On the internet I often come across people asking: is Plus500 scam? To us this is a strange question because Plus500 is one of the most famous and respected CFD brokers available online. The question may find its origin in the growing popularity of CFD trading and the ignorance that people still have about this way of trading.
It also surprises us that there are people on the internet who write that in their opinion Plus500 is scam. We can assure you that this is absolute nonsense. But to bust those myths that Plus500 would be a scam, we delve a little further into the claims people are making against Plus500.
Properties of a reliable broker
When you trade with real money at an online broker then it is logical that you worry about reliability. Indeed, there are a lot of website out there, the only purpose of which is to scam people. When choosing a broker you should therefore always pay attention to certain characteristics of a reliability broker.
Plus500 has more of these characteristics than most other brokers who offer their services online. For example, Plus500 is regulated by the Financial Conduct Authority. This is the UK financial watchdog and the FCA is being regarded as one of the most strict financial authorities in the world.
An additional feature that demonstrates the reliability of Plus500 is the fact that they are listed on the London Stock Exchange. Because Plus500 shares are available on the London Stock Exchange, they must be transparent and report a lot of information. As a listed company, they also must comply with a whole range of additional legal requirements.
Claims that money has not been paid out by Plus500
When you search the Internet for “Plus500 scam” you come across some people that claim their money has not been paid out. Plus500 reports, however, that these people have abused the conditions of the broker. For example, they have created multiple accounts to strike up multiple sign-up bonuses or have created an account with false data (e.g., under a fake name). If Plus500 finds out, they are required by regulation to close the account as a measure against money laundering and terrorism financing.
Other people argue that CFD trading would not be fair at Plus500. This is mainly due to the ignorance of people about this way of trading. After all, investing in CFDs is not the same as investing in traditional shares. On our website you can read more information about CFD trading with brokers such as Plus500.
Mostly, we find that people start complaining after they lost some money due to their own trading decisions. They then blame Plus500 for their losses and write that Plus500 is a scam.
Why we highly recommend Plus500
Once you are familiar with the concept of CFD trading and the risks that come with it, Plus500 is a very good broker. We would certainly recommend Plus500 to everyone.
Some good features of Plus500 are:
- The user-friendly software and the free unlimited demo account.
- The Plus500 website and software are available in 32 languages.
- Finally, transaction costs are low and there are no fixed commissions.
All this makes Plus500 one of the best brokers where traders from around the world can trade in CFDs. Click here to open a free (demo) account at Plus500 >>