Plus500 review: Are they worth the hype

Plus500 review
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Trading CFDs can be quite rewarding and risky too. And depending on what you’re looking for, it’s important to go for a broker that is committed to seeing you win. While there are tons of CFD brokers out there, one broker that has been getting a lot of attention in recent times is Plus500. Today’s review will take you through everything you need to know about this unique broker. Let’s jump right in, shall we

What is Plus500?

Plus500 has been around for a while and getting a lot of attention for the right reasons. To start with, this London-based stock exchange-listed CFD broker is popular for a lot of reasons. While it was launched in 2008 in Isreal, it has become hugely successful and established its service across different countries around the globe. 

Unlike many brokers we have on the market today, Plus500 is regulated by several international institutions, including some of the world’s most renowned financial institutions like the UK’s Financial Conduct Authority (FCA) and the Australian Securities and Investment Commission (ASIC)

Many investors love Plus500 because it is a listed stock exchange broker. More so, the company is regulated by some of the most renowned financial authorities. As if that’s not enough, the broker is also lauded for publicly disclosing its finances. 

Pros and cons of Plus500

There are many amazing things to love about Plus500 and some not-so-cool downsides we think you should know before deciding if it is the right broker for you. Read on for some pros and cons of Plus500. 

Pros 

Top Recommended Platforms

MIN. DEPOSIT

$250

EXCL. OFFER

USER RATING

9.8

4.9/5

73% of retail investor accounts lose money trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

MIN. DEPOSIT

$50

EXCL. OFFER

USER RATING

9.7

4.8/5

CFDs are complex instruments and carry a high risk of losing money quickly through leverage. 78% of retail investor accounts lose money when trading CFDs from this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

MIN. DEPOSIT

$250

EXCL. OFFER

USER RATING

9.3

4.5/5

CFDs are complex instruments and involve a high risk of losing money quickly because of the leverage effect. 65.3% of retail investor accounts lose money trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

  • Plus500 has an intuitive and clean user interface that makes the platform easy to navigate. So whether you’re tech-savvy or not, you should be able to find your way around the platform without sweating it. 

 

  • Signing up for an account on this platform is super easy. It takes only a couple of minutes for your account to be opened and verified. 

 

  • Plus500 has a very responsive customer support team. We particularly love that their customer support team is available 24/7 to respond to all your questions and complaints. 

 

  • They have a responsive and easy-to-use mobile app that makes it easy to track your assets and trades. 

 

  • Many traders have come to love Plus500 because of their wide support for various assets. 

 

  • Compared to other brokers on the market, many traders love this platform because they are regulated by some of the world’s leading financial institutions. 

 

  • Plus500 charges a reasonable trading fee compared to other brokers we have come across. If you’re looking for a broker with affordable fees, you won’t go wrong giving Plus500 a try. 
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Cons

  • What many traders have come to dislike about Plus500 is the fact that they only support CFDs. We sincerely hope they update their supported asset classes in the future. 

 

  • The research tools available on the platform are quite limited. So if you’re a trader who likes to spend a lot of time researching an asset before you invest, we are sorry you won’t like Plus500 as they are lacking in this area. 

 

  • Another area where Plus500 seems to be performing poorly is that they don’t support many educational tools. If you want a platform that provides access to a lot of educational tools, you’re welcome to give eToro.com a try. 

Who is Plus500 designed for?

If you’re looking for a stock broker that provides access to a wide range of financial markets, you’re sure going to love Plus500. What’s even more exciting about the platform is the low trading fee they offer. For traders who want a sleek and intuitive platform that makes it easy to invest in CFDs, you’ll fall head over heels with Plus500, as they have one of the most intuitive and practical user interfaces we have come across. 

With Plus500, you can trade over 2,000 CFDs and enjoy competitive spreads. The cool part is that you don’t have to worry about commission, as Plus500 doesn’t charge users any commission for investing in the assets available on the platform. 

If you’re just getting started with trading and looking for a broker that gives you an edge, you’ll find Plus500 worth checking out. 

