4.09
Accepts UK Clients. Average spread EUR/USD 0.80 pips on trading account with lowest minimum deposit. Max leverage 30:1. Cryptocurrency availability subject to regulation. Islamic account available. Plus500 proprietary trading platform supported. Plus500 is regulated by FCA, CySEC, ASIC, and MAS. 72% of traders lose money with this provider.
Pros
- Well regulated
- Wide range of assets
Cons
- Limited education
- Limited account options
Is Plus500 Safe?
Plus500 was founded in 2008 and has grown into one of the largest online CFD providers in the world – not only is the company publicly traded on the London Stock Exchange, meaning an additional level of scrutiny, but eight national authorities also regulate its subsidiaries:
- Plus500UK Ltd is authorised and regulated by the Financial Conduct Authority (FCA), licence number 509909.
- Plus500CY Ltd is authorised and regulated by the Cyprus Securities and Exchange Commission (CySEC), licence number 250/14.
- Plus500AU Pty Ltd is authorised and regulated by the Australian Securities Investment Commission (ASIC), afsl # 417727.
- The Financial Markets Authority (FMA) New Zealand, licence number 486026.
- The Financial Sector Commission Authority (FSCA) South Africa, licence number 47546.
- Plus500SG Pte Ltd (UEN 201422211Z) holds a capital markets services license from the Monetary Authority of Singapore (MAS) for dealing in capital markets products, license number CMS100648-1.
- Plus500IL Ltd is registered in Israel and is licenced to operate a trading platform.
- Plus500SEY is registered and authorised by the Seychelles Financial Services Authority, FSA License Number SD039, Registration Number 8426415-1.
UK residents will be trading under the subsidiary, Plus500AU Pty Ltd, which is regulated and authorised by the FCA. The FCA is considered one of the strictest regulators in the world. As such it restricts maximum leverage to 30:1 for Forex trading and ensures that brokers provide negative balance protection, which means that traders can never lose more money than they have in their trading accounts. In addition, all brokers are required to segregate client funds from their operating capital and cannot offer bonuses or promotions.
As per FCA regulations, all client funds are kept in segregated accounts, Plus500 also offers negative balance protection, and restricts leverage to 30:1.
While the additional protection offered by FCA regulation is welcome, some British traders may find the low leverage levels restrictive.
Plus500 does not highlight any industry recognition it has received, but it has won numerous awards for its services over the years.
Considering the strict regulatory oversight, the long track history, and the fact that it is listed on a public stock exchange, we deem Plus500 a trustworthy and safe CFD provider.
Trading Fees
Plus500’s Forex trading fees are average compared to other similar CFD providers.
There is no account choice at Plus500, which is unusual as most of its serious competitors have several account types with tighter spreads linked to higher deposit requirements. Click here for more details on Plus500’s single account.
While Plus500 is a market maker, as soon as a client places a trade on the platform, an automated system (with no human interference) sets a hedging trade to protect Plus500 against any potential loss. Because it is a closed system where Plus500 is the counterparty, there are few requotes and fast trade execution.
Plus500 has a simple account structure with trading costs close to the industry average. Plus500 states that its revenue is derived from the spread, but it is not transparent about how the spreads are derived, and it does not publish the average spreads on its site.
Plus500’s accounts were assessed to compare the costs to those of other brokers. The costs were evaluated based on the trading fees on one lot (100 000 USD) on the EUR/USD, including the spread and commission:
Spread x Trade Size + Commission = Total Trading Cost (USD)
Average Spread correct as of 17:40 GMT on 02/09/21
As you can see from the table, the trading costs are built into the spread, which is variable and gets wider or tighter depending on trade volume and market volatility.
The average cost of trading one lot of EUR/USD is 8 USD, which is around the average charged by other similar market maker brokers. The minimum deposit is also reasonable, at 100 USD, putting it well within the reach of most traders.
Swap Fees (Overnight Funding)
Plus500 charges swap fees (fees for positions that are held overnight). 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”).
The overnight funding time and the daily overnight funding percentage can be found in the “Details” link next to the instrument’s name on the main screen of the platform.
The formula used to calculate the daily overnight funding amount of a position is:
Trade Size * Position Opening Rate * Point Value * Daily Overnight Funding %
Plus500 also charges numerous non-trading fees. See below for more details.
Overall, although Plus500 offers only a single trading account, its trading costs are competitive.
Non-trading Fees
Plus500 has average non-trading fees compared to other market makers. Plus500 charges no withdrawal, account, or deposit fees.
Plus500 does not charge any deposit or withdrawal fees, but it charges an inactivity fee of 10 USD per month after three months of account dormancy. While these fees are relatively common in the industry, 10 USD per month after only three months of inactivity is slightly higher than average. However, simply logging into your account is considered an activity.
