Plus500 Review 2023: Key Insights and Analysis

Are you considering Plus500 for your trading needs? In this comprehensive Plus500 review, I’ll dive into this popular trading platform’s ins and outs, its history, fees, trading instruments, safety measures, and much more. By the end of this review, you’ll clearly understand whether Plus500 is the right choice for your trading journey.

Short Summary

• Plus500 is a globally recognized CFD trading platform with millions of customers and multiple layers of protection.
• It offers a user-friendly interface, advanced charting capabilities, risk management tools & competitive fee structure. Limited research tools & educational resources may not be suitable for all trader types.
• Plus500 is ideal for experienced traders and casual investors who prioritize low minimum deposits but advanced traders should consider alternative platforms.

Plus500 Overview

Plus500 is a leading global CFD trading platform that has been providing access to a wide range of financial instruments since its inception in 2008. As a testament to its success and reputation, Plus500 boasts a customer base of over 20 million and a total traded value of $1.7 trillion in 2019. But with 84% of retail investor accounts losing money when trading CFDs with this provider, weighing the pros and cons before diving in is essential.

One of the key strengths of Plus500 is its proprietary trading platform, known for its user-friendly interface and a wealth of trading tools. Multiple financial authorities, including the Seychelles Financial Services Authority, regulate the platform, ensuring a safe and secure trading environment. However, Plus500 may not be suitable for all trader types due to its limited research tools and educational resources.

In the following sections, I will delve deeper into the company background, trading instruments, account opening process, fees and commissions, and more, to help you decide whether Plus500 is the right choice for your trading needs.

Company Background

Founded in 2008 by six Technion – Israel Institute alumni of Technology, Plus500 has quickly grown into a publicly traded company on the London Stock Exchange. This public listing adds an extra layer of credibility and transparency to the company’s operations. Plus500 is regulated by multiple financial authorities, including the Financial Conduct Authority (FCA #509909), ensuring that your funds are safe and well-protected.

Today, Plus500 operates in more than 50 countries and has a customer base of over 20 million, making it one of the largest CFD trading platforms in the industry. With a wide range of trading instruments, competitive fees, and a user-friendly platform, Plus500 has established itself as a popular choice for both novice and experienced traders worldwide.

Trading Instruments

Plus500 offers a vast array of over 2800 instruments for CFD trading in the financial markets, providing traders with ample opportunities to diversify their portfolios. These instruments, each representing an underlying asset, include forex, stocks, indices, commodities, ETFs, and options, catering to various trading preferences and strategies.

The platform’s advanced trading tools and comprehensive charting capabilities, featuring 109 indicators and more than 20 drawing tools, allow traders to conduct in-depth technical analysis on their chosen instruments.

However, it’s crucial to remember that CFD trading carries a high risk of losing money rapidly due to leverage, and a significant percentage of retail CFD accounts, also known as retail investor accounts, lose money when trading CFDs with Plus500.

Is Plus500 Safe?

Regarding trading, the safety of your funds and personal information is of utmost importance. Fortunately, Plus500 has a strong track record regarding safety and security. The company is regulated by top-tier financial authorities (see list below), and is listed on the London Stock Exchange, and implements robust security measures such as segregated client funds and negative balance protection.

In addition to its regulatory oversight as an authorised financial services provider, Plus500 also provides two-step authentication via mobile phone, Google, and Facebook authentication, ensuring the highest level of security for your account. Furthermore, investors in the UK are compensated up to £85,000 in the event of losses caused by broker misconduct under the financial services compensation scheme.

With its multiple layers of security, you can rest assured that Plus500 is a safe and reliable platform for your trading needs.

Plus500 Account Opening Process

Opening an account with Plus500 is a breeze, thanks to its fully digital, fast account opening process. The platform caters to retail customers with a minimum deposit requirement of just $100, making it accessible to traders with varying levels of capital.

For more experienced traders, Plus500 also offers professional accounts, available by application only. This option allows eligible traders to access higher leverage levels and other advanced features. Funding your account is simple and easy. There are multiple options to choose from such as Visa or MasterCard debit/credit cards, e-wallets like PayPal or Skrill, and bank transfers.

Plus500 Trading Platforms

Plus500 offers a comprehensive range of trading platforms catering to various traders’ needs.

