Plus500 Review 2020 and Technical Opinions

Filippo Last Updated: August 2020 20 min read
security 97
cost 56
trading 48
education 65
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In this Plus500 review, you’ll find everything you need to dispel any doubt, including our feedback on Plus500, both practical and technical, after years of experience on the platform.

The best thing you could is to open a free demo account to try out first-hand the Plus500 platforms, to be able to fully follow this review.

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Plus500 review
Security

When researching a Forex Broker, one of the most critical topics to pay attention to is security. There are a lot of scam structures in Forex that attempt to cheat naive investors and take their money.

However, well-educated traders protect themselves from that and do their due diligence about any single broker they are considering as a trading partner. There is no place better to start than reading about the broker’s history.

Plus500

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Foundations and Offices

As mentioned above, Plus500 was founded in London in 2008 as a PC-based online trading platform. The platform evolved quickly; it is now a publicly traded company in the London Stock Exchange and is part of the FTSE250 under the code PLUS.

Though its main headquarters is located in London, Plus500 has offices in Europe, Oceania, and Asia.

  • Plus500UK Ltd (Plus500 UK) has its office at 78 Cornhill, London EC3V 3QQ, U.K.
  • Plus500CY Ltd (Plus500 EU) is located in 1 Siafi Street, 3042 Limassol, Cyprus
  • Plus500AU Pty Ltd (Plus500 AU) is based on P.O. Box H339, Australia Square, Sydney NSW 1215, Australia.
  • Plus500SG Pte Ltd (Plus500 SG) has offices at 1 Temasek Avenue, Millenia Tower #18-07, Singapore 039192.

Regulation

Like any other broker platform, Plus500 is a network of companies that answers to different regulatory bodies that allow them to operate worldwide.

The Plus500 trading platform is offered by Plus500UK Ltd, a United Kingdom-based company located in the city of London. Plus500 UK is regulated by the Financial Conduct Authority to provide CFDs under the authorization FRN 509909.

That being said, the company operates affiliates that answer to other Tier 1 regulatory bodies as follows:

  • Plus500CY Ltd is authorized and regulated by the Cyprus Securities and Exchange Commission under license No. 250/14.
  • Plus500SG Pte Ltd (UEN 201422211Z) holds a capital markets services license from the Monetary Authority of Singapore for dealing in capital markets products with license No. CMS100648-1.
  • Plus500SEY Ltd is authorized and regulated by the Seychelles Financial Services Authority by license No. SD039.
  • 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.

All those companies are regulated and work as a whole body to provide users with one of the widest selections of assets. As its website says, “the company is a rapidly growing CFD provider in Europe and Asia and currently offers its portfolio of over 1000 instruments to over a million clients.”

Money Protection

Plus500 has a Client Money Protection program which is a series of measures that the broker takes to protect clients’ money.

First, all money deposited by clients in the Plus500 platform is allocated in segregated bank accounts in line with the Financial Conduct Authority so your money will be safe in case of bankruptcy or insolvency. In such an event, your money will never be touched.

Also, your account is not allowed to incur a negative balance. You can only trade what you have as balance. That means that you cannot lose more money than you deposit.

Finally, UK and European users registered with Plus500UK Ltd and Plus500CY ltd have the ICF extra protection: up to €20.000 in insurance for EU traders, and up to £85.000 for UK traders in case something happens to your money.

Non-Accepted Clients

This Plus500 review found that despite the broker having offices in significant Forex markets, it doesn’t offer trading operations in such large countries as the United States, Canada, France, or Japan, among others.