What is the minimum deposit at Plus500?
The minimum deposit requirement at Plus500 is 100 USD, which is average compared to other market makers.
Opening an Account at Plus500
The account-opening process at Plus500 is easy, hassle-free, and fully digital.
All UK residents can open an account at Plus500 but will need to meet the minimum deposit amount of 100 USD to do so.
Creating an account is straightforward, the process is fully digital, and accounts are usually ready within one day.
How to open an account at Plus500:
- First, click on “Start Trading.”
- Plus500’s intake form requires clients to fill in their personal details (including name, country of residence, email address, birth date, and level of education).
- Plus500 requires individuals to submit a copy of their National ID or Passport with the signature page, as well as a copy of a recent utility bill or bank statement. For your convenience, you can also use Plus500’s mobile apps to upload your documents.
- Documents can be scanned or sent through as a high-quality digital camera picture.
- We advise you to read Plus500’s risk disclosure, customer agreement, and terms of business before you start trading.
Once all the documents have been received, the account will be ready for trading within one day.
Overall, Plus500’s account opening process is fast, hassle-free, and fully digital compared to other similar brokers.
Plus500 Account
Plus500 offers only one account type, whereas most CFD providers will provide at least two or three.
With a single registration, Plus500 clients can open both a real and a demo account, and trading is only offered on the Plus500 proprietary platform.
While experienced traders often prefer higher minimum deposits and tighter spreads, in exchange for a commission per lot, Plus500 offers a low-cost trading environment and a wide choice of tradable assets (click here for more on Plus500’s available assets), making it appealing to more experienced traders. Plus500 also offers professional accounts for more experienced traders who meet certain criteria.
Plus500 prohibits hedging and scalping and does not support copy trading on its proprietary platform.
Retail Account
A market maker, Plus500’s retail account is commission-free and has spreads that start at 0.8 pips* on the EUR/USD, which are average compared to most other CFD providers. Maximum leverage (under FCA regulations) is up to 30:1, and the minimum deposit requirement is reasonable, at 100 USD. Trading is only offered on the Plus500 proprietary platform, which is limited compared to most other brokers but traders can choose between a wide range of tradable assets, including over 70 Forex pairs and indices, ETFs, commodities, share CFDs, cryptocurrencies, and currency indices (click here for more details on Plus500’s assets).
*Spreads correct as of 17:40 GMT on 02/09/21
Professional Account
Traders who qualify for a professional account will gain access to leverage of up to 300:1. A Plus500 Pro Account is available to traders who can answer yes to one of the following:
- Have net assets of at least GBP 1 million or
- Have a gross income for each of the last two financial years of at least GBP 100,000.
When the FCA’s proposed measures across the CFD industry take effect, as a Wholesale Investor you will forgo some protections afforded to retail clients, such as Retail Leveraged restrictions, and the obligation to receive a Product Disclosure Statement (PDS) and Financial Services Guide (FSG).
Professional clients will get to keep some of the current protections offered to its Retail Clients such as Client Money Protection, Negative Balance Protection, and Best Execution.
Demo Account
The demo account allows traders to practice trading and get used to the Plus500 platform before depositing real money. The Plus500 platform is different from that of other CFD providers, so it is advisable that new clients take the time to get comfortable with the platform before committing to a deposit. While many traders enjoy the clean design of the Plus500 platform, others may prefer a more traditional layout. Demo accounts do not expire and are loaded with virtual funds that can be topped up by request.
Overall, although Plus500 only offers a single live account, its trading costs, low deposit requirements, and wide range of assets.
Plus500’s Deposits & Withdrawals
Plus500 charges low deposit and withdrawal fees compared to other CFD providers and offers a wide variety of deposit and withdrawal methods.
A well-regulated CFD provider, Plus500 ensures that all Anti-Money Laundering rules and regulations are followed. As such, all non-profit funds are returned to the original deposit source. No matter your deposit method, the withdrawal of all profits must be made by bank transfer to a bank account in your name.
Deposits and withdrawals can be made securely at Plus500 using major debit cards and credit cards (including Visa and MasterCard), bank wire transfer, and leading payment services such as Skrill, Neteller, and PayPal. Plus500 does not charge deposit or withdrawal fees.
Deposits and withdrawals are generally commission-free, but Plus500 requires a minimum withdrawal amount of 100 USD for Skrill, Neteller, Paypal, and credit cards; and 300 USD for bank transfers. Withdrawals below this amount incur a 10 USD fee. Withdrawals are processed in one to three days, which is about average.
How do you withdraw money from Plus500?
- Log in to your account.
- Click the ‘Menu’ icon in the top left corner.
- Click ‘Withdraw’.
- Enter the amount you’d like to withdraw.
- Initiate the transaction by clicking ‘Open a Withdrawal’.
