Plus500 is a Forex Broker which has its headquarters at Building 25, MATAM, Haifa, in Israel. It was established in the year 2008 and some of its greatest perks are, excellent customer support and low spreads.
Plus500 is a leading CFD provider with a wide range of financial instruments available for trading. The broker also offers a rare feature known as negative balance protection.
Plus500 is regulated by top-tier regulators and authorities around the world.
Some of its regulators include: – MAS (Singapore), ASIC (Australia), CySEC (Cyprus), FMA (New Zealand), and the FCA (UK).
But that’s just the tip of the iceberg, there is more to talk about as far as Plus500 is concerned.
In this review, we will show you everything we learned through thorough research of the Plus500 platform so that when you decide to trade with them, you will make an informed decision.
Here’s a sneak peek of what we will talk about: –
- Account Types.
- Minimum Deposit.
- Deposits and Withdrawals.
- Trading Cost.
- Client Support.
- Broker Regulation.
- Trading Platforms.
- Unique CFD Trading Platform.
- Markets Offered.
Only three major account types are available on Plus500.
- Retail account.
- Professional account.
- Islamic account.
a. Retail Account.
The majority of Plus500 traders use the retail account type.
This account type is available to Plus500 clients within the EU, UK, Singapore, Australia, and the global market which Plus500 services. It doesn’t matter where you are, you too can open and use the Plus500 retail account to trade.
What to expect.
The retail account type offers over 70 currency pairs as well as indices, commodities, shares, options, ETFs, and 14 of the most popular cryptos through Plus500 cryptocurrency trading.
With this account type, leverage depends on the assets you are trading and is restricted to a maximum of 1:30 within the EU due to ESMA regulations.
Singapore-based traders access up to 1:50 of leverage, while those in Australia and the rest of the global market can access up to 1:300.
This account type can also enable you to manage multiple accounts.
It is not readily available though, because if you need such service you should contact the Plus500 client support.
Processing such a request may take quite some time but in the end, you will get the rights.
Additional features of the Plus500 retail account include the following:
- Commission-free trading with the exception of a minimal spread.
- Negative balance protection.
- 4 different stop order types. This includes a guaranteed stop which slightly increases your spread, but protects you from slippage.
- ICF (Investor Compensation Fund).
- Access to the proprietary Plus500 trading platform.
b. Professional Account.
This account type is also known as the Plus500 gold account.
The Plus500 professional account has all the features of the Plus500 retail account except for the Investor Compensation Fund (ICF) feature, with the addition of only a few more features.
You will only be able to access a Plus500 professional account if you meet 2 of the following 3 requirements:
- Have a high volume of trading activity within the last 12 months.
- Have €500,000 or more to invest.
- Be experienced within the field of financial services.
Note – the Plus 500 professional account is only available to clients in the EU or UK.
Asking about the leverage available for use in this account type?
The leverage available with the professional account goes up to 1:300.
Frequently asked question about Plus500.
Do you possess a professional account forever or can you change to a different account type?
If you wish to downgrade to a Plus500 retail account, contact the Plus500 client support.
c. Islamic Account.
This is a swap-free account.
It is available for Islamic traders that follow sharia law.
With this account, there are no interests paid or received.
Traders must verify their eligibility of being Islamic to get this account type.
So how much money do you need to deposit to your Plus500 trading account to begin trading?
The minimum deposit in Plus500 varies depending on the deposit method.
Below are the variations:
- Bank transfers require a minimum deposit of 500 USD or 500 EUR.
- Credit or debit cards have a minimum requirement of 100 USD or 100 EUR.
- E-wallets require a minimum deposit of 100 USD or 100 EUR.
Your Plus500 trading account can be maintained in one of the various base currencies.
Every major currency is available to be used as a base currency.
If you haven’t already noticed it, the broker tries to match your base currency to that of your country.
If you need to change such currency, contact the Plus500client support.
Simply put, Traders in South Africa will have their Plus500 accounts maintained in ZAR.
Similarly, traders in Singapore will have their Plus500 trading account maintained in Singapore Dollar.
Deposits and Withdrawals.
