Plus500 Review: A Whole World Of CFDs

July 15, 2020
Brokers
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In this Plus500 Review you will see that it is a company that provides contracts for difference (CFDs) on stocks, forex, commodities, cryptocurrencies, ETFs, options and indices. The company is authorized and regulated by the Financial Conduct Authority (FCA) to offer CFDs, it has more than 1 million clients and the platform is available in 32 languages. Plus500’s ordinary stocks are listed for trading in the London Stock Exchange’s main market for listed companies. Also, in 2018, Plus500 joined the UK FTSE 250 index of leading mid-cap listed companies. The company has a desktop version and an app with good ratings on the download page. In this Plus500 review, we will show you all the aspects of this UK-based company so you can fully exploit the opportunities it offers.

It is true that Plus500 is a broker that has good characteristics in several aspects. But, we strongly believe that Capital.com is the best online trading platform because is one of the easiest and cheapest ways to trade CFDs on equities, commodities, indices, Forex pairs and cryptocurrencies anywhere in the world. Capital.com offers you zero fees on intra-day trading, a lightning-fast web platform and their proprietary Negative Balance Protection. Also, Capital.com gives you the best chance at financial success with a clean, easy-to-use interface.

We analyzed hundreds of data points relevant to the costs, benefits and features of trading with Plus500 and scored our findings on a 10-point scale across 10 distinct categories.
Fees 9
Signup Process 9
Minimum Deposit 10
Ease of Use 10
Deposit & Withdrawal Options 10
Customer Support 6
Asset Classes 9
Referral Program 0
Demo Account & Educational Resources 7
Safety & Regulation 10
Total 80

Pros & Cons

In this Plus500 Review you will see each of the aspects that represent advantages and disadvantages that you must take into account to choose the best broker.

Pros

  • There are more than 1,000 financial instruments (CFDs).
  • The platform has more than 100 technical indicators and excellent line drawing tools.
  • 24/7 support.
  • The company is listed on the stock exchange.
  • The interface of the desktop platform and the app are very friendly.
  • Plus500 publicly discloses financial statements.
  • It is a regulated broker.

Cons

  • It is only possible to trade with CFDs.
  • No market research.
  • No news.
  • Limited educational content.
  • Does not provide telephone support.
  • Charges a $10 USD commission for inactivity.

Account Types

Plus500 only offers individual standard accounts. However, it is possible to open an additional account. Please note that each case of additional accounts will be evaluated individually. Also, it is not possible to transfer funds between the two accounts.

With this single account you will be able to trade all the assets that Plus500 offers, making it a little bit less confusing, especially for newbie investors who can be overwhelmed by having to choose among more than 10 account types.

On the other hand, having only one account means that you won’t have an account specifically tailored to your particular needs, which is not ideal.

Here’s a breakdown of our 10 scoring categories, each scored out of 10 for a total of 100 points.

#1 Plus500 Review: Fees

Plus500’s business model is to provide the largest number of services for free because it seeks to position itself as the number one company in the world of CFD trading. Also, the platform offers you a very good tight spread. When you operate in Plus500 you will not pay commission for:

  • Deposits.
  • Real-time forex quotes.
  • Trade commissions.
  • Dynamic charts & graphs.
  • Live share CFD prices.

Please note that there are some exceptions to the free commission. In this sense, you should assume a cost in the following cases:

  • Inactivity fee: A fee of up to $10 USD per month if you do not log in to your account for at least three months.
  • Overnight Funding: An overnight funding amount when holding a position after a certain time (referred to as the “Overnight Funding Time”).

In general, trading with Plus500 is very cheap, but it does lose a point because of the inactivity fee, as some other brokers don’t charge any fees at all.

Plus500 Fees Score: 9/10

#2 Plus500 Review: Signup Process

Creating an account is very simple and fast, you must do it directly on the platform. You can create an account with your email, Google accounts, Apple or your Facebook account.

Plus500 Review: Signup Process

Customers are required to verify their accounts for identification and security. For example the verification of your name, date of birth, residential address, phone number, email address and payment method, etc.