Overall, Plus500 provides various payment methods, and its processing times are the same as other CFD providers. Traders will be pleased that no commissions are charged on deposits or withdrawals.
Base Currencies
Plus500 offers 15 base currencies, which is a much wider range than is available at other CFD providers, including accounts denominated in GBP.
The base currencies available at Plus500 include USD, GBP, EUR, CHF, AUD, JPY, PLN, HUF, CZK, CAD, TRY, SEK, NOK, ZAR, and SGD.
Plus500 offers a wide range of base currencies, including accounts denominated in GBP, which is good for UK residents who will likely have GBP bank accounts. British traders will therefore be able to avoid paying conversion fees, unless trading on instruments with other base currencies, such as the EUR/USD. In this case, Plus500 will charge a Currency Conversion Fee for all trades on instruments denominated in a currency different from the currency of your account. The Currency Conversion Fee is up to 0.7% of the trade’s realised net profit and loss, which is higher than fees charged by other CFD providers.
Overall, Plus500 offers a wider range of base currencies than other brokers, including GBP accounts, but charges higher currency conversion fees than other similar CFD providers.
Plus500 Trading Platform
Unlike most CFD providers, Plus500 only provides its own trading platform, which cannot be customised and does not allow for algorithmic trading.
Unlike most CFD providers, Plus500 only offers its proprietary trading platform. This could be a concern as most similar providers also offer MetaTrader 4 or 5 in conjunction with any first-party software.
The Plus500 web trader is web-based and offers a streamlined trading experience, appealing to traders who want to avoid the complexity of third-party platforms. The platform looks fantastic, is very easy to use, and has a solid reputation in the trading community. Exceptionally, it is available in over 30 languages.
The simple interface allows users to create watchlists, analyze charts, place and monitor trades. Technical analysis charts offer more than 100 technical indicators available in multiple timeframes. Traders can set automated price and percentage alerts that will inform them when a certain price has been reached or when a price has increased or decreased by a chosen percentage. Traders can also view trader sentiment and set alerts to inform them when a predefined percentage of traders are buying or selling an instrument. All of these alerts can also be sent via email and SMS.
However, unlike platforms such as MT4 and MT5, the Plus500 platform is not customisable, and traders who are used to setting up their own charts over a bespoke workspace will be disappointed. In addition, the platform does not offer the execution speeds of the Metatrader platforms, nor does it offer algorithmic trading.
Another disadvantage of using the Plus500 platform versus third-party platforms is that none of the trading tools available on the Metatrader can be integrated directly into the Plus500 platform. Additionally, traders who use third-party platforms such as the Metatrader suite can take their own customised version of the platform with them should they choose to migrate to another broker.
Overall, Plus500’s platform is a good choice because of its intuitive interface, but compared to third-party platforms such as MT4 and MT5, it lacks the execution speeds and doesn’t allow for automated trading via expert advisors or other trading algorithms.
Mobile Trading
Plus500’s mobile trading platform is average compared to other CFD providers.
Available on iOS and Android, Plus500’s mobile app offers all the same functionality as the web-based platform and is similarly user-friendly and uncomplicated. It allows traders to open and close positions and has the same indicators and charts.
**This is only illustrative of what you can expect of the Plus500 platform.**
Plus500’s Trading Tools
Plus500 offers a limited range of trading tools compared to other similar CFD providers.
Plus500’s trading tools include unique risk management tools, some of which come at an extra cost. However, unlike other similar CFD providers, it does not offer any additional sentiment indicators or analytics services such Autochartist or Trading Central, and the proprietary platform also does not integrate with any third-party tools. See below for more details on the various tools:
The risk management tools include:
- ‘Close at Profit’ [Stop Limit] or ‘Close at Loss’ [Stop loss] rates: These orders allow you to set a specific rate at which your position will close, in order to protect your profit, in the case of Close at Profit order or minimise your loss, in the case of Close at Loss order. Traders can access this tool for free.
- Guaranteed Stop: Adding a Guaranteed Stop order to your trading position puts an absolute limit on your potential loss. Even if the price of the instrument moves significantly against you, your position will automatically be closed at the specified price, with no risk of Slippage. Guaranteed Stop is only available for some instruments. If an instrument supports the Guaranteed Stop order, a checkbox will be available for use in the platform (after you select the ‘Close at Loss’ checkbox). Traders are charged a spread markup for using this tool.
- Trailing Stop: Placing a Trailing Stop order helps you lock in a certain amount of profits. When you open a position or pending order with a Trailing Stop, it will remain open as long as its price moves in your favour, but will automatically close if its price changes direction by a specified amount of pips. This tool is available free of charge.
Overall, Plus500’s trading tools are limited compared to other CFD providers, but its risk management tools are excellent.
Financial Instruments
Plus500 offers a wider range of assets compared to other similar CFD providers and offers trading on over 70 currency pairs.
