Plus500 Review: our experience with this broker
Plus500 is an online broker where you can speculate with CFDs on cryptocurrencies (Instrument availability subject to regulations), Forex and stocks. In this extensive review, we share our experiences with this broker. In our test, Plus500 emerged as a user-friendly broker where you can respond to the latest market developments at low rates.
72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
- At Plus500 you can speculate on price developments at low rates.
- You can trade in an extensive range of CFD shares.
- It is possible to try Plus500 for free with a demo.
- On Plus500 you can use the user-friendly web trader.
- Plus500 offers its services in more than 30 different languages.
- On Plus500 you can start trading from $100.
- Plus500 does not provide advanced software for professional traders.
- You cannot find extensive analyses within the platform.
- Plus500 customer service is not available by phone.
- On Plus500 you can only trade in CFDs.
Would you like to try the possibilities at Plus500 with a demo completely free of charge and without risk? Use the button below to open a demo account with this broker:
–>> Open Demo Account here <<–
72% of retail CFD accounts lose money.
We discuss the following topics in the Plus500 review:
- Open account: how can you open an account with Plus500?
- Deposit money: how can you deposit and withdraw money?
- Costs: how much does trading cost on Plus500?
- Functionalities: what are the possibilities of the software?
- Trading options: in what securities you trade on Plus500?
- Support: what support do you receive when trading?
- Costumer service: what is the quality of the costumer service? (costumer-service)
- Reliability: Is this broker reliable? (reliability)
- Information: more information about Plus500 (information)
- Conclusion: the verdict of the Plus500 review (conclusion)
Opening an account with Plus500
To do this you must first visit the Plus500 website. Click here* to open the Plus500 site. To create a free demo account, you just have to choose an email address and a password. It is also possible to log in with your Facebook or Google account. After you have left this information, you can immediately start trading.
*72% of retail CFD accounts lose money
Plus500 accepts customers from most countries. However, there are also nationalities that are not admitted to Plus500. Traders from for example, America, Brazil, Belgium and Syria are not able to open an account at Plus500 at this moment. Opening a demo-account with Plus500 is possible within clicks. In the review, we therefore give Plus500 a positive rating for opening an account.
Deposit & withdraw money
When you have become familiar with the Plus500 platform, you can switch to a real money account at any time. The minimum deposit at Plus500 is $100. You can deposit money into your account by using one of these methods:
- Bank transfer
Before your deposit can be processed, you must confirm your identity. Plus500 must comply with legislation and can only receive verified customers. By verifying new costumers, Plus500 prevents costumers from using the account for money laundering.
We’ve gone through the entire process and uploaded the required documents. Our account was approved and released by Plus500 within an hour. After confirming the identity of your account, you don’t have to do it again. The length of this process depends on your personal situation and can be different for each costumer.
You can withdraw the money into your account at any time. You can do this by transferring the money to your bank account or PayPal account. The transfer is made quickly and the money will be in your account within a few days.
On Plus500 there are no additional costs for depositing and withdrawing money. This is a big advantage of the broker Plus500: many other brokers charge a small fee for withdrawing money. Traders can take advantage of up to 5 free withdrawals a month, after which a fee will be incurred.
Review of the costs of Plus500
When you start trading with Plus500, you obviously do not want a large part of your money to be lost to high transaction costs. In this part of the review, we take a detailed look at the fees of trading with Plus500. Below we briefly examine which costs Plus500 passes on to its customers.
With Plus500 you pay a spread over every transaction. The spread is the difference between the buy and sell price of a CFD. Plus500 offers two spread mechanisms for its instruments: Dynamic spread which is constantly adjusted according to the market spread during the period a position is open vs. a Spread which does not typically change in line with general market fluctuations while a position is open, but when the market is volatile and illiquid, may change to a new level so that the underlying market conditions are better reflected. Nevertheless, Plus500 aims to provide the tightest possible spreads at all times.
