Plus500

Is it a legit broker? Can you make money with Plus500?

Plus 500
PUNCTUATION
This image has an empty alt attribute; its file name is 3.-5-5-1.pngCREATE ACCOUNT
POINTS IN FAVOR
Minimum deposit: € 100 (or 100 units of the currency you want to deposit)
Fees: Spread cost, nightly maintenance cost, and inactivity fees
Ideal for traders looking for a solid interface to execute operations.

Plus500 is a trademark of Plus500 Ltd . Its core business is online Contracts for Difference (CFD) transactions. These transactions are carried out through a proprietary trading platform.

The Israeli-born company was founded in 2008 and operates through multiple subsidiaries in Europe and the Asia-Pacific region. It has been verified by the most relevant regulatory agencies in each region. Like many forex brokers, Plus500 does not accept US clients.

Plus500 is a company listed on the London Stock Exchange since June 2018. Its market capitalization is above 2 billion euros.

In Spain this broker operates under the brand Plus500CY Ltd , which is a company based in Cyprus . The company is licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC), license no. 250/14.

The broker offers its clients from more than 50 countries a complete product line, which includes currencies, stock indices, stocks, commodities, ETFs, options and cryptocurrencies. Plus500 was also the first broker to launch Bitcoin CFDs in 2013 and announced that all transaction costs are included in the margin of each instrument.

In addition, the broker also offers options to trade in many markets. They are very similar to the simple call and put options that are traded on the stock exchanges, but they are not standardized, which means that the option premiums can be customized according to your risk tolerance and strategic objectives.

💡TO TAKE INTO ACCOUNT:
1. Plus500 is recommended for clients looking to trade a wide range of financial markets with low transaction costs and easy-to-use trading platforms.
2. Plus500 provides negative balance protection and guaranteed stop loss orders.
3. Plus500 is regulated by the British FCA and CySEC of Cyprus
Who is Plus 500 for?.

Plus500 is designed for individuals or companies looking to operate in a wide range of financial markets that have low transaction costs . All this in a simple and practical platform. Plus500 has a product suite with more than 2000 trading tools, provided in its proprietary WebTrader and without commissions. It should appeal to those seasoned investors who prefer to manually trade their financial assets.

👍 Pros
1. Access to more than 2000 financial instruments.
2. Functional and easy-to-use platform
3. Regulated by FCA (UK) and CySEC of Cyprus.
4, Negative balance protection for customer accounts.
5. Guaranteed stop loss orders.
👎 ConsIneffective customer service
1. There is no training platform like in other brokers
2. Does not accept US clients.
3. The broker cannot be paired with other meta trader-type trading.
4. tools or platforms.

Pros explained

  • Plus500 offers clients in more than 50 countries a complete product line , including currencies, stock indices, stocks, commodities, ETFs, options, and cryptocurrencies.
  • There is a simple and easy- to-use interface that allows the trader to create watch lists, analyze charts, and perform and monitor transactions.
  • Plus500 is regulated by the FCA , which is one of the UK’s leading regulatory agencies and has strict standards to ensure that market practices are fair to individuals and businesses, which is why it enjoys a high reputation throughout the world. world. In short, oversight by accredited government-backed agencies can go a long way toward building a company’s reputation.
  • Plus500 provides negative balance protection , which is applied in accordance with the ESMA rules that came into effect in 2018, to ensure that customer losses do not exceed the amount deposited into their account.
  • The stop loss orders are guaranteed . These orders protect the trader from the risk of a market gap that could ruin his account if he fails.

Cons Explained

  • The attention to the client of Plus500 limited to online chat and email support . The lack of a phone number to contact, even for sales inquiries, is a problem for many customers.
  • Plus500 can hardly help clients understand the markets they invest in as their formations are well below industry standards .
  • Due to regulatory restrictions, Plus500 does not accept US clients If it weren’t for the fact that the company is regulated by the FCA (along with the US regulatory agency (NFA) and CFTC), this would be a warning sign.
  • Advanced traders who have other tools that connect with their broker will not be able to do this in Plus500 since integration with third-party companies is not available .
  • The back-testing functionality is also not available .

commissions

In accordance with industry regulations, Plus500’s revenue comes primarily from customer transactions that “cross” the bid and ask range, and the fees for these transactions are competitive with the rest of the industry .

The company does not charge any commission for client transactions , because all transaction costs are included in the margin of the instrument. Although the margin does not change with the size of the transaction, Plus500 offers discounts for larger traders . Additionally, they also generate income by charging premiums (actually finance fees) for positions held by clients overnight. If clients trade in currencies other than the account’s base currency, they may have to pay currency conversion fees.

Set stop losses will also incur fees, as well as inactivity fees. The latter will occur after the account is suspended for three months.

Trading platform

Plus500’s proprietary platform, WebTrader , provides a streamlined experience that is stable and easily accessible from multiple devices and systems (Windows PC, web browser, smartphone, and tablet).

WebTrader has a simple and easy-to-use interface that allows you to create watch lists, analyze charts, and perform and monitor.

The technical analysis chart provides more than 100 technical indicators , which you can apply to many different time frames, from tick charts to weekly charts.

