Plus500 Review and Insights
Plus500 is s a fundamental CFD provider offering CFDs over shares, stocks, cryptocurrencies, forex and other financial instruments established in Israel and listed on the Main Market of the London Stock Exchange.
Plus500 offers CFD’s over approximately 2200 instruments. 76.4% of retail investor accounts lose money when trading CFDs with Plus500. Before trading you should consider whether you can afford to take this high risk of losing your money.
Plus500AU Pty Ltd (ACN 153301681), licensed by:
ASIC in Australia, AFSL #417727, FMA in New Zealand, FSP #486026; Authorised Financial Services Provider in South Africa, FSP #47546 which make sure its financials are always disclosed and transparent. They also have a client money protection policy ensuring that customers money is not used for hedging purposes. Plus500 is a publicly traded company listed on the London Stock Exchange and regulated by the top tier regulator what makes this platform an overall safe bet.
Crucially, it’s important to remember that when you’re thinking of using a CFD provider, you do put your money at risk. Any trading strategy comes with its risks. However, a vast majority of retail investor accounts do lose money when trading CFDs with the Plus500 platform. With that in mind, you should never put your money into a CFD trading system if you can’t afford to lose it.
This trading platform is also suitable for day trading. If you plan on opening and closing the majority of your positions on a quick scale you can use this platform as well. On the other side scalping is not allowed and your account can be blocked and closed for that reason. Scalping is defined as: “A trading strategy where a significant portion of the customer’s positions are opened and closed by him/her within 2 minutes.”
In a nutshell, we would recommend this platform to mid and advanced traders who are looking to trade CFDs on highly sophisticated and easy to use platform.
Insights About 500Plus
One of the best things about 500Plus is that they offer negative balance protection. That means you can’t lose more than your deposit. Negative balance protection is an essential feature because, in many instances, it’s possible to lose more money in CFD trading than you have in your account. This is one of the few brokers that offer this kind of protection long before it wasn’t mandatory under new regulatory rules from the ESMA.
Be aware that CFDs are, by definition, leveraged products, which means they function based on credit. In practice, that means you can end up in more debt than you have money to pay, especially if there is a large or sudden movement in the markets.
These days, there are many brokers to choose from in the Forex and CFD markets. However, most of them require a minimum deposit, and often that minimum deposit is in the thousands.
At 500Plus, you can begin trading even with a small account. And it’s important to remember that with most other providers, there is a considerable risk of you losing more money than you have in your deposit. That cannot happen with this provider.
If you’re curious about the platform, you can check it out with their unlimited free demo account, which offers you virtual money. It’s risk-free, and you can give it a try by clicking here.
Tight spreads are a must at 500Plus. There are no commissions for you to pay because all of the fees are taken care of by the spread and funding premium for the instrument you are trading. What’s better, you’ll only pay the funding premium if your position is held for longer than one day. The amount you pay in your funding premium varies from instrument to instrument.
For example, if you trade USD/EU with a US$10,000 position, your only cost will be the spread. This is a massive advantage over other brokers. Other brokers, or even regular banks, will ask for a commission of a minimum of US$20 per trade.
Here is a screenshot from a demo account inside of the 500Plus platform.
If you have a position on the euro, and you want to go short on it, it’s as easy as pressing the sell button.
If that’s all you want to do, you’re done. However, when you press the sell button, another screen will open, and you can change your settings in a few different ways. For example, you can place your profit target, stop loss, or even your trailing stop in that new screen.
500Plus Is Not A Scam
Some people think that this platform might be a scam. They believe that because it seems too good to be true. A broker that doesn’t charge commissions is very rare in the CFD market. That alone causes many people to doubt. However, this difference is built into their business model. In other words, this provider plans its budgets within those financial guidelines, and they are able to cover all of their costs and make profits in the hundreds of millions each year.
Another point that helps many people see that 500Plus is not a scam is the fact that they are a regulated and authorized broker according to the Financial Conduct Authority. Beyond that, they are listed on the London Stock exchange. These two things are difficult to do and require that you passed through many levels of regulation and inspection. In other words, these two things show that this is a reliable company.
One of the difficulties and real disadvantages with this platform is that you can’t call them on the phone. They offer live chat and support through email, but sometimes it takes as long as three hours before you get a full response.
Another concern that people often have has to do with withdrawing your money from your account with this platform. This concern stems from the fact that you can’t withdraw money directly to your personal bank account. Instead, you need to withdraw your money to a Skrill account (a service like PayPal). We tested withdrawing money from our account at this platform to our Skrill account, and we had no problems whatsoever.
With 500Plus generous offering and security features, they are one of the best CFD provider available today. And since its platform is available in 32 different languages, it’s more than likely that you’ll be able to trade in your native language. Visit their website today and an open account or try their free demo accounts.