The platform is friendly and the account verification is done remotely. You can open the account very quickly but you must wait a day or two until your account is verified so that you can operate normally on the platform.

Plus500 Review: Signup Process

Having to wait for a couple of days to start trading can make you lose unique market opportunities and therefore is not the ideal case, which is the only reason this broker doesn’t receive a perfect score in this category.

Plus500 Signup Process Score: 9/10

#3 Plus500 Review: Minimum Initial Deposit

Generally, the minimum deposit is $100 USD. But, there are several deposit limitations in your account. These limitations vary depending upon the country in which you are residing.

Plus500 has a low minimum deposit compared to other brokers. This aspect is very favourable because you can start your broker career without waiting years until you have large sums of money.

Plus500 Minimum Initial Deposit Score: 10/10

#4 Plus500 Review: Ease of Use

The Plus500 investment platform is very friendly and simple. We think that it has a good interface for investors who are beginning in the world of trading. You will find graphing and indicator tools very easy to use and follow. You will have more than 100 technical indicators and line drawing tools so that you can exploit the buy and sell signals within your investment strategies. However, if you are an experienced trader, the application falls a bit short in the possibility of seeing multiple charts and in terms of customization.

Plus500 Review: interface

Plus500 Review: Mobile App

The features of the Plus500 app are very similar to the desktop version. It has a very friendly and intuitive interface. Although the app has the ability to offer technical indicators, you will not be able to use the line drawing tools. The app also does not contain news or market research tools.

Plus500 Review: App

The app has a high rate on Google Play for approximately 88,700 reviews with a score of 4/5. Overall, the Plus500 trading platform performs very well and is among the best in the field, second only to more established and versatile tools like those of Capital.com or Metatrader 5, scoring a solid 10/10.

Plus500 Ease of Use Score: 10/10

#5 Deposit & Withdrawal Options

The funds deposited into your account must come from a payment method that has the same name as the Plus500 business account holder. Plus500 is obliged to verify and ensure that you are the legitimate owner of the funds deposited to your account. Therefore, if you deposited by:

  • Debit/credit card: You may be asked to upload a photo/scan of your card, credit card statement, or a document from the bank.
  • Bank transfer: You may be asked to upload a photo/scan of a bank statement or proof of payment.
  • PayPal/Skrill account: They can undertake online verification either immediately or within a few business days.

Withdrawal Options

Please note that the timeframe for processing a withdrawal request is typically 1 to 3 business days. But, you could wait longer depending on the method you use to withdraw your funds as you can see below:

  • Electronic wallets (PayPal or Skrill): Funds should be received in your e-wallet account in 3-7 business days after withdrawal has been authorized.
  • Bank transfer (direct bank to bank funds transfer): The funds should be received in your bank account within 5-7 business days from the authorization of the withdrawal. Withdrawals to a bank account may be subject to further delays sometimes depending on the banking institution and the jurisdiction in question.
  • Debit/Credit cards: Funds should be received in the respective credit/debit cards and/or bank account associated with the relevant card according to each bank’s processing time.

Take into account that you can see the status of your withdrawal as follows:

  • Requested: Initial stage and it means that you have requested to withdraw funds from your trading account, but the payment is yet to be processed. Should you wish, you can cancel your withdrawal request at this stage.
  • Approved (In progress): Plus500 authorized your withdrawal, but the funds have not sent to the relevant external payment processing party.
  • Until the withdrawal request is in the status Approved Settled it can be cancelled by Plus500 and can be used to satisfy your liabilities for any transactions completed during such time.

In this aspect, Plus500 gets a perfect score for the diversity of currencies and funding methods.

