Plus500 Review

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Contents

Plus500 Review

Very competitive spreads for a well-regulated broker

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  • Account Minimum: £0
  • Fees: EUR/USD—0.6 pips average
  • Best for: Cost-conscious traders

Plus500 is a streamlined broker that focuses on trading in a wide range of financial markets with relatively low spreads and no commissions but without offering many extra services. Plus500 has been in the forex and CFD business since 2008. They are registered in the U.K. and licensed by the Financial Conduct Authority (FCA).

The company offers access to a comprehensive product line, including forex, stock indexes, equities, commodities, cryptocurrencies, ETFs, and options. Plus500 is the first broker to introduce a Bitcoin CFD in 2020. The company does not charge commissions on any of its trades. All costs are contained within the spread for each of more than 2,000 trading instruments offered on Plus500’s WebTrader platform. Plus500 Ltd (PLUS.L) is a publicly traded company on the AIM section of the London Stock Exchange since 2020 with a £1.73 billion ($2.25 billion) market capitalization and clients in more than 50 countries around the world.

Plus500 offers access to more than 2,000 trading instruments

Some of the lowest spreads and commissions in the industry are at Plus500

Bitcoin, Ethereum, and other cryptocurrencies are available

Sparse library of educational materials available

While customers can trade more than 2,000 instruments, there are few tools to use to analyze those instruments

Plus500’s WebTrader cannot be paired with other trading tools or platforms

Trust

While Plus500 does not provide additional deposit insurance, the company is registered with the Financial Conduct Authority (FCA), CySEC, ASIC, FSCA, FMA, MAS, and the ISA, which provides good accountability and visibility. The company is required to take steps to ensure client funds are not commingled with corporate funds—ensuring that client money and assets are protected in the unlikely event that Plus500 becomes insolvent—by holding those funds in segregated accounts at regulated banks. If Plus500 defaults, any shortfall of funds of up to £50,000 may be compensated for under the Financial Services Compensation Scheme (FSCS). If the custodian bank holding client funds goes into liquidation, any shortfall of funds of up to £85,000 may be compensated for under the FSCS.

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Plus500 also offers negative balance protection, ensuring that clients cannot lose more than they have put into their account. Guaranteed stop losses can be used on some instruments depending on market conditions but they are subject to a wider spread.

Desktop Experience

Plus500’s WebTrader platform is a streamlined trading experience that is stable and easy to access from any browser. WebTrader has a simple and easy-to-use interface that lets you create watchlists, analyze charts, as well as place and monitor trades. The technical analysis charts can be expanded to fullscreen and offer more than 100 technical indicators that you can apply to many different time frames, from tick charts to weekly charts. Unlike many brokers, however, Plus500 does not offer a MetaTrader 4 (MT4) platform trading alternative which would provide more functionality and customizability.

WebTrader is simple and easy to use, and the layouts will feel familiar. Traders can choose from among more than 2,000 instruments, analyze their selection on a customizable technical analysis chart, and place their trade in just a few clicks, all within the same window. Unfortunately, WebTrader is a closed system. Advanced traders who rely on incorporating third-party analytical and automation tools in their trading process will be disappointed. None of these tools can be integrated directly with WebTrader.

Mobile Experience

The Plus500 mobile applications include all of the functionality available in the desktop application. Traders can access Plus500’s 2,000+ trading instruments, conditional orders, account details, and charting (complete with 100+ technical indicators) from the Android, iPhone, or iPad mobile apps. Plus500 offers security measures such as fingerprint unlock, among other things, to open the application.

The dynamic charts can be expanded to fullscreen to provide more clarity during the technical analysis process. Clients can also deposit and withdraw money from within the mobile app. However, some traders will be concerned about the lack of enhanced security measures, especially since these applications provide a direct line of access to funded accounts. It’s reasonable to have expected, at the very least, that the apps include some type of customizable, automatic sign-out. Clients are also unable to use the MT4 mobile application, which has greater functionality and may be a more familiar interface for experienced investors.

