Plus500 Plus500 Review

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 Account types 

 

Account Type Minimum Deposit Minimum Trade Size Maximum Leverage Spread
Standard $100 0.01 (micro lot) 200:1 2 pips fixed

 

Plus500 offers a single account type with eleverage up to 1:200, fixed spreads and the opportunity to trade in micro lots for better risk management,

 

The Company. Security of Funds

 

Company

Country 

Regulation

Plus500CY Ltd. 

Cyprus

CySEC

Plus500AU Pty. Ltd. 

Australia / New Zealand

ASIC / FMA

Plus500UK Ltd.

UK

FCA

Plus500 Ltd.

Israel

ISA

 

Plus 500 specializes in Contracts for Difference (CFDs), delivering trading facilities on shares, forex, commodities, ETFs, options and indices. It is a UK-based broker authorised and regulated by one of the most reliable financial authorities - the Financial Conduct Authority. Except for the capital requirement of EUR 730 000, which is common for EU countries, FCA-licensed brokerages are required to comply with a number of standards and procedures - for reporting to the commission, keeping client money in segregated accounts, etc. What is more important, clients of UK regulated brokers are protected by a compensation sceme - the Financial Services Compensation Scheme (FSCS) - up to GBP 50 000, in case a licensed company goes bankrupt.

 

In addition, Plus500UK Ltd. is listed on  the London Stock Exchange  and is, in fact, one of the largest retail FX broker by market cap. Publicly listed companies have to meet strict requirements and are subject to strict rules and regulations. They must regularly disclose certain financial and business information which makes them extremely reliable.

 

The Plus 500 group also has subsidiaries operating and duly regulated in Cyprus and Australia, Israel and New Zealand .


Currently Plus 500 offers its portfolio of over 2000 instruments. Contracts for Differences allow customers to profit from a stock, index, ETF, forex or commodity position without the need to actually own the underlying asset. Besides, the company is the main sponsor of famous Spanish football team, Atletico Madrid.

 

Trading Conditions


Minimum Deposit
Minimum deposit required from Plus500’s clients is £100, which is average. Other UK brokers require $500 (FxPro) or $50 (FXCM). There are even brokers, who don’t require any initial deposit from traders, such as CMC Markets.


Maximum leverage
The maximum level of leverage also it varies depending on the instrument types:
Forex -  up to 1:200 leverage;
Indices - up to 1:294 leverage; 
Commodities - up to 1:150 leverage;
ETFs - up to 1:100 leverage.


Such leverage rates may also be considered average, as FxPro, for instance, offers leverage up to 1:500 and FXCM – up to 1:200 and XM – up to 1:888. Traders, however, should be mindful of higher leverage, for it may both multiply their profits and lead to heavy losses. That is why limitations on leverage rates are set in several jurisdictions: 1:50 in the USA, 1:25 in Japan, 1:100 in Poland.


Spreads & Commission
The spreads offered by Plus500 they are fixed, the typical spread on the EUR/USD amounting to 2 pips. For purposes of comparison, FxPro’s typical spread on EUR/USD is around 1.8 pips and XM offers variable spreads from 1 pip on EUR/USD.
Unlike many other CFD brokers, Plus500 does not charge commissions on trading CFDs (CMC Markets for instance requires a commission fee of 0.10 % of the volume traded). Instead, the broker is compensated for its services through the "market spread".


Risk Management Options

Since CFD trades are carried out on a leveraged basis, potential profits and losses can both be magnified, so the higher the leverage level, the higher the risk for a trader to incur heavy losses.


Guaranteed stop
Other risk management tools offered by this broker include the stop loss (“Close at loss”) and the limit (“Close at profit”) options as well as a guaranteed stop, which is available for specified instruments only. What is more, traders can set Price alerts and Trailing stops (automatically protecting a position's downside while locking in the upside).


Negative Balance Protection
In order to ensure that their clients do not lose more money than they have deposited, Plus500 provides the so called Negative Balance Protection (stated in a risk disclosure notice on their website). This means that your account will be brought to a zero balance if it goes into negative as a result of the fast-pacing volatile market.


The bonuses scheme


A no-deposit bonus amounting to £20 is available to Plus500’s new clients as well as a first-deposit bonus, depending on the amount of the deposit, available bonuses range from £20 to £6,000.


Trading Platform

Unlike most brokers, Plus500 offers just one trading platform to their clients. FxPro, for instance, offers as many as 4 platforms – MetaTrader4, MetaTrader5, cTrader and SuperTrader.

 


Plus500’ s proprietary trading platform is available in more than 30 different languages. It offers desktop and web-based versions (WebTrader), mobile versions (for iPhone, iPad & Apple), as well as Windows (10 & Phone) and Android versions.
Although MetaTrader 4 is established as the industry standard platform for CFDs and spot forex trading, Plus500 manages to capture a sizeable market due to the fact that they keep things simple, so traders won’t experience information overload while operating on the platform. Keeping in line with the clutter-free style, the broker offers only two account types – demo and live account, the demo account being of course free-of-charge.


Payment Methods

Plus500’s clients can make deposits and withdrawals from and to their accounts via Credit/Debit Cards (Visa, Master Card & Maestro), PayPal, Skrill and Wire Transfer.


Conclusion

Plus500 (LON:PLUS) is a well-regulated publicly held and reputable CFDs broker, offering more than 2000 instruments through its uncluttered user-friendly proprietary platform. To sum things up, here are the key advantages and disadvantages of this CFDs broker:

 

Pros Cons
Strong regulation, publicly listed brokerage Only one trading platform available, no MT4
No commission fees on CFDs No automated trading platform available 
Guaranteed stop loss available Fixed spreads only
Negative balance protection  

 

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Spread

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Slippage

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Requotes

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Price feed

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Platform

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Deposit/Withdraw

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Customer service

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Summary

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Traders` reviews for Plus500 Add review

No scalping?!

I´ve made a profit of more than €2000 from various days and positions in less than a month with Plus500. When I tried to withdraw them, it took them a week to tell me that "Any profits made by scalping activity were made void”.
Can you believe this?!

Scotty L 07/04/2016

So far, so good

I am using a Plus500 account for a couple of months now. The customer support is good, responding immediately to my emails. I had no problems whatsoever with withdrawals, but bear in mind that it takes at least a couple of days. The platform is simple and easy to use but feels somewhat outdated, especially the charting.

JR Krook 07/04/2016

A Good Broker

I just joined the Plus500 community and I’m very happy about it. There was a free bonus and the customer support people are really nice. Best of all, the platform was the easiest I’ve tried so far.
The EUR/USD spread is 2 pips, no commissions involved. If I have to point any disadvantage of this broker, it would be the lack of fundamental and technical analysis.

Mike Jr. 07/04/2016

BrokersReview.co.uk

Good Broker.

BrokersReview.co.uk 06/16/2012