Best Binary Options Broker!
Perfect For Beginners!
Free Trading Education!
Free Demo Account!
Good Choice For Experienced Traders!
Beginner’s Guide to Plus500: Complete Review
Plus500 is an industry leader providing contracts for difference (CFDs) and trading facilities for Crtyptocurrency, forex, shares, ETFs, commodities, indices, and options.
All trading instruments on Plus500 are leveraged. The trading platform comes from Plus500UK Ltd, and the company takes multiple steps to secure client funds and ensure a seamless user experience. Currently, Plus500 has more than 2,000 instruments in its portfolio.
Plus500 At a Glance
|Regulation||FCA (UK), CySec (Cyprus), ASIC (Australia), MAS (Singapore), FMA (New Zealand)|
|Minium Initial Deposit
|Asset Coverage||Crypto, Indices, Forex, Commodities, Shares, Options, ETFs|
|Leverage||30:1 Retail Accounts & 300:1 Professional Accounts|
|Trading Platforms||Proprietary, Web, Mobile, Windows Desktop,|
Plus500UK Ltd is based in the United Kingdom and has its offices in London at 78 Cornhill in EC3V 3QQ.
- The Financial Conduct Authority (FCA) authorizes and regulates Plus500UK Ltd to offer CFDs with FRN 509909.
- Plus500UK Limited is registered in Wales and England (with company number 07024970).
- Plus500UK Ltd itself is a subsidiary of Plus500 Ltd, which is listed on the Main Market for Listed Companies of the London Stock Exchange and has its headquarters in Haifa.
Read about the FCA regulations for Contracts for Difference here.
Around the world, Plus500 is regulated by other agencies.
- Plus500CY Ltd is regulated and authorized by the Cyprus Securities and Exchange Commission with license number 250/14.
- Plus500AU Pty Ltd has AFSL # 417727, which the Australian Securities and Investments Commission issued.
- The Monetary Authority of Singapore provided Plus500SG Pte Ltd (with UEN 202022211Z) a capital markets services license allowing it to deal in leveraged foreign exchange trading and securities, with license number CMS100648-1.
- Plus500SG Pte Ltd additionally holds a Commodity Broker’s License with license number PLUS/CBL/2020 from Enterprise Singapore.
- Plus500IL Ltd is licensed to operate its trading platform and registered in Israel.
By trading with a regulated company, such as Plus500, clients know that they trade using a reputable and reliable platform within an environment that is regulated. Clients are also protected by stringent regulations and rules.
Where Can You Use Plus500?
Plus500 is offered in more than 50 countries. Additionally, it is possible to use the platform in more than 30 different languages, allowing clients to trade and learn in their native language.
Clients of Plus500 have the responsibility of reporting and paying taxes according to their local laws. Certain countries also require Plus500 to withhold tax at the source.
History of Plus500
The founding of Plus500 took place in 2008. Over the years, it has achieved several key milestones. The same years as its founding, Plus500 Group launched its online trading platform that was PC-based.
In 2009, Plus500 Group offered CFDs on shares without any commissions.
Best Binary Options Broker!
Perfect For Beginners!
Free Trading Education!
Free Demo Account!
Good Choice For Experienced Traders!
In 2020, it launched the web-based version of its trading platform, which opened up the ability to trade online to those who use Linux, Mac, or smartphones. This was also the year that Plus500 added ETFs to its trading portfolio.
By 2020, Plus500 Group had more than 2 million transactions every single month. This year saw the launch of the very first iPad and iPhone app to give clients complete control on the go. This was followed by Plus500 becoming the highest-rated CFD trading app within the Apple App Store. Also in 2020, Plus500 increased its international portfolio with more than 1,000 different stocks from global markets.
The Android smartphone and tablet application from Plus500 Group arrived in 2020, which is also the year that Plus500 Group made the goal of becoming the top CFD trading company in the world.
In 2020, Plus500 Group went public in the London Stock Exchange’s AIM section. This is also when Plus500 made history by introducing the first Bitcoin CFD to the world.
On Feb. 26, 2020, the Plus500 Ltd market valuation on the London Stock Exchange AIM section reached $1 billion USD. This year also saw the introduction of Plus500’s Guaranteed Stop facility.
In 2020, Plus500 became a sponsor for Atletico de Madrid football club, the Spanish champions. A Windows mobile application was also added to the offerings this year.
In 2020, Plus500 introduced rollover functionality, added CFDs for options, and launched its new Web Trader, which is compatible with both mobile and desktop devices.
In 2020, Plus500 Group made a sponsorship deal with the 2020 Super Rugby Australian Conference Champions, the “Plus500 Brumbies.”
So far in 2020, Plus500 Ltd has gotten its ordinary shares listed for trading on the Main Market for Listed Companies of the London Stock Exchange and joined the UK FTSE 250 index for leading mid-cap listed companies.
Goals of Plus500
Plus500 strives to increase the trade volume of active customers by focusing on delivering a best-in-class user experience, innovation, and a range of offerings.
The emphasis on innovation also helps Plus500 work toward this goal. Plus500 additionally wishes to increase its market share in the current jurisdictions and expand its offerings into new jurisdictions.
The focus in this respect is on acquiring new customers within regulated markets, particularly Western Europe.
Another goal of Plus500 is to continue being a leader for research and development and innovation, both of which have been priorities for the company since its inception.
Finally, the broker wants to continue optimizing its operating model to drive financial performance. Thanks to the proprietary technology from Plus500, it is possible to enter new geographies without having to be physically present within those markets.
This means that Plus500 does not need to expend as much capital to enhance its geographic reach.
What Instruments Can You Trade on Plus500?
Plus500 supports trading of forex and CFDs, including indices, cryptocurrencies, commodities, shares, options, and ETFs.
In total, there are more than 2,000 trading instruments available via Plus500. There is a complete list of the trading instruments on its website via the Trading Instruments button on the main navigation bar.
At the time of writing, this list included 27 indices, 65 forex pairs, 20 commodities, 10 cryptocurrency pairs, and 81 ETFs.
Options are divided into popular options plus 23 other categories, such as Germany 30, Alphabet, and USA 500. Shares are divided into popular shares and those from 21 different countries.
