Plus500 CFD broker review* Risk warning: ‘CFD Service. 80.6% lose money’
Plus500 has one of the best and at the same time one of the easiest to understand trading platforms. Its simple yet sophisticated user interface on both PC, smarthone and tablet makes trading with Plus500 possible for everyone. This, together with the large number of tradable instruments make Plus500 the favorite broker of Globaltrader24.com… continue reading
|Founded in the year||2008|
|Main office based in||London|
|Contact possibilities||Email: firstname.lastname@example.org|
English, Italiano, Slovenčina, Bahasa Melayu, Latviešu, Slovenski, Česky, Lietuviškai, sr̩̂pski, Dansk, Magyar, Suomeksi, Deutsch, Malti, Svenska, Eesti, Nederlands, Türkçe, Español, Norsk, български, Eλληνικά, Polski, العربية, Français, Português, עברית, Hrvatski, Pyccĸий, 한국어, íslenska, Română, 繁體, 中文
|Trading platform||Android App, Iphone App, Ipad App, Webtrader, Windows Trader|
|Minimum first deposit||$100|
|Welcome bonus||No registration bonus|
|Pay out information||Fast pay out by bank transfer, paypal, etc. within two-three working days|
|Leverage||Up to 1:30|
Depend on the trading instrument and are constantly adjusted according to the market spread
|Demo account||Click to open a Demo account|
|Regulated by||Plus500 UK LTD is authorised and regulated by the Financial Conduct Authority (FRN 509909)
Plus500 CY LTD is authorised and regulated by the Cyprus Securities and Exchange Commission (License No. 250/14)
Plus500AU Pty Ltd, AFSL #417727 issued by the Australian Securities and Investments Commission is authorized to issue these products to Australian residents. You do not own or have any right to the underlying assets.
|Extra fees information||$10 for inactive accounts (after 90 days)|
|Available accounts||Real money, Demo account, Gold account|
|Methods of deposit||Paypal, Skrill/Moneybookers, Banktransfer, creditcard, iDeal|
|Methods of withdrawal||Paypal, Skrill/Moneybookers, Banktransfer, creditcard, iDeal|
|Number of tradable Assets||9000+|
|Types of tradable assets||CFD shares, indices, Forex, commodities, ETFs and options|
|Trading methods||Long (Buy), Short (Sell)|
|Tradable currencies||All major and minor currency pairs and bitcoin|
|US traders allowed|
|Trading on smartphone|
|Trading on tablet|
*Risk warning: ‘CFD Service. 80.6% lose money’
Plus500 has one of the most easily understandable user interfaces. Especially for traders who like to trade on their Smartphone, iPhone, Tablet, or iPad Plus500 is the best choice as the Plus500 trading platform looks and works extremely well on these devices. Plus500 offers approximately 9,000 different CFD stocks, commodities, indices, Forex, ETFs and more, which is by far the largest offer of tradable securities among all brokers. All prices are always real-time and you can trade almost 24 hours a day. Additionally, Plus500 offers a demo mode in which you can learn how to trade with virtual money – an ideal learning method!
Besides, there is also the possibility to start trader “challenges” in which you can practice your trading strategy with virtual money and compete with your friends or other beginning traders. It is not possible to launch a challenge on a Smartphone or tablet, just on the PC. You can however, participate in these challenges via your Smartphone or tablet. Plus500 Ltd is l
With Plus500 you can trade commodities, indices, Forex and shares in the form of CFDs. CFD means Contract for Difference; an investment product in which one wins or loses money the greater the difference between the opening and the selling price. Due to the leverage effect, traders and investors can trade with much larger amount than their deposit. WithPlus500 you can trade with a maximum leverage of 1:30. For example, with just € 200 you can trade € 40,000 worth of shares. It is impossible to lose more than your initial deposit.
Plus500 risk warning: 80.6% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
What is Plus500?
With Plus500 you can trade commodities, indices, forex, and stocks through CFDs. You can trade always and anywhere from your PC, smartphone, or tablet. CFD means Contract For Difference; an investment product for which profits and losses get bigger as the position size increases. Due to the leverage effect, a trader can speculate with an amount greater than his/her initial deposit. At Plus500 you can trade with a leverage up to 1:30. It is impossible to lose more than you deposit at Plus500, because you receive a text message saying your current positions will be closed if your account approaches a negative balance. This is called a margin call.
Why trade with Plus500?
The simple answer to this question is because Plus500 requires a very small initial deposit. Whereas with large investment institutions like Saxo Bank, ING, and Robeco one needs to deposit at least €2,000 to €10,000 to open an account, you can do so at Plus500 with just €100.