Forex costs on Plus500
On Plus500 you can trade in different currency pairs. At the time of writing, you are paying 0.6 pips in transaction fees on the pair of EUR / USD. We compared these costs with those of other providers and concluded that these costs are comparable to those of other brokers. (We have extracted these data on the 2th of June 14:00.)
Cryptocurrency costs on Plus500
On Plus500 you can also trade in cryptocurrencies such as Bitcoin. In our review it emerged that at Plus500 you can trade against relatively advantageously fees in Bitcoin CFDs. At Plus500 you pay a spread of $36 at the time of writing while at eToro you pay more than $50 per contract. Trading cryptocurrencies is therefore relatively advantageous at Plus500. (We have extracted these data on the 2th of June 14:00.)
Share costs on Plus500
At Plus500 you can also trade in shares by using CFDs. As an example: For the CFD share Tesla you currently pay a spread of $ 0.95, which equates to 0.12% of the total value. Trading CFD Tesla shares is therefore possible at a low cost. (Please note that this is a snapshot on April 20, 2020 at 13:00.)
Financing costs at Plus500
With Plus500 you have the option to trade on margin. Because you can trade on margin, you do not have to put in the full amount of the trading position yourself. However, you do have to pay a premium for this.
With each security you will see the overnight funding buy and the overnight funding sell costs. In some cases, you actually receive a premium for short positions. We compared Plus500 with other parties for this review and the financing costs were relatively low. Still, it is important to remember that Plus500 is not very suitable for long-term trading because of the financing fees you have to pay on a daily basis.
Other costs on Plus500
We have extensively investigated the costs for this review, and we have not found any annoying hidden costs. However, you must ensure that you log in to the platform at least once every three months. If you don’t do this, costs for inactivity will be charged. This is the case with most brokers.
Do you have an account with Plus500 and are you not planning to trade for a while? Then it is wise to withdraw the money from your account.
You can check all Fees here:
Plus500 is mainly compensated for its services through the “market spread”. For example, when trading EUR/USD, if the buy rate is 1.12078 then the sell rate would be 1.12072 respectively (which means a market spread of 0.6 pips, in this example). Unlike other service providers who also charge commissions on each trade, Plus500 does not charge dealing commissions.
However, the following additional fees may be applied:
Overnight Funding – The overnight funding amount is either added to or subtracted from your account when holding a position after a certain time (the “Overnight Funding Time”).
The overnight funding time and the daily overnight funding percentage can be found in the “Details” link next to the instrument’s name on the main screen of the platform.
Currency Conversion Fee – Plus500 will charge a Currency Conversion Fee for all trades on instruments denominated in a currency different to the currency of your account.
The Currency Conversion Fee will currently be up to 0.7% of the trade’s realised net profit and loss and reflected in real time into the unrealised net profit and loss of an open position.
Inactivity Fee – A fee of up to USD 10 per month will be levied, should you not log in to your trading account for a period of at least three months. This fee will be charged once a month from that moment onwards, as long as no login is made to the account. The inactivity fee will be equal to the lesser of the remaining available balance in your account or USD 10 (or equivalent depending on your currency). This is to offset the cost incurred in making the service available, even though it has not been used. However, please note that the fee is only collected from the Real Money account and only when there are sufficient available funds in the account. In order to avoid this fee, simply log into your trading account from time to time, as this is deemed sufficient activity to prevent a fee from being charged.
Guaranteed Stop Order – if you choose this feature, please note that as it guarantees that your position (trade) closes at a specific requested rate (price), the trade is subject to a wider spread.
Conclusion Plus500 fees
The costs Plus500 charges are reasonable and in proportion to the amount you trade with. This makes it possible to trade with a small amount of money. In our article about the costs on Plus500, we take a closer look at the various costs you pay when you trade with Plus500.
Software & possibilities
When you start trading, we understand that you of course also want to use a good software package. With Plus500 trading is mainly done via the online WebTrader. A great advantage of the WebTrader is the accessibility: you can log in to the platform at any time and from any location to open or close a position.