Those with a strong interest in cryptocurrency will be interested to know that the supported cryptocurrency pairs on Plus500 include ETH/BTC, BTC/USD, BCH/USD, LTC/USD, ETH/USD, NEO/USD, IOT/USD, XMR/USD, XRP/USD, and EOS/USD.
As such, there is support for pairs that involve Bitcoin, Ethereum, Bitcoin Cash, Litecoin, NEO, Ripple, IOTA, Monero, and EOS.
You can learn more about each instrument on the Plus500 platform by going to the Details tab for a given instrument while on the platform. Keep in mind that the listed details can change.
This is where you will find such information as the minimum trading size for a given instrument, its trading hours, its leverage, and margin requirements.
How Do You Trade with Plus500?
To open a position on Plus500, go to the Trade screen on the platform. Select your chosen instrument and then click Buy/Sell. This will open a popup box that displays the position screen.
Here, you can see the rate or price and select the size of the trade. This is also where you will see the value of the position as well as the margin required to open your trade.
Here, you will be able to set Stop Orders for risk management. The rates are updated constantly based on market movements until you click the Buy/Sell button.
Image from Plus500, For Example Purpose Only.
To set a Trailing Stop order, go to the position screen of the Plus500 platform. From there, click on Advanced.
You will see a box for Trailing Stop. Tick it then set your chosen pips requirement for the stop to activate.
Plus500 offers four types of Stop Orders, including Trailing Stop Orders, Guaranteed Stop Orders, Close at Loss Orders (Stop Loss Orders), and Close at Profit Orders (Stop Limit Orders).
Image from Plus500, For Example Purpose Only.
To close a position, go to the Open Positions tab or go to the main screen. From there, just select Close Position. This will give you a popup box that asks you to confirm or cancel the request.
Alternatively, you can partially close a position via this popup box. If you cannot close a position, confirm that it is currently during the trading hours for the given instrument.
It is also possible for instruments to be temporarily unavailable for trading if a market event restricts the price feed. These events can include extreme volatility, underlying market suspension, or illiquidity, among others.
Image from Plus500, For Example Purpose Only.
What Else Should You Know about Trading with Plus500?
Traders should note that certain trading methods are prohibited according to the Plus500 user agreement, including hedging, an automated data entry system, and scalping, or trading that is considered insider trading or another type of market abuse.
If you participate in prohibited trades, Plus500 has the right to void trades and close your account.
It is also important to know that it is not possible to lose more money than you have in your account. Plus500 offers a Margin Call to avoid this issue. Margin Calls are when Plus500 closes any or all of your open positions if your equity drops below the requirement for a maintenance margin.
You can prevent this from happening by monitoring your balance and always ensuring you have enough funds. You can also request notifications if your account equity is approaching the maintenance margin value to further avoid this issue.
Margin Trading on Plus500
Trades on Plus500 are done with margins, so it is important for traders to understand the margin calculations.
Keep in mind that the margin requirements, both for initial and maintenance margin levels, vary for each financial instrument. Plus500 offers simple instructions for these calculations in its FAQ section.
The initial margin is the opening position price times the trade size times the initial margin percentage. The maintenance margin is the opening position price times the trade size times the maintenance margin percentage.
Plus500 Demo Accounts
Plus500 does offer a demo account, which is fully risk-free to use, as you cannot lose any money while using it.
Demo accounts are free, and you can select this type of account during registration. When the process prompts you to “Select Account Mode,” choose “Demo Mode.” The only difference that you will notice between a real money and demo account is that in the demo account, you do not actually trade with real money.
Everything else, from the market conditions to platform setup, is identical.
Image from Plus500, For Example Purpose Only.
To help you get a feel for the platform and trading CFDs and forex, Plus500 will automatically reinstate the initial amount in your demo account if the balance drops lower than 200 EUR or its equivalent.
There is also no time limit for the demo account, a feature that sets Plus500 apart from many competitors. Conveniently, it is possible to switch between your demo and real money accounts.
This lets you hone your skills on more complicated trades or strategies in the demo account while investing real money in the real account. The option to switch between account types will appear on the app menu or on the main platform screen.
Plus500 Account Types
Plus500 recommends that clients only open a single trading account and the company reserves the right to close any subsequently opened accounts.
However, it does assess each case individually. If Plus500 allows for an additional trading account, clients cannot transfer funds between the accounts in question and they must operate independently.
Note that with Plus500, you will only find individual trading accounts as corporate or company accounts are not offered.
Plus500 Account Verification
To allow for security and identification, clients of Plus500 must verify their accounts. This includes verification of name, residential address, date of birth, email address, phone number, and payment method.
To verify your phone number, go to your Account page and click on “Verify Account.” Next to “Verify your phone,” select “Verify,” enter your phone number without your country code, and click either “Call my phone” or “Send me an SMS.” Your phone will receive a three-digit code that you should then enter into the screen on your account page.
To verify your Plus500 account, you may need to provide documentation for both proof of identity, proof of address, and verification of your funding source. Proof of identity comes via a government-issued ID that contains an identity number, a photo, your full name, your date of birth, and the date of expiry.
Your proof of address should display your full name and address. A utility company, financial institution, judicial authority, or government agency must issue it. The options include internet bills, TV services bills, phone bills, tax letters, gas or water bills, electricity bills, bank statements, credit card statements, and tax letters.
To upload the documents, go to your Account page and select “Verify Account” or “Upload Documents.” You can also do this via the mobile application.
If at any point in the future you need to update the account details, you can do so by contacting Plus500. When you do so, note what information needs to be changed and the reason for the change. Plus500 will review your request and let you know if additional documentation is necessary.
PLus500 Payment Methods
Depending on the type of payment method you use with Plus500, you may need to submit additional documentation to verify that the payment method in question is in your name.
If you deposit by credit or debit card, you may need to upload a scan or photo of your card, a document from the bank, or your credit card statement. In the case of a bank transfer, you may need to upload a photo or scan of proof of payment or a bank statement. For Skrill and PayPal, Plus500 undertakes online verification within several business days or immediately.
In most cases, Plus500 will cover any payment processing fees associated with deposits. There are rare situations when you may incur a fee associated with transferring money into or out of your Plus500 account, but those are not from Plus500; they are from your bank or payment issuer.