However, unlike many competitors, Plus500 does not provide the MetaTrader 4 (MT4) platform , which will provide clients with more features and customization options.

The most attractive feature of WebTrader is its ease of use and a design familiar to experienced brokers. Clients can choose from over 2000 tools, analyze their options on customizable technical analysis charts, and then trade in the same window with just a few clicks. Unfortunately, WebTrader is a closed system . Advanced traders who rely on incorporating third-party automation and analytics tools into their trades will be disappointed that none of these tools can be directly integrated with WebTrader.

Plus500 does not provide any special features normally offered by other brokers . It does not allow automatic trading through software, does not provide backtesting functions, or does not allow clients to manage third party funds. The company only provides an optimized WebTrader platform and applications for iPhone, iPad and Android devices, where clients can execute and monitor transactions. There is a guaranteed stop loss in some markets; however, their spreads have increased and therefore cannot be added to previous open trades.

WebTrader has three types of orders:

  • Market : It is the simplest. Traders must execute their orders at the current market price.
  • Limit order: It is an order whose entry point is lower or higher than the current market price, depending on the purchase or sale. Traders can also choose the expiration time of the order.
  • Stop Loss : It is an order that is above or below the current market price and that this time serves to reduce losses, so the trader must have a previously open position.

The mobile application of this broker includes all the functions available in the desktop application . Traders can access the entire Plus500 product catalog, account details, orders and charts (with over 100 technical indicators) from the Android, iPhone or iPad mobile apps.

Dynamic charts can be expanded to full screen to provide greater clarity during analysis. Customers can also deposit and withdraw money on the mobile app. Clients are also unable to use the MT4 mobile app, which has improved features and can become a more familiar interface for experienced investors.

Offer of financial products

Plus500 has access to more than 2000 financial instruments of different asset classes, including:

  • Indices: countries and sectors
  • Currency exchange transactions
  • Raw materials
  • Actions
  • ETFs
  • Options
  • Cryptocurrency

The call and put options offered by Plus500 work in a similar way to the publicly traded version, except that they are not standardized. This means that these options can be customized according to the risk tolerance and strategic objectives of the client.

Customer Support

Plus500 customer support is available 7 days a week and they provide chat and email support 24 hours a day . The worst part is the lack of phone numbers , even for sales inquiries.

Current clients and potential clients should submit their inquiries via live chat or email ticket system (available 24/7). Although your customer service options are limited, it is normal for you to receive your response via chat and email in a matter of minutes, which is a relatively quick response time.

The chat is easy to use, but the initial response to our request will always be a chatbot . This is not necessarily a problem, because the software is good at detecting common questions and linking to resources in the FAQ. Communication with human agents is relatively fast when necessary. Even with these restrictions, customer service response to requests remains timely, knowledgeable, and pleasant.

However, the email response is somewhat slower and not as efficient. There are several cases of clients who have wanted to ask the prices of certain spreads and the email support has refused to provide this information. Maybe a phone would fix this problem, or at least it would be faster.

Training

The training that this broker has for its clients is practically nil. We can only find a useful tutorial to use your platform , but we did not find anything about CFDs, cryptocurrencies or buying call and pull shares. This is strange since competing brokers usually include hundreds of documents and training videos in the registry that are very useful for traders who are just starting out.

Portfolio analysis

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WebTrader provides real-time basic information on client activities such as balances and profit and loss details, but there is no built-in tool to analyze trading activities . Plus500 does not provide trade diaries or tax accounting tools on the platform.

Safety

This company that operates in Spain hedges its risk exposure with the parent company to eliminate market risks and ensure that it will not incur significant losses. Although Plus500 does not provide additional deposit insurance, it is registered with the relevant regulatory agencies in Europe and Asia Pacific :

  • Plus500UK Ltd is authorized and regulated by the Financial Conduct Authority
  • Plus500CY Ltd is authorized and regulated by the Cyprus Securities and Exchange Commission
  • Plus500AU Pty Ltd owns AFSL # 417727 issued by ASIC, FSP No. 486026 issued by FMA in New Zealand and Authorized Financial Services Provider # 47546 issued by FSCA in South Africa
  • Plus500SEY Ltd is authorized and regulated by the Seychelles Financial Services Authority
  • Plus500SG Pte Ltd (UEN 201422211Z) holds a capital market services license from the Monetary Authority of Singapore to trade capital market products

Plus500 takes steps to ensure that client funds are not mixed with company funds, in order to protect client funds and assets in the event of company bankruptcy, and to keep these funds in segregated accounts of regulated banks .

Plus500 also provides negative balance protection , which is enforced by ESMA rules that went into effect in 2018, to ensure that customer losses do not exceed the amount deposited into their account.

According to market conditions, guaranteed stop orders can be used on certain instruments, but the margin range is wider.

Plus500 provides security measures such as biometric authentication for its mobile applications, and it has a timer, if the user does not use them, it will disconnect them from the mobile and web applications.

⚖️ Conclusion

Plus500 is clearly aimed at users who do not need an interface with very advanced functions to execute their transactions. In addition, we are dealing with a safe, regulated company with guarantee funds . Although yes, training resources are lacking and there is no possibility of connecting external software such as MT4. The commissions, although opaque in certain financial products, show costs similar to those of other brokers.