The broker does not provide a full list of countries, but according to our research, these are the countries Plus500 does not support:

    • Belgium
    • France
    • Brazil
    • Canada
    • Cayman Islands
    • United States
    • Cameroon
    • Cote D’Ivoire
    • Egypt
    • Iran
    • Nigeria
    • Zimbabwe
    • India
    • Indonesia
    • Japan
    • Pakistan
    • Philippines
    • Thailand
  • Pros
    • Highly regulated and compliant
    • Worldwide presence with offices in key markets
    • Money protection with segregated bank accounts
    • European traders protected by ICF
    Cons
    • United States customers not accepted
    • Inactivity fee

    Plus500 review
    Costs and Accounts

    Before opening an account with any broker, it is advisable to understand all the types of accounts the platform offers so you will be in a better position to identify what is the one that fits your needs best.

    Plus500

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    Account Types

    Our research team identified three major types of accounts in the Plus500 platform that range from novice traders with a few bucks to professional investors with hundreds of thousands of dollars, rands, or euros.

    Demo Account

    Plus500 offers an unlimited demo account that does not expire. You can open a demo account to try the broker, learn Forex basics, or just to learn and test new strategies every single day. Long story short, it is excellent for beginners and valuable for experienced traders as well.

    The demo account does not require you to fund your account with real money as all tradable assets are virtual and you will trade with zero risks. That’s why these options are also known as paper trading accounts. Of course, both earnings and losses are virtual.

    Standard Account

    The flagship and more popular account in Plus500 is the standard account. You can start trading with just $100 after completing an opening process based on regulatory rules.

    To create a standard account, you only need your ID or passport, proof of residency, and fill out a brief form. You can then fund your account with an initial deposit of $100.

    With Plus500, you don’t need to download any software as the broker offers its own online trading platform.

    Professional Account

    A professional account is a direct service to users registered with Plus500AU Pty Ltd, Plus500UK Ltd, and Plus500CY Ltd. To be eligible for a professional account within the EU or the UK, you must comply with at least two of the following requirements:

    • An average of 10 transactions of significant size per quarter in the past year
    • A financial instrument portfolio of over €500,000 (in your bank or your trading account)
    • Relevant experience in the financial services sector

    If your broker is Plus500 Australia, you must meet one of the following criteria:

    • Net assets of at least 2.500.000 AUD (including properties, businesses or other investments)
    • A gross financial income of at least 250.000 AUD in the past two years

    After opening the professional account, you will be granted such exclusive benefits as better spreads, leverage up to 300:1 on Forex, a personal account manager, and rebates and promotions from Plus500. As another layer of protection, Plus500 maintains your negative balance protection with the professional account.

    Islamic Accounts

    Unfortunately, Plus500 doesn’t offer Islamic accounts at the moment. However, we understand that this kind of service is crucial if you want to be Sharia-compliant.

    If you are interested in Islamic accounts and be in compliance with Shariah law, please visit our dedicated Islamic accounts page and discover the top 10 best swap free Islamic forex brokers for Halal trading.

    MAM/PAMM Accounts

    MAM (Multi-Account Manager) and PAMM (Percentage Allocation Management Module) are great tools for fund managers to control multiple accounts from a single one without having to create an investment fund.

    However, Plus500 doesn’t offer that service as the broker is focused on independent traders through their only and single-user proprietary platform.

    Account Base Currency

    As an international broker, Plus500 has different conditions and possibilities as base currencies for its accounts. However, everything depends on your country and the entity that you used to open your account.

    That being said, Plus500 offers major currencies such as Euro, US Dollar, Australian dollar, and the British Pound for almost all its customers. Other exotic currencies are available on a country by country basis. For example, you can open an account with South African Rands if your country of residence is South Africa.

    Deposits

    With over 200 thousand active customers globally and more than $1.3 trillion traded since its foundation, Plus500 has developed reliable deposit and withdrawal schemes with different payment methods and free conditions for all kinds of users.

    Plus500 Minimum Deposit

    The minimum Plus500 deposit can vary depending on the payment method. Credit cards have a $100 minimum deposit, while the lowest amount is $500 with wire transfers. Funding will be posted in around one business day.

