Is Plus500 Safe?

Page Summary

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

Broker Comparison

Plus500 ActivTrades Spreadex
Banking background No No No
Broker listed on stock exchange Yes No No
Annual financial statements on website Yes No No
Mobile two-step authentication Yes No No
Broker ownership transparency Yes No Yes
Broker management transparency Yes No No
Broker is audited by the Big Four Yes Yes No

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, Israel, UAE, and Seychelles. It has licenses from the ASIC, DFSA, SEC, MAS, and FCA.

Ragulation

Plus500
Country of regulation: UK, Cyprus, Australia, Israel, Seychelles, UAE
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 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:
Plus500 Review
Plus500 Insights

Disclaimer

eToro is a multi-asset investment platform. The value of your investments may go up or down. Leveraged and speculative product. Not suitable for all investors. You should consider whether you can afford to take the high risk of losing your money. Capital is at risk. Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision. Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk. Crypto assets are unregulated& highly speculative. No consumer protection. Capital at risk.
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