What stood out in our review was the user-friendliness of Plus500. The platform looks clear and thanks to the search function you can quickly find the CFD in which you want to trade. New customers will therefore not have to search long for buy & sell buttons on Plus500.
Opening a trade
Opening a trade with Plus500 is rather straightforward. It is important to remember that with Plus500 you always trade in CFDs. With Plus500 you never directly trade in a share. The only thing that determines your result is the difference between the price at which you open and close the position.
When you open a position, you have two options. You can buy the CFD or you can go short on the CFD. When you buy the CFD you get a positive result with a rising price and when you sell the CFD you get a positive result with a falling price. Since you use leverage there is a high risk of losing money rapidly due to leverage.
The option to speculate on a declining price is a major advantage within the Plus500 platform. The option to short sell increases your flexibility and makes it possible to react to different market situations.
Type of orders
With Plus500 you can immediately open an order. When you press buy or sell you will see the screen below:
In the order screen you can enter the amount you want to trade with. You also have the option to automatically open or close the position after a certain price has been reached. This makes it possible to protect you trades when you have to go out.
It is also possible to place an order with Plus500. You do this by entering a price at which you automatically open the CFD position. By using orders, you can achieve even better trading results.
With Plus500 you have the option to apply a leverage. With a lever you can take a larger position with the same amount of money. Both your potential profit and your potential loss increase when you apply leverage. With each security you can immediately see what the maximum leverage is that you can apply.
The presence of a leverage is an advantage in the review of Plus500. You can always decide to invest with smaller amounts if you want to lower your risk.
On Plus500 you can also trade with the mobile application they offer. The mobile application is less extensive than the WebTrader. You can perform less extensive analyses with it. Nevertheless, it is useful to also install the mobile application. With the app you can receive warnings when the price of a security reaches a certain value.
The mobile application is very user-friendly and it is good to adjust your orders when market conditions change significantly. The mobile application is therefore a strong point in our review of the Plus500 platform.
Trading options at Plus500
In this part of the review we will discuss the different types of securities you can trade in with Plus500.
With Plus500 you can trade in CFDs on Forex. When you trade in Forex, you speculate on price changes in currency pairs. You can for example place a trade on the development of the euro against the dollar.
On Plus500 you can also trade in an extensive range of CFD shares. The shares are neatly sorted by country, so you can quickly find a share to trade.
It’s also possible to trade in commodities by using CFDs. The most popular commodity for trading is oil. You can often apply a maximum leverage of up to 1:20 to investments in raw materials. When you trade in gold you can apply a leverage of 1:20.
On Plus500 you can also trade in CFDs on options. Options often move strongly: an option can sometimes rise or fall in value by tens of percent. With CFDs you can apply a leverage of up to 1:20 to options, which further increases your potential gains or losses.
Indices or ETFs
On Plus500 you can also trade in CFDs on well-known indexes or ETFs. You can for example trade in the Dow Jones or NASDAQ index trackers.
At Plus500 you can also trade with CFDs in the most famous cryptocurrencies. Cryptocurrencies are very volatile and it can therefore be interesting to actively speculate on their price developments. One of the most popular cryptocurrencies to trade in is the Bitcoin. (“Instrument availability subject to regulations”).
Conclusion on the trading options at Plus500
Plus500 has a wide range of tradable CFD securities. Even relatively unknown local stocks can often be found on the Plus500 platform. This makes Plus500 an attractive broker for investors from all countries. My experience with Plus50 has therefore been very positive.
Support & research
In this part of the review, we investigate how Plus500 supports traders.
At Plus500 you can perform technical analyses on the graphs. Within the software you can use different drawing options. You can draw horizontal levels to indicate price levels where the market often moves in the opposing direction.
You can also add technical indicators on the graph. The range of technical indicators at Plus500 is enormous. You can choose from more than 100 different options. It is wise to use technical indicators. By using technical indicators, you can execute better analyses.