It is not rocket science to fund your Plus500 trading account and withdraw funds from the same account.
Accepted methods for deposits, which double up to be the same methods for withdrawal, include:
- Credit or Debit cards.
- Skrill (from 2nd deposit only).
- Bank transfer.
From the range of payment methods presented above, the methods of payment available to you do not depend on the jurisdiction, but the country you live in. Deposits don’t attract any fees.
Note that Bank transfer deposits may attract a fee, not from Plus500’s side, but rather from your bank.
Note also that if you deposit an unsupported base currency, you will incur a small conversation fee to convert such currency to a tradable base currency.
The third thing to note is that you cannot withdraw in any name or payment method which is not yours.
The deposit and withdrawal process is usually very fast but can take 1-3 days depending on the method.
How long the withdrawal takes depends on the withdrawal method used and the banks involved.
Lastly, and also worth noting.
All client funds are segregated in a separate Bank Account. This is as required by ASIC’s regulations for trading CFD providers.
It is not that costly to trade with Plus500. The broker actually charges no commissions.
They only charge spreads and a few other fees such as the overnight, inactivity fee, deposit, withdrawal, and conversion fees. See the details of each cost below:
Spread is the difference between the bid and the ask prices.
When users trade the financial instruments offered by the online broker, the broker makes money from the spreads.
Now, Plus500’s spreads are very competitive compared to those of other local Forex and CFD brokers.
Here is another thing to note.
The Plus500 broker offers variable spreads with some assets, while other financial instruments are offered with a dynamic spread.
Overnight fees are charges for long-term asset holding.
In Plus500, if you hold an asset in a position overnight, you are charged a fee depending on the asset in question.
Plus500 charges $10 USD if you don’t use your account for 3 months.
This is what we call an inactivity fee, which is a fee charged for the lack of use of a trading account over a stipulated period.
Deposit and Withdrawal fees.
Deposits and withdrawals are usually free.
However, your bank may charge a fee for a bank transfer.
Additionally, you may be charged a fee if you exceed a given number of withdrawal or deposit operations.
If you deposit an unsupported base currency, you will incur a small conversation fee to convert such currency to a tradable base currency.
As far as client support is concerned, Plus500 client support can be reached via the following channels:
- Live chat.
Plus500 offers multi-lingual support on all channels, which is comprehensive with timely responses.
Live chat is available 24/7 with chat supported in 16 different languages.
Client support is available in several languages via email.
Although the Plus500 client support is great, one concern is their lack of immediate contact.
There is no direct phone line and so clients with pressing issues are unable to make fast contact with the broker.
Are you afraid of handing your money to some shady broker?
Does it matter to you whether a broker you wanna trade with is registered and regulated or not?
It’s not just about being registered, but do you care who registers and regulates your broker?
If your answer to all of those questions is yes, then good for you. Plus500 doesn’t disappoint.
And here are the regulators which keep Plus500 in check:
- Plus500 is registered as Plus500 Pty Ltd by the Australian Securities and Investments Commission (ASIC) in Australia under License Number AFSL #417727.
- Plus500 is also registered as Plus500uk Ltd by the Financial Conduct Authority (FCA) in the United Kingdom under License Number FRN 509909.
- Another Plus500 regulator is the Cyprus Securities and Exchange Commission (CySEC), where Plus500 is registered as plus500cy LTD under License Number 250/14.
- The Monetary Authority of Singapore (MAS) has also registered Plus500 as Plus500SG under License Number CMS100648-1.
- Plus500 also has a derivatives License in New Zealand under License Number FSP #486026 and operates in South Africa under License Number FSCA 47546.
Plus500 offers its services on: –
- MetaTrader 4 (MT4).
- And Plus500 Platforms
MetaTrader 4 (MT4).
MT4 is a product of MetaQuotes that has been in use for so long, hence become so popular in the trading world.
It offers a wide range of analysis tools and is easy to use.
It is also possible to automate trading using MT4 by using the coding language provided by the MT4 provider, MetaQuotes.
Plus500 own trading platform.
This platform is compatible with PC and mobile-based trading (Android and iOS).