    Finally, Plus500 accepts wire transfers, MasterCard and Visa credit cards for your initial deposit. Subsequently you will be able to use eWallets like Skrill and PayPal for future deposits.

    Deposit Fees

    Plus500 is a zero fees broker, and it charges no fee for you to make a deposit as long as you deposit the minimum requirements. You should make at least a $100 deposit on credit cards and $500 with wire transfers. Otherwise, you will be charged a small fee.

    According to its website, “on rare occasions, you may incur fees when transferring money to and from your Plus500 account. These are determined and levied by your payment issuer or bank, and not by Plus500.”

    First Deposit Bonus

    The broker offers a welcome bonus to traders who sign up with Plus500SG and Plus500 AU Pty Ltd and make deposits of more than 400 AUD or 300 SGD depending on your location.

    To receive the bonus, you should comply with the terms and conditions including a certain number of “TraderPoints.”

    Regrettably, due to regulatory environment, traders from the UK and Europe are not eligible for the Plus500 First Deposit Bonus.

    Withdrawals

    There is nothing better when investing your money than redeeming your profits. Plus500 has a specific risk-free withdrawal process.

    Withdrawal Methods

    Plus500 supports the same withdrawal methods that are available for deposits:  wire transfers, Visa and MasterCard, and eWallets like Skrill and PayPal. The company will typically make redemptions to the credit card used for previous deposits. Processing times are typically one to three business days.

    Withdrawal Fees

    Consistent with the Plus500 zero fees policy, almost all withdrawals have zero fees. However, a small fee for withdrawals will be charged if it is less than the minimum amount of $50 on eWallets and $100 for other withdrawal methods.

    Finally, as the website points out, Plus500 “may charge for exceeding the maximum number of monthly withdrawals.”

    Spreads & Commissions

    Like any other broker, Plus500 has a diversified business model that works with several revenue streams, including spreads, currency conversion, and inactivity fees among others. Most of the processes have no direct impact on traders’ balances due to its zero cost policy.

    That being said, the average spreads on Forex trading are slightly higher than other platforms.

    Please check the following levels. However, keep in mind that spreads below are illustrative. During certain events or volatile moments, ranges may increase.

    • EUR/USD – 0.6 pips
    • Gold – 0.08% of the value
    • S&P 500 – 0.03% of the value
    • Bitcoin – 0,50% of the crypto value
    • US Stocks – $0.05 to $2 (on average)

    When trading, Plus500 will not charge additional trading commissions other than spreads. However, since they are offered as CFDs, you will be charged small maintenance fees such as overnight,

    Fees

    Overnight Fees

    Overnight fees are charged or added on basically every asset on Plus500 as the broker is a purely CFD provider. In line with its transparency, you can check the amount of the overnight fee on every single asset.

    According to its website, the formula used to calculate the daily overnight funding account of a position is Trade Size * Opening Rate * Daily Overnight Funding %.

    Examples of Buy/Sell rollovers (it may vary):

    • EUR/USD – 0.0087% / 0.0012%
    • Gold – 0.0071% / 0.0017%
    • S&P500 – 0.0095% / 0.0042%
    • Bitcoin – 0.0465% / 0.022%

    Inactivity Fees

    Plus500 will charge you with a $10 monthly fee after the third month of inactivity in your account (i.e., you do not log into your account). The charge will be $10 or less if you don’t have enough funds to pay the total fee.  In such a case, the broker may reserve the right to close your account. Demo accounts do not apply to this rule.

    Plus500 recommends that “in order to avoid this fee, simply log into your trading account from time to time, as this is deemed sufficient activity to prevent a fee from being charged.”

    Trading Conversion Fees

    Plus500 will charge you with an up to 0.3% Currency Conversion Fee for all trades on currencies that are different from the base money of your account. It will be applied to net profits and loss and reflect in real-time your unrealized net profit and loss.

    For example, if your account is based on USD, you will be charged with a fee every time you trade equities listed in EUR. You should consider this fee as a part of your position when preparing your trading plan.