Plus500 Deposit & Withdrawal Options Score: 10/10

#6 Plus500 Review: Customer Support

Plus500 offers multilingual customer support service in more than 30 languages by direct chat on the website and email 24 hours a day, 7 days a week. You will usually receive an immediate response. Unfortunately, there are no other ways to access Customer Support such as telephone support, which is a big turndown. For this reason, the broker loses points in this category

Plus500 Review: Customer Support

Plus500 Customer Support Score: 6/10

#7 Plus500 Review: Asset Classes

With Plus500 you will have access to more than a thousand financial instruments from CFDs. Below you will see what kind of assets you can buy with CFDs:

Stocks

Yes, through CFDs it is possible to buy hundreds of stocks from around 23 different countries such as the USA, UK, Germany, Italy and Japan. The most popular stocks are: Amazon, Facebook or Tesla, among many more.

Stocks

Currency Pairs

Yes, 71 currency pairs through CFDs. For example currency pairs like USD/JPY, USD/MXN, EUR/GBP, etc.

Currency Pairs

Gold

Yes, through CFDs.

gold

ETFs

Yes, 95 ETFs through CFDs. For Example, USO-Oil Fund, iShares Silver or Commodity Index Fund, etc.

Crypto

Yes, you can trade 14 different crypto through CFDs. For example, Bitcoin, Ethereum, Litecoin, etc.

Crypto

While it is true that Plus500 has a number of alternatives in most of the financial instruments it offers, unfortunately, you will not be able to invest in Bonds. This factor reduces the diversification capacity of your portfolio and Plus500’s score in the Asset Classes category.

Plus500 Asset Classes Score: 9/10

#8 Plus500 Review: Referral Program

There are currently no affiliate programs at Plus500. However, we will be attentive to any changes to keep you informed. For this reason it is impossible to be able to assign points in this regard to Plus500.

Plus500 Referral Program Score: 0/10

#9 Demo Account & Educational Resources

At Plus500 you will also have the option to open a demo account (paper trading) that will allow you to test your trading strategies without risking real money. In the demo account, you can use the same tools as in the real money account. These types of accounts represent a great opportunity to assess the spread and stability of the platform so that you are safe when opening a real money account.

Educational Resources

Educational content is very limited at Plus500. The only way you will find to increase your skills is a section of the website called traders guide which consists of a series of videos on trading strategies.

Plus500 Demo Account & Educational Resources Score: 7/10

#10 Safety & Regulation

One of the benefits of operating Plus500 is that you will be operating on a reputable and reliable platform in a regulated environment. In addition, Plus500 has strict rules and regulations designed to protect the interests of retail customers. The company operates through the following subsidiaries:

  • Plus500UK Ltd is authorized and regulated by the Financial Conduct Authority (FRN 509909).
  • Plus500CY Ltd is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC Licence No. 250/14).
  • Plus500AU Pty Ltd holds AFSL #417727 issued by ASIC, FSP No. 486026 issued by the FMA in New Zealand and Authorised Financial Services Provider #47546 issued by the FSCA in South Africa.
  • Plus500SG Pte Ltd (UEN 201422211Z) holds a capital markets services license from the Monetary Authority of Singapore for dealing in capital markets products (License No. CMS100648-1).
  • Plus500IL Ltd is registered in Israel and licenced to operate a trading platform.
  • Plus500SEY Ltd is authorized and regulated by the Seychelles Financial Services Authority (Licence No. SD039).

Client Money Protection

  • All client money is held in segregated client bank accounts following the Financial Conduct Authority’s client money rules.       
  • Plus500 uses its own funds for hedging. It does not use client funds for this purpose.
  • Plus500 does not pass client funds through to hedging counter-parties.              
  • The company does not initiate speculative positions in the market.   
  • It has no exposure to corporate or sovereign debt.           
  • Plus500UK Ltd is authorized and regulated by the Financial Conduct Authority (FRN 509909).   
  • The broker does not invest funds of retail clients.

Plus500 offers you great security when you invest your money because it is a broker that has important regulations. For this reason, Plus500 has a solid rating in this regard.

Plus500 Safety & Regulation Score: 10/10

While researching 100+ of the world’s top brokers, we’ve noticed what works and what doesn’t from the customer’s point of view. That’s why our final test for any broker is to compare it to Capital.com, which scores 91/100 points across the 10 categories mentioned in this review.