Cost 

Like many brokers in the industry, Plus500 generates the bulk of its revenue from customers’ trades via the bid/ask spread. But what’s particularly unique about Plus500 is that they keep their fees competitive. And just so you know, this broker doesn’t charge traders and investors any type of commission on any transactions. Where Plus500 gets it right is the fact that their spread is stable with trade size by charging premiums. 

If you’re new to trading, it will interest you to know that premiums are a financing charge that comes from positions held overnight by clients. Also, keep in mind that premiums are sometimes subject to currency conversion charges, especially when trading currencies other than the preferred currency for the account being traded. 

And like is typical with most traders, Plus500 generates additional revenues from guaranteed stop-loss orders (GLSO) as well as inactivity fees for accounts that have been idle for at least three months.  

Traders on Plus500 can also qualify for a professional account. With a professional account, you enjoy higher leverages. The caveat, however, is that the costs are the same. With a professional account, investors can increase their leverage to as high as 1:300 for some instruments. 

What many users have come to love about Plus500 is that they don’t subject your account to ancillary fees. And yes, they don’t charge extra fees for withdrawals or account termination. The minimum amount you can trade with on Plus500 depends on the instrument you’re looking to invest in. 

Some popular funding options on the Plus500 platform include credit or debit cards, PayPal, bank transfers, and Skrill. 

Trading experience

Plus500 offers a streamlined trading experience via its signature WebTrader platform. What is especially unique about this platform is the fact that it is sleek, intuitive, stable and easy to navigate. And yes, the platform can be easily accessed via mobile phones, desktop computers/laptops, and even tablets. 

Using the Plus500 signature WebTrader platform, you can seamlessly create a watchlist, analyse charges, and place and monitor your trades. By leveraging the WebTrader technical chart options, you’ll be able to leverage different technical indicators you can apply to different time frames to predict market directions correctly. 

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Unfortunately, Plus500 doesn’t support the popular MT4 platform, which has become immensely popular with many traders. So if you’re looking for a broker that supports MT4 traders, you’ll find brokers like eToro worth trying. 

One of the most appealing features of the Plus500 WebTrader is that it is easy to use. More so, it spots a layout that most experienced traders can relate to. Thanks to Plus500, traders can choose from over 2,000 instruments to invest in. 

Placing trades on this platform is simple and only takes a few clicks. The only issue we have with this platform is that it is a closed system. Experienced traders who love to incorporate third-party analytical and automation tools will find Plus500 lacking as they aren’t allowed to integrate third-party tools. 

Another thing many traders don’t like about Plus500 is that they don’t currently support many of the special features you’ll typically get with other online CFD brokers. Also, Plus500 doesn’t support automated trading via expert advisors as well as other algorithms. The other not-so-cool thing is that they don’t provide backtesting functionality, which is a huge blow to traders who rely on this feature to give themselves an edge. 

With Plus500, you can’t manage third-party funds via PAMM or MAM, which makes the platform less appealing to many traders. What you simply get with Plus500 is a streamlined Webtrader platform and a trading app compatible with Android, iPhone, iPad, and computer devices. 

Plus500 supports guaranteed stops with some markets. That said, trading these options comes with increased spreads. More so, you can’t add it to previously traded opened positions. Using Plus500, traders can take advantage of three basic order types. These order types allow traders to set take profit and stop loss orders. More so, traders can choose between guaranteed and trailing stop options, depending on what works better for them. Here are some of the order types supported by Plus500. 

Market: This is one of the most popular order types available on Plus500. This order type ensures that your trades are executed at the prevailing market rate. 

Limit order: This is a pending order activated when the price hits traders’ preferred to ask or bid price. With Plus500, traders can have an option to choose the expiration time for this type of order. 

Stop order: A stop order is a type of order where the entry is set at a predetermined point either above or below the prevailing market rate, depending on whether it is a buy or sell position. And just like limit orders, traders can also choose the expiration time for this type of order. 

Plus500 supported asset classes.