Research Tools and Insights

Plus500 has very little to offer when it comes to research, analysis, tools and commentary. The company provides little in-house research articles or videos and there are no news feeds. They do provide earnings calendars, which is a great feature. Plus500 customers intend to find this information elsewhere. Plus500 does provide customizable charts where traders can conduct technical analysis on any of the instruments under trading consideration. It also provides a simple “Traders’ Sentiment” indicator that shows traders what percentage of Plus500 clients are buying an instrument, like the EUR/USD currency pair, and what percentage are selling it.

Education

Many brokers provide courses, videos, e-books, quizzes, and more to help clients learn about the markets in which they are investing. Plus500 provides none of these services. The broker does provide one legally required “Key Information Document” (KID) that outlines the basics of what each available instrument is and the risks associated with trading it. The KID has summary information on commodities, cryptocurrencies, ETFs, forex, indexes, options, and equities. Plus500 expects its clients to know what they’re doing or, at the very least, to seek out educational material elsewhere.

Special Features

Plus500 doesn’t offer any of the special features we typically look for from a broker. It doesn’t allow for automated trading via expert advisors or other trading algorithms, it doesn’t provide back-testing functionality, nor does it allow clients to manage third-party funds via PAMM or MAM trading platforms. The company simply provides a streamlined WebTrader platform along with similar mobile trading apps for iPhone, iPad, and Android devices where clients can place and monitor trades.

The platform is clearly targeted to those who just need a mechanism for executing trades without a lot of advanced functionality. Guaranteed stops are available on some markets; however, they come with an increased spread and cannot be added to previously opened trades.

Investment Products

The company does not charge commissions on any of its trades. All costs are contained within the spread for each of more than 2,000 trading instruments offered on Plus500’s WebTrader platform. Large volume traders do not get a trading discount at Plus500 and the spread is the same whether you trade one lot or 1,000 lots. There are no charges for normal withdrawals or terminating an account. However, inactivity fees kick in after an account has been idle for three months. Beginning traders can open an account with as little as £100.

Traders can qualify for a “professional” account, which offers a higher level of maximum leverage, but the costs are the same. Investors with a professional account may increase their maximum leverage ten-fold, from 1:30 to 1:300. Plus500 also offers access to options trading on many markets. These are very similar to plain call and put options traded on exchanges, but they are not standardized, which means that the option premium can be customized for your risk tolerance and strategy objectives.

Commissions and Fees

Spreads at Plus500 were some of the lowest I have seen in the market. The tradeoff for new investors will be limited research and analysis tools and an inflexible trading platform. Other account charges were similarly minimal.

Customer Support

Plus500’s customer service options are limited; however, online chat and email support are available 24/7. A customer service telephone number is not available. Prospective and current clients must submit inquiries through live chat or an email ticketing system that is available 24/7. While the customer service options are limited, Investopedia received responses to each of the chats and emails submitted within a few minutes, which is a comparatively prompt response time. No in-person support is available.

The online chat is easy to use, but the initial responses to our requests felt like a chatbot. This isn’t necessarily a problem because the software is good at detecting commonly asked questions and linking to a resource in the FAQ or providing a short answer. Getting through to a human agent is relatively quick when needed. Even with these limitations, customer service responses to our requests were prompt, knowledgeable, and courteous. The FAQ section covers a wide variety of topics and has an excellent search engine.

What You Need to Know

Plus500 is best for the cost-conscious trader. This broker has very competitive spreads, which keeps costs low. However, extra features like auto-trading, MT4, and Expert Advisors are not available. Experienced investors who prefer to enter and exit their trades manually may find the functionality tradeoff worth the lower expenses.

Assuming you are trading with an account set up by the U.K. version of Plus500, the additional security of regulation by the Financial Conduct Authority is also a plus. Many investors are nervous about the lack of protection for accounts held with dealers in Cyprus or similar jurisdictions.

Additionally, Plus500 allows traders access to vanilla call and put options on many markets. These options work like the exchange-traded versions except that they are non-standardized. This means that the options from Plus500 can be customized and adjusted for your risk tolerance and strategy goals.