Plus500 offers a wide range of financial instruments for CFD trading (click here for more details on CFD trading), including Forex, options, indices, shares, commodities, options, and ETFs.
- Forex: Plus500 has over 70 currency pairs available for trading which is a much broader range than is offered at other CFD providers, including majors (EUR/USD, GBP/USD, and USD/JPY) and minors (NZD/CAD, EUR/JPY, and USD/ZAR), and exotics. The leverage on Forex pairs is up to 30:1.
- Share CFDs: Plus500 offers 1900 share CFDs, which is a wider range than most other CFD providers. The selection available includes some of the major US companies, such as Facebook, Apple, Microsoft, and Alphabet, among others. Leverage on share CFDs is up to 5:1.
- Options: Plus500 offers an extensive range of options compared to other CFD providers, with 504 options available for trading. Maximum leverage on all futures is up to 5:1.
- ETFs: Plus500 offers trading on 95 ETFs, which is a broader range than is available at other CFD providers. Leverage on ETFs is up to 5:1.
- Indices: Limited compared to other CFD providers, there are only 26 indices available for trading at Plus500. The most popular indices are those that combine the shares of some of the largest and globally acknowledged companies. Leverage is up to 1:20 on indices.
- Commodities: Plus500 offers trading on 25 commodities, including metals such as gold and silver, energies such as natural gas and oil, and softs such as cotton and wheat. Most brokers only offer trading on between 5 – 10 commodities, so this is an impressive offering. Leverage is up to 1:10 on commodities.
- Cryptocurrencies: Plus500 offers 14 cryptocurrencies for trading, which is a wider range than is available at other CFD providers. Leverage is up to 2:1.
Overall, the range and depth of assets available to trade are impressive and much more than is normally seen at other similar brokers and it excels in its Forex offering.
Plus500 for Beginners
Plus500 offers very little in the way of educational and market analysis materials compared to other similar CFD providers, making it a poor choice for beginner traders.
Educational Materials
Plus500’s educational materials are limited compared to other CFD providers.
Many other CFD providers offer courses, quizzes, and more to help clients learn about the markets in which they are investing, Plus500’s educational section is more limited.
Plus500’s educational materials include a set of Trader’s Guides covering topics such as ‘What is CFD Trading,’ ‘Slippage When opening a Position,’ and more. It also provides a set of ‘how-to’ videos to learn more about online trading with Plus500’s platform. All videos are accompanied by an article on the respective topic. Plus500 also recently launched a detailed 28-page eBook covering all aspects of CFD trading that traders will find helpful.
Overall, the education section could be improved with a greater variety of materials in addition to providing sections for beginner and more experienced traders. Beginner traders would also benefit greatly from being able to attend webinars on CFD trading basics and risk management.
Market Analysis
Plus500’s market analysis materials are limited in scope compared to other similar CFD providers, but the materials are curated by Plus500’s in-house team.
Plus500 offers a good selection of market analysis materials written by an in-house research team. These include a Market Insights blog and an Economic Calendar. The Market News is updated daily, providing traders with good insight into various market events. The materials are well-written and useful, but the articles are short. Plus500’s Economic Calendar has filters which can select for company or macro-events.
Overall, while the market analysis provided is updated daily, the materials are brief and limited compared to most other large international CFD providers. Plus500 should consider partnering with some third-party providers to offer more useful market analysis.
Customer Support
Plus500’s customer support is excellent compared to other CFD providers – with support available 24/7 on live chat and via email.
Plus500 offers 24/7 customer support via email, online chat, and WhatsApp message in 31 different languages. This is a much higher level of service than is commonly available. The only way customer support could be improved is by offering phone support for more complex queries and troubleshooting.
For the purposes of this review, we found the live chat support responsive and polite, but uninformed. It was difficult to get information on Plus500’s average spreads.
Evaluation Method
We value transparency and openness in the way we review the partners. To bring transparency to the forefront, we have published our review process that includes a detailed breakdown of the Plus500 offer. Central to that process is the evaluation of the reliability of the broker, the platform offering of the broker and the trading conditions offered to clients, which are summarised in this review. Each one of these is graded, and an overall score is calculated and assigned to the broker.
Plus500 Risk Statement
Trading Forex is risky, and each broker is required to detail how risky the trading of Forex CFDs is to clients. Plus500 would like you to know that: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Overview
Plus500 is a leading brand in the CFD trading industry and has a loyal following of traders. Its trading costs are average, but the low minimum deposits and wide range of tradable assets make it appealing to most traders. Traders may be disappointed in the limited choice of trading platforms and tools available for trading, but Plus500’s support is available 24/7 via email and live chat. Another drawback is the limited education and market analysis materials, forcing beginner traders to self-educate elsewhere.