1. Wide Range of Tradable Assets: Plus500 is a multi-asset broker offering over 2800 CFDs, 2700+ Shares, and various Futures including Crypto, Metals, Agriculture, Forex, Interest Rates, Energy, and Equity Index. These assets provide diverse trading opportunities across global markets.
2. Commission-Free Trading with Spreads: Plus500 operates spread-only, meaning they don’t charge commission fees (as outlined further in this review). Instead, profits are made from the spread, which is the difference between the buy and sell price of a security.
3. Platform Accessibility and Features Desktop Platform: Plus500’s web browser platform is designed for desktop usage, focusing on simplicity and ease of use. It offers a straightforward trading experience without complex jargon and advanced technical tools.
   Mobile Trading: The Plus500 mobile app, available for iOS and Android, is highly rated and mirrors the capabilities of the desktop platform. It allows seamless one-touch trading and access to all trading instruments and tools.
4. Account Types and Onboarding Process: Plus500 provides standard trading accounts for CFDs, free demo accounts with no time limits, and professional accounts. Only one trading account is permitted per person. The onboarding process requires verification of personal information and a payment method, with credit cards or PayPal being preferred.
5. Diverse Tradable Markets: The platform offers an abundance of tradable markets across different asset classes. This includes global indices, commodity and currency futures, and cryptocurrency CFDs. For U.S. customers *, Plus500 Futures provides accessible futures trading in various asset classes. *US customers cannot trade CFD’s only Futures.

At the heart of Plus500’s offering is its proprietary trading platform, WebTrader, which provides a streamlined online trading experience for both novice and experienced traders alike. The platform is accessible on desktop and mobile devices, ensuring that you can trade on-the-go or from the comfort of your home. With its user-friendly interface, efficient search functions, and advanced charting capabilities, WebTrader has become a popular choice for traders around the world.

However, it’s essential to note that Plus500’s platform does not support MetaTrader 4 or third-party analytical tools. This limitation may deter advanced traders who rely on these tools for their trading strategies. Nevertheless, WebTrader remains a solid choice for those who prefer a proprietary trading platform with a focus on ease of use and accessibility.

With continuous improvements and updates, Plus500’s WebTrader platform strives to cater to the needs of its diverse customer base while maintaining a user-friendly experience.

Plus500 Fees and Commissions

One of the factors that sets Plus500 apart from its competitors is its competitive fee structure. The platform charges no commissions on trades and instead generates revenue through variable trading spreads. These spreads generally align with industry standards, ensuring that you’re not paying excessive fees while trading on Plus500.

Aside from the trading spreads, Plus500 also charges other fees, such as inactivity, overnight funding, and currency conversion fees. It’s essential to familiarize yourself with these fees to avoid any surprises when trading on the platform.

Overall, Plus500 offers a transparent and competitive fee structure, ensuring that traders can focus on their trading strategies without worrying about hidden costs or excessive fees.

Additional Fees

The following fees may be applied to your account based on your trading activities:

Overnight Funding: An overnight funding fee is either credited to or debited from your account if you hold a position past a specific time, known as the ‘Overnight Funding Time’.

Currency Conversion Fee: For all trades on instruments in a currency different from your account’s currency, Plus500 will apply a Currency Conversion Fee. This fee is immediately reflected in an open position’s unrealized profit and loss. More details are available here.

Guaranteed Stop Order: This particular type of order helps manage risk by guaranteeing the stop loss level. If you opt for this feature, it is important to understand that since it ensures your position closes at a specified rate, it comes with a broader spread. Further information can be found here.

Inactivity Fee: If you do not log into your trading account for at least three months, a fee of up to USD 10 per month will be charged. This fee applies monthly from then on, as long as there is no account login.

Market Research and Educational Resources

 

When it comes to market research tools and educational resources, Plus500 has historically been somewhat limited in its offerings. However, the platform has recently made strides in improving its resources, launching a new analytical tool called +Insights and enhancing its Trading Academy with video content, webinars, and written articles.

While these improvements are commendable, Plus500’s research tools and educational resources still lag behind some of its competitors, such as Avatrade, HYCM, and ActivTrades, which provide more comprehensive materials. To further enhance its educational offerings, Plus500 could expand its library of videos and articles and introduce interactive courses with progress tracking and quizzes.

Despite these limitations, Plus500’s recent efforts to improve its research tools and educational resources show a commitment to addressing the needs of its diverse customer base and providing a more comprehensive trading experience.