Compare Plus500

Plus500 is a perfect option for cost-conscious traders. See how they compare against other online brokers we reviewed.

Methodology

Investopedia is dedicated to providing investors with unbiased, comprehensive reviews and ratings of online brokers. Our reviews are the result of six months of evaluating all aspects of an online broker’s platform, including the user experience, the quality of trade executions, the products available on their platforms, costs and fees, security, the mobile experience and customer service. We established a rating scale based on our criteria, collecting over 3,000 data points that we weighed into our star scoring system.

In addition, every broker we surveyed was required to fill out a 320-point survey about all aspects of their platform that we used in our testing. Many of the online brokers we evaluated provided us with in-person demonstrations of their platforms at our offices.

Our team of industry experts, led by Theresa W. Carey, conducted our reviews and developed this best-in-industry methodology for ranking online investing platforms for users at all levels. Click here to read our full methodology.

Plus500 Review 2020

Summary

Recommended for experienced traders looking for an easy-to-use platform and a great user experience

Plus500 is a London Stock Exchange-listed global CFD and FX broker that was founded in 2008 in Israel. It is regulated by several international financial authorities, including top-tier ones like the UK’s Financial Conduct Authority (FCA) and the Australian Securities and Investments Commission (ASIC).

Plus500 is considered safe because it is listed on a stock exchange, discloses its financials and is regulated by several top-tier financial authorities.

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Disclaimer for daytraders: At Plus500, 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.” If Plus500 believes you were following this strategy, your account might be blocked and closed. Therefore, if you plan to execute trades within 2 minutes, Plus500 is not your broker.

Plus500 pros and cons

Plus500 has a simple, easy-to-use trading platform, with an especially well-designed mobile platform. The account opening process is fully digital and seamless. Trading fees are low.

On the negative side, Plus500 has limited product portfolio, consisting only of CFDs and forex products. Some standard research tools, like recommendations and fundamental data are not available. The educational section still needs improvement.

Pros Cons
• Easy-to-use platform • Limited product portfolio, only CFDs & forex
• Low trading fees • Minimal research tools
• Listed on the London Stock Exchange • Mid-range educational section
Plus500 main features and highlights
��️ Country of regulation UK, Cyprus, Australia, New Zealand, Singapore, South Africa, Israel
�� Trading fees class Low
�� Inactivity fee charged Yes
�� Withdrawal fee amount $0
�� Minimum deposit $100
�� Time to open an account 1 day
�� Deposit with credit card Available
�� Depositing with electronic wallet Available
�� Number of base currencies supported 10
�� Demo account provided Yes
��️ Products offered Forex, CFD, Crypto

Gergely Korpos

Author of this review

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology

Plus500 review
Fees

Plus500 has low trading fees and average non-trading fees. Even if they have an inactivity fee, it is applied only if you are not logging in at all.

Pros Cons
• Low trading fees • Inactivity fee
• No withdrawal fee
Plus500 fees snapshot
Assets Fee level Fee terms
S&P 500 CFD Low The fees are built into spread, 0.45 is the average spread cost.
Europe 50 CFD Low The fees are built into spread, 1 is the average spread cost.
EURUSD Average The fees are built into spread, 0.6 pips is the average spread cost.
Inactivity fee Low $10 per quarter after 3 months of inactivity

How we ranked fees

We ranked Plus500’s fee levels as low, average or high based on how they compare to those of all reviewed brokers.

To get things rolling, let’s go over some lingo related to broker fees. What you need to keep an eye on are trading fees and non-trading fees.

  • Trading fees occur when you trade. These can be commissions, spreads, financing rates and conversion fees.
  • Non-trading fees include charges not directly related to trading, like withdrawal fees or inactivity fees.

In the sections below, you will find the most relevant fees of Plus500 for each asset class. For example, in the case of forex and stock index trading, spreads, commissions and financing rates are the most important fees.

We also compared Plus500’s fees with those of two similar brokers we selected, eToro and XTB. This selection is based on objective factors such as products offered, client profile, fee structure, etc. See a more detailed rundown of Plus500 alternatives.

To have a clear overview of Plus500, let’s start with the trading fees.

