Advantages and disadvantages of trading with the Plus500 brokerage company

10 min read
5 May 2021
Zaine Allen
Content on this page is intended for information and educational purposes only and should not be considered investment advice or investment recommendation.
A REVIEW OF PLUS500

Advantages and disadvantages of trading with the Plus500 brokerage company

10 min read
A REVIEW OF PLUS500
5 May 2021
Zaine Allen
Content on this page is intended for information and educational purposes only and should not be considered investment advice or investment recommendation.
Trading CFDs has gained huge popularity in the stock market, allowing multiple transactions for the purchase and sale of assets with minimal investments. The overwhelming majority of trades are carried out using the CFD scheme. Contract for difference or CFD has become the most profitable instrument for online trading. It allows you to make quick money with a minimum start and does not force you to actually purchase the assets. But a trader must know how to trade CFDs to achieve success. Besides, it is crucial to select a reputable broker for this purpose. In this article, we will review a well-known brokerage company Plus 500 and its main benefits for individual traders.
Binomo on different platforms
Binomo on different platforms

About Broker

This broker was founded by former students of the Technion (Israel Institute of Technology) in 2008.

A PC-based online trading platform was launched as a part of the Plus500 group. Only in a year, the platform started to offer commission-free Contracts for Difference. In 2011, the company offered traders TIFs. And the technical capabilities of the trading terminal considerably expanded – trading became accessible from iPhones and iPads. In 2012, the traders could trade from Android devices. The same year, this online trading platform became the best CFD trading company in the world, and by 2014, Plus500 Ltd. reached $1,000,000,000.

During 2019, Plus500 provided traders with a wide range of advanced charting functions with which they could perform in-depth technical analysis. The proposal included a variety of technical indicators and displays.

At the moment it offers over 2000 financial instruments. Plus500 is listed on the London Stock Exchange. Its main specialization is Contracts for Difference (CFD) that enable traders to profit from trading stocks, commodities and ETFs without having to buy them. The company does not have brokerage fees, as is the case with most CFD brokers. This fact is especially important for beginners who are looking to start a trading career with minimum investments. Another winning feature is Plus500 demo account, allowing beginners to test the platform and their skills.

Licenses

Regulation is very important in online trading because it builds trust and gives the trader a high level of security. Dealing with regulated platforms will minimize the risk of the fraud. In order for a CFD broker to obtain an appropriate license from a regulating authority, it must meet specific criteria and conditions. Violation of the rules will mean immediate loss of the license. Since Plus500 LTD owns several subsidiaries, it had to obtain official permissions in many countries around the world.
All of these companies are regulated and operate as a unit to provide users with one of the broadest sets of assets. Also, the company has a client money protection program, which is a series of measures that a broker takes to protect clients' money.

Trading Conditions

Since Plus500 is a CFD broker, every asset listed on the platform is offered in CFDs. You do not own the underlying asset paying Plus 500 share price, but you trade the difference between the opening and closing prices. And you get access to trading by registering on the site and paying Plus500 minimum deposit - $100. The broker offers an impressive selection of financial instruments – you can choose from over 2,000 options across 7 asset classes, including:
Currency – all major, minor and exotic pairs;
Stock indices – USA 500, NASDAQ 100 and France 40, US-TECH 100 and others;
Commodities – including, but not limited to, crude oil, Brent crude, copper, etc.;
Securities – stocks of such large companies as Amazon, JPMorgan, Apple, Facebook and others;
TIF – these are iShares Silver, GLD Gold, NUGT, Commodity Index Fund and others;
Options – Apple, Tesla, USA 500 and others;
Cryptocurrency – you can trade Bitcoin, Ethereum, Litecoin, NEO and many others.
Pocket Option web terminal
plus500 deposit​
Plus500 offers typical trading hours for all possible assets. However, you should be aware that during less popular hours, higher spreads can be applied. At the same time, Plus500 offers a guaranteed stop loss. It is very rare for online brokerage companies. You will get access to the following trading sessions from the broker's terminal.
Forex:
from Monday morning in Australia until Friday afternoon in San Francisco.
Commodities:
from Sunday to Friday; the market closes every day at 23:00 GMT for 45 minutes.
Cryptocurrencies:
trading is available 24/7 (except Sunday hours).
Securities:
from Monday through Friday, typically during Asian, European and American hours.
Forex:
from Monday morning in Australia until Friday afternoon in San Francisco.
Commodities:
from Sunday to Friday; the market closes every day at 23:00 GMT for 45 minutes.
Cryptocurrencies:
trading is available 24/7 (except Sunday hours).
Securities:
from Monday through Friday, typically during Asian, European and American hours.