Those situations include when you use an international credit card and the transaction is processed via a foreign acquirer, in the case of incoming or outgoing bank transfers, and in the case of forex conversions if you deposit a currency that the selected payment method does not support.
The only deposit fees that Plus500 will charge you itself would be if you exceed the maximum monthly withdrawals.
Most of the services from Plus500 come with no commissions or fees. There are zero fees from Plus500 associated with deposits, real-time forex quotes, live share CFD prices, opening or closing trades, rolling positions, or dynamic charts and graphs. Instead, the company makes its money from the bid and ask spreads.
Even so, Plus500 can offer some of the tightest spreads within the industry, a qualification that is based on its own internal monitoring.
You can view the Plus500 spreads yourself by logging into your account, searching for the instrument you are interested in, and clicking on the (i), which is the details icon. From there, scroll to the info section, and you will see the spread.
In some cases, there may also be a few additional fees from Plus500, each of which depends on trading activity. There are fees for overnight funding, with the amount subtracted from or added to the account when you hold a position past a certain time.
If you choose to use a guaranteed stop order to minimize risks, you get the guarantee that a position closes at your specified rate. In exchange, the spread is wider than it is with a typical order.
Additionally, Plus500 charges an inactivity fee of up to $10 for accounts who do not log into the trading platform for at least three months.
As expected from a broker, Plus500 offers an economic calendar on its website. You can view yesterday, today, tomorrow, this week, or a specific date range you prefer.
The data on the economic calendar comes from Dow Jones. For each event, you will see the time, country/currency impacted, the title of the event, the related instruments, and the percentages for actual, forecast, and previous.
At the top of the economic calendar, you can also switch the view to a corporate events calendar. This will show you the time and day of the event, as well as the name and quantities with sections for cash, fiscal, and dividends.
Risk Management Tools
Because trading CFDs and forex includes a high amount of risk, Plus500 offers a range of tools to help keep that risk to a minimum.
The first of these is the ability to set a Close at Profit (Limit) or Close at Loss (Stop Loss) order. You can set these levels when opening new positions or editing existing ones. This type of risk management lets you set a rate at which point you will close your position automatically, protecting your profit or minimizing your loss for Close at Profit and Close at Loss orders, respectively.
Keep in mind that this type of order does not guarantee that the position closes exactly at your specified price level. Slippage may occur if the market price experiences a sudden rise or fall, which would lead to your position closing at the next price that is available.
This risk management feature is free of charge and locks in profits while limiting losses.
Guaranteed stops are similar but place an absolute limit on the potential loss. Even in cases when the instrument price moves against you significantly, the position will automatically close at the price you specified, and it can never include slippage.
Guaranteed stops are only offered for certain instruments. If it is, you will see a checkbox for a Guaranteed Stop after you select “Close at Loss.” You cannot add a Guaranteed Stop to an existing order; instead, you must place it on a new pending/position order.
You can also only activate or edit it when the given instrument is open for trading.
There is not the option to remove an active Guaranteed Stop order, which is something you could do with a Close at Loss order. Guaranteed Stops come with an additional spread charge and this is nonrefundable but clearly displayed before you place the order.
To successfully place the order, your Guaranteed Stop level must be a predefined distance from the instrument’s current trading price. Although the spread for a Guaranteed Stop is larger, it limits your risk and lets you know your maximum loss ahead of time.
Another risk management strategy from Plus500 is a Trailing Stop, which lets you lock in profits. Trailing Stops let your order stay open for as long as the instrument’s price remains in your favor.
The order automatically closes when the price changes direction and passes the number of pips that you specify. Essentially, a Trailing Stop makes it possible to place Close at Loss orders that automatically update as long as the market moves in your favor.
The Close at Loss order gets activated when the market moves in an unfavorable direction. There is not a guarantee that using a Trailing Stop will close the position at the exact level of the Close at Loss due to slippage. This feature is also available free of charge.
Alerts for Traders
To help traders minimize their losses and make trading decisions, Plus500 offers the ability to set up a range of alerts. Alerts are free and simple to set up, and you can use them on all devices.
You set up alerts via the main trading screen by clicking on the alert icon, which is shaped like a bell. You can also view, remove, or edit your alerts via the Alerts tab that is on the application menu. To set up an alert, you start by selecting the alert icon next to the instrument you want an alert for.
You then specify the details of the alert you want, including values, and will automatically get a notification in real-time when those conditions are met. Your alerts can be sent via push notifications, email, or SMS messages.
Price alerts will inform you the moment that an instrument reaches the sell or buy price that you specified. Change percent alerts will notify you when the absolute price of an instrument changes (either positively or negatively) of a certain level.
You can set these up to recur daily or monthly. Finally, Traders’ Sentiments alerts will automatically trigger if the percentage of sellers or buyers (among Plus500 customers) hits a certain level.
You set a percentage for buyers vs. sellers that you prefer. This last alert is unique and allows for a small element of social trading.
In addition to trading alerts, Plus500 also offers a range of notification options. Users can choose to receive these notifications via push, email, or SMS.
Via the main platform, set up notifications by going to your Account and then clicking on Notifications. Via the application, go to Menu, then Price Alerts, and finally, Notifications. You can get notifications when your account equity approaches the maintenance margin value as a way to prevent a margin call.
You can also set up notifications for each time you open or close a position. Just keep in mind that as these are only notifications; you must actually log into the account to perform any actions or to accurately monitor your accounts.
Is Plus500 Safe?
Plus500 takes extra measures to ensure that client funds are always protected. One of the most important steps toward reaching this goal is holding client funds on a segregated basis, as this follows the client money rules of the Financial Conduct Authority.
Additionally, Plus500 UK Ltd relies on its own money for any hedging, never using client funds for this. Plus500 UK Ltd will not pass client money to hedging counter-parties or initiate speculative positions within the market. Plus500UK Ltd also has no exposure to sovereign or corporate debt and does not invest money that belongs to retail clients.
Because Plus500 is regulated and authorized by the FCA, client funds are protected under the Financial Services Compensation Scheme (FSCS). This protection becomes useful in the unlikely event that Plus500 ceases trading or becomes insolvent. As clients from Plus500UK Ltd would have “investment” claims, the coverage from the FSCS would be £50,000 per person and per firm.