Plus500 trading platform
Plus500 has one of the easiest to understand user interfaces. Especially for iPhone and iPad users, Plus500 is one of the best online CFD brokers, because the design of the trading platform looks very Apple-like. At Plus500 you can trade in over 9,000 different CFDs on stock, commodities, indices, forex, and more, all in real time. Extensive statistics and tables are available for all financial instruments and assets. Technical indicators and analysis tools can easily be applied to the dynamic charts of Plus500. It also offers the possibility to analyse the market through both line graphs as well as candlestick graphs. Additionally, Plus500 offers a free demo mode where you can learn to trade with virtual money.
Plus500 customer service
The Plus500 customer service is available 24/7 in multiple languages via phone, email, and live chat. Personally, I have used the Plus500 customer service a couple of times. The first time, I had a question about unlocking my deposit bonus and the required Trader Points. The second time, my question was about how long a withdrawal would take. Both times I got a professional and quick response.
Plus500 function and trading methods
At Plus500 you cannot only simply buy or sell shares, Plus500 offers many other possibilities as well. You can add many indicators to your charts, be notified when a certain instruments reaches a certain price levels, use stop losses and price targets, and much more.
To open a long position you press the “long” button behind the financial instrument or asset in the main lobby. A popup will appear with the following values to be filled in:
- Number of shares: select the number of shares you wish to buy or sell
- Number of contracts (for indices): Choose the number of contracts you want to buy or sell
- Amount (for Forex): Choose the amount you want to buy or sell
- Close at profit (profit target): Determine the level at which you want your position to be closed with a certain profit. This function is optional.
- Close at loss (stop loss): Determine the level at which your position should be closed with a certain loss. This function is also optional but highly recommended; it protects you against large, unforeseen losses.
When you click “Advanced” some additional options will appear:
- Trailing stop: sets the stop loss at a number of pips below the maximum price the asset reaches. A trailing stop is a moving and thus a variable activation price which can you to maximise profits and minimise losses.
- Only buy/sell when rate is (Limit order): Set a price at which you want the specific asset to be bought automatically whenever the price hits this level.
Example of opening a position at Plus500:
Suppose you have opened an account at Plus500 and deposited 1000 Euro.
- Your balance is €1,000 (deposits – withdrawals + P&L of closed positions)
- P&L = €0 (total profit and loss for all positions, including financing fees)
- Availiable balance = €1000 (balance + P&L of open positions – initial margin)
- Equity = €1000 (balance + P&L of closed positions)
1) You press “buy” to purchase oil at $60 a barrel with the following criteria:
- Number of barrels: 100
- Close at profit: $66
- Close at loss: $55
- The total amount you have invested is 100*$60 = $6,000
- The required initial margin for oil is 10%: $600
- The maintenance margin required for oil is 5%: $300
- Balance = $1,000
- P&L = €-5.00 (Usually the spread on oil is 5 cents)
- Available balance after this transaction = $400 ($1000-10%*$6000 = $400)
- Equity = €1,000
2) Half an hour later oil rises to $64
- Balance = €1,000
- P&L = $400 (100*$64-100*$60)
- Available balance = $800 ($1000-10%*$6000 + $400 = $800)
- Equity: $1400 ($1000 + $400)
3) 15 minutes later, oil increases to $66 – this is the price at which you placed your take profit so your position will be closed.
- Balance = €1,000
- P&L = $600 (100*$66-100*$60)
- Available balance = $1000 ($1000 – 10%*$6000 + $600 = $1000)
- Equity: $1600 ($1000 + $600)
4) As soon as the order has been executed and the position has been closed, you have a profit of $600 and you balance looks as follows:
- Balance = €1,600
- P&L = €0 (no open positions)
- Available balance = €1,600
- Equity = €1,600
Plus500 – scam or reliable broker?
On the internet there are tens, if not hundreds of negative reviews about Plus500. Nevertheless, there are at least as many positive reviews. I just want to list the facts why Plus500 is absolutely no scam but is a serious, professional OTC (over the counter) CFD broker. First of all, the negative reviews about Plus500 are mainly about customers who initially made a profit but then started to gamble and lost their money. For some reason, they blame Plus500 for their own stupidity. Because Plus500 is regulated by the British FCA and the cypriotic CySEC, it has to ask for a copy of a customer’s identity and verification of the address. Plus500 legally requires these documents to make deposits to prevent money laundering and the financing of terrorism. Without these documents you cannot withdraw your profits. Besides, it would be crazy if somebody could just open dozens of accounts with different email addresses just to claim the your starting capital. This is an additional reason for Plus500 why it requires its customers to upload these documents. Plus500 has never been hacked and there has never leaked any personal information. Read more information about the reliability of Plus500.
Plus500 Ltd went public in 2013 and is listed on the Main Market of the London Stock Exchange. The purpose of the IPO was to raise money to further expand the services of the online broker. In combination with the IPO Plus500 received a license from the British Financial Services Authority.
- Easy to understand and user friendly trading software
- Fast payout via bank transfer – max. 3 days
- Easy deposit and withdrawal via Paypal, Skrill (Moneybookers), creditcard and iDeal