As we mentioned right from the get-go, Plus500 provides support for over 2000 asset classes. Here are some of the assets supported on the platform: 

Note: The call and put options CFDs offered by Plus500 work pretty much similar to exchanged traded standard options. The only difference with what traders get with Plus500 is the cash-settled options. With this option, you don’t have a right to exercise the trade on the underlying asset. 

Plus500 mobile application

Plus500 has a dedicated mobile application with a lot of functionalities. While their dedicated mobile application is available for iOS and Android, it is also available on desktop. Using the Plus500 mobile app, traders enjoy exclusive access to all of the platforms’ product catalogues, including account detail, charts, indicators, conditional orders and more. 

Plus500 dynamic charts can be expanded to full-screen mode for better clarity during technical analysis. The mobile app makes it possible for traders to make deposits and withdrawals. 

Nonetheless, many traders will be worried about the lack of enhanced security measures, especially since a user can access a funded account directly from the mobile app. 

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Another not-so-cool thing with Plus500 is that traders can’t use the popular MT4 mobile application, which provides better functionality than the WebTrader option provided by Plus500. 

Customer services

Plus500 offer professional customer service via WhatsApp chat and email support. While their support team is available 24/7 to respond to your complaints and queries, it’s a shame that they don’t have a direct phone number customers can reach even for sales inquiries. 

Prospective clients have to rely on an email ticketing system or drop messages on WhatsApp chat if they need to lay a complaint or make enquiries.

Despite their limited customer service option, the good thing is that customers always get quick responses to complaints and queries submitted via their respective customer options. 

Education

With Plus500, investors have access to brilliant resources to get them started with CFDs. A good place to start is with their video series, “Trader Guide.” They also have a detailed ebook you can leverage to up your trading skills. 

In addition to their educational resources, this broker provides access to real-time market news and risk management resources. 

Another exciting thing about the Plus500 platform is that traders get access to one legally required “Key Information Document.” The document provides the basics of each asset available on the platform, along with risks. 

The KID provides a summary of information on cryptocurrencies, forex, CFDs, ETFs, commodities, options, equities, indexes and more. 

While Plus500 provides access to robust educational materials, getting extra materials is best, especially if you want to trade CFDs profitably. 

Security 

Plus500 acts as principal and hedges its exposure with the parent company. Its reason for this is to eliminate market risk and ensure it isn’t exposed to any type of material losses. Even though Plus500 doesn’t currently provide extra deposit insurance, its good to know that they are registered with the relevant regulatory bodies in Europe and Asia-Pacific region

​​As per U.K. FCA client money rules, Plus500 ensures that investors’ funds aren’t commingled with corporate funds. This helps protect clients’ investment in the event that Plus500 becomes insolvent. Another thing we love about the platform is that they ensure that investors’ funds are held in segregated accounts managed by banks. 

The platform also provides negative balance protection, which is also included in the ESMA rules that took effect in 2018. This rule ensures that investors cannot lose more than they have in their accounts. 

As mentioned earlier, Plus500 allows traders to use guaranteed stop loss orders on some instruments, depending on market conditions.

Plus500 also has a timer feature that automatically logs a user out of an account once they aren’t using it. 

Portfolio analysis

Plus500 provides basic real-time information about your trading account, including transaction details, available balance, and profit/loss breakdown. That said, they don’t currently have a built-in tool that allows investors to make detailed analyses of trading activities. Also, they don’t provide a trading journal or tax accounting tool. 

Our verdict 

Plus500 is a brilliant platform for traders looking to invest in CFDs without access to advanced functionality. Compared to other brokers, Plus500 offer a competitive spread, which keeps costs low. Also, their WebTrader platform is impeccable for traders who want to place trades without issues. 

In terms of security, Plus500 isn’t lacking and has integrated brilliant security measures to safeguard investors’ funds. 

Unfortunately, Plus500 doesn’t support MT4. Also, they don’t support auto trading. At this point, we would also like to add that Plus500 isn’t a beginner-friendly platform, especially because of the risk and complexity of CFD trading. 

Nevertheless, experienced traders will love Plus500, especially because of the many exciting features and functionalities they provide. 

 

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