Plus 500’s Security and Privacy Features
The team do not give out an extensive amount of information on their security protocols but do state that they employ a variety of methods to maintain the integrity of their platform, and these include the use of Secured Socket Layer (SSL) encryption.
Due to the nature of the platform’s services, Plus500 handles large amounts of sensitive data such as personal identification documents, and credit card and bank details, and all data submitted into the company’s website or platforms is encrypted during the process of being transmitted which greatly hinders the possibility of client data being intercepted and misused by malicious actors.
The login process is also further secured as Plus500 also provides authentication through Google and Facebook in addition to implementing 2-factor authentication (2FA). This involves users being prompted to confirm the ownership of their accounts by using a unique confirmation code that has been sent to their email, mobile phone, or phone application.
The code expires after a few minutes, and requires the person logging into the account to have access to the linked email address or mobile phone which receives the verification code, this greatly reduces the possibility of user accounts being hacked and works in conjunction with standard user ID and password procedures.
It’s also worth noting that when using 2FA, users should make sure to back up and store their 2FA keys securely offline. In the event of losing access to a smart device or needing to reboot a phone, it will prove much easier to restore the original settings or app once the device is back in operation rather than to have to contact the broker and pass extensive identity checks.
The process of transferring funds to and from the platform is also subject to various security mechanisms, and while depositing cash is generally quite straightforward, wire transfers can take up to five days to clear.
Also users must head to the “Funds Management” section in their accounts, and click on “Deposit” and then select “Wire”. From here, clicking on the “Send me Wire Details” tab will result in Plus500 emailing the client the wiring details directly.
The email will contain all the necessary details for wiring funds to the platform’s bank and also includes the minimum and maximum deposit amount requirements for wire transfer.
When it comes to making withdrawals, in keeping with regulatory requirements, every customer is required to provide an official photo ID such as a passport, national identity card, or driver’s license before being allowed to take out their funds.
Finally, with regards to client funds, Plus500 stores all client funds in segregated bank accounts, does not invest the funds of retail clients, and instead, uses its own reserves for hedging.
Finally, in the event that Plus500 needed to file for bankruptcy, the Financial Services Compensation Scheme (FSCS) in the UK would cover each client’s losses up to the amount of £50,000.
How Suitable is Plus500 for Beginners?
As an industry leader in providing contracts for difference (CFDs) and leveraged trading, Plus500 naturally attracts a lot of attention and has over 2,000 instruments in its portfolio.
These include cryptocurrencies, commodities, Forex, ETFs, options, indices, and shares, with all trading instruments on Plus500 being leveraged.
As a result, the platform is not suitable for beginners as the practice of CFD trading is more advanced than traditional trading, and leveraged trades can result in greater losses than may have first been calculated.
CFDs are derivative products and by nature, take or derive their value from the value of another asset or security.
For example, a gold CFD will follow the price movements of gold, and if the price goes up, so does the CFD’s value. CFD trading is essentially using contracts to “bet” on whether a financial asset will increase or decrease in value, and when trading in this way, you do not actually trade with the real underlying financial asset. This means that cryptocurrency CFD traders do not actually purchase the cryptos being traded, this can act as a positive or negative with coin ownership seen as being an important aspect of buying cryptocurrencies.
Again, anyone wanting to make a bet on an increase in the price of Bitcoin can choose a BTC CFD, and when the price of Bitcoin increases by a particular percentage, the price of the BTC CFD will increase by the same percentage, with the gain being the price difference in Bitcoin, illustrating why CFDs are named Contract for Difference.
While CFDs can appear to be exciting financial instruments, they are inherently risky and are best left to experienced traders. Beginners should avoid them as they involve large amounts of research, and expertise related to limiting leverage and choosing the correct trade positions. Once again, it’s important to remember that CFDs are leveraged products and can result in significant losses.
However, Plus500 incorporates a range of features that may appeal to more experienced traders and these include a proprietary trading platform which allows traders to operate in multiple markets from the same screen while also providing technical analysis software and real time quotes for all of its products.
The trading platform can be accessed as a web based version as well as a downloadable desktop version, and the mobile app versions for iOS, and Android smartphones allows users to log into their accounts while on the move.
In addition, the platform is available in 32 languages with 24/7 email support and live chat functionality. However, there is no telephone support, which can prove problematic for anyone whose internet service goes down or computer crashes while trading, and needs to be walked through a specific problem.
Plus500 also incorporates a range of alerts and notifications, with email, SMS and push notifications all available, and users can set up alerts based upon price changes and buyer/seller sentiment changes.
Transparent portfolio and fee reports are also provided which clearly state the overnight fees charged, as well as your current portfolio status.
Alongside this, the platform’s charting tools and economic calendar are useful; however, Plus500 lacks any real variety of research tools and there are no analyst recommendations or fundamental data that allow users to keep an eye on promising assets and conduct more in depth research.
There is also no market news or daily technical analysis, and the platform also places little emphasis on providing educational resources for its clients. There is a complete lack of trading articles, blog posts explaining key markets, training videos, or supplementary resources anywhere on the website.
This highlights the fact that the service offered by Plus500 is aimed at more advanced traders who already know how to source good information and/or have developed a skill set that does not require any significant changes.
Having said that, the demo account can be opened for free, has no time limit and can be used to practise and fine tune a variety of trading strategies.
This is valuable as trading on margin is a high risk activity and does not suit all types of traders, with operating on leverage accentuating the possible outcomes.
Anyone who is still unsure of their trading capabilities should spend a considerable amount of time learning about CFD trading and testing out strategies before moving on to open a live account.
Plus500 Customer Support
In most of the jurisdictions where you can use Plus500, the platform offers 24/7 support via email and chat.
Most questions will be answered via the FAQ section, which has a search bar and categories for Account Verification Process, Deposits, Fees & Charges, Financial Instruments, Opening an Account, Regulators, Submitting Financial Documents, Trading, and Withdrawals. Many of the FAQ answers also include videos to show you the platform.
If you do not find the solution to your issue on that page, go to the left side of the FAQ page below the categories.
