Here Are the Pros and Cons

Plus500 Fact sheet

Plus500 is a UK LTD is a fully operating subsidiary of Plus500 Ltd, the headquarters company is based in Israel. Unlike other online trading brokers, Plus500 does not relocate its operations offshore as it's operating from the middle of Europe.

Therefore, Plus500UK Ltd is authorised and regulated by the Financial Conduct Authority (FRN 509909 The FCA directly supervises the activities of this broker and imposes hefty penalties in case of any violations of the set rules. That makes the broker obliged to abide by the guidelines of this legislation.

In addition to the local authoritative body, there are several regulators that authorize Plus500 to operate legally in other countries such as

• Cyprus Securities and Exchange Commission (CySEC) (Plus500CY Ltd is authorized and regulated by the Cyprus Securities and Exchange Commission (Licence No. 250/14))
• Australian Securities & Investments Commission (ASIC) (Plus500AU Pty Ltd holds AFSL #417727 issued by ASIC)
• Financial Markets Authority in New Zealand (FMA) (Plus500AU Pty Ltd holds FSP No. 486026 )
• Financial Sector Conduct Authority in South Africa (FSCA) (Plus500AU Pty Ltd holds A#47546 issued by the FSCA in South Africa)
• The Monetary Authority of Singapore for dealing in capital markets products (Plus500SG Pte Ltd (UEN 201422211Z) holds a capital markets services license from the Monetary Authority of Singapore for dealing in capital markets products (License No. CMS100648))
• the Seychelles Financial Services Authority (FSA) (Plus500SEY Ltd is authorised and regulated by the Seychelles Financial Services Authority (Licence No. SD039))

The broker also discloses the registry number of the license on the website, and after we checked these licenses, we found out that they are all active and valid documents. Therefore, we validated that the above-mentioned licenses are truly functional under the Plus500 name.

Additionally, the broker keeps the traders’ funds in segregated accounts. According to the requirements of the FCA, Plus500 has to use segregated accounts to keep the traders’ money safe from any default. 

If the broker files for insolvency, the traders do not get affected. Plus500 also does not use its clients' money for any hedging or for any speculative purposes, as the broker has their own money to use for hedging.

The fact that the broker is a sponsor for international football teams in Europe is a great trust factor. Teams like Atlético de Madrid (from 2015 until 2022), BSC Young Boys, Legia Warszawa. would never cooperate if the broker was sketchy. This can tell us that Plus500 is trusted by top international organizations in Spain, Italy, Poland, and Switzerland.

Global Partners

Plus500 is known for its global partnerships with different organizations. This way, the broker promotes its services across different regions. 

Major sponsorship with sports teams makes Plus500 reliable, taking into account that these football teams will only partner with a legit entity, indicating that Plus500 is trusted by global organizations.

Cooperating with top football teams from Spain (from 2015 until 2022), Switzerland, and Poland is a great indicator of the broker’s reliability and trust. Also, Plus500 partners with different financial newspapers like FX Empire, finanzen.net, and money.it to promote its service and reach those who are interested in financial news.

There is a huge variety when it comes to tradable products with Plus500. A trader with a Plus500CFD account can trade CFDs on Forex, Stocks, Commodities, ETFs, Options and Indices.

In total, there are more than 2800 securities. In every financial market, there is different maximum leverage allowed according to the regulations, and variable spread that can be as small as 0.00008 pips for the EUR/USD pair, we found that on average, spreads on EUR/USD is around 0.8 pips (info from 30/09/2022 12:54).

Executing market orders is straightforward, you can directly see the price changes of each financial asset once you click on it, and the broker predetermines the ground rules for placing any order such as minimum contract size, minimum tradable amount, and the max spread.

Forex

You can trade 66 currency pairs in the largest financial market. It is possible to execute orders with major, cross, or exotic currencies to maximize your gains. 

