Plus500 has already gained an outstanding reputation and is continuing to gain popularity. Here we’ve conducted an in-depth review to see if they really live up to that reputation, and tell you everything you need to know before you sign up to Plus 500.
|Regulation/license||ASIC, CySEC, FCA, FSB, ISA, MAS|
|Payment methods||Credit card, Moneybookers, PayPal, Skrill, wire transfer|
|Main benefits||Long-standing company (a decade), Low spreads, listed on the London stock exchange|
Although established in Israel, Plus 500’s offices are mainly situated in London, with headquarters in Haifa. The Plus 500 group was originally founded in 2008 when it launched its online trading platform (PC based). In 2009 they began to offer CFD on shares without commission. By 2010, Plus 500 had launched their web-based version; this allowed users to trade online using Mac, Linux, and Smartphones.
In the following years, Plus500 has consistently made advancements to the brokerage. by 2011 the first iPhone and iPad app was released, the same year it was rated as the highest CFD trading app on the Apple app store. Then in 2012, Plus500 introduced it’s Android smartphones and tablets app; making their innovative services widely available on-the-go.
2013 was a big year for Plus500. The brokerage went public in the AIM section of the London stock exchange; before joining the UK FTSE 250 index of leading mid-cap listed companies.
Pros and Cons
- Low spreads
- Listed on the London stock exchanges main market
- Provides an easy-to-use platform
- Demo account available
- Advanced risk management tools
- High financing rates
- Can only be used for CFD trading, so has a limited product range
Regulation and Safety
Plus500UK Ltd authorized & regulated by the FCA (#509909) and is also regulated with FTC, CySEC and ASIC. In addition to this, the fact that the brokerage is listed on the London stock exchanges makes them all the more trustworthy.
The brokerage also offers a range of subsidiaries, the one you need to use would depend on your residency. For members that reside in the UK, there would be £85,000 investor protection provided per eligible person, per firm; as well as the company being FCA regulated. For EEA countries residents, 20,000 investor protection is provided and CySEC regulated.
The Plus500 website says that most services are offered for free and the few fees they do charge, they are upfront about. There is a Fees and Charges page on the website to find out more about any fees involved.
Fees that are charged include:
- Buying and selling spreads – The spread is paid when a position is opened
- Additional trading fees – These would depend on trading activity, these could be for overnight funding, guaranteed stop order or an inactivity fee.
- Currency Conversion Fee – Plus500 charges a conversion fee on all traded instruments denominated in a currency that differs from the base currency of a users account. A small fee of 0.5% is applied to realised net profits and losses and reflected in real-time for unrealised profits and losses of open trades.
Plus 500 cover the majority of payment processing fees, there may be a charge for going over the maximum 5 withdrawals in a month ($10 per withdrawal). There is also no fee for dealing commissions.
Payment methods accepted on Plus 500 are:
- Debit/credit card
- Bank transfer
- PayPal/Skrill account
Firstly, new users must verify their payment method. Different payment methods require different documents to be provided (Scanned). For PayPal or Skrill accounts no documents are required at all.
All funds deposited to a user’s account must come from a payment method that is registered under the same name as the account holder on Plus 500.
Some payment methods aren’t currently available in every country.
You can get help verifying your payment method on the FAQ section of the website, where a video tutorial is provided.
Plus500 provide 24/7 customer support that can be accessed by anyone. As well as providing an in-depth FAQ section, there are also options to either send them an email or start an online chat where you can get instant support. The support agents are fast to respond whether you are contacting them via email or online chat. The support is currently offered in 16 different languages.
- High-quality risk management tools provided – these include guaranteed stop and the ability to trail stop orders
- Plus500 offers over 2,500 financial trading instruments for leverage trading (CFDs on Forex, shares, commodities, options, cryptocurrencies)
- Offers guaranteed stop order – this puts a limit on potential losses and the function is not currently available with all CFD brokers
Sponsors and Partnerships
Plus500 is the main sponsor of Atletico de Madrid, after getting involved with the team in 2015. They have chosen to sponsor a team with a long track of being a winner, to match Plus500’s longstanding leadership.
“We are proud to be aligned with such a famous football club which strives for success, with talented players, strong heritage and a long track record of being a winner.”
Asaf Elimelech, Plus500 CEO
Plus500 is also in partnership with the top-tier Brumbies rugby team. The popular Australian Rugby team is a strategically picked partner with Australia being one of Plus500’s key markets.
“We are delighted to welcome Plus500 on board. We are eager to leverage their support of sport around the world and in the process extend the Brumbies already strong global brand. Plus500 is a well-regarded business and we are very pleased to be part of the same team”.
Simon Chester, General manager – Commercial of the Brumbies
Signing up to Plus500
The platform gives users the option of either starting with a demo account or jumping straight to a real account.
For new traders, the free demo account offered is great for practising risk-free before you start trading. The demo account is unlimited and really simple to sign up to, you can either complete a short form or login with a Gmail or Facebook account.
To sign up to Plus500’s real trading account, the minimum deposit is £100. This account has a maximum leverage of 1:30, with a variable spread.
New users of Plus500 need to electronically provide documents to verify a real account. Documents that Plus500 requires are a government-issued identification document that contains a photo, ID number, full name, D.O.B and expiry date; as well as a recent residential verification document that contains a full name and address.
Once at least ten transactions per quarter for at least a year have been conducted by traders, they would then be eligible to apply for a professional account with Plus500. It should be noted that the trading activity that is required to get an account can be with Plus500 or other brokers. The maximum leverage for a professional account is 1:300.
Plus500 has serviced more than 300,000 clients globally after being part of the brokerage industry for over a decade; and have also become regulated by respectable regulators in multiple countries. The brokerage has built itself a solid and longstanding reputation that is continuously improving.
Plus500 also offers a wide range of trading tools compared to its’ peers, they currently offer an impressive 2000 different tools to choose from. In addition to this, Plus500 enable guaranteed stop-loss orders on the platform, which a lot of other brokers do not. Overall, Plus500 is a fast and secure trading platform, it is easy to navigate and a quick sign up is all that’s needed to access the demo account.
76.4% 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.