the city of Haifa in Israel. Nonetheless, the main offices are located in the UK in London. Further subsidiaries are for example in Cyprus, Australia and Singapore.

Can Plus500 be trusted?

Since this broker is regulated by a number of official institutions that follow strict guidelines, it can be considered safe. Nevertheless, there have been some negative headlines in the press a couple of years ago.

Is it possible to choose different order types with Plus500?

Shortly speaking: Yes. Plus500 offers its clients a variety of stop order possibilities. One is able to either select Stop Loss Order, Stop Limit Order, Trailing stop order or Guaranteed stop order.

Does Plus 500 offer a demo account?

The online broker does indeed offer interested clients this opportunity free of charge. If you want to try out new trading strategies, you can also use the demo version as it is available for an unlimited amount of time.

One Response

  1. Andre Witzel September 8, 2020

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