Plus500 trading fees

Plus500 trading fees are low.

We know it’s hard to compare trading fees for CFD brokers. So how did we approach the problem of making their fees clear and comparable? We compare brokers by calculating all the fees of a typical trade for selected products.

We have chosen popular instruments within each asset class:

  • Stock index CFDs: SPX and EUSTX50
  • Stock CFDs: Apple and Vodafone
  • Forex: EURUSD, GBPUSD, AUDUSD, EURCHF and EURGBP

A typical trade means buying a leveraged position, holding it for one week and then selling. For the volume, we chose a $2,000 position for the stock index and stock CFDs and $20,000 for the forex transactions. The leverage we used was:

  • 20:1 for stock index CFDs
  • 5:1 for stock CFDs
  • 30:1 for forex

These catch-all benchmark fees include spreads, commissions and financing costs for all brokers. Let’s see the verdict for Plus500 fees.

CFD fees

Plus500 has generally low CFD trading fees.

There is no commission: everything is included in the spread, i.e. the difference between the ask and bid prices.

Plus500 CFD fees for a $2,000 long position held for one week

Plus500 eToro XTB
S&P 500 CFD benchmark fee $2.1 $2.4 $2.0
Europe 50 CFD benchmark fee $1.3 $2.7 $2.2
Apple CFD benchmark fee $8.9 $6.3 $17.9
Vodafone CFD benchmark fee $7.6 $20.9

Forex fees

Plus500 forex fees are average. Again, no commission, everything is included the spreads.

Plus500 forex benchmark fees of a $20,000 30:1 long position held for one week

Plus500 eToro XTB
EURUSD benchmark fee $17.9 $19.6 $15.0
GBPUSD benchmark fee $14.0 $16.2 $11.1
AUDUSD benchmark fee $12.6 $12.4 $10.0
EURCHF benchmark fee $9.0 $11.8 $6.6
EURGBP benchmark fee $14.6 $19.9 $9.9

Non-trading fees

Plus500 has average non-trading fees.

Plus500’s withdrawal fee conditions are favorable: there are five free withdrawals per month, after which the withdrawal fee is $10. However, Plus500 will also charge you $10 if you withdraw less than the minimum withdrawal amount of $100. The cost for withdrawals by bank transfer is a fixed $6. There is also a high inactivity fee of $10 per quarter after 3 months of inactivity. At the same time we have to share, you can save the inactivity fee with a simple login to the platform. In the case of other brokers, we’ve tested skipping inactivity fee regularly tied to trading not only login.

Plus500 non-trading fees

Plus500 eToro XTB
Account fee No No No
Inactivity fee Yes Yes No
Deposit fee $0 $0 $0
Withdrawal fee $0 $25 $0

Plus500 review
Account opening

Plus500 account opening is seamless, fast and fully digital. You can open your trading account within a day.

Pros Cons
• Fast None
• Fully digital
• Low minimum deposit

Can you open an account?

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76.4% of retail CFD accounts lose money

Plus500 accepts customers from many countries all around the world. However, there are some notable exceptions: for example, residents of the US and Canada can’t open an account, while other countries such as Cuba, Iran and Syria are also excluded.

What is the minimum deposit at Plus500?

The Plus500 minimum deposit is $100 for debit/credit cards and electronic wallets, and $500 for bank transfers.

Account types

Plus500 has only one account type.

How to open your account

If you want a fast and digital account opening process, Plus500 is your broker. You can easily open your trading account within a day.

After the online registration, you have to verify your identity and provide proof of residency. You can upload a copy of your ID or passport for verifying your identity, and a bank statement or utility bill for verifying your residency.

Plus500 review
Deposit and withdrawal

Plus500’s deposit and withdrawal services are both great. You have many options, the process is simple and usually free of charge.

Pros Cons
• Credit/Debit card available None
• No deposit fee
• Five withdrawals per month free

Account base currencies

At Plus500, there are several currencies available, even minor ones, but it is not transparent how many and which ones. You need to contact support if you wish to change your base currency. However, make sure you do this before depositing money to your account.

