Plus500 CFD Broker Review 97

Overview/Background

Plus500 was founded back in 2008. It offers a trading platform based on price movements of exchange traded funds, options, commodities, currency pairs, shares and indices. The trading platform does not require traders to buy/sell any of the underlying instruments. All trading activity is based on speculation. Among others, Plus500 offers a full demo trading account with unlimited trades. Additionally, risk management on CFD trading is offered. To date, some 2,000+ financial instruments are available at Plus500.

Plus500 offers many additional benefits to traders including fully segregated accounts, with client money held separately from the company’s funds. Traders can access all aspects of the platform on the go with highly rated mobile trading apps at the Google Play Store or the App Store. Over the years, Plus500 has launched multiple innovative features including BTC trading in 2013. In 2014, the company had a market valuation of $1 billion on the AIM section of the LSE. Plus500 inked sponsorship deals with Atletico de Madrid Football Club in 2015, and launched apps for Windows Phone, Android, iOS and more. In 2016, the company announced contracts for difference on options with rollover. A full range of banking options is available and each of them is guaranteed secure by way of SSL technology and the highest encryption protocols. Plus500AU Pty Ltd, AFSL #417727 issued by the Australian Securities and Investments Commission is authorized to issue these products to Australian residents. 

Account Types

There are two basic accounts for trading CFDs. The first is a free demo account with unlimited trading, and the second is a real-money trading account. To get started with the real money trading account, the following information is required: personal details (address/DOB etc), email, password and and potentially provide documents to verify these details. You can switch to demo mode at any time. In both cases, traders can enjoy a full spread of underlying financial instruments including shares, forex, indices, commodities, ETFs, and options.

Trading Platform/Software

The trading platform at Plus500 is didactic and intuitive. A large number of underlying financial instruments can be traded in CFD format. Traders can engage in full CFD trading on commodities, indices, options, forex, shares, and ETFs. There are many benefits to using the trading platform, including 24/7 email support and chat functionality. The platform is available in over 50 countries, and it is supported in 30+ languages. The costs of trading are already factored into the spread. Plus, another big benefit to novice traders and intermediate-level traders is the presence of a demo trading platform. This is free and offers unlimited trades to clients. Since it is impossible to lose more than what you have in your account, there is limited liability for traders. And with mobile functionality available too, you can always take your trades at Plus500 on the go with you.

Once you have opened a position on the Plus500 trading platform, it will be displayed under the Open Positions tab. The following information is provided for you:

• The type of trade that you made: In this case ‘Buy Bitcoin’
• Your Net Profit & Loss
• The current value of the underlying financial instrument
• The percentage change in the value of the investment
• The Limit Stop
• Any adjustments you have made
• The premium on the trade
• The time the trade was opened

The platform also allows you to click on the info button to see up to the second changes in your trade. Each position that you open has a unique ID assigned to it, a current value, and an opening value. When you initiate the trade, the current value will always be less than the opening value, so you will have to wait for the asset to reach a breakeven price point and then exceed it before you sell. You can edit your position at any time, or close it at your leisure.

If you decide to close your position, you will know exactly how much you stand to gain, or lose based on the green or red profit/loss indicated for your trade. For example, if you close the position €4.57 in the red you will incur a loss on the trade and it will be removed from your list of open positions on the platform. Your trading balance will be updated accordingly. If you close a position in the black, the positive balance will be added to your available balance, and you will be able to initiate additional trades. The Plus500 trading platform has a ‘Closed Positions’ tab where you can see all trades that you have closed out, and the net profit & loss that you have generated or lost.

Deposit Options

Plus500 makes it really easy to add funds to your account with multiple deposit options available. Additionally, no charges are levied on deposits. It is also possible to make a deposit from a joint bank account to your Plus500 trading account. However, corporate credit card accounts are not allowed since accounts must be held in the account holder’s name. Examples of the most popular payments processing options (for deposits and withdrawals) include Skrill, online bank transfer, PayPal, MasterCard and Visa. To get started with a deposit, traders must click on ‘funds management’, followed by deposit and then select any of the available deposit methods. There are 3 basic categories of deposit methods including: bank transfers, electronic wallets and credit card/debit cards. Before you can start trading CFDs, your accounts must be validated by way of documentation. These documents include drivers’ licenses, ID cards, passports or official work authorization.

Security

Plus500 makes no bones about its security features and is secured by SSL. The company is a trademark of Plus500 limited, which is fully authorized and regulated to offer real-money trading on cryptocurrency such as Bitcoin, Ethereum, Bitcoin Cash, Dash and Litecoin according to the Cypress Securities and Exchange Commission (CYSEC) with license #250/14. Availability subject to regulation.

