76.4% of retail CFD accounts lose money

Investing in foreign exchange market is never a bad option. Well, that is if you invest the right way. The right broker, for your experience, and for your reaching your goals. But how do you know if a brokers’ terms and conditions are right for you? How do you get to know the advantages of their platforms and if it fits you well? 

This review is about Plus500. A broker listed for FX and CFD. They are publicly listed on the London stock exchange (PLUS) and are under the regulation of financial authorities with international presence, which includes top tier ranking ones like UK Financial Conduct Authority (FCA) and the Australian Securities and Investments Commission (ASIC). 

Plus500 Companies & Regulations

Plus500 Ltd operates through the following subsidiaries:

  • Plus500CY Ltd is authorised and regulated by the Cyprus Securities and Exchange Commission (Licence No. 250/14).
  • Plus500CY Ltd is the issuer and seller of the financial products described or available on this website. Office Address: Plus500CY Ltd, 1 Siafi Street | 3042 Limassol
  • Plus500UK Ltd is authorised and regulated by the Financial Conduct Authority (FRN 509909).
  • 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.
  • Plus500SG Pte Ltd (UEN 201422211Z) holds a capital markets services license from the Monetary Authority of Singapore for dealing in capital markets products (License No. CMS100648-1).

So, in this Plus500 review, you will find out that this broker is considered safe. Why is that? Well, when your forex broker is listed on stock exchange and discloses its financials, that’s enough quality to earn the trust of investors. Also, we cannot undermine the fact that they are regulated not just by the financial authorities but also the reputable and top ranking bodies as shown above.  

Which people are allowed to open an account with Plus500

All over the world, plus500 allows customers to open an accounts, but there are some exceptions to this. People from US and Canada are not allowed to own an account with them. Same thing applied to countries such as Cuba, Iran and Syria. 

Types and Number of Products to trade with

The best plus500 feature on this review is the fact that this broker was the first to introduce Bitcoin CFD as far back as 2013 and have grown to offer access for customers to an intricate product line that includes forex, stock indices, equities, cryptocurrencies, equities, commodities, ETF’s and a lot of other options. 

However, it is worthy to note 

  • That CFDs are not for inexperienced traders, they are complex instruments and you are posed with a great volatility of loosing your money to its leverage. On record, the percentage of money lost on this platform on accounts belonging to investors trading with CFD’s is on the high side of about 76.4%. So it is better to be experienced and know your way in and out of CFD’s if you want to be successful on that product line. 
  • Also if you are a trader who wants to execute trades within 2 minutes, you probably should avoid plus500 because they consider that as “scalping” where customer’s positions in significant portions are closed and open by them in 2 minutes. If you are fished out using this strategy, you make have your account banned.

But amidst all these, plus500 runs a negative balance protection which makes sure that registered clients do not loose more that they have invested into the market alongside market conditioned instruments for guaranteed stop losses. 

Plus500 Business model

Plus500 has a little disadvantage when it comes to fees. There is this inactivity fee that is applied when you do not login into the platform for a period of three months. However, they run on low trading fees and do not charge any fees for withdrawals. But this is only available for 5 times each month after which you will pay $10. They also charge you $10 if the withdrawal request is lower than the minimum withdrawal account $100. The withdrawal method is also allowed on credit/debit cards. 

Plus500 Minimum Deposit and account type

The minimum deposit applicable to plus500 is $100 which can be done with the use of credit and debit cards and more efficiently through electronic wallets, Skrill and PayPal. But if you may want to use a bank transfer, they allow only a minimum of $500 and this is constant since they have only one account type. While using bank transfer method, plus500 will only accept bank accounts in your name. You should also know that it takes some business days before the money will come through.

The forex fees are average and also offer no commission because everything is included in their competitive spreads. Even large volume traders do not have access to any discounts whether they chose to trade one lot or 1000 lots. 

But clients can take up the “professional account” options that allows them to maximize leverage over a ten fold from 1:30 to 1:300.

Plus500 Features of Platforms

Plus500 is available on mobile platforms and also on web with an enhanced and user-friendly interface. The web interface supports a long list of languages; Arabic, Bulgarian, Chinese, Croatian, Czech, Danish, English, Estonian, Finnish, French, German, Greek, Hebrew, Hungarian, Icelandic, Italian, Latvian, Lithuanian, Malay, Maltese, Polish, Portuguese, Romanian, Russian, Slovakian, Spanish, Swedish, Traditional Chinese and Turkish. 

The only downfall that seems to exist in the look and feel of plus500 is the impossibility to customize the platform. The metatrader 4 is not available with plus500, apart from that, a new user can find his way around without difficulty. This attributes also to the mobile-trading platform; same ease of use, two step safer verification, good search function and available for iOS and Android.

Customer Support and protection.

First of all Plus500 runs their operations on several subsidiaries and your residency determines which one will serve you. Which means, that your country determines the amount of investor protection you can get from them. 

They do not offer videos and materials that can help their clients learn more about the market they want to invest in but actually proves an information document that states in clear outlines the basics of their instruments.

For customer support, they are a bit limited because there is no customer telephone number. But you can always submit your requests through email ticketing system and live chats. 

Special features.

Plus500 lacks some features expected from a broker, there is not automated trading facilitated by experts or other trading algorithms (EAs). They do nor allow clients to manage funds that is not theirs (third party funds) or even back testing functionality. 

If you are seeking to invest in the forex market and execute trades without advanced functions, then plus500 is the best platform although with increased spreads for guaranteed stops. 

Note, that promotions and bonuses are not available to European clients under the CySEC company either.

Register Account with Plus500 here

If you like this Plus500 review, why not open an account with them and try out the FREE demo of their platform? Let us know what you think.