    Pros
    • Zero costs policy
    • Wide choice of base currencies, including ZAR
    • Unlimited demo account
    • Low minimum deposit
    Cons
    • Spreads not as competitive as other brokers
    • Limited payment methods

    Plus500 review
    Trading

    Getting started with Plus500 is easy. You can open an account in a few simple steps, and its platform is friendly and easy to follow. Let’s check how Plus500 trading features work.

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    Trading Features

    As a primarily CFD broker, all assets offered by Plus500 are tradable under the instrument of contracts for difference. However, you should know that in certain countries trading methods such as scalping, automated data entry systems, and hedging are prohibited.

    On the other side, the broker offers unique features in its platform along with notification services, a reliable alert program, and risk management tools.

    Executions

    Plus500 is a CFD Market Maker broker. That means that as a user of the Plus500 platform, you will not trade in the international markets but in the internal ecosystem created by the broker.

    Pricing parameters will be similar to international markets; however, values can be slightly higher or lower as internal liquidity and volatility will be independent of global markets. The broker can also choose its own pricing scheme.

    Sizing

    In terms of position sizes, Plus500 does not measure it in lots as most brokers do. In fact, Plus500 assigns a specific minimum unit amount to its trading instruments, which is generally measured in contracts or shares.

    Techniques

    While most of the traditional trading techniques are available, due to regulation parameters, Plus500 does not allow scalping, hedging, algorithmic trading, or spread betting strategies. VPS is not available.

    Risk Management

    When it comes to risk management, Plus500 shows its commitment to its clients by providing five tools that help traders manage their risk.

    First, the Close at Profit and Close at Loss tool will end your position once it reaches the levels you have set to secure the profit or limit the losses. This tool could also be viewed as profit taking or stop loss.

    Second, although it is not available for all instruments, guaranteed stops can be set only before opening your position, never after placing your trade. This tool sets a limit on your potential loss. In that way, you will be protected by slippage or any other price re-quote. The downside is that you can incur extra spreads. The upside is that you will know your maximum loss in advance.

    Third, Trailing Stop helps to secure your profits. In contrast to Close at Profit, Trailing Stops will not close your position but will allow it to remain open as far as the asset keeps moving in your favor. The downside is potential slippage.

    Fourth, although the fact that nobody wants a Margin Call, this tool provides you a warning when your total equity falls below a certain level. It thus offers one more layer of risk protection and management.

    Trading Hours

    Plus500 offers typical trading hours for all possible assets. However, you should be aware that in less popular hours the spreads can be wider than usual.

    • Forex: Open from Monday morning in Australia to Friday afternoon in San Francisco.
    • Commodities: Open from Sunday to Friday; market closes every day at 23:00 GMT for 45 minutes.
    • Cryptocurrencies: Open 24/7 (except for one hour on sundays)
    • Stocks: Open from Monday to Friday usually during the Asian, European and American session hours.

    Leverage

    Plus500 offers up to 300:1 leverage depending on country of residence and the entity in which you have your account registered. The broker set levels at the maximum allowed by the regulatory body, and these levels cannot be modified.

    • Europeans registered with Plus500CY Ltd have a maximum leverage on Forex of 30:1
    • UK based traders registered with Plus500UK Ltd have a top leverage on Forex of 30:1
    • Australians, New Zealanders, and South Africa-based investors registered with Plus500AU Pty Ltd have maximum leverage on Forex of 300:1
    • Singaporean traders on Plus500SG Pte Ltd have a top leverage of 50:1
    • Finally, if you are registered in the Plus500SEY Ltd global market, maximum leverage is 300:1

    Platforms & Mobile

    Platforms are a crucial area when it comes to talking about brokers. Let’s take a look into the available trading platforms that Plus500 provides and how its mobile offering works.