Plus500UK Limited is also fully regulated and authorized by the FCA (Financial Conduct Authority) with regulation number FRN 509909. In Australia, cryptocurrency traders can enjoy complete peace of mind, thanks to Plus500AU Pty Limited AFSL. In terms of client safety down under, the Australian Securities and Investments Commission safeguards all trading for clientele.

Full disclosure about risks of trading digital currency (cryptocurrency) are provided on-site, so traders are under no illusions. It is an inherently volatile asset category, which can rise or fall precipitously at any time. Client money protection offers the following benefits to all real money traders:

• Negative Balance Protection
• An Investor Compensation Fund
• Authorized and Regulated by Multiple Authorities
• An Easy to Use Trading Platform with Competitive Spreads

Plus500 is 100% debt-free and the company has notable liquidity and capital reserves to ensure that it meets with statutory requirements in each of its licensed jurisdictions. The Investor Compensation Fund is required according to CYSEC for all Cyprus Investment Firms. The range of services covered by the investor compensation fund includes dealing on own account, execution of orders on behalf of clients, transmission of orders, and reception of orders.

With negative balance protection, customers will not lose more funds than they currently have available in their account. This is safeguarded by way of the margin call feature, which prevents accounts from going into the red. It may occur from time to time that a balance becomes negative while you’re waiting for funds to be deposited into your account to maintain an open position.

Margin Call may be indicated when Plus500 gives you a time within which to deposit funds into your account, or for you to close the position on your cryptocurrency trading. If you haven’t met your minimum margin requirements by the end of that additional time frame, the position will automatically be closed out at the respective price at that time. Negative balance protection ensures that you cannot be plunged into debt if trades move out of your favor.

It is always highly advisable to stick with fully licensed and regulated cryptocurrency trading platforms, since you have complete recourse in the event of non-payment, faulty trading practices, or malfeasance on the part of the trading platform or brokerage. CYSEC, the FCA and ASIC are your safeguards against shady brokerage practices, and Plus500 certainly operates above board in this regard.

We were satisfied with the in-depth response from customer support regarding safety protocols at Plus500:

‘Please be informed that our platform is protected by SSL (Secure Socket Layer), which is a Communications protocol that allows a secure and encrypted communication between different applications.
All sensitive information that users submit into the system, such as credit card number, password etc. is automatically transferred by this system to a secure environment.’

Markets

A wide range of markets is available for trading CFDs with leverage up to 30:1. These include the following:

Shares:

CFD trading in shares is available on a wide number of options. The world’s most actively traded shares are all available.

Indices:

Indices are statistics that show how much a group of stocks is valued at. Indices include the S&P 500 index, the Dow Jones industrial average, the New York Stock Exchange composite index, the FTSE 100 index, the CAC, the DAX, the Ibex 35, and others.

Currency pairs:

Currency pairs can be traded in CFD format. Currency pairs come in the following forms: major pairs, minor pairs and exotic pairs. A full listing of currency pairs is available on site under the financial instruments section.

ETFs:

ETFs are huge funds that measure the performance of indices such as the S&P 500 index, or the NASDAQ 100 index, as well as commodities like gold and oil.

Commodities:

Commodities range from oil to wheat to gold. They are hard assets and there are scores of them. They are typically categorised into any of the following 3 formats: metals, agriculture and energy. Plus500 offers a wide range of CFD commodity trading.

Options:

CFD options are available at Plus500.

Customer Support

To contact customer support at Plus500, simply click the support tab on the top right of the screen. You will find online chat functionality and an email address. The online chat requires you to enter your name, subject and a description of your query. Plus500 online chat is available 24/7. There are also a wide range of frequently asked questions available for traders. These cover multiple topics including deposits, withdrawals, trading, submission of ID documents, regulation, financial instruments, accounts, and verification. Support representatives are helpful and knowledgeable.

Safety

Plus500 is guaranteed safe and secure at all times. It uses SSL technology and subscribes to AML (Anti-Money-Laundering) policies at all times. Various risk management tools are also provided to ensure that all CFD traders are secure and can not lose more than they have in their accounts. The trading platform offers things like price alerts, trailing stops, stop loss, limit orders, guaranteed stops, and leverage.

Ease-of-use

Traders will be particularly fond of the demo trading platform. It is 100% free to use and it offers unlimited trades. Once you’re ready to trade for real money, the process of registering for an account is quick and easy. A wide range of contracts for difference (CFD) financial instruments is available. These cover multiple categories such as indices, commodities, stocks, ETFs, options and the like. If any time you run into problems, you can always contact customer support (in multiple languages) by online contact form, email or simply check out the FAQ.

Final Thoughts

Plus500 offers an exciting online trading platform for all manner of CFD trades. It includes shares, indices, forex, ETFs, commodities, options and more. The trading platform is intuitive and dynamic and the inclusion of a demo account makes everything so much easier.