Plus500 Vs. Capital.com

Being a winning trader requires a solid investment plan. Take into account that the stock market is a world that is constantly changing and for this reason your strategies must adapt to the movements and innovations of the market. We recommend that you choose a broker that is your ally and that allows you to fully exploit your profits.

In this sense, this broker must allow you to diversify your portfolio internationally with the range of financial instruments that it offers and that also saves you hundreds of dollars in commissions. In this section, you will find a comparison between Plus500 and Capital.com. After an in-depth market study, we consider that your best ally is Capital.com for the following reasons:

Better Educational Resources

At Capital.com you have more tools and options so you can study the market and create the best investment plans. For example, you will be able to access:

  • Free financial webinars.
  • Educational courses for traders.
  • Extensive market glossary.
  • Comprehensive CFD trading guide.
  • Cryptocurrency trading tutorial.
  • Investmate, Capital.com’s investor education app.

More Investment Options

Plus500 has a good number of options that you can invest in. However, Capital.com offers you several possibilities because on its investment platform you will be able to access a greater number of CFDs. This feature is really important because with Capital.com you will be able to have a greater capacity for diversification when building your investment portfolios.

Referral Program

Plus5oo does not have a referral program that allows you to earn bonuses so that you can gradually increase your capital. In contrast, Capital.com offers you a referral program that will allow you to earn 25 USD for each person you invite to invest in this wonderful investment platform.

Related: Read this Capital.com review to see everything this great broker has to offer.

Do You Need Expert Help?

Definitely yes! Take into account that you should always analyze to make the best decision. In this sense, you should complement your investment ideas with the recommendations of a qualified advisor. We suggest our post “Capitalist Exploits: A Measured Approach To Achieving Asymmetric Returns“. There you will learn much more about investing and get great recommendations.

Below you can see a summary table with the main features of Capitalist Exploits:

Characteristics Capitalist Exploits
How do they select investments? Capitalist Exploits seeks investment opportunities worldwide through in-depth analysis, market research, and investment networks.
The team looks for the best investment opportunities in different sectors, industries and global markets.
Then they determine if the opportunity can be safely seized. After identifying opportunities, they estimate the risk associated with each investment to select the best risk-capital ratio.
The next step is to identify the most appropriate way to allocate capital in each scenario. In this way, investors can adapt to possible changes.
Are the recommendations diversified? Yes, they provide a high level of diversification because Capitalist Exploits seeks investment opportunities worldwide in and out of the stock market.
Do they help you analyze each recommendation? Yes
Do they generate free content? Yes, the company offers free content and a blog with highly relevant podcasts and opinion pieces. Capitalist Exploits also offers a private Telegram channel called “Hedgies Uncut”. There, hedge fund managers discuss their investment positions and ideas.
What type of investor is it for? Anyone with any level of experience or geographic location can use the service. It is ideal for both long-term and short-term investors who are looking for investment opportunities in and out of the stock market. For example, shipping, energy, natural resources, Bitcoin and many more.

Summary Of This Plus500 Review

  • Plus500 is a company that provides CFDs on stocks, forex, commodities, cryptocurrencies, ETFs, options and indices.
  • The company has more than 1 million clients and the platform is available in 32 languages.
  • Plus500 only offers individual real money business accounts. You can also open a demo account.
  • The minimum deposit is $100 USD.
  • Plus500’s platform is very friendly and simple.
  • The features of the Plus500 app are very like the desktop version. It has a very friendly and intuitive interface.
  • Only offers technical support via email and chat within the website.
  • With Plus500 you will have access to more than a thousand financial instruments from CFDs. But, you cannot buy other types of financial instruments.
  • We think Plus500 is an option for low capital traders.

Even though we think that the Plus500 platform is very solid, it could do better in several aspects. For example, it could improve the asset class, customer support, referral program and educational resources it offers. In all these points Capital.com is superior while being just as good in all other categories. If you are a beginner or an experienced trader you will see that this wonderful broker is an ally that will allow you to fully exploit your capital gains.

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