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Is Plus500 Safe?

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Each trader wants to opt for a trustworthy and legitimate brokerage firm. Plus500 is one of the leading online brokers in 2021 with an expansive portfolio. This broker is listed on a stock exchange and has licenses from the ASIC, SEC, MAS, and FCA. It offers mobile two-step authentication and a transparent fee structure.

Plus500 ActivTrades Spreadex
Banking backgroundNoNoNo
Broker listed on stock exchangeYesNoNo
Annual financial statements on websiteYesNoNo
Mobile two-step authenticationYesNoNo
Broker ownership transparencyYesNoYes
Broker management transparencyYesNoNo
Broker is audited by the Big FourYesYesNo

All brokers have strengths and weaknesses. This article discusses the safety of online trading with Plus500.

Regulation & Investor Protection

A broker’s safety is revealed through its top-tier licenses and investor protection programs. Plus500 is regulated in the UK, Cyprus, Australia, New Zealand, Singapore, South Africa, Israel, and Seychelles. It has licenses from the ASIC, SEC, MAS, and FCA.

Plus500
Country of regulation:UK, Cyprus, Australia, New Zealand, Singapore, South Africa, Israel, Seychelles
Investor protection amount:£85,000 in the UK, €20,000 in other EU countries, no protection for residents of all other countries

The FCA in the UK offers the Financial Services Compensation Scheme with the protection of £85,000 of each account’s deposits. The SEC offers the Securities Investor Protection Corporation, which covers up to $500,000, including a $250,000 limit for cash.

Banking Background

A banking background contributes to the safety of an online broker. Plus500 does not have a banking history.

Stock Exchange Presence

A broker listed on a stock exchange is trustworthy and versatile. This ensures the online broker follows strict reporting requirements. Plus500 is listed on the London Stock Exchange’s Main Market, a telltale sign of its safety.

Transparent Financial Statements

Even though most traders don’t read financial statements, these reveal insights about an online broker’s practices. Plus500 regularly publishes its annual financial statements on its website. This broker has a transparent fee policy.

Two-Step Authentication

An online trading account must be secured. Plus500 offers two-step authentication, which makes all its platforms safe to use.

Ownership & Management Transparency

Plus500 publicly shares its ownership structure, which contributes to its safety score. This broker is transparent about its management structure. All the necessary information is listed on their official website.

Big Four Auditors

A safe and trustworthy broker is audited by the “Big Four.” These auditors are KPMG, PWC, Deloitte, and EY. The Big Four audit Plus500.

Final Verdict

Plus500 is a leading online broker in 2021 with a high level of safety. It has top-tier licenses and follows the industry’s highest standards. If you want to learn more about Plus500, you should check our in-depth broker reviews.

Plus500 compared to other brokers:


Methodology 

The mission of Business24-7 is to provide comprehensive, unbiased ratings and reviews of online providers. User experience, the mobile experience, customer service, costs and fees, security, the quality of trade executions, the products available on their platforms are all part of our six-month evaluation of a providers’s platform. The rating scale was based on thousands of data points that have been weighted into the scoring system.

Providers were also required to fill out a multi-point survey regarding every aspect of their platform. In-person demonstrations and evaluations were provided by the majority of the online providers we reviewed.

Stefan Grasic, along with our team of industry experts, conducted our reviews and developed this methodology for ranking what form is used in online investing.

Business24-7 maintains high editorial standards and provides the best advice and recommendations. The products and companies that we review may compensate us when you click on the links on this website. Click below to find out more about our review process and methodology.

Disclosure

All trading involves risk. More than 80% of investors lose in spread bet and CFD trading. As these complex instruments allow for the use of leverage, there is a high risk of losing more money than you have deposited. Before attempting to participate in spread bets and CFDs, consider how well you understand them and if you can afford to lose your money.

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Braden Chase is an investor, trading specialist, and former research specialist for Forex.com who helps aspiring investors develop the confidence and habits they need to make an income from the market. Braden has served as a registered commodity futures representative for domestic and internationally-regulated brokerages and has also spoken & moderated numerous forex and finance industry panels across the globe.

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