The technical analysis options within the Plus500 software are extensive. However, it is inconvenient that you cannot save multiple graphs. This means that you have to repeat the analyzes regularly. Professional investors would have to download other programs to perform more complex analyses.
Research and education
In this review we can be quick about the possibilities of research and education: at Plus500 these options are completely missing. There are no courses or webinars available at Plus500. This is a disadvantage for people who join Plus500 to learn how to trade better.
It is useful that you receive a notification within the Plus500 software when interesting developments take place. When the price of, for example, oil falls sharply, you will receive a notification of this event. You can then decide for yourself whether you want to take a position on the market development.
Within the Plus500 software you can also see how other users trade in a security. By looking at the positions other traders take, you can see whether there are more buyers or sellers. Other fundamental data is missing with Plus500 platform. Plus500 does not score well in the field of research and education in our opinion.
Plus500 has a comprehensive and fast customer service that is available in more than 30 languages. Your problems can be solved quickly in your language.
It is recommended to contact customer service via live chat. You can use the live chat button within the Plus500 WebTrader. By using the live chat, your problems can be solved almost immediately.
It is also possible to email Plus500. Mails are often answered within a day. It is a pity that no telephone number is available. This makes it impossible to speak directly to someone. Due to the fast processing time, Plus500 still scores sufficiently in terms of customer service.
Security & reliability
Before you deposit money with a company, you naturally want to know that it is completely secure to do so. In this part of the review, we look at how reliable Plus500 is.
Supervisors ensure that brokers adhere to the rules. Plus500 is supervised by:
- Plus500UK Ltd authorized & regulated by the FCA (#509909).
- Plus500CY Ltd authorized & regulated by the CySEC (#250/14).
- Plus500SG Pte Ltd, licensed by MAS (#CMS100648-1) and IE Singapore (#PLUS/CBL/2018).
- Plus500AU Pty Ltd (ACN 153301681), licensed by: ASIC in Australia, AFSL #417727, FMA in New Zealand, FSP #486026; authorized financial provider in South Africa, FSP #47546
Security of your deposits
Depending on your nationality, you enjoy extra protection if Plus500 goes bankrupt. This is done through a so-called investor protection fund. All client funds are held in a segregated client bank account in accordance with the Cyprus Securities and Exchange Commission’s (CySEC)
Plus500 has also set several extra rules to ensure that your money is as secure as possible on Plus500. Below you can find an overview of these measurements:
Plus500 will never speculate with customers’ money. All funds are stored in a separate bank account, which means that this money is secure when unexpected things happen with Plus500. And last but not least, on Plus500 you are protected against a negative balance, because he Negative balance protection is a regulatory requirement for all EU brokers. So when you trade with Plus500, you can never be left with a residual debt
Plus500 is 100% no scam. Plus500 securely manages customer assets. The company is also supervised. Plus500 has been around since 2008 and is even listed on the London stock exchange. These are all good indications that Plus500 is reliable and we have come to that conclusion ourselves.
About the company
Plus500 was founded in 2008 and has grown strongly since then. Plus500 is active in more than 30 countries and served more than 200,000 active customers in 2019. Plus500 executed over 35 million transactions with a value of over $1,000 billion in one year. The headquarters of the company can be found in Israel, but they have opened several additional offices in other countries. Do you want to know more about the Plus500 company? In this article you will find everything you need to know!
Conclusion review Plus500
Plus500 is one of the best CFD brokers. With Plus500 you can actively trade CFDs on all known shares and cryptocurrencies by using the user-friendly software. On Plus500 you can trade at low rates. You also have the opportunity to respond to changing market conditions by placing orders on both rising and falling prices.
Do you want to discover how Plus500 works? Then immediately open a free demo-account by pressing the button below:
–>> Open Demo Account here <<–
72% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you can afford to take the high risk of losing your money