Plus500 Review: Features, Fees, Pros & Cons Explained

Plus500 Ltd is a well-established online trading platform that has been around since 2008, offering a wide range of financial products and services. Based in Israel, the company operates through regulated subsidiaries in several global jurisdictions, providing users with access to various asset classes, including CFDs, cryptocurrencies, forex, commodities, stocks, indices, and more. As the platform continues to grow, it has become a prominent player in the trading space, also gaining attention through sponsorship deals with major sports teams like BSC Young Boys and Legia Warsaw in football, and the Chicago Bulls in basketball.

In this review, we will explore Plus500's offerings, the pros and cons of using the platform, and how it stacks up against other trading platforms.

Overview of Plus500

Plus500 is primarily known for its CFD (Contract for Difference) trading platform, offering more than 2800 instruments across various markets. Traders can engage in leveraged trading, which provides the opportunity to maximize potential returns (and losses). The platform also has specific trading solutions such as Plus500CFD, Plus500Invest, and Plus500Futures, each offering unique features for different types of trading.

Plus500 is regulated by multiple financial authorities across the globe, including the Cyprus Securities and Exchange Commission (CySEC), the UK’s Financial Conduct Authority (FCA), and the Australian Securities and Investments Commission (ASIC), among others. This regulatory oversight ensures that the platform adheres to industry standards in protecting client funds and maintaining operational transparency.

Account Types and Registration

Plus500 offers a streamlined process for opening accounts, which includes the option for a demo account with a balance of £/€40,000 or equivalent. The demo account is replenished automatically once the balance falls below €200, offering traders an ongoing practice environment without additional deposits.

For real accounts, the registration process is simple, requiring personal details and document verification (such as ID and address verification). A minimum deposit of €100 (or equivalent) is required to start live trading, and the platform supports various payment methods, including credit/debit cards, PayPal, Skrill, and bank transfers.

Traders are also assigned Trader Points (TPoints) based on their trading volume, which may give access to various benefits and rewards within Plus500’s loyalty program. However, it’s important to note that the availability of certain features like leverage can depend on the trader’s region and regulatory conditions.

Trading Instruments Available

One of Plus500's strongest points is the extensive selection of trading instruments, which include:

1. CFDs (Contract for Difference): The primary focus of Plus500, with over 2800 instruments available for trading.
2. Cryptocurrencies: Instruments with leverage up to 1:2, allowing traders to speculate on crypto price movements.
3. Forex: Currency pairs, with leverage up to 1:30, providing access to major and minor forex markets.
4. Shares: Leverage up to 1:2 on stocks from various global exchanges.
5. Commodities: Leverage of up to 1:20 for trading physical assets like oil, gold, and silver.
6. Options: Leverage of up to 1:5, with various expiry options.
7. ETFs (Exchange-Traded Funds): Leverage up to 1:5, with access to multiple ETF assets.
8. Indices: Leverage up to 1:20, with indices like the USA 500 and Germany 40.

The platform also offers futures trading through its Plus500Futures platform, available in the U.S. This provides access to a broad range of futures contracts, enabling traders to speculate on the price movements of commodities, stock indices, and more.

Trading Fees and Costs

Plus500 does not charge commission fees on trades, which is a significant advantage for traders looking to minimize costs. Instead, the platform earns revenue through the spread, which is the difference between the buying and selling price of an asset. The spread is dynamic and varies depending on market conditions, but this simplicity appeals to traders who don’t want to deal with additional fees per trade.

However, there are other fees that traders need to be aware of:

• Overnight Funding: If a position is held overnight, an interest fee (either added or subtracted) may apply depending on the instrument being traded. This is a standard practice in CFD trading.

• Currency Conversion Fee: A 0.7% fee is charged when trading instruments denominated in a currency different from the trader’s account currency.

• Inactivity Fee: If a trader has not logged in for more than three months, an inactivity fee of up to $10 per month will be charged. This is common across many platforms, serving as an incentive for active engagement.

• Guaranteed Stop Order: This is a unique feature that guarantees a stop loss level on certain positions, but it comes with a wider spread, which might be considered an indirect fee.

Despite these charges, Plus500’s competitive spreads and commission-free model make it an attractive option for many traders.

Trading Platforms and Features

Plus500 offers three main platforms, each suited to different types of trading:

1. Plus500CFD: The primary platform for CFD trading, offering over 2800 instruments. It is available across desktop, iOS, and Android devices.

2. Plus500Invest: Designed for share trading, this platform offers over 2700 shares (available only in specific countries). It’s useful for those looking to invest in equities.

3. Plus500Futures: Exclusively available to U.S. clients, this platform allows traders to engage in futures contracts, expanding their trading options.

Key features include:

• Market Alerts: Traders can set alerts based on price changes, percentage changes, and other metrics. Notifications can be sent via email, SMS, or push notifications.

• Economic Calendar: Helps traders stay informed of major market events, including interest rate changes, inflation reports, and more.

• +Insights: A unique feature that helps traders explore market trends and make data-driven decisions. This tool uses internal data to provide valuable insights into market sentiment and activity.

• Risk Management Tools: Plus500 provides users with a variety of risk management tools like stop-loss orders, trailing stops, and guaranteed stops, all aimed at protecting positions from adverse market movements.

• Webinars: Available for professional clients, these educational sessions help traders deepen their understanding of market trends and trading strategies.

Conclusion

Plus500 is a reliable and user-friendly trading platform that caters to a wide range of traders. With its extensive selection of instruments, competitive spreads, and robust risk management tools, it is an excellent choice for those looking to trade CFDs, cryptocurrencies, forex, stocks, and more. While the lack of advanced research tools and the occasional inactivity fee may be concerns, the platform’s security, ease of use, and educational resources make it a strong contender in the online trading space. Whether you’re a beginner or an experienced trader, Plus500 offers an accessible and flexible trading experience that is hard to beat.