Plus 500 Trading was founded in Israel back in 2008 when the trend of online trading was still in its infancy. This trade CFD is owned by Plus500 Ltd. a company that has its main offices in London, UK. In June 2018, it got listed on the London Stock Exchange (LSE).
Before we proceed with our Plus500 review, it must be mentioned that this company is one of the pioneers in cryptocurrency trading. Although it also provides a platform for forex trading, much of its fame is derived from the fact that, in 2013, it became the first to allow a Bitcoin CFD.
Counting from September 18, 2020, to the present, its market capitalization is estimated to be $2.07 billion. It owes this success to its many subsidiaries, which are scattered across the Asia-Pacific and Europe. Its three major subsidiaries are as follows.
Since it operates in one Tier 1 jurisdiction, as well as four jurisdictions of Tier 4, its legitimacy is well-established. Plus 500 Trading also ranks well in the capitalization-weighted FTSE 250 index, thus all the more reason to consider it safe for online trading and cryptocurrency business purposes.
What is Plus500?
Plus 500 Trading is a CFD platform that allows you to partake in cryptocurrency trading and forex trading. It enables proprietary trading through electronic means. Hosting over a million clients, it has +1000 instruments in its portfolio.
The developers at this company have created a high-spec app for both iOS and Android, which has been rated highly by its users. Apart from trading in cryptocurrency, the parent company of this firm is also the sponsor for prominent sports teams. These include Club Athletico de Madrid, Atalanta B.C., and Legia Warsaw.
Being regulated by trusted financial authorities, Plus 500 Trading keeps its finances transparent, maintaining an air of trust between the platform and the clients. Since it is a multinational company, it comes under the jurisdiction of many organizations in their respective countries. The prominent ones are listed below.
- The Financial Conduct Authority (FCA) of the UK
- The Securities and Investments Commission (ASIC) of Australia
- The Financial Markets Authority (FMA) of New Zealand
- The Securities Administration (ISA) of Israel
- The Monetary Authority (MAS) of Singapore
- The Securities and Exchange Commission (CySEC) of Cyprus
- The Financial Services Board (FSB) of South Africa
- The Financial Services Authority (FSA) of Seychelles
- The Markets in Financial Instruments Directive (MiFID) II of the EU
- The 4th Anti-Money Laundering Directive of the EU
In addition to these the company has programs with monetary compensation services for clients with covered assets. The major organizations, in this case, are as follows.
- The Financial Services Compensation Scheme (FSCS) covers up to 85,000 pounds.
- The Investor Compensation Fund (ICF) covers up to 20,000 pounds.
Experience with the Plus500 Platform
From dozens of customers’ Plus500 reviews and our own observations, we have found their proprietary platform, WebTrader, to be a streamlined piece of code. It worked smoothly across a variety of operating systems and devices.
We believe that the following features of WebTrade contribute to a user’s trading experience on the Plus 500 Trading platform.
- Stable Software
As mentioned before, WebTrader works well on nearly all common OS and devices. Be it a Windows PC, a MacBook, or an Android phone, there is little lag in the live forex data delivery. The app is especially well-working.
The simplicity of the interface and the plain design not only gives it appeal but also make it easy to use. However, there are virtually no customization options as compared to the MetaTrader (MT) 4. The latter has a greater range of functions as well, e.g., WebTrader lacks both automated trading and assisting algorithms. Back-testing options are also absent.
- Variety of Instruments
There are more than 2,000 instruments available on the platform. Clients have the freedom to choose any of them depending on their interests, experience, and the current market trends.
- Closed System Approach
WebTrader is a closed system, which allows it to be a more secure one too. Still, this comes at a sacrifice: Commonly used third-party tools for automation and analysis cannot be incorporated into it. This may leave a bad taste in the mouths of those who are fond of using such tools for cryptocurrency trading or forex trading.
- Order Types
There are three types of orders. With each of them, you can use a take-profit/stop-loss function.
1. Market Order: The trade request is carried out at the actual market rate at that time.
2. Limit Order: It is executed at or above a specific limit price.
3. Stop Order: It is triggered at a specific price and executed at the prevailing market price.
Something that must be brought up in this part of our Plus500 review is that the orders are Good Till Executed (GTC). This means that the user can cancel them at any time before execution.
- Search Function
This makes finding trading tools a breeze. You can find the products either listed in one of the menus or search them by name in through the search bar.
In a market that is ever-changing, quick and concise updates can make much difference in terms of profit size. That is why WebTrader gives clients the option to set up alerts via email, text, and push notifications.
- Trader’s Sentiment
This an intuitive alert tool developed by Plus 500 Trading. It notifies the trader the moment the percentage of buyers or sellers reaches a certain limit. By influencing supply and demand, this percentage essentially controls market prices.
- Economic Calendar
Keeping up to date with all the market-changing events and relevant policy changes, this company makes an economic calendar. Since such events alter market rates and habits, it is important for every trader, novice and pro, to invest accordingly. Still, it is a shame that the platform has no new letter.
- Analytical Tools
Earning a profit through forex trading requires a lot of quantitative analysis. On the Plus 500 Trading platform, there are many ways to achieve this. You can get most of the information you need from WebTrader’s dynamic charts, product catalogs, and account details. There is also a “News and Market Insights” section (in “Trading”) that you can explore. There are over +100 technical indicators you can use to make an informed decision.