Here, you will see a button for emailing customer support and a button to start the online chat. You can get to the FAQ page in the first place via the Company tab on the main navigation bar or by clicking the floating button on the bottom right corner of the page that says “24/7 Support.”
Plus500 is a regulated broker with offices in London and more than 2,000 instruments available for trading. You can trade via Plus500 via your web browser or via its mobile application. This broker focuses on CFDs and forex, offering cryptocurrencies, indices, commodities, forex, shares, options, and ETFs.
The platform is well-designed and fairly straightforward to use and includes 24/7 customer support. It is available in a long list of countries and in 30 languages, helping Plus500 appeal to a range of traders.
It should be noted that CFD trading, especially using leverage is not something for beginners. You should have a strong knowledge foundation of how the markets work and carry out thorough research before beginning. We recommend you take advantage of the demo account first which will give you $40,000 of play money to test the system.
The fact that Plus500UK Ltd is regulated by the FCA is a huge plus and it will give you peace of mind that this trading platform operates correctly within the laws of the United Kingdom. The Plus500 Ltd company is also listed on the London Stock Exchange, which again should go towards reassuring you that this is a large a legitimate company to deal with.
Plus500 Review: Complete Beginners Guide
If you are a CFD trader then you most likely will have heard of Plus500.
Plus500 is a leading provider of Contracts for Difference (CFDs). The platform offers a comprehensive product line which includes shares, Forex, commodities, ETFs, options and indices.
However, is Plus500 safe and can they be trusted?
In this review we will take a look at some of the most important aspects that you will want to consider before you open an account and start trading. We will also give you some top tips in order to make the most of your Plus500 trading experience.
CFD Service. 80.6% lose money
Based in the UK, Plus500 UK Ltd aims to provide its users with a secure and efficient multi-asset service that is on par with the top CFD providers operating in the sector.
Plus500 has been dealing with CFD’s since its launch in 2008. The Plus500 cryptocurrency trading platform is offered by Plus500UK Ltd which is a subsidiary of Plus500 Ltd; a company which is listed on the Main Market of the London Stock Exchange
The team behind Plus500 prides itself on professionalism and transparency and strives to provide a platform that is fully compliant with all the necessary financial regulations and procedures.
Plus500 UK Ltd is authorised and regulated by the British Financial Conduct Authority (FCA) with a licence number of 509909. This means that UK traders will have a number of client protections that we will go over below.
The company is a rapidly growing CFD provider and currently provides access to a portfolio of over 2000 instruments; Plus500 allows its users to trade in Forex, stock indices, individual equities, commodities, ETFs and cryptocurrencies.
Plus500 was also one of the first brokers to introduce a Bitcoin CFD in 2020. The Plus500 group has more than 2,000,000 monthly transactions and in 2020 the Plus500 Ltd listed on the AIM, a section of the London Stock Exchange.
Plus500 provides a comprehensive multi-asset platform that is aimed at traders around the world, the team behind Plus500 aim to attract users by building a reliable, secure and easy to use platform that is accessible to traders in a number of different locations.
As mentioned, Plus500 is regulated by the UK’s Financial Conduct Authority. This means that the company had to comply with a number of requirements as outlined in UK law before they would be allowed to provide such services.
These rules are put in place by the FCA in order to protect traders and consumers should they want to trade with these instruments. Below are a few of the requirements that a CFD broker must comply with:
- Substantial Capital Reserves: Brokers will usually have to have a certain amount of funds in order to meet minimum capital reserve requirements. This is done in order to make sure that there is never a shortfall in a period of market stress
- Segregated Client Accounts: All client funds must be kept completely separate from those of the primary broker. This ties in with the point above around reserves.
- Extensive Broker KYC: The FCA will conduct an extensive review of the broker’s operation which includes their employees and senior directors
What does this mean for the trader though?
It means that you have a number of protections in the case of broker liquidation or trouble. The Financial Services Compensation Scheme (FSCS) will cover traders in the event of broker bankruptcy up to GBP 50,000. This means it acts very much like deposit insurance in banks. Below is a list of some of the client money protections that are afforded by Plus500:
- All client money is held in segregated client bank accounts in accordance with the Financial Conduct Authority’s client money rules
- Plus500UK Ltd uses its own money for hedging, it does not use client money for this purpose
- Plus500UK Ltd does not pass client money through to hedging counter-parties
- Plus500UK Ltd does not initiate speculative positions in the market
- Plus500UK Ltd has no exposure to corporate or sovereign debt
- Plus500UK Ltd does not invest the money of retail clients
This is indeed quite an advantage to using a CFD broker over a more traditional exchange. Traditional cryptocurrency exchanges do not have the client protecting regulations that you have from an FCA regulated CFD broker.
The website is available in a wide variety of different languages (32 to be exact). We have already gone over the UK operations of Plus500 but they also have numerous local companies in other jurisdictions around the world.
These authorisations help open up the platform to traders in a number of different locations including, Europe, Asia, Africa, and Australasia. Plus500 is authorised to offer their services in other countries through the following subsidiaries:
- In Europe through Plus500CY Ltd which is authorized & regulated by CySEC (#250/14)
- In Singapore through Plus500SG Pte Ltd, licensed by the MAS (#CMS100648-1) and IE Singapore (#PLUS/CBL/2020)
- In Australia through Plus500AU Pty Ltd (ACN 153301681), licensed by ASIC in Australia, AFSL #417727
- In New Zealand by the FMA with FSP #486026
- In South Africa by the FSP with FSP #47546
Plus500 is a popular destination for CFD traders as it offers a range of products that cover Forex, ETFs, indices, commodities, and shares.
Tradable instruments available on the platform include popular indices such as the S&P 500, DAX 30, and FTSE 100, and stocks and shares from some of the world’s top companies like Google, Barclays, and Vodafone.
Forex trading pairs involving EUR/GBP and EUR/USD are also available, while established commodities like Gold, Silver and Crude Oil can also be traded on the site by speculating on the Buy and Sell price movements.
In addition, the following cryptocurrencies are also available to traders:
Cryptocurrencies are almost available for trading 24/7 as there is a small window on Sundays between 13:00-14:00 GMT when they are not available.
