Are you thinking of investing with Plus500? You’re in luck! Let’s take a look at Plus500 to see if we can find a regulated broker, if it has special offers, how it works, and a number of other important issues. But if we were to do a preview of the review, we could say that Plus500 is one of the top CFD brokers around today. Obviously this is only our opinion. So throughout the review we will be looking at key issues (CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.4% 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).
The most important thing for us is always security, so the first thing we will analyse is reliability. Then we will move on to other issues such as the platform and how it works, the fees and costs for trading and anything else we think you might be interested in.
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Is Plus500 a scam? Is it safe? Is it reliable?
Plus500 is quite affordable, but it is not affordable because it lowers security, but because it manages to save costs in other ways. Reliability can be measured by regulation. This is not a true science, but regulation gives us a very large approximation to the security of a broker. An unregulated broker in the European Union or the United Kingdom are prime candidates for scams. Therefore, even if they offer very attractive rates it is better to stay away from them and focus only on the regulated ones.
Plus500CY Ltd is authorised and regulated by the Cysec (#250/14). In the UK Plus500UK Ltd is authorised and regulated by the FCA (Financial Conduct Authority). Due to the strong regulation it is subject to, since 2017 it does not offer the famous welcome bonus, as the FCA has forbidden it to all regulated brokers.
Another aspect that gives us a positive signal in terms of security is the listed brokers, and Plus500 is one of the few that do. The companies’ shares are listed on the main market of the London Stock Exchange. Why do we think it is good for it to be listed? Because it is required to meet stricter standards than if its shares were not listed. For example, it has to report its results from time too time and must make its accounts and financial statements public. As these accounts are reviewed by many of the company’s shareholders, as well as by the auditors. In short, our opinion is that Plus 500 is a broker that can be trusted with regard to security.
Platform and conditions
Plus500 is not one of the oldest or most experienced brokers in the online world, but it is not one of the newest either, having been founded in 2008. Despite this, it is bigger than other brokers with more history thanks to its rapid growth. In part, if there has been rapid growth, it has been because of its trading platform which is very intuitive. Plus500 does not have MetaTrader 4 available. Instead, it created its own platform which has been a success. Why has it been a success? For several reasons.
On the one hand it is intuitive to use. If you are wondering how the platform works, we can’t give you an exact answer, because it’s something you have to try for yourself. However, we can say that the use is very simple and you can do any operation in a maximum of 2 clicks.
In exchange for this the total number of tools available is somewhat less than MetaTrader. Although you have all the charts you could possibly need for trading, if you have been in the CFD trading world for many years you may feel that some tools are missing.
Despite being one of the most intuitive platforms, it has quality tools and instruments. For example, you can place stop loss or stop profit orders to close a trade when the asset reaches a certain price. For example, if you usually trade Forex, you can set an order when the price of a particular currency reaches the price you are interested in and sell automatically without having to be on the lookout for the quote every minute. This makes trading much easier, which can be seen in the results and profitability of your investments. In any case, remember that your capital is at risk.
The conditions of the platform are also quite good, because as everything is online, all you need is access to the internet to be able to trade. Although there are applications for mobile phones, you don’t need to download them, their webtrader is accessible from any device with an internet connection. In other words, you can use it on a computer with windows, on an Apple Mac, or on mobile phones with Google’s Android operating system or an iPhone with iOS. Finally, you should know that scalping is not allowed. If you want to know more about the Plus500 platform, click here (76.4% of retail investor accounts lose money when trading CFDs with this provider).
Simulator and demo
Plus500 has only one type of live account. We value this very highly, as we believe that if there is only one account, it has the best possible conditions, compared to other brokers who have many accounts, where clients with more money benefit from certain privileges that other clients do not have access to. You can open a real account with a minimum initial deposit of £$€100. But this point is to talk about the demo, not the real account, as we talk about the real one quite often in the review.
The demo is a simulator that allows trading as if you had a real account. The features are the same, and the platform works exactly the same as in reality. In addition, you can use the test platform as long as you want, so you don’t have to hurry to learn because the broker imposes a limitation on you. As you will see later on, this is one of the reasons why there are more positive opinions about this broker.
How does the demo work? Well, the fun of the demo is just that, that you discover the operation of Plus500 for yourself. The coins you are given are completely virtual, so you don’t run any risks. So the demo is the perfect place to fiddle around and play as much as you like so that, the day you start with real trading, you’ll know how to handle it all. As with the demo you can see the trading with the same values as with the real account, and without risking the money, it can be very useful to test strategies, and buy and sell assets without putting your funds at risk. If at any time you feel ready to invest with real money, you can switch without any problems. But remember that in this case your capital will be at risk.
We do not think that giving recommendations on the use of the demo makes sense. It’s best to try your own strategies, look at the graphs, the charts, use the signals, trade as news comes out in the media, and anything else you can think of. To start trading with the demo all you have to do is click on the image below, hit the «start now» option, and then select «demo mode” (76.4% of retail investor accounts lose money when trading CFDs with this provider) .