Plus500 Traders Academy

The Plus500 Traders Academy offers a comprehensive learning platform for individuals interested in improving their trading skills and understanding of financial markets. Here’s a detailed explanation of what the Academy provides:

Educational Materials: The Academy offers a variety of free educational resources to help traders become more knowledgeable. This includes ‘how-to’ videos, eBooks, and a collection of FAQs that cover the essentials of the Plus500 platform and general trading skills.

Articles on Trading and Financial Markets: A key component of the Academy is its extensive collection of articles. These articles provide deep insights into various aspects of trading and financial markets, including information about different trading instruments available on Plus500, economic facts, and important terminologies.

Specific Topics Covered: The Academy’s resources cover a wide range of specific topics within trading. For example:

• Shares: Including basics of shares, trading shares with CFDs, stock sectors, factors determining share prices, and trading strategies.
• Commodities: Covering the basics of commodities trading, most traded commodities, main drivers of commodity prices, and building a commodity trading strategy.
• Indices: Information on what indices are, the most traded indices, factors influencing index prices, and how to trade indices.
• Forex: Articles on Forex trading, popular Forex terms, basic Forex trading strategies, and events impacting Forex trading.
• Options: Details about Options CFD trading, differences between Options CFDs and traditional options, and factors influencing Options CFD prices.
• Economic Markets: Insights into how various economic and political events affect the stock market, such as Black Friday, Cyber Monday, GDP, recessions, central banks, and more.

CFD Trading: The Academy also provides detailed information on trading Contracts for Difference (CFDs), explaining the concept, differences between CFD trading and traditional stock trading, and the advantages and risks associated with CFD trading.

Practical Insights and Examples: The Academy offers practical insights and examples, including the pricing of shares, using technical and fundamental analysis for trading decisions, and specific examples of how CFD trading works.

The Plus500 Traders Academy thus serves as a comprehensive educational platform, providing traders with the knowledge and tools they need to navigate the world of online trading effectively.

Customer Support and Services

Customer support is essential to any trading platform, and Plus500 excels in this area. The platform offers 24/7 customer support via live chat, email, and WhatsApp, ensuring you can receive assistance whenever needed. Response times are generally prompt, with most inquiries being addressed within a few minutes.

One downside to Plus500’s customer support is the lack of phone support, which some traders may find inconvenient. However, the platform’s live chat and email support options provide efficient and knowledgeable assistance, ensuring that you can receive the help you need when trading on Plus500.

Pros and Cons for Different Trader Types

Plus500 is a popular choice for experienced CFD traders and casual investors alike, thanks to its user-friendly platform and low minimum deposit requirement. The platform offers a wide range of trading instruments, allowing traders to diversify their portfolios and explore various trading strategies.

However, Plus500 may not be the best fit for advanced traders seeking more comprehensive research tools and educational resources. While the platform has tried to improve its offerings in these areas, it still lags behind some competitors. Alternative platforms such as DEGIRO and eToro may be more suitable for traders seeking a more research-driven approach to trading.

In conclusion, Plus500 is a solid choice for experienced CFD traders and casual investors who prioritize a user-friendly platform, low minimum deposit, and a diverse range of trading instruments. Advanced traders seeking more comprehensive research tools and educational resources may need to explore alternative options.

Plus500 Risk Management Tools

Plus500 provides a range of risk management tools designed to help traders control and manage their trading risks effectively. These tools include:

‘Close at Profit’ (Stop Limit) and ‘Close at Loss’ (Stop Loss) Orders: These orders allow traders to set specific rates at which positions will automatically close, either to lock in profits or minimize losses. Note that these orders do not guarantee closure at the exact specified price level due to potential market gaps, which might lead to ‘Slippage’.

Guaranteed Stop: This tool limits potential loss, ensuring that positions are closed at a specified price, regardless of market volatility or slippage. It is available for selected instruments and can only be placed on new positions or pending orders, not on existing ones. An additional spread charge is applied for using a Guaranteed Stop, which is non-refundable once activated.

Trailing Stop: Trailing Stop orders are designed to secure profits while limiting losses. They remain open as long as the price moves in favor of the position but automatically close if the price reverses by a specified pip amount. This tool allows for a dynamic adjustment of the ‘Close at Loss’ order in line with favorable market movements. However, similar to other stop orders, the closing price is not guaranteed due to the possibility of slippage.

These tools provide traders with various options to manage and mitigate risks associated with trading in volatile markets, enhancing their ability to implement effective trading strategies.