In this guide, we will review Plus500, a brand owned by Plus500 Ltd, which specializes in providing online trading services for contracts for difference (CFDs) through its unique trading platform accessible via the internet and various electronic means.
Established in 2008, this Israel-based firm has expanded its operations through multiple subsidiaries across Europe and Asia-Pacific, ensuring compliance with the necessary regulatory bodies.
During the Plus500 broker review, we found that similar to other CFD brokers, Plus500 does not permit U.S. traders to engage in these contracts; however, American clients do have the option to trade futures with the company.
Introduction to Plus500 Review
Plus500 Ltd (PLUS.L) is a publicly traded company on the London Stock Exchange (LSE) and is part of the FTSE 250. Plus500UK Ltd., based in the City of London, is regulated by the Financial Conduct Authority (FCA #509909). The parent company, Plus500 Ltd., is located in Haifa, Israel.
This broker provides clients in over 50 countries with a wide range of CFDs on various instruments, including forex, stock indices, individual stocks, commodities, ETFs, options, and cryptocurrencies (availability may vary based on regulations). Plus500 was the pioneer in launching a Bitcoin CFD back in 2013.
Additionally, they offer options CFDs across multiple markets, allowing you to speculate on the future prices of the underlying assets, with the key difference being that these are cash-settled rather than traditional options.
Plus500 Pros and Cons
Pros
Plus500 trading platform gives clients in over 50 countries access to a wide range of CFDs, including forex, stock indices, individual stocks, commodities, ETFs, options, and cryptocurrencies (availability may vary based on regulations).
Their trading platform is user-friendly, allowing you to set up watchlists, analyze charts, and easily place and track your trades.
Plus500 trading platform is regulated by the FCA, a major regulatory body in the U.K. known for its strict standards that ensure fair market practices for both individuals and businesses. Being backed by a respected government agency boosts the firm’s credibility.
They offer guaranteed stop-loss orders on certain instruments, which help protect traders from market gaps, although this comes with a wider spread depending on market conditions.
In this Plus500 broker review, we also want to talk about the negative balance protection, as required by ESMA rules for all CFD brokers, meaning clients can’t lose more than what they have in their accounts. Unlike many other non-U.S. brokers, Plus500 does accept U.S. clients, but they can only trade in futures.
Cons
Plus500’s customer support is pretty basic, only offering online chat and email assistance. This is a big downside since there’s no phone number available, even for sales questions.
Besides +Insights, their special tool for checking out other traders’ behaviour, the platform doesn’t provide much in terms of research, whether it’s in-house or from outside sources.
For advanced traders who like to use third-party analysis and automation tools, this platform might not cut it, as you can’t integrate any of those tools directly with WebTrader. Plus, there’s no option for back-testing either.
Plus500 Costs
In the brokerage industry, Plus500 primarily makes its money from customer trades using the “bid/ask spread,” which is competitive with other firms. Unlike others, Plus500 doesn’t charge commissions for trades. The spread is fixed regardless of trade size but applies to each unit traded.
Plus500 also earns money by charging fees for trades held overnight. If you trade in a currency different from your account’s main currency, you might face a currency conversion fee. There are extra fees for using “guaranteed stop loss orders,” and an inactivity fee is charged if your account is idle for three months.
Traders with experience can qualify for a “professional” account, which offers up to 1:300 leverage for certain trades, without additional costs compared to a regular account.
Plus500 is known for not having hidden fees. There are no charges for withdrawing funds or closing an account. The minimum required to start trading depends on the instrument.
You can add funds to your account using Visa or MasterCard credit/debit cards, e-wallets like PayPal or Skrill, and bank transfers. U.S. clients have the option to use Google Pay and Apple Pay as well.
Trading Experience with Plus500
WebTrader, Plus500’s own trading platform, delivers a smooth and accessible trading experience across various devices like Windows PCs, web browsers, smartphones, and tablets.
This user-friendly yet powerful interface allows you to create watchlists, analyze charts, and manage your trades effortlessly. The technical analysis charts come packed with a variety of indicators that can be applied across different time frames, from tick charts to weekly charts. Plus, you can set alerts for price changes and trade sentiments.
The platform also supports extended trading hours. However, it’s worth noting that Plus500 doesn’t offer the widely-used MetaTrader 4 (MT4), which many traders prefer for its added functionality and customization options.
One of the standout features of Plus500’s WebTrader is its intuitive design, making it easy for both new and experienced traders to navigate. Users can choose from over 2,000 instruments, analyze them on customizable charts, and execute trades with just a few clicks, all in one window. Plus, the option for two-factor authentication adds an extra layer of security when logging in.
On the downside, Plus500 operates as a closed system. Advanced traders who like to use third-party analytical and automation tools will find it limiting, as these tools cannot be integrated directly into the platform.
Range of Offerings with Plus500
Plus500 gives you the chance to trade over 2800 CFDs from a variety of asset classes, such as:
- Indices (both country and sector)
- Forex
- Commodities
- Individual stocks
- ETFs
- Options
- Cryptocurrencies (availability may vary based on regulations)
The call-and-put options CFDs available on Plus500 function like standard options traded on exchanges, but the key difference is that they are settled in cash. You won’t have the option to exercise the trade on the actual underlying asset.
