Plus500: Review and expert knowledge

Plus500 is one of the leading brokers when it comes to trading CFDs and it enjoys a very high level of awareness worldwide. But how reputable is this broker really? And how does the trading offer work? These questions are answered in the following test review.

Important facts about Plus500

The broker is backed up by a publicly owned subsidiary of the Plus 500 Ltd with headquarters in Haifa. Back in 2011, three years after the company’s founding, the Plus500-group already reached more than 2 million transactions per month. During a market evaluation in the AIM-sector in 2014 the company reached 1 billion US Dollar at the London stock exchange. It is the goal of the Plus500-group to be the number 1 when it comes to CFD-trading worldwide.

Plus500: Security and regulations

This broker is backed up by the Plus500UK company which was founded in 2008 and has its headquarters in London. The British regulating authority FCA controls the company. Additional security is provided by the fact that the company is part of the Investor Compensation Fund. This is a indemnity fund controlled by Great Britain. Customer deposits are also administered and stored separately from the company’s assets, so that in the (unlikely) event of an insolvency the customers’ deposits are protected. This online broker exclusively uses its own available assets for hedging. All this means that Plus500 is a reputable and trustworthy broker.

Plus500 and its trading platform

The trading platform of Plu500 is the broker’s main advantage. You may not be able to use the MetaTrader-Software, but trading is made easy with the Webtrader Plus500 itself developed. The own trading software is very well structured, and all functions and features are self-explaining. Some of the functions include e.g. professional charts, technical indications, integrated help as well as order add-ons like stops and profit-loss.

Mobile trading is also no problem. Since 2012 Plus500 offers an iPhone and Android app traders can download. Since 2015 the app can also be used on Windows devices.

Which assets can be traded at Plus500?

Plus500 offers a vast variety of assets. This variety includes stocks, indices, commodities, and ETs. Additionally, there more than 50 tradable currency-pairs. As a special feature Plus500 enables trading with major Forex-pairs which can be paired with less known currencies. All in all more than 2000 markets can be traded at Plus500.

Characteristic features of trading crypto currencies

At Plus500 you may also trade the following digital currencies:

  • Bitcoin
  • Ethereum
  • Bitcoin Cash
  • Bitcoin Gold
  • Ripple
  • NEO
  • Litecoin
  • Monero
  • Dash
  • IOTA

Those who want to get involved in crypto trading can receive an additional bonus of 25 Euro. However, you need to be aware of the bonus conditions. The maximum lever for crypto trading is 1:20. In order to be able to minimize the risks, traders can also use different trading tools, such as price warnings, stop loss, and trailing stop.

Spreads, fees, margin, and reserve liability

When it comes to the maximum lever, it shall be said, that different regulations apply for all asset categories. The maximum lever for CFD-trading for example is 1:200 and for Forex trading the lever is 1:294. Whereas the maximum lever for ETFs is 1:100.

The broker may reserve its right to enfore the reserve liablity resp. the margin call at Plus500 when the customer’s own assets are less than the minimum margin amount and the broker may also grand the customer a grace period during with either assets need to be added or positions need to be closed. Should your trading account show a negative balance, or should a customer not comply with the minimum margin request within the grace period, the position will be automatically closed.

Settlements at Plus500 are handled via spreads whenever a position is opened. Depending on the asset, spreads start at 0.5 Pips which makes trading very affordable. However, you need to remember that the cost depends on the trading time. Trading during the week is often cheaper than trading over the weekends. In general, all arising costs and fees can be easily checked by the trader.

Important trading features

Plus500 offers traders and outstandingly large selection of different trading tools. Special emphasis shall be placed on the different types of order:

  • Stop-Limit and Stop-Loss
  • Trailing-Stop
  • Guaranteed Stops
  • Entry-Orders

Opening an account/minimum deposit and deposits/withdrawals

Opening a trading account with Plus500 is fast and free. The minimum deposit amount is 100 Euro. Every customer receives a welcome bonus of 25 Euro. You simply need to verify your phone number to be eligible for this bonus. Plus500 offers additional bonuses for deposits as outlined below:

Minimum depositBonus
100 Euro30 Euro
200 Euro60 Euro
500 Euro150 Euro
1,000 Euro200 Euro
4,000 Euro1,000 Euro
10,000 Euro7,000 Euro

 

All granted bonuses are subject to the bonus terms and conditions of Plus500. I.e. that a certain trading volume needs to be reached to be able to withdraw the money. Traders therefore shall familiarize themselves with the corresponding terms and conditions before using such bonuses.

Certain payment methods are available to pay money into the trading account:

  • Credit card
  • Wire transfer
  • Giropay
  • Skrill
  • PayPal

At Plus500 there are no transaction fees, neither for deposits nor for withdrawals. In order to be able to withdraw money, traders need to be verified and sent different documents (e.g. copy of identity card) back to the broker. After the verification process is completed, withdrawals can be processed immediately.

Customer support and practice accounts

When it comes to Plus500’s customer support we need to charge that it is only available via mail. Neither support via telephone nor via live-chat is available. The FAQ section may be quite comprehensive but contacting an employee directly is only possible via mail.

On the other hand, it is of advantage that Plus500 offers its traders a free and unlimited practice account where trading can be tried without any risks. But it is quite sad that the training and support material section is very limited. This broker does not offer any tutorials, training videos, or webinars. This is certainly an area where Plus500 has a lot of catching up to do.

Advantages and disadvantages of Plus500 at a glance

Here’s a summary of Plus500’s advantages and disadvantages at a glance:

  • Broker governed by the British FCA
  • Website completely available in German
  • Own developed trading platform
  • Classic CFD- uand Forex-trading
  • Minimum deposit: 100 Euro
  • Different bonus offers
  • Practice account
  • Very limited amount of training material, tutorials, or webinars
  • Lots of tradeable assets; as well as digital currencies
  • Low spreads/margin
  • No commissions or provisions
  • Mobile trading available
  • Customer support is only available via mail
  • No deposit or withdrawal fees

Final review on Plus500

Plus500 is a well-known and reputable broker which offers its customers an outstanding trading service. It impresses with its own developed trading software which is easy to use and the countless tools which help traders to minimize the risks involved in trading. Another advantage of this broker is the fact that this broker has a low minimum deposit, bonus offers, and a practice account. It needs to be criticized that Plus500 on the other hand only offers customer support via mail and that traders don’t have access to training material. However, Plus500 is a recommendable broker.