Accounts

When you are selecting a trading platform, it is important to study carefully the requirements for opening a real trading account. Plus 500 offers the following account options:
Account Type
Minimum Deposit
Verification
Leverage
Personal Manager
$100

$100
Free of charge, only registration is needed






30:1

300:1
You need to verify your identity and keep your account active
This account is available for users of Plus500AU Pty Ltd, Plus500UK Ltd and Plus500CY Ltd.
Additional requirements
Plus500 demo



Minimum Deposit
Verification
Leverage
Personal Manager
Additional requirements
Free of charge, only registration is needed
Standard account

30:1

You need to verify your identity and keep your account active
Minimum Deposit
Verification
Leverage
Personal Manager
Additional requirements
$100
Professional account

300:1

This account is available for users of Plus500AU Pty Ltd, Plus500UK Ltd and Plus500CY Ltd.
Minimum Deposit
Verification
Leverage
Personal Manager
Additional requirements
$100
plus500 demo or real
Demo
Standard
Professional
Plus500 demo is a free training account without any time restrictions
You can use this account to test how the trading terminal works, learn the basics of Forex, or simply test the efficiency of new strategies. In short, it is great for beginners and valuable for experienced traders as well. You will not need investments to activate a demo account and thus, you bear no financial risks. But all your profits are also virtual.
Standard account is the most popular type of accounts
To open this account, you will need to deposit $ 100. Besides, you have to fill out an online form on the site, providing a scan of your ID document and a document confirming your residential address. After completion you will have access to the Plus500 online trading platform.
Professional account
You need to meet certain criteria to be eligible for a professional account in the EU or UK, you must meet at least two of the following requirements:
· Conduct 10 significant deals per quarter during the previous year;
· Own a portfolio of financial instruments worth more than EUR 500,000.
If you are opening an account via Plus500 Australia, you should meet the following criteria:

  • Net assets of at least A $2,500,000 (including real estate, business or other investments);
  • Gross finance income of at least AUD 250,000 in the last two years

Professional account allows you to use a leverage up to 300:1, a personal account manager, a lot of various discounts and promotions. Besides, this account type has the protection from negative balance.

The broker does not provide such services like Islamic accounts or MAM / PAMM accounts.

Platform

Desktop software for PCs
with Windows operating system
Web terminal
for working online
Plus500 app
for smartphones and tablets based on iOS and Android
It is one of the best proprietary platforms in the industry. The broker provides access to the most popular markets and a large number of CFD trading instruments. The terminal itself has a very user-friendly interface and the number of buttons is kept to a minimum. This feature makes it suitable for beginners. On the main screen, you can immediately see the prices of currency pairs, commodities and indices. You can do all this without switching between screens. The traders also see open positions and pending orders. Plus, you have all your trading history at hand.

The main window is split into 4 sections with a lot of useful content for trading. The main section is devoted to quotes and displays information about price movements. The contents of the quotes window can be changed using the list of instruments. All available instruments that can be traded are displayed here. For convenience, they are divided into several categories.
Plus500 trading platform has the following features:
it is available in many languages (for now 31 languages);
supports several order types - market, limit, stop and trailing stop;
offers advanced search functions;
notification system by email, SMS or push notifications;
transparent portfolio and commission reports.