By using the Plus500 cryptocurrency platform, traders have access to BTC/USD, ETH/BTC, BCH/USD, ETH/USD, LTC/USD, XRP/USD, IOT/USD, XMR/USD, EOS/USD and NEOUSD trading pairs.
Plus500 strives to limit its fess as much as possible and does not charge commissions on any of its trades; the platform seeks to benefit from the spread of each of the various trading instruments available.
The spread is the difference between the amount paid for an asset like Bitcoin (BTC) and the amount you receive when you sell it back.
For buying and shorting there is a different set of metrics, for example when buying using BTC/USD, the spread per unit is $65, and the premium buy is -0.048%.
Unlike other CFD brokers and exchanges, they will not charge you based on any commissions. However, there are other fees that may apply.
Plus500 also utilizes a “Premium” or overnight fee, which is either added or subtracted to/from your account whenever a position is left open after a certain time (the “Premium Time”). This is standard practice amoung CFD providers.
However, there is a non-standard charge in their inactivity fee. This is essentially a fee that is levied on the trader if they do not use the platform for a period of 3 months. The charge is rather small at only $10 but you merely have to trade at least once in the three month period to avoid it.
Lastly, there may be additional fees that may apply for guaranteed stop orders. These are essentially order levels that Plus500 guarantees will get executed at once the price reaches that level. In order to compensate for the broker risk with these orders, the spreads may be slightly larger.
Plus500 Customer Support
When you are using a company the size and scope of Plus500 you can be certain that you will be getting professional standards of support from the team.
A dedicated customer support team is available 24/7 and clients can contact Plus500 support representatives via an email-based ticketing system, or engage in an online chat session that is available on the platform.
In addition, there is a comprehensive FAQ section to help deal with the most common customer queries.
Customer support is available in 16 languages and agents aim to respond to customer queries as quickly as possible, response times can vary greatly depending on how busy the platform is.
There does not seem to be any direct telephone number into their support team which may be a disadvantage for some traders. However, we found that they are really responsive to their online tickets as well as emails.
Plus500 will also generally cover all of the fees that are applicable to processing the payment. There are rare occasions where an additional charge by your bank or an intermediary financial institution will charge a fee.
Payment & Withdrawals
The Plus500 platform offers a number of different methods of depositing funds and payment processing options such as Visa, MasterCard, Wire Transfer, PayPal and Skrill are all supported. In order to make a deposit, users must navigate to funds management, deposit, select the desired deposit option, and then click submit.
Deposit and withdrawal facilities are easily accessible to users in regulated jurisdictions and it’s necessary to make withdrawals by using the same payment processing option that was selected when depositing funds. It is also necessary to provide ID when processing payments.
In terms of payment times, this will usually depend on where your bank is located. If it is in Europe then a SEPA payment should clear within a few hours. The same can be said for a bank that is located in the UK.
However, if your bank is outside of the UK or Europe, then the wire will be sent as a SWIFT payment. These usually take between 3-5 business days and can be quite frustrating.
Given that Plus500 is a CFD broker and does not hold physical cryptocurrency, they are not targets of hackers. In terms of personal funds on the exchange, you should feel comfortable with the protections afforded by the FCA.
However, there are some other client protections which you may take comfort in. One of those is negative balance protection. This will ensure that your account can never be margined into negative territory. Hence, you will never be held liable for a negative balance.
If you were worried about personal security procedures, Plus500 employs Secure Sockets Layer (SSL) encryption to ensure that user connections remain stable and secure. They also have two factor authentication when you are logging into your account.
Plus500 Demo Account
If you are a new trader and you wanted to get a sense of how to trade CFDs on Plus500 then it would make sense to give their demo account a try. This is available to all new traders who have created an account with the broker and would like to practice in a non-threatening way.
In order to use the Plus500 demo all you have to do is register a trading account with a valid email and password. Once you have confirmed the email then you are ready to start trading. A demo account will give you access to all of the same functionality that you will have on a live account.
Plus500 will also give you demo funds to trade with. These allow you to get a sense of how to size your trades and manage your risk without having to lose actual money. Once you are confident of your ability on the demo and would like to trade for real then you can move onto a live account.
In order to create a live account you will need to make a minimum deposit of $100. This minimum deposit is broadly in line with most of the regulated CFD providers and it should give you a reasonable idea of how live trading works. If you are only funding $100 then you may want to make minimal trade sizes in order to protect avoid margin calls.
Before you can fund your account you need to make sure that it has been verified (more below). Once verified you can deposit into the account using one of the methods that we have mentioned above. For such a small amount it probably makes sense to use a payment card.
It is also important to note that moving onto the live account does not mean that you cannot access your demo account anymore. You can easily switch between your live and demo account on the main trading dashboard.
Given that Plus500 is a broker that is regulated by the UK FCA as well as a number of other regulatory bodies, they are required by law to conduct Know Your Client (KYC) on their potential traders.
Hence, when you create live account at Plus500 you are required to submit documentation to confirm your identity as well as your place of residence. These can be accessed through the “Upload documents” section in your account.
There are a number of documents that they will accept for these purposes. For identity documentation they will accept a government issued ID document that shows your picture, ID number, date of birth, full name and expiry.
There are also a range of different documents that they will accept as proof of address. These include banking statements, utility bills, tax correspondence or a phone / internet bill.
Plus500 will also ask you some general questions on your source of funds, income and trading history as is required by the FCA.
Plus500 Trading Platform
Let’s take a look at some of the most important features that have been touted by them. We took the time to individually verify all of these claims on the website. We also delved into the important terms and conditions to make sure that traders were protected.
Plus500 utilizes proprietary software that provides its users with a clean and intuitive interface and trades across multiple markets can be initiated from one screen.
Users can easily switch between different trading positions and Plus500 also provides live streaming quotes of financial assets. In addition, up-to-date charts and educational resources help enhance the trading experience.
Below is a screenshot of the Plus500 web trading platform. As you can see, it is quite intuitive and relatively easy to operate. All of the most important information is immediately available without having to switch between different menus.
There is also the option to expand the chart should you wish to crack out the technical analysis tools. On that point, the platform has the basic charting package with a number of typical indicators and studies.
There is also the option to place the pairs on a watch list that will alert you of particular price points being reached. These will either be emailed to you or pushed via the mobile application. There are also a number of different order types such as stop losses and limit orders.