    Charting and Trading Tools

    Plus500 offers over 100 indicators and more than 20 drawing tools in its proprietary platforms. Traders have a charting ecosystem where they can explore and expand technical analysis.

    Web Platform (Proprietary)

    The Plus500 web trading platform is very user-friendly and easy to begin with compared to other trading platforms. It offers both dark and white themes and provides multiple charting analysis tools. Though the layout could be improved, it is easy to understand and to use. The web platform is compatible with any browser.

    Mobile Platform (Proprietary)

    The Plus500 mobile app is available for Android, iOS, and Windows mobile phones. The app offers all features found in webtrader platform, including risk management. You can configure the app to send you notifications with trading ideas and alerts.

    Markets

    As Plus500 is a CFDs broker, every asset listed on the platform is offered in CFDs. You do not own the underlying asset but trade the difference between opening and closing price. Here are the markets that Plus500 supports.

    Forex

    60 forex pairs available from 0.6 pips including mayors, minors, crosses, and exotic pairs.

    Commodities

    Plus500 offers only gold, oil, and natural gas. However, there are plenty of commodities options related to these assets.

    Indices

    7 Indices available including Germany, Netherlands, Italy, UK, EU50, NASDAQ and S&P 500

    Crypto

    14 cryptos feature the most common ones such as bitcoin, ethereum, litecoin, ripple and more. Plus500 offers crypto-to-crypto and crypto-to-fiat trading.

    Stocks

    Over 1,800 stocks from all around the world, including equities from Europe, Japan, Australia, USA, Singapore, Hong Kong, and South Africa.

    ETFs

    Over 90 ETFs distributed in various types of instrument-based market sectors, industries, major indices and other kinds of assets.

    Futures and Options

    Plus500 supports over 100 futures and options tradable instruments based on indices and commodities.

    Products

    Plus500 offers a user-friendly and very basic platform. It provides both basic and advanced trading tools for all needs.

    Plus500 Trading Platform

    This Broker review found that the Plus500 trading platform is one of the best proprietary platforms in the industry. Its offering is vast and includes the most popular markets and a large number of trading instruments via CFDs.

    Finally, Plus500 provides its users with a top-quality economic calendar, high class analysis, and much more.

    Social Trading – Copy Trading

    Plus500’s overall leitmotiv is to keep things as simple as possible. Although for many clients this approach works well, it does mean that Plus500 lacks some secondary products like copy and social trading.

    The only quasi-social feature provided by Plus500 is the trader sentiment tool which is a bar that visualizes the ratio between bulls and bears in the market. However, remember that this feature is also based on the internal ecosystem of a market maker broker.

    Pros
    • Easy to learn and straightforward to use
    • Over 2000 CFD assets in total
    • Very transparent pricing
    • Transparent broker when it comes to disclose their trading features
    Cons
    • Lack of secondary features
    • Not that great for technical chart analysis
    • Many banned trading techniques
    • Leverage cannot be modified

    Plus500 review
    Education and Support

    While processes, fees, and features are essential, education and customer support can enhance your trading to the next level. This broker review found that educational features supported by Plus500 are not vast, but its superb customer support is a real differentiator in the market. Let’s check it out.

    Plus500

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    Languages

    Plus500 is available in over 31 languages including English, Spanish, Chinese, Arab, and Russian among others. In European section alone, the site supports 24 regional languages. The mobile edition of Plus500 offers your choice of 16 languages.

    Remember that the offering may vary depending on the country and branch where you are based.

    Research

    Plus500 is not known for its offering of research tools. The only trading tool that the broker provides is the economic calendar for every asset listed on the platform. The EcoCal is an important alert system that warns traders about upcoming key events that can affect assets’ valuations; however, that tool alone is not enough.

    Customer Service

    Plus500 offers one of the best customer services in the industry with dedicated web pages, a communication system, and live support services.