However, if you are not familiar with Forex trading, Plus500 will take you through the basics of currency trading until you become an independent Forex trader. The maximum leverage allowed is 1:30, which means that if you place a market order worth $3,000, you only need to invest $10, and the broker will lend you the remaining amount to give you 300 times the purchasing power.

Stocks

Trading shares is popular for those who are looking for a long-term investment, and Plus500 offers more than 1,200 stocks of international organizations from different countries. This huge variety of stocks includes corporations from the US, UK, EU countries, Australia, Japan, Hong Kong, and many other locations. 

This gives the trader a huge advantage of speculating on the economical development of different countries, then buying and selling shares of different companies.

Since there is no direct market access, Plus500 stock trading is done through CFDs which is a popular trading option. Trading on margin can be done using leverage up to 1:5, which means that you can turn a $100 investment into a $2,000 investment.

Indices

Trading indices might be similar to trading stocks, but some traders consider it a safer option. Plus500 offers 31 indices from different locations. You can find US indices, UK indices, and European indices, as well as the Cannabis stock index.

The Dow Jones and NASDAQ are among the most traded price indices, and you can execute market orders on any index using a maximum leverage of 1:20. 

Commodities

There are 22 commodities that you can trade, including the most commonly traded goods like natural gas and oil, as well as less traded commodities like cotton and sugar. 

Trading commodities became popular due to market volatility and rapid market execution using CFD contracts. You can trade with borrowed funds from the broker and maximum leverage of 1:20, which may change according to local legislation.

If commodity trading is something new for you, don’t worry, Plus500 will lead you through the best trading strategies for commodities, and will guide you on reading the commodity markets.

ETFs

Some traders prefer Exchange Traded Funds because they can be less risky. They include different assets in one basket, and these assets are usually taken from the same industry.

Plus500 enables you to choose from the top ETFs that are traded in global markets, such as SPY ETF and QQQ. Plus500 offers a wide selection of more than 80 ETFs.

Additionally, you can utilize Plus500 leverage of up to 1:5, which is a great way to improve your market position using this trading option.

Options

There are 400 options that you can enter and buy/sell a put or a call order, where you own the right to buy/sell an option at a price determined by you.

Since it is a relatively less offered asset on brokerage websites, Plus500 is reliable in guiding you from scratch until you excel at options trading. There, you can use leverage up to 1:5.

Plus500 uses simplicity in its offers. Therefore, you will find only one type of live trading account, besides the demo account. Some traders prefer having only one trading account because it makes it easier for them to choose.

Having one type of account makes it easier for the broker to focus on providing excellent trading services, where the commission system is the same for every trader on the website.

The demo account is a great way for traders to get started, and these two accounts include further details that we explain in the following.

Pros & cons of Plus500 account types

Live trading account

Plus500 focuses on its services and as such has only the type of trading account. You can start trading with a low minimum deposit requirement of $100, and tight spreads starting from 0.00008 pips (taken at 10:29 20.02.2022) for the currency pair EUR/USD. The accepted currencies in this account are USD/EUR/GBP.

Using this account, you have access to more than 2,000 financial assets to grow your capital while using leverage of up to 1:30. However, the maximum leverage can vary depending on your location and the jurisdiction of financial trading in your area.

There are no fees on deposits or withdrawals. Also, there are no trading costs every time you enter or leave the market. What’s more, traders will not see any rollover (swap) charges, which gives Plus500 a greater edge over other brokers.

The only way the broker earns money is through the spread. Plus500's spread is variable across the financial assets, and the broker offers one of the tightest spreads in the market, starting from 0.00008 pips (taken at 10:29 20.02.2022).

There is no direct market trading enabled with Plus500. You can only trade CFDs for all the 2,000 available assets and you can use the only trading platform offered, which is the Plus500 Webtrader platform. 

Demo account

The Demo account is a great help for every trader, and traders on Plus500 enjoy the additional benefits of this type of account.

When you start demo trading, you are given virtual money that you can use to practice trading, and once your balance drops to 200 Euro, the balance will be refilled automatically, to ensure you never run out of money. That way, you can always keep practicing your trading strategies. 