Base currencies at Plus500 vs similar brokers

Plus500 eToro XTB
Number of base currencies 10 1 4

Why does this matter? For two reasons. If you fund your trading account in the same currency as your bank account or you trade assets in the same currency as your trading account base currency, you don’t have to pay a conversion fee.

A convenient way to save on currency conversion fees is by opening a multi-currency bank account at a digital bank. Revolut or Transferwise both offer bank accounts in several currencies with great currency exchange rates as well as free or cheap international bank transfers. Opening an account only takes a few minutes on your phone.

Deposit fees and options

Plus500 charges no deposit fees.

As with other CFD brokers, there are a lot of depositing options at Plus500:

  • Bank transfer
  • Credit/Debit card
  • Skrill
  • PayPal
Plus500 deposit options
Plus500 eToro XTB
Bank transfer Yes Yes Yes
Credit/Debit card Yes Yes Yes
Electronic wallets Yes Yes Yes

A bank transfer can take several business days, while payment with a credit/debit card and electronic wallets is instant.

You can only deposit money from accounts that are in your name.

Plus500 withdrawal fees and options

Plus500 withdrawal is free of charge for the first five withdrawals each month. After that, there is a $10 fee per withdrawal. This is a competitive offer, since many other brokers charge withdrawal fees.

There is also a minimum withdrawal amount, which is $50 for PayPal and $100 for bank transfer and credit/debit cards. If you want to withdraw less than this, a $10 charge will be applied.

For withdrawals, you can use the same methods as for deposits.

Plus500 withdrawal fees and options

Plus500 eToro XTB
Bank Transfer Yes Yes Yes
Credit/Debit card Yes Yes No
Electronic wallets Yes Yes No
Withdrawal fee $0 $25 $0

How long does it take to withdraw money from Plus500? We tested the credit card/bank transfer withdrawal and it took 2 business days.

You can only withdraw money to accounts in your name.

How do you withdraw money from Plus500?

  1. Log in to your account.
  2. Click the ‘Menu’ icon in the top left corner.
  3. Click ‘Withdraw’.
  4. Enter the amount you’d like to withdraw.
  5. Initiate the transaction by clicking ‘Open a Withdrawal’.

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Plus500 review
Web trading platform

The Plus500 trading platform is very easy to use and also looks great. On the negative side, it cannot be customized.

Pros Cons
• User-friendly • Limited customizability (for charts, workspace)
• Clear fee report
• Two-step (safer) login
Plus500 platforms to choose from
Trading platform Score Available
Web 4.4 / 5 stars Yes
Mobile 4.9 / 5 stars Yes
Desktop No

The web trading platform is available in a lot of languages: Arabic, Bulgarian, Chinese, Croatian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hebrew, Hungarian, Icelandic, Italian, Latvian, Lithuanian, Malay, Maltese, Polish, Portuguese, Romanian, Russian, Slovakian, Slovenian, Spanish, Swedish,Traditional Chinese, Turkish.

Look and feel

The Plus500 web trading platform is clean, well-designed and easy to use. As such, even a first-timer can navigate the site with ease.

On the downside, you cannot customize the platform.

Login and security

Plus500 provides a safer, two-step login. Google and Facebook authentication is also available, which is quite convenient.

Search functions

The search function is great, you will have no trouble finding anything. You can find the products categorized on the left or you can search by typing in the product name.

Placing orders

You can use the following order types:

To get a better understanding of these terms, read this overview of order types.

On the other hand, there are no order time limits provided.

Alerts and notifications

We also liked the platform’s alert and notification functions. You can set up email, SMS and push notifications.

The alert lets you know if the price of an asset reaches a level or changes by a set percentage. Additionally, you can also sign up be alerted if the Plus500 Traders’ Sentiment (the percentage of Buyers or Sellers among Plus500 customers) reaches a certain level.

Portfolio and fee reports

Plus500 provides transparent portfolio and fee reports. It is clearly indicated how much you paid in overnight fees. The composition of your current portfolio is also made clear, which you can check in the bar at the top of the platform.