    The website offers a considerable FAQ section with over 80 questions translated into 31 languages. Plus500 also provides customer support services via email and live chat. The only downside is that customer support over the phone is not supported.

    Education

    Education is the weak spot for Plus500 as the section dedicated to training is not too extensive. It only features five videos that provide insights about trading techniques, CFDs, fees, and other platform features.

    Pros
    • Over 31 languages available
    • Excellent customer service
    • Great transparency with a complete FAQ section
    Cons
    • Limited research tools
    • Little educational offering

    Plus500 review
    Our Opinion

    Our team of investment platform experts found that Plus500 is a trustworthy broker specializing in contracts for difference or CFDs. It has a zero-cost policy with a low $100 minimum deposit that makes it an excellent broker.

    Of course, like any other broker, this Plus500 review found some downsides that people should consider before registering for an account including the absence of extensive educational materials and limited payment methods. Still the disadvantages are not significant, and there are other providers and news outlets that you can rely on to fill any gaps in their product offering.

    Overall, the wide asset choice and the attractive spreads make Plus500 a great broker if you are looking for futures and CFDs.

    Finally, since leverage levels cannot be modified and you can be exposed to high risks trading, we recommend you to open an account only after practicing with its exciting, new, unlimited demo account.

    Plus500 Pros and Cons

    Pros

    • Very well-regulated broker with a global presence
    • Multicultural and international platform in 31 languages with great customer support
    • Zero cost policy, and though spreads are not too competitive, pricing is good enough
    • Solid number of instruments, including CFDs, options and futures
    • Straightforward pricing: you can check the price scheme on every single trade including so-called “hidden fees.”
    • Unlimited demo account
    • $100 minimum deposit
    • Very user-friendly platform

    Cons

    • Little educational offering
    • Limited charting tools
    • Limited research tools
    • United States customers are not allowed
    • Reduced payment methods

    Plus500 FAQs

    Is plus500 safe?

    Yes. Plus500 is very safe and well-regulated by 4 top-tier regulatory bodies. These are the FCA, CySEC, Australia, and MAS (Singapore). This type of regulation is trusted all over the world and helps Plus500 stand out as a very safe broker. For more information check our Plus500 Review.

    What is the minimum deposit with plus500?

    The Plus500 minimum deposit depends on the method you use. The minimum deposit is $100 for credit cards and eWallets, or $500 if you use wire transfers to deposit.

    Is plus500 good for beginners?

    Yes, Plus500 provides a good trading environment for all traders, but if you’re a beginner we strongly recommend to open a demo account first. Plus500 offers an unlimited demo account you can practice and learn on as well as a very user-friendly trading platform. For more information regarding their demo and trading platform offering, check our Plus500 Review.

    Is plus500 a market maker?

    Yes, Plus500 is a market maker broker offering CFDs.

    Can you day trade with plus500?

    Yes you can day trade with Plus500, however some day trading techniques like Scalping are not allowed.

    Can I get my money back from plus500?

    Yes. You are free to withdraw your deposited funds from Plus500 at any point.

    At Plus500 can I lose more than I invest?

    No. It is not possible to lose more than you invest with Plus500. This is because they offer negative balance protection which protects you against exactly this. You can only lose what you deposit.


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    Plus500 Review 2020 and Technical Opinions

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    Trading CFDs, FX, and cryptocurrencies involves a high degree of risk. All providers have a percentage of retail investor accounts that lose money when trading CFDs with their company. You should consider whether you can afford to take the high risk of losing your money and whether you understand how CFDs, FX, and cryptocurrencies work. Cryptocurrencies can widely fluctuate in prices and are not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. Your capital is at risk. The present page is intended for teaching purposes only. It shall not be intended as operational advice for investments, nor as an invitation to public savings raising. Any real or simulated result shall represent no warranty as to possible future performances. The speculative activity in forex market, as well as in other markets, implies considerable economic risks; anyone who carries out speculative activity does it on its own responsibility.
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