For those individuals who would like to trade assets other than cryptocurrencies, then they can make use of the handy economic calendar. This is presented below and gives an overview of the most important Macro announcements coming for the week.
When trading CFDs on leverage, it is really important that you are using a trading platform that is able to respond quickly to orders. This is because botched orders can severely impact your profitability in the long run.
Given that Plus500 is a CFD broker, they do not operate order books like traditional cryptocurrency exchanges. When you place an order it will be met by the broker on the opposite side as the market maker. This will be driven by the Plus500 server architecture and trading engine.
We ran some test on the speed of the engine and how quickly orders were executed. There was no issue at all as the orders were executed in a mere matter of seconds. The fastest order execution time happened when we were trading on the desktop client.
Given that Plus500 is a CFD broker, you will be trading Contracts for Differences. These are derivative instruments that get their value off of the value off an underlying asset (eg Bitcoin).
The profit or loss for the trader is calculated according to the difference between the spreads in the price of an asset between the open and close of the day.
CFDs are also leveraged instruments. This means that your position will usually be much larger than the amount of money that you have to contribute to the trade. This is called the “margin” that you will have to fund your account with.
For example, if the margin requirement at a broker is 5%, this means that you will only have to place 5% of the value of the trade initially. This also means that the leverage on your account is 20:1. In other words, if there is a 1 point move in the price of Bitcoin, your position will move by 20x that.
This leverage is what makes CFDs attractive to traders. However, leverage is a double edged sword as it can also magnify your losses. It is important to make sure that you have adequate risk management in place in order to avoid downside loss if a trade moves against you.
In terms of the leverage levels and margin requirements at Plus500, the maximum leverage is 1:30.
Risk Management Tools
While Plus500 will call these “Risk Management Tools” these are really just a collection of order types. They are orders that when placed will help reduce the risk of open orders and help you take profit or reduce loss.
These are available to you when you are placing your typical orders on the platform. Let us take a closer look at some of these order types or risk management tools.
Close at Profit / Loss
These are your typical Limit / Stop Loss orders. You will place them if you want to lock in a guaranteed profit or if you would like to limit your loss with a losing position. These are available free of charge on Plus500 with all trading accounts.
When you are setting these in the order form, you will need to select the rate at which you would like to take profit / stop loss. While you are adjusting these prices, Plus500 will give you a handy indication of how what percentage that is on your entire position (for relative profit).
It is important to note, however, that these levels are not gauranteed. If there is a situation where the market price were to gap passed your levels then it is possible that it would either execute above or below your desired level. This is a well know phenomenon in trading and is called “slippage”. You can avoid this by placing the next type of order.
If you wanted more certainty around your stops then you could place what is called a “guaranteed stop”. As the name may suggest, this order will guarantee you the level that you have placed the order at. Even if the market were to gap you would get executed at this level.
There are trade-offs however…
You will have to pay extra in terms of spreads over a standard stop loss order. It can also only be used for stop losses (no take profit). It is only available on certain instruments and it can only be used on new orders and not added to existing orders.
Setting a guaranteed stop is quite similar to setting a standard stop. When you are placing the order you will set it a certain percentage away from the market price. There is a certain minimum predefined percentage that you can place these stops at.
Trailing stops are great risk management tools. This is because they are dynamic and will change according to the current market price. They will effectively follow the price of the asset or “trail” it. The advantage of this is that you can participate in as much upside as you like while still having a certain level away from the price that you can lock in a profit.
So, for example, if you have a trade on the EURUSD and you set a trailing stop of 5 pips this means that as EURUSD moves up by 10 pips then the stop will as well. The stop will still be 5 pips away from the actual level but it will have moved. If the price falls you will have locked in a profit above your entry point.
Setting a trailing stop is free of charge and can be selected in the standard order form. It is important to point out that this is not a guaranteed stop and if their is a significant gap in the price of the asset it may not get filled. It maybe makes sense to also set a guaranteed stop somewhere below this.
While the Plus500 trading platform is quite an advanced piece of technology, they also have programs which you can download and run on your PC. These tend to have much more functionality than the simple web based traders when it comes to charting and technical analysis tools.
This is available on Windows 10 and Windows 8.1. There are a number of advantages that come with using a trading program directly on your PC. These are mainly related to the speed with which it operates and orders are executed.
When you launch a PC trading application you are running directly on your computer and not through your browser. Hence, the PC resources are used more effectively and it can increase your user experience.
Unfortunately for those Mac users, Plus500 does not have a MacOS version of their computer client.
For those traders who are on the go, there is the option to download and use the mobile application. This is available on both iOs and Android versions.
Mobile trading is not for everyone as you tend to forego a great deal of the trading and analysis functionality that you have on the web and PC based trading platform. They are more useful for you to monitor your positions or execute emergency trades.
Taking a look at some of the Plus500 reviews on the Google play store as well as on the iTunes store, there are a wide range of opinions.
Many traders had suggestions for improvement such as increasing the range of the charts as well as the excessive memory usage of the app. This could reduce instances of the app freezing or crashing.
To the credit of the Plus500 support staff, they responded to every single review and tried to assist those traders that had specific questions or concerns. They had also forwarded the development requests to their technology teams so one can hope that these will be attended to soon.
Plus500 Affiliate Program
If you are one of those traders who has your own website or blog then there is an opportunity for you to refer some of your readers to Plus500. This is through well known affiliate program at Plus500 where they will partner with you and offer commissions based on your referrals.
These commissions are fixed per trader that you recommend and are some of the highest in the industry. For example, they have commissions per trader of up to $700. These of course will depend on where the trader is located and what sort of products that they will be trading.
However, unlike the referral fees that you will earn at other brokers and exchange, the Plus500 affiliate commissions are paid irrespective of the amount that the trader is trading. They are earned the moment that one of your referrals makes a deposit of any amount.
In fact, Plus500 has earned the award of having the best Forex affiliate program in 2020, 2020 and 2020. You can read all of their testimonials on their affiliate website.
So, how do you go about being a Plus500 Affiliate?
Given that Plus500 is a fully regulated broker, they require all of their affiliates to abide by the relevant CFD marketing laws. Unlike other exchanges and brokers they have to make sure that you are promoting their brand in an ethical and legal way.