Customer Support

Newcomers to the Forex market often face problems that arise in the process of trading due to the lack of certain knowledge. That is why they need qualified help from time to time. According to Plus500 reviews, traders can contact the technical support team via the following channels:

The broker is also active on social networks – Facebook, Instagram, and Twitter. You can follow one of these accounts to stay updated on all the innovations and changes on the platform. Besides, recently the broker added WhatsApp messaging to the available communication channels. You will find the link to it on the official site of the broker.

Learning with Plus500

It will be fair to say that this broker is not focused on customer education. You will not find online courses as on many other trading platforms. But it offers the Trader's Guide. This section contains many video tutorials on how to trade online with the Plus500 platform. Some of the videos included in the guide offer explanations on:

  • basic concepts of CFD trading;
  • what rollover is - refers to positions in futures contracts;
  • slippage when opening a position;
  • how to trade with Plus500, etc.

There is also a detailed FAQ section that covers most of the questions potential and existing customers might have.
plus500 videotutorial
plus500 videotutorial

Deposits and Withdrawals

Traders have several options to top up their account or withdraw the received profit.

  • debit/credit cards (Visa or MasterCard)
  • e-wallets such as PayPal or Skrill
  • bank transfer
You can activate a trading account by depositing $ 100 when using debit/credit cards and $500 when using a bank transfer. The platform accepts payments in 10 different base currencies. No third party payments are allowed due to strict anti-fraud and money laundering regulations.
Plus500 does not charge any fees for deposits or withdrawals, but there are certain conditions regarding withdrawals that traders should be aware of.
Traders will be able to withdraw funds from their account free of charge five times a month, provided that the minimum withdrawal amount is $100 for bank transfer and $50 for PayPal or others. If the amount is less than the specified amount, a commission of $10 per transaction will be charged. In addition, there is a fixed fee of $6 if the trader uses wire transfer as the method of withdrawing funds from the trading account.

Bonuses

Plus500 offers two incentive schemes which include the following:
  • discounts
  • trader points
pocket option bonus
Plus500 offers two incentive schemes which include the following:
  • discounts
  • trader points
Discounts reward traders according to their trading activity in addition to the conditions set for this bonus scheme. Twelve days after a trader has made his first deposit to his trading account, he is automatically added to the discount program.

For each completed transaction, the trader accumulates discounts, which can be obtained at the end of each week.

Trader points are accumulated by traders each time they open a trading position. Trading points are collected based on the difference between the buying and selling rates of a particular instrument.

Advantages and Disadvantages

Pros
  • 2000+ trading instruments, including cryptocurrency CFDs.
  • Guaranteed stop losses for an additional fee.
  • Licenses from several regulatory bodies
  • A good selection of indicators and charts are available on the web platform
  • Protection from negative balance
  • Free notifications about price changes or news on the market
Cons
  • High minimum deposit
  • Additional fee for inactive trading account
Pros
  • 2000+ trading instruments, including cryptocurrency CFDs.
  • Guaranteed stop losses for an additional fee.
  • Licenses from several regulatory bodies
  • A good selection of indicators and charts are available on the web platform
  • Protection from negative balance
  • Free notifications about price changes or news on the market
Cons
  • High minimum deposit
  • Additional fee for inactive trading account
Based on the above information, it is obvious that Plus500 is a reputable online resource for trading. It offers a huge range of trading options, including the possibility to test them on Plus500 demo. This platform is good both for beginners and mature traders who want to invest with leverage in different markets. Of course, you should take into account a lack of educational and analytical materials and somewhat limited payment options before opening an account on the platform. However, these shortcomings are not significant and this Plus500 review recommends you to consider this platform if you are interested in CFD and futures trading.

GENERAL RISK WARNING:

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
87% 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.
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