A detailed overview of Plus500 as a CFD Broker

introduction

According to our recent research, Plus500 is an Australian based brokerage firm based in Sydney.

Plus500 prides itself on being one of the highest rated CFD providers in a variety of markets and has a strong footing in an advantageous position to provide future growth.

Plus500 aims to provide a comprehensive offering to traders with different needs and trading preferences while maintaining price transparency, scaling in the global trading community and focusing on innovation for marketing initiatives.

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Licenses and Regulations

Plus500 is approved and regulated by several agencies in each country that offer CFDs and a variety of other underlying securities, so they operate in accordance with the most stringent guidelines and requirements imposed by regulators.

Plus500 is approved and regulated by the following agencies, depending on their location:

• Plus500UK Ltd. – FCA – License #509909
• Plus500CY Ltd. – CySEC – License #250/14
• Plus500SG Pte Ltd. – MAS – License number #CMS1006481–1 and IE Singapore – License number #PLUS/CBL/2018
• Plus500AU Pty Ltd (ACN 153301681)
  • Australian ASIC and AFS – License #417727
  • New Zealand FMA – License Number FSP486026
  • South Africa AFSP, FSP – License #47546

Regulated brokers like Plus500 are required to keep client funds in accounts separate from company funds as part of their stringent requirements to ensure compliance.

Additionally, as a regulated broker, you must be a member of a reputable compensation scheme that provides a certain amount of compensation to eligible clients if the broker goes bankrupt or declares bankruptcy.

And regulated brokers must provide their clients with negative balance protection so that the losses incurred do not exceed the trader’s initial deposit.

history and milestones

Plus500 forms part of the Plus500 group, founded in 2008, launched a PC-based online trading platform shortly after its inception, and in 2009 became a broker offering CFDs on stocks without commission.

Plus500 has been enabling online trading since 2010, when it launched a web-based version of its trading platform, allowing a variety of users to easily trade financial instruments from smartphones as well as computers running Mac or Linux software.

The ETF became part of the Plus500 offering in 2011 and expanded its electronic mobile device trading capabilities to iPhone and iPad, and in 2012 to Android devices.

In 2012, Plus500 became the world’s leading CFD trading company, and in 2014, Plus500 Ltd. had a market value of $1,000,000,000 USD.

In 2016, options CFDs were added to Plus500’s tradable financial products, and in the same year traders could trade using the Web Trader compatible with desktop and mobile devices.

For 2019, Plus500 has created a wide range of advanced charting features that traders can use to perform comprehensive technical analysis. This product included various technical indicators along with drawing tools.

Awards and Recognition

In 2011, the Plus500 trading app received the highest rating on Apple’s App Store, and although it is not listed on the website as to the awards Plus500 may have won during its operation, it is highly rated worldwide.

There was also a significant sponsorship agreement signed by the Plus500 group with “Plus500 Brumbies” during the 2017 Super Rugby Australia Conference Champions, this partnership continuing through 2019.

Bonuses, rewards and promotions

Plus500 offers two bonus schemes, including:

• rebate
• Trader Points

Rebates reward traders for their trading activity in addition to the terms and conditions specified for this bonus scheme. 12 days after a trader makes their first deposit to their trading account, they are automatically added to the rebate program.

For every trade executed, the trader accumulates a rebate that can be collected at the end of each week.

Trader points are accumulated by traders whenever a trading position is opened, and trading points are collected according to the difference between the buy and sell amount of a specific product.

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PLUS 500 trading account

Account Types Offered

Plus500 only offers traders the option to open a standard trading account known as a Real Money account, which gives traders access to all asset classes, financial instruments and markets they wish to trade.

Plus500 also offers traders the option to open a demo account that can be used to practice trading, explore Plus500’s offers or test trading strategies in a risk-free environment.

Leverage and Margin

The maximum level of leverage a trader can use depends primarily on factors related to the trader’s jurisdiction as certain regulations are imposed due to the high risk associated with trading leveraged products.
Also, the leverage offered also depends on the financial instrument the trader wants to trade with.
Depending on the regulatory requirements, traders can expect the following leverage effects depending on their country of residence:

• European customers – Leverage up to 1:30 per FCA and CySEC regulations
• MAS – Leverage up to 1:5
• Leverage of 1:20 in stocks, 1:300 in foreign exchange and indices, and 1:30 in crypto to Australian and South African clients.

Plus500’s margin is defined for each financial instrument, which depends on the leverage used by the trader. The higher the leverage, the lower the margin and vice versa.

Commissions and Spreads

Plus500 charges no separate or additional commissions per transaction, and all these fees are included in the spread in a way that Plus500 is compensated for its services.

When a trader opens a position using a buy/sell spread (bid/request spread), the trader essentially pays the spread that is incorporated into the quote rate offered by PLUS500.
Traders should be aware that Plus500 has the following additional fees:

• Next Day Funding – If a position is held for more than one day, it will be deducted from the trader’s account or otherwise specified depending on the financial instrument and the end of the trading day.
• Currency Conversion Fee – This fee is charged for all transactions that occur in a financial instrument, and if the base currency of your account is different from the currency of the instrument, it will be displayed in that currency.
• Inactivity Fee – If a trader’s account is inactive for 3 consecutive months, a fee of $10 per month will be deducted and charged as long as there is noticeable activity in the account.

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non-transaction fees

Plus500 has the following inactivity fees:

• Minimum initial deposit of $100 when using debit/credit card, and minimum $500 deposit by bank transfer.
• A withdrawal fee of $10 per withdrawal will be charged after the first 5 free withdrawals of the month are exceeded.
• A $10 withdrawal fee will apply if the withdrawal amount is less than the minimum $100.
• Traders are charged a flat fee of $6 when using bank transfer for withdrawals.
• Traders will be charged $10 per month if their trading account is inactive for 3 consecutive months in addition to $10 per month if there is no login and trading activity in their trading account.