They also will want to complete KYC on yourself as well as the site before they will accept your referrals. They will ask you to send them a list of websites and blogs that you would like to promote.
First, you will complete a registration form on their affiliate website. You will then get contacted by an affiliate manager as well as the compliance department. Once you have completed the relevant KYC checks and they are satisfied, you will be cleared for promotion.
Promotional Materials & Monitoring
Unlike many exchanges and brokers that merely accept your referrals, the Plus500 affiliate program has a range of materials and resources that you can use to best promote their brand. These include numerous pre-approved banners, videos and widgets that you can insert on a website.
Plus500 also has a pretty advanced backend affiliate system where you can monitor your traffic as well as who has signed up and funded an account. This will allow you to best tailor your marketing effort and refine your approach.
Plus500 Affiliate Payments
Given that Plus500 is a regulated broker that is listed on the LSE, you can be pretty certain that they will pay their affiliate commissions. These are paid out to the affiliates of Plus500 on a regular basis and can be paid via either wire payments, Skrill or even PayPal.
We have not seen a broker that has paid affiliate commissions via PayPal which no doubt is one of the easiest options. Unfortunately, they do not offer payments for commissions in crypto.
They also offer you the chance to promote the Plus500 affiliate program to others. If you do this you will get 10% of the commissions that your referral pulls in. Unlike some exchange affiliate programs, you are only entitle to the commissions of the referral directly below you.
There are a number of advantages when trading cryptocurrencies on the Plus500 platform. Members can be confident when using the secure and efficient interface that allows for rapid trade execution and also offers a host of options related to margins and leverages.
The site employs to notch security, with fraudulent transactions and hacks being extremely infrequent. Moreover, the protections that are provided to the trader through the FCA regulations cannot be discounted.
However, there is a lack of resources for new traders and there is also no telephone support available. It is also important to note that plus500 is a CFD broker which means that you will not own the underlying cryptocurrency but a derivative on it.
Hence, the people who wanted to buy cryptocurrency and then withdraw it from the exchange may be disappointed to learn that they cannot do this with Plus500.
However, for those traders who wanted to trade cryptocurrencies and numerous other assets on leverage, then the Plus500 CFD platform would meet their needs.
We would encourage traders to do their own research but based on the available information, it seems you can’t go wrong with Plus500.
Plus500 general information
|Founded in:||2008 year|
|Offices in the country:||Australia, United Kingdom, Cyprus|
|Minimum Deposit:||100 $|
|Deposit currency:||USD, EUR, GBP|
|Mobile trading:||iOS, Android, Windows Phone|
|Types of offered accounts:|
- Web-based platform
- Guaranteed stop loss
Plus500 Forex broker description
Plus 500 is an online forex trading company with its headquarters in Israel. Plus 500 was established in 2008 and over the years it has been able to establish its name as among the most credible brokers globally. Its global presence has further been facilitated by it having a lot of subsidiaries worldwide I various countries.
For one to be able to trade with plus 500, you will require a trading account that you will sign up for in the plus 500’s online platform. The firm has two trading accounts which are the demo account and the standard trading account. All of these accounts have been specially designed to meet the individual needs of the various clients who have or want to trade with plus 500.
The Plus 500 Demo Trading Account
The demo trading account just as the name implies is a trading account that will allow you to demonstrate and learn the key skills in trade execution in forex trading. The demo account has been designed to meet the needs of traders who have little or no experience in trading and want to know of the concept of trading and how it is carried out. The demo account will help one in learning step by step how to trade and also the various conditions of trading. As a bonus, one will be able to execute trades but will not incur any losses as they will use virtual funds.
The Standard Trading Account
The standard trading account is an account type that has been designed to meet the needs of all traders signed up to plus 500 irrespective of skills or knowledge. In other words, this account type is one that is suited for all persons that want to trade with plus 500. Among the features of this account type include:
- Access to a wide range of trading instruments from cryptocurrencies, indices, commodities, and shares.
- Leverages of up to 1:300.
- No commission is charged at all.
- Fast execution speeds.
- Negative balance protection.
- Has the stop loss order.
The Company. Security Of Funds.
Plus 500, as earlier indicate is an Israeli owned firm that has vast experience in the forex trading sector having been around for almost a decade. This has put it in a position to be able to produce well-crafted products to its many clients in terms of favorable trading conditions in the foreign exchange sector. Due to this favorable terms, it has been able to amass a lot is scores of clients worldwide and has expanded to have offices and subsidiaries in other countries such as the United Kingdom, Cyprus, Singapore and Bulgaria among many others. This influx in clients from differ parts of the globe have brought the need to incorporate many different languages to cater for them and these include English, Chinese, French, Danish, Arabic, and polish among many other languages. This is to enhance the communication of all clients with interest in the product.
With client satisfaction being their priority, it would not be a surprise to note that plus 500 have invested in a very professional workforce that is dedicated to serving their clients to the uttermost. The staff ensures that any issue put forward by any customer is sorted out and will also occasionally offer advisory services to the clients. This is evident in the plus 500 customer reviews and comments that is full of praise to the operation mode of this firm.
Pus 500 is a credible and legitimate firm that has all its operational licenses valid and in order. This is further boosted by its listing in the prestigious London stock exchange. It has valid operation licenses from the following regulatory bodies:
- A valid operating license from the United Kingdom’s financial conduct authority (FCA).
- The Cyprus Securities and Exchange Commission (CySEC) has licensed pus 500 in Cyprus.
- A valid license from the monetary authority of Singapore (MAS)
- A valid license from Israel’s Israel securities authority (ISA).
- A license from Australia’s Australian securities and investment commission (ASIC).
In keeping up with the set regulations from the regulatory authorities, plus 500 has put up some strict measures to guarantee the safety of clients’ funds bestowed upon them. Among the measures put across include:
- Use of segregated bank accounts away from the company’s funds.
- The company uses its own funds for hedging.
- No exposure to sovereign or corporate debt.
- Does not invest the funds of retail clients.
No commissions are charges at all while trading with plus 500.
Best Binary Options Broker!
Perfect For Beginners!
Free Trading Education!
Free Demo Account!
Good Choice For Experienced Traders!