Commissions and spreads
We have already analysed many features of Plus500, and there is still one thing we cannot overlook, the rates. Plus500 became very famous, among other things, because it was the first CFD broker to eliminate trading commissions.
Until Plus500 revolutionised the markets with this offer, which still stands today, every time you made a CFD buy or sell you had to pay a commission. Today there are still brokers who do this, but now it seems somewhat antiquated.
Therefore, we already know that we don’t have to pay for trading, the operating fees are literally zero. In addition, if you have purchased CFDs on shares you will not pay any custody or dividend fees either. The advantages are obvious, but it must be made clear that trading is not free. Trading has costs, and these are measured by the spreads.
Spreads are not set, as they change from time to time. However, it is possible to calculate an average of the spreads to get an idea of the rates. In any case, you can always check the spread of the underlying asset you want to trade. For example, if you trade Forex the spread will be a minimum, it’s variable but low for the world’s major currency pairs such as the Euro/Dollar. This makes the spreads at Plus500 one of the lowest and most attractive in the market for Forex CFDs.
If you want to trade shares the spreads will be different for each of the listed companies. For example, you can expect the spread of large companies on the S&P500 or Nasdaq100 such as Facebook or Amazon to be lower than that of medium-sized British and Irish companies. Still, if we make a comparison with competitors, we will see that even for trading CFDs on British and Irish shares it is usually more reasonable with Plus500.
There are many more underlying assets that you can invest in such as bonds, bitcoin, stock indices and commodities. Again, Plus500 was a pioneer in being the first to offer a CFD on bitcoin. As for the other assets, you have indices that follow the price and performance of the S&P500, Nasdaq, and the like. Finally, among the commodities you have gold, oil, natural gas, coffee, and many others.
If you want to know more about spreads click on this link (76.4% of retail investor accounts lose money when trading CFDs with this provider).
Withdraw and deposit money
One of the keys to choosing an investment firm is knowing the means of payment it allows. Having quality products is fine, but if it makes it difficult to get the funds in or out, it is better to look for an alternative. At Plus500 we really like the wide variety of options you have for depositing and requesting withdrawals. Among the options available are the following:
- Credit and debit cards (Visa and Mastercard)
- Bank transfer
As you can see, you will most likely use at least one of these payment methods, as they are the largest and most famous companies in the market, so it is quite easy to handle withdrawals and deposits. However, remember that the Plus500 policy states that the minimum initial £/€/$100.
Plus500 opinions in Forums and Reviews
Our review of Plus500 is very good as you have seen in the analysis, but we will give more detail more at the end. In any case, we have scanned Twitter and Facebook, among other social networks looking for comments on the broker to see if other investors’ reviees are also good, or not, as the case maybe. In addition, we have read some investment forums where traders give their opinion about brokers. The result of our research is as follows:
There are a lot of comments about the account, and it is not surprising, as it is surely one of the main accounts of 2021. Therefore, we share this opinion. Many comments talk about security. Most of them are positive, but there are some traders who doubt the regulation. Where opinions are more unanimous is when it comes to tariffs, as it is highly valued that only spreads have to be paid and not commissions. There are also good comments about the platform among expert investors and those who do not need hundreds of tools for trading. In 2021 Plus500 has also gained strength by allowing derivative trading to buy Ethereum, IOTA, Ripple or Bitcoin among other crypto-currencies with CFDs. One of the most repeated favourable review is about the test software we have already mentioned. Finally, although there are good opinions about the Plus500 sponsorship of Atletico de Madrid, we must say that this does not mean greater reliability. It is simply a promotional action. What makes Plus500 a regulated broker, in our opinion, is being licensed by prestigious entities.
The world is not rosy, and all brokers get negative comments. In all situations there are good and bad things, and this broker is no exception, despite the high level of its profits. In the case of Plus500, certain opinions come from older traders who need many tools and the web-trader platform only has the basics. There are also some opinions from some investors who have misunderstood the CFD demo account system. However, despite being able to read some reviews on this, the truth is that supervisors prohibit it, and any broker who offers a bonus in 2021 is not to be trusted, as they are prohibited. So if you want to avoid scams, don’t get carried away with misleading welcome promotions and prohibited bonuses.
As we have explained above, our review is very good. Although there can always be a problem, we feel that Plus500 is superior to the vast majority of competitors such as Markets.com, Activtrades, Xtrade, eToro, AvaTrade, Clicktrade, Trading 212, XTB, Hanseatic Brokerhouse, iForex, or anything else you can think of on the CFD market. In any case, the best way to summarise our review is by listing the main features and drawbacks to see it directly. In order to do so, we will study their advantages and the aspects that we think should be improved.
- The platform is intuitive
- No fees
- The low spreads
- Wide range of assets
- Minimum deposit of £/€/$100
We do not like
- CFDs are a high risk product
In short, this is our review. We think Plus500 is a very good broker for trading. If you are thinking of opening an account with a broker it makes sense to know more about them or to visit their website to open a real account, as long as you have analysed it and decided for yourself. To see how to trade without paying commission with Plus500 click here. If you want to go to the official Plus500 website in English from the button below (CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.4% 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).