Plus500 Review | Customer Service
Plus500 has rolled out a Live Chat feature on its website, adding to its already available 24/7 WhatsApp chat and email support. However, one major downside is that they don’t provide a phone number for inquiries, even for sales.
So, if you have questions, you’ll need to reach out via chat or email, both of which are available around the clock. On the bright side, Forexinfohub found that they responded to chat and email inquiries within just a few minutes, which is pretty quick. Just keep in mind, that there’s no option for in-person help at local offices.
We gave their email support a shot. When we asked about the average spreads for EUR/USD and USD/JPY, their response was a bit odd since they didn’t want to share that info. Plus500 claims their revenue comes from the spread, so it seems like they should have this data available for potential clients, unlike some of their competitors. Their email reply was:
“We can’t supply the data you’re requesting. These two FX pairs feature a spread that adjusts according to market conditions. We add a bit extra to this market spread, which serves as the primary way we earn for providing our services.”
Education
Plus500 has some handy resources to kickstart your journey into CFD trading on their platform. They run a Trading Academy that features a bunch of educational tools like eBooks, video guides, webinars, and FAQs, making it easier for both newbies and seasoned traders. New users will find a detailed guide particularly useful.
On top of that, they provide risk management tools and keep you updated with market news. Plus500 also has a legally required “Key Information Document” (KID) that breaks down the essentials of each trading instrument and the risks involved.
This document includes a summary of commodities, cryptocurrencies (availability may vary by regulation), ETFs, forex, indexes, options, and stocks. Overall, while Plus500 is a good platform and offers a decent range of educational content, it’s a good idea to look for additional resources elsewhere, especially considering the risks tied to CFD trading.
Plus500 Portfolio Analysis
You can get basic, real-time info about your account like balances, transaction history, and profit/loss details, but there’s no tool for deep analysis of your trading activity.
There is a +Me feature that helps traders evaluate their strategies and keep tabs on their trades. However, Plus500 doesn’t offer a trading journal or a tax accounting tool on the platform.
Research Amenities
Plus500 has this cool feature called +Insights that lets clients keep an eye on what other traders are up to. You can check out what others are trading, filter through different instruments, and even make trades, all from one convenient page.
However, aside from +Insights, the research options are pretty basic, with no original articles or videos from the broker. They do offer some handy tools like economic and earnings calendars, plus a section for news and market insights.
On top of that, Plus500 has customizable charts for traders to do their technical analysis on any instruments they’re interested in. They also have a “Traders’ Sentiment” indicator that reveals what percentage of Plus500 clients are buying or selling a particular instrument, along with a “Live Statistics” feature that shows how the instrument is performing over 5-minute, 60-minute, and 1-day intervals.
Plus500 Security
The company operates as a principal and manages its risk by hedging with its parent company, which helps to avoid market risks and significant losses.
While Plus500 doesn’t offer extra deposit insurance, it is registered with the necessary regulatory bodies across Europe and the Asia-Pacific region:
- Plus500UK Ltd is regulated by the Financial Conduct Authority (FCA #509909).
- Plus500CY Ltd is regulated by the Cyprus Securities and Exchange Commission (License No. 250/14).
- Plus500AU Pty Ltd has AFSL #417727 from ASIC, FSP No. 486026 from the FMA in New Zealand, and is an Authorized Financial Services Provider #47546 from the FSCA in South Africa.
- Plus500SEY Ltd is regulated by the Seychelles Financial Services Authority (License No. SD039).
- Plus500SG Pte Ltd (UEN 201422211Z) has a capital markets services license from the Monetary Authority of Singapore for dealing in capital markets products (License No. CMS100648-1).
- According to the U.K. FCA’s client money rules, Plus500 must ensure that client funds are kept separate from corporate funds, protecting client money and assets in case of insolvency by holding those funds in segregated accounts at regulated banks.
- If Plus500 were to default, clients could receive compensation for any shortfall of funds up to £85,000 through the Financial Services Compensation Scheme (FSCS).
Plus500 also provides negative balance protection, as required by ESMA regulations that started in 2018, ensuring clients can’t lose more than what they’ve deposited in their accounts.
Guaranteed stop-loss orders are available for certain instruments based on market conditions, but they come with a wider spread.
There’s a timer that will log users out of both the web and mobile apps if they’re inactive for a while.
Conclusion
Plus500 trading platform is designed for traders who prefer a straightforward interface for executing trades without the complexities of advanced features. The broker offers competitive spreads, helping to keep trading costs down, and its proprietary WebTrader platform is user-friendly. Additionally, clients in the U.K. benefit from the added security of regulation by the Financial Conduct Authority.
However, the absence of MT4 as an alternative platform and the lack of auto-trading options may deter technically inclined traders. Plus500 may also pose challenges for beginners due to the intricacies and risks associated with CFD trading. Nevertheless, seasoned investors who favour manual trading might find the trade-off of reduced costs appealing.