Additional information on Plus500’s fees and charges can be found here.

Deposit and Withdrawal

Traders can deposit funds into the trader’s account using a debit/credit card (Visa or Mastercard), an electronic wallet such as PayPal or Skrill, or bank transfer.
It is important to note that the minimum initial fee is $100 when using a debit/credit card and $500 when using bank transfer to fund your trading account. Plus500 offers traders the option to deposit in 10 different base currencies.

Additionally, due to strict rules regarding anti-fraud and money laundering regulations, third-party payments are not accepted, and third-party payments are returned to their original source.

Plus500 does not charge any deposit or withdrawal fees, but there are conditions related to withdrawing funds that traders must acknowledge.

Traders can withdraw funds from their account for free 5 times a month as long as the minimum withdrawable amount is $100 by bank transfer or $50 by PayPal. Below this amount there is a fee of $10 per transaction.
There is also a $6 fee for bank transfer as a withdrawal method from your trading account.
To request a withdrawal, the trader must log into their account, select the ‘Withdraw’ option from the menu, select their preferred withdrawal method, enter the withdrawal amount and complete the request with additional requirements.
Traders who need additional information on deposits and withdrawals can learn more by visiting Plus500’s FAQ section here and selecting the relevant option.

How to open a demo account or live trading account

The process of opening a demo or live trading account with Plus500 is a fully digitalized online process and can be opened in one day.

To open a demo account, traders can fill out a simple form by providing an email, choosing a password and clicking ‘Create Demo Account’. Alternatively, you can create a demo account using the trader’s Google or Facebook credentials.
The process of opening a live trading account requires much more information than the documents required to verify the trader’s identity and proof of residency. Your account will be verified when all required information is submitted along with the documents.
As soon as the account is verified, traders can finance their account with the minimum deposit required, which ranges from $100 to $500 depending on the payment method the trader wants to use.

Asset Classes and Financial Products

Plus500 offers a comprehensive offering related to a variety of tradable financial instruments, with well over 2000 across 7 asset classes, including:

• Forex – Includes all major, minor and exotic currency pairs
• Indices – widely distributed across different countries and sectors
• Commodities – This includes, but is not limited to, crude oil, Brent oil, copper, etc.
• Stocks – Stocks in the US, UK, Germany, Italy and many other countries.
• ETFs – including iShares Silver, GLD Gold, NUGT, Commodity Index Funds and more
• Options – Apple, Tesla, USA 500, etc.
• Cryptocurrencies – including Bitcoin, Ethereum, Litecoin, NEO and more

Additional information on the financial products offered by Plus500 can be found here.

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trading platform provided

Unlike many other brokers that offer the use of different trading platforms, Plus500 has its own proprietary trading platform that traders can utilize.

The trading platform is secure and user-friendly, but one drawback is that it cannot be customized for its own sake. This can be some problem for some traders who rely on the customization provided by their trading platform to perform both preliminary and detailed technical analysis.

The Plus500 trading platform can be accessed from the web via Plus500’s Web Trader or used on mobile devices. Unfortunately, the desktop version of this trading platform is not available.

The Plus500 trading platform has the following features:

• Multilingual support (up to 31 languages)
• Available order types such as market, limit, stop and trailing stop
• secure login
• Advanced search function
• Alert system via email, SMS or push notification
• Transparent portfolio and fee reports

Regardless of the web browser the trader uses, WebTrader is all compatible. Mobile devices supporting the Plus500 trading platform application include iOS, Android and Windows Phone.

education and training

Plus500 offers traders only the option to open and use a demo account in addition to the trader guide as an educational tool.

The Trader’s Guide offers a variety of ‘how-to’ videos related to online trading using Plus500’s platform. Some of the videos included in the guide provide explanations on:

• Basic Concepts of CFD Trading
• Rollover – about futures contract positions
• Slip purge when position is open
• How to trade with Plus500 and more

research

Plus500 offers several options when it comes to research, although it has a well-designed economic calendar and comprehensive charting tools, there is no source from which traders can perform fundamental analysis.

Customer Support

Plus500 provides 24/7 customer support via email (online request form) and live chat features. Traders can contact Plus50 via WhatsApp, but since no phone number is provided, these are the only ways to contact them.

We also provide a comprehensive Frequently Asked Questions section that addresses most of the questions potential and existing customers may have. Alternatively, customers may contact Plus500 via the methods mentioned.

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Advantages and disadvantages

conclusion

Plus500 is a highly rated broker, offering traders the opportunity to trade in a variety of financial instruments that are spread across different asset classes. The transaction costs involved are relatively low, but the non-transaction costs are quite high compared to other brokers.

The spreads offered are very tight and traders can access leverage of up to 1:300 depending on the trader’s country and regulatory body in addition to a zero fee charged per trade.

This makes Plus500 more attractive and popular with both novice traders and experts. The only downside is that there is only one standard account offered.

Another downside is that Plus500 can only use its own trading platform, is user-friendly and accessible, but is not customizable and has limited charting capabilities.
The limited trading tools available, in addition to their lack of customizability, limit the way they can test their trading strategies along with detailed and advanced technical analysis, which can be problematic for traders who need it.
Plus500 offers both novice and advanced traders the added benefit of rebates and trader points bonuses, and can encourage more trades each month to enjoy these benefits.

hazard warning

Traders should understand and remember that trading CFDs is a complex instrument with leverage that carries the risk of incurring large losses that may exceed the trader’s initial deposit.

Traders should also ensure that they understand the risk exposure and should determine whether the risks involved are right for them before making any trading decisions that could result in loss of capital.

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