The Plus500 demo account has no expiration date, which means that you can use it as long as your account is active. 

When you register for the first time, you can start with a demo account or a live account, and it is possible to switch between these two whenever you want. If you start with a live account and discover that you need some practice, you switch to the demo account without a problem. 

However, if you decide to start with the demo account, you need to go through an application process similar to the one for the live trading account. You need to register your name and email address. Once you receive a verification link in your email you can log in to your demo account and start the simulation.

Getting started on Plus 500 - Main steps 

After deciding which type of account you want to use, you get to the next important step - The registration process. 

The process to register your live trading account takes more time than the process of the demo account, because here you are preparing to trade with real money. Without further ado, here’s how you get started.

Step 1: Register your account

Firstly, from the main page of the website select “Start Trading Now” and a new window will appear where you need to insert your email address and create a new password.

You will receive a link in your email inbox, check the email. Note that the email might end up in the spam folder. Click on the link to verify your registration process, you will be redirected to the broker’s website to complete the registration process.

Step 2: Introduce yourself

At this stage, you need to fill in information about your full name and make sure you write your name as it shows up on your ID. Also, you will be asked to insert your date of birth, country of residence, and address.

Make sure you provide the correct information, you will need to submit supplementary documents that verify the information you provided. Also note that the broker does not allow having more than one trading account, if you already have one and you are trying to register, your request will probably be rejected.

Step 3: Your experience

In this section you will be asked a few questions about trading, whether you have traded over the past few years, and how extensively. You will find questions about your experience in each financial market, and about the income that you generated from trading.

You need to answer these questions from the droplist shown with every question. This step is important because it will help the broker know about you, and to help you draw your expectations before you start trading. 

This way, the website may generate some recommended markets or trading hints that can help the beginner trader to get started.

Step 4: Verify your information

Before your Plus500 trading account becomes active, you need to submit some documents to verify your personal information. These documents include proof of your identity, like a copy of your national ID card, passport, or driving license. 

Also, you will be asked to provide documentation about your address, such as a scanned utility bill, or a bank statement with your home address. This step is important for both the broker and the trader.

It ensures that every registered account belongs to a legal physical person, not a scam scheme. Also, the website runs background checks to guarantee that it is clear of any financial criminals or blacklisted persons.

Finally, for the purpose of securing your account, you need to verify your phone number, you will receive a text message including a code that you need to insert, this way you can stay ahead of your account if anyone else tries to login in to your account.

Plus500 fees are simple and you can find a dedicated page to clarify every type of charge you will encounter. The spread is the only type of trading-related charge, while other types of fees include overnight funding, currency conversion fee, guaranteed stop order, and inactivity fees.

Plus500 has just one type of real trading account, considering the demo trading account does not have any fees, which makes it easier to understand the type of charges that take place.

However, we will go about the fees of the broker in detail. We will even discuss the ones that are waived by the broker, to learn how Plus500 handles these fees and how your account is affected.

Trading fees

There are no fixed fees every time you open or close a trading position in the market. Most brokers get their money from the spread, making the most out of the difference between the bid and ask price.

This fee is not charged separately, it is rather incorporated in the price at which you place your market order, whether you are executing a buy or sell order.

However, this does not mean that the broker adds a huge markup on the market prices. Plus500's spreads are some of the smallest spreads in the market starting from almost 0 pips on major Forex pairs (0.00008 pips taken at 10:29 20.02.2022 for the currency pair EUR/USD).

You can simply track the spread of every financial instrument from your trading portal, and since the markets are dynamic the prices move at a fast pace, and the spread changes accordingly.

The overnight funding amount is either added to or subtracted from your account when holding a position after a certain time (the “Overnight Funding Time”).