- Live Statistics
This feature shows some statistics in (almost) real-time. For example, you can see the highest and lowest prices of an asset within a period of 5 minutes, an hour, and a day.
Although guaranteed stops are sometimes available, their benefit is counterbalanced by wider spreads. Moreover, there are concerns about inadequate security systems employed in the Plus 500 Trading app.
A company as large as Plus500 platform cannot operate if not for the strictly enforced policies and contractual conditions holding its infrastructure.
In this part of our Plus500 review, we’ll look at some of its important trading conditions, especially as they relate to cryptocurrency trading, forex trading, and other forms of online trading.
- Area of Operation
The company provides its services in +50 countries. However, the list does not include many major nations, such as the US, Canada, Syria, Iran, and Cuba, because the company policies are not compatible with their financial laws.
- Segregation of Funds
Due to the requirements imposed by the regulatory authorities, the funds of the clients are kept separate from those of the company in trusted banks.
- Anti-Scalping Rules
According to the policies of the Plus 500 Trading platform, opening and closing transaction is considered scalping. It is an unethical practice used to earn a quick buck. Accounts suspected of scalping may be suspended or closed entirely.
- Commissions and Fees
There are no commissions and fees to be paid by the client. The platform earns through market-maker spreads. Nevertheless, certain special costs, such as inactivity charges, do apply. Its pricing is not very different from the rest of the industry.
- Minimum Deposit
A minimum deposit of $100 is needed to open and maintain an account. Considering what other online brokers ask for, this threshold is very reasonable.
Active clients (even VIP ones) do not get any sort of discount based on their activity. Special discounts are only given to those with high trade volumes.
The average Euro/USD spread, as reflected by the data collected in September 2020, was 0.8 pips. As can be seen, the spread is quite dynamic.
- Exception for Cryptocurrency
Many kinds of cryptocurrency can be traded as CFDs. In our Plus500 review, we must mention that this platform allows 24/7 cryptocurrency trading as opposed to the five-day window allowed to other instruments.
All available instruments are leverageable, with the max leverage, allowed to retail traders, being 30:1.ф
One other thing – specific requirements also exist for margins: Initial margin is needed for trade opening, while maintenance margin is needed to keep it open.
Plus500 Platform offers a huge variety of products, mainly CFDs, its customers can choose from. The number of options in each category has been listed below.
|Category of CFD||Number of CFDs Available|
|Spot Currency Pairs||70|
If you are looking for a larger stock CFDs collection, Spreadex (3,000 stocks CFDs) beats Plus 500 Trading by quite some margin. ActivTrades offers a better alternative only in the case of ETF CFDs by providing around 500 options to choose from.
Now, we have finally come to the part of the Plus500 review broker, wherein we discuss the account types available on this platform. You initially get a training account, which can later be promoted to a real account, and then to a pro one.
This is a training version of the real thing. You are 40,000 “demo” dollars, which you can invest in whatever you like. You can experiment with different strategies and familiarize yourself with the market.
If the balance drops below 200 dollars, the demo money is automatically replenished. This account can be used immediately after signing up and can be kept open indefinitely.
When you feel comfortable, you can upgrade your demo account to a real one. The two are essentially identical in layout, but the latter allows you to seriously do cryptocurrency trading and forex trading.
For the upgrade, you will need to go through a verification procedure, after which you can switch between the two kinds of accounts by using a simple button.
This is another form of upgrade, but available only to the traders that meet at least two of the following three criteria.
First, they have had sufficient online trading activity (more than 9 transactions per quarter) in the past 12 months.
Second, their portfolio of financial instruments must exceed the threshold of 500,000 euros.
Third, possess at least a year’s worth of experience working in the financial sector.
The owners of pro accounts have certain privileges that the others don’t: They get higher max leverage (up to 1:300) and negative-balance protection.
Deposits and Withdrawals
Plus500 offers the following payment options for both deposit and withdrawal purposes.
Apart from the options given below, regional methods may be available. However, those can only be viewed when the site or app is opened from that region specifically.
The processing of the transaction may take as long as five days during deposit and around 7 days when withdrawing a sum.
Processing takes only a few minutes during deposits, but withdrawal processing time is significantly longer. The supported cards are Visa and MasterCard.
The supported wallets include PayPal, Giropay, Skrill, iDeal, and many others. Although the processing time during deposits is a minute or two, it is stretched to 3-7 days during withdrawal.
One thing that is worth discussing at this point in our Plus500 review is that the minimum deposit may vary from region to region. As a rule of thumb, it is $100 for all transaction methods except bank transfer, for which, it is $500.
Advantages and Disadvantages
What better way to conclude our Plus500 broker review than to objectively weigh the pros and cons of the platform against each other!
|Easy-to-use-interface||No banking license|
|Easy registration||No webinars|
|Highly responsive customer support||Customer service on the phone|
|Free withdrawal of money||Poor news availability|
|Very low minimum deposit||Low customizability|
|Many payment methods||A narrow range of products|
|Safe two-step login||Mediocre trading ideas and research tools|
|Nice analytical features|
|Educational videos and demo accounts|
|Negative balance protection|
Plus500 broker is a good trading platform, especially if you are just entering forex trading. However, after this lengthy Plus500 review, it is but quite evident that it limits the activities of more advanced cryptocurrency traders by restricting customization, offering average CFD fees, and not allowing third-party tools to be used. Still, if this is not a problem for you, you should definitely give this cryptocurrency trading giant a try!