The broker also offers its platform as a web trading platform, allowing users to access their accounts from anywhere.
The platform has all the key information required to trade on a single screen.
This is useful for beginner and intermediate traders because all the critical information needed to make a trade is on display.
Unique CFD Trading Platform.
One striking feature of Plus500 is its Mobile CFD trading platform.
The platform’s clean and uncluttered interface makes it fascinating to beginner traders.
However, expert CFD Traders used to other platforms such as MetaTrader 4, MetaTrader 5, and cTrader may find this too restrictive.
That is so because the platform offers no option to use features such as an API feed and advanced charting, among other features.
Generally, the Plus500 platform is great for those looking for just the data that matters, not those experts who require advanced features.
Plus500 CFD trading can be done on mobile devices including android and iOS and offers:
- Cryptocurrencies (except UK traders due to the FCA ban on crypto-assets).
Wondering what range of markets are there to trade on Plus500?
Plus500 offers CFDs on over 2000 financial instruments, including Shares, Forex, Indices, Cryptocurrencies, Commodities, ETFs, and Options.
Find the details below:
This is the foreign exchange market for trading currencies.
When referring to CFD Forex trading, we refer to the exchange of one currency for another at an agreed exchange price.
The Forex market is the largest market in the world.
At Plus500, you can trade CFDs on most of the world’s most popular currency pairs.
Shares are also known as stocks or equities.
They are units into which a company’s capital is divided for investment and ownership purposes.
When trading CFD Shares, you would enjoy all the benefits of having an interest in the price movement of the share, without having to physically own it.
Plus500’s trading platform allows you to trade through CFDs the world’s most actively traded shares.
Stock indices are statistics that reflect the composite value of a group of stocks.
The stocks listed within an index bear similar characteristics such as trading on the same stock exchange, being in the same industry, having comparable market capitalizations, and the like.
World-leading Indices are available for trading through CFDs at Plus500.
Cryptocurrencies are digital currencies that generally use a decentralized network of control called blockchain technology.
Conventional currencies are issued and managed by central banks, unlike crypto.
At Plus500, you can trade CFDs on some of the world’s most popular Cryptos such as:
- Bitcoin – the world’s first cryptocurrency.
- Bitcoin Cash.
The pricing of cryptocurrencies is derived from specific cryptocurrency exchanges, and their value is denominated in US dollars.
Commodities are hard assets ranging from wheat to gold to oil, and as there are so many, they are grouped together in three major categories:
Just like the price of any other physical commodity like sugar, the prices of commodities change on a weekly or even daily basis.
The world’s key commodities are available for trading through CFDs at Plus500.
Exchange-Traded Funds (ETFs).
ETFs are funds that track indices and commodities.
The ETF replicates the indices and the commodity markets’ performance.
At Plus500, you can trade through CFDs on some of the world’s most popular ETFs.
Options are contracts through which a seller gives the buyer the right, but not the obligation, to buy or sell a specified number of units of the underlying asset at a predetermined price (Strike Price) within a set time period (by a stated expiry date).
The buyer has an option to buy (Call) or sell (put) the underlying asset.
The factors that determine the price of an Option include, amongst others: the difference between the current price and the strike price.
At Plus500, you can trade through CFDs Options at various strike prices that are the most relevant to the underlying index rate.
Leverage is simply defined as the use of money borrowed from the broker to amplify your trading power.
Plus500 only offers a maximum leverage level of 300:1.
So what is wrong with a leverage of 1:300?
While such leverage may be enough for an intermediate trader, an expert would find this too restrictive as other providers offer levels of more leverage.
On the positive side though, Plus500 offers negative balance protection.
This means that a trader’s losses won’t exceed their deposit, regardless of market conditions.
The Plus500 platform will exit the trader when they reach their margin call, and any additional losses will be paid by the broker.
Apart from negative balance protection, the broker also provides other risk management features which include:
- Stop-loss orders.
- Trailing stops.
Did something about Plus500 strike you?
Do you want to invest in the trading world with the broker?
Do you want to change from your current broker to Plus500?
Well, if you weren’t satisfied with Plus500 features, be sure to find and read other broker reviews on this site before making a choice.