Currency conversion fees

A currency conversion fee is imposed when you trade with any financial assets that are denoted in a different currency than your account currency. For example, if your account is denoted in British pounds and you open a trade on the currency pair EUR/USD, Plus500 charges currency exchange fees of up to 0.7%. That means that if your account currency is GBP, and you have an open position on EUR/USD, you may expect a 0.7% divergence from your currency losses/profits.

The broker holds the right to change the currency conversion rate at any time, so you need to always check before you enter or conclude a trade.

Inactivity fee

Inactivity charges take place when the account is left unattended for at least 90 days. If 3 months pass without any login, executing any market order, or any deposit or withdrawal transaction, a monthly fee of $10 will take place on the account.

Once you log in to your account again or conduct any transaction/order using your account, the inactivity fee will stop taking effect once you log in to your account.

Comparing Plus500 fees with other brokers

There are several fees that you will encounter while trading on Plus500 and looking at the costs of trading with one broker does not tell you if they are reasonable or not. Therefore, you can compare them with other brokers in the market, and decide how it looks for you.

We have put Plus500 next to some of the top brokers in the market and compared the main fees to understand if it is worth trading with Plus500. You can check out the results in the tables down below. 

Plus500 fees vs Interactive Brokers fees

*Inactivity fee was eliminated by IB in 2021, it used to be $20/m
**info from 30/09/2022 12:54

Plus500 fees vs eToro fees

*info from 30/09/2022 12:54

Plus500 fees vs IG fees

*info from 30/09/2022 12:54

Plus500 has only one trading platform available, which is the Plus500 Webtrader trading platform. However, it is still an excellent choice for every trader using the website. 

The Plus500 Webtrader is well-designed to suit every trader’s needs. It focuses on enabling the user to fully control their trading view with more charting options, sentiment analysis, and setting alerts.

Some traders prefer the Webtrader because it does not require installing an application on the PC. A trader may directly open the trading terminal after logging in to the trading account. 

The Webtrader provides a seamless experience that is similar to the top trading platforms, like MetaTrader or cTrader, with 110 built-in indicators and charts options, 21 drawing tools, and a watchlist view.

Plus500 offers a native app that you can download on mobile devices. The app allows you to track your trades and interact in a simple way. You can watch the market signals, place trade orders, and conduct transactions between your accounts.

However, the app lacks advanced tools that experienced traders use. The charts do not sync with the live price chart, and you might face some delays when you execute some market orders. Therefore, you can download the application for Android and Windows, and use it for simply tracking your money and your market orders.

Plus500 offers several tools for traders to learn and implement during their trading activities. The market insight page includes articles and analyses about market activity every day, which helps the trader understand their next trading step.

Additionally, there are tutorial videos that teach about some trading terms and events like rollover and margin. However, there are only 10 videos that broadly discuss trading, and doesn't qualify as a proper trading course for beginners.

However, the Plus500 educational e-book is a good source for users to read and learn from as it includes guides on basic and advanced trading terms and strategies.

You can find a reliable source of information in the Plus500 support section. The largest support tool is the FAQ page, where you can find answers to more than 50 topics, divided into several sections. You can also find in-depth information about the trading platform and regulations.

However, if you were unable to find your answers on the FAQ page, you can refer to the online query form, where you type your question and select the department you want to address, and the customer support team will respond. Typically, you can write your query 24/7 and you can expect to receive the answer within 24 hours.

After analyzing the services provided by Plus500 and checking the tradable assets and platform, we can conclude that Plus500 is a reliable broker that you can confidently trust and trade with.

There is a clear consistency between the offers and statements across the website, where everything is simply stated in a way that suits new traders as well as experienced ones.

Plus500 is a regulated broker, it works directly under the supervision of the FCA, which imposes strict conduct guidelines, and does not entertain any illicit activity. Additionally, regional affiliates of Plus500 are licensed by different jurisdictions in Asia, Europe, and Africa.

With easy trading platforms and minimum trading and transactional costs, you can confidently trade with Plus500, deposit and withdraw your money with ease, and enjoy peace of mind while improving your trading experience.