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76.4% of retail CFD accounts lose money

Plus500 review
Mobile trading platform

The Plus500 mobile trading platform is well-designed and user-friendly.

Pros Cons
• User-friendly None
• Two-step (safer) login
• Good search function

The Plus500 mobile trading platform is very similar to the web platform. It has the same functionalities and is also user-friendly.

You can download the mobile app for iOS, Android and Windows Phone. You can also use your smartwatch, but we stuck to a conventional smartphone and tested the mobile iOS app. It was great.

Plus500 provides a safe two-step login and you also use biometric authentication, which is a convenient feature.

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76.4% of retail CFD accounts lose money

Plus500 review
Desktop trading platform

Plus500 does not offer a desktop trading platform.

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76.4% of retail CFD accounts lose money

Plus500 review
Markets and products

At Plus500 you can trade only with CFDs and forex. There is a wide selection of CFDs and currency pairs to trade with.

Plus500 is a CFD and forex broker. To learn more about CFDs read our CFD trading tips.

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Plus500 offers a good selection of CFDs, which is wider than eToro’s and in line with XTB’s product lineup. There are some cryptos as well, but less than at eToro and XTB.

Plus500 product selection

Plus500 eToro XTB
Currency pairs (#) 70 47 49
Stock index CFDs (#) 33 13 42
Stock CFDs (#) 1,800 1,900 1,700
ETF CFDs (#) 92 145 103
Commodity CFDs (#) 22 6 18
Bond CFDs (#) 3
Futures CFDs (#)
Cryptos (#) 14 17 25

You can also trade with options on a few stock CFDs and stock index CFDs.

You cannot change leverage levels, which is a drawback.

Changing the leverage is a very useful feature when you want to lower the risk of your trade. For example, instead of trading with 5:1 leverage, only trade with 2:1 leverage in case of stock CFDs. Be careful with forex and CFD trading, as the preset leverage levels are high.

Plus500 review
Research

Plus500 provides limited research options. It has great charting tools and a well-designed economic calendar, but no recommendations, fundamental data or news feed.

Pros Cons
• Good interactive chart • No trading ideas
• User-friendly • No fundamental data available
• No/poor quality news flow

Plus500 does not provide trading ideas or fundamental data.

Charting

The charting tool is of good quality. There are 107 technical indicators and great editor tools. You can also save the charts.

News feed

You will find a well-designed economic calendar, but no news feed or newsletter.

We liked that you can filter for macro events or company-related events.

Other research tools you will enjoy

You can use Plus500’s Traders’ Sentiment tool, which shows the proportion of buyers and sellers at Plus500.

Plus500 review
Customer service

Plus500 has great customer support, available 24/7 . Both the live chat and the email support are quick and reliable.

Pros Cons
• Live chat • No phone support
• Relevant answers
• 24/7 availability

You can contact customer service via live chat and email. There is no phone support, but they use WhatsApp.

We tested the Plus500 live chat several times. It was always quick and reliable. For example, when we asked about fees they provided all relevant fees, including financing rates. After the conversation, you can rate your customer agent instantly, which is a good way to provide feedback.

The email customer support was also fine. They replied within one hour, which is extremely fast compared to other brokers. The answers we got were all relevant.

In addition to the good quality of customer service, it is also available 24/7, which is not the case at most other brokers.

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76.4% of retail CFD accounts lose money

Plus500 review
Education

Plus500 only provides a demo account and a few very basic videos about trading and using the platform.

Pros Cons
• Demo account • No trading platform tutorial videos
• Only few and basic educational videos

All education related materials can be reached at the site of Plus500 under the ‘Trader’s Guide’ section.

Visit education page
76.4% of retail CFD accounts lose money

Plus500 review
Safety

Plus500 is listed on the Main Market of the London Stock Exchange and is also regulated by more than one top-tier financial authority.

Pros Cons
• Listed on stock exchange • Does not hold a banking license
• Negative balance protection
• Financial information is publicly available

Is Plus500 regulated?

Yes, it is regulated by several financial authorities: the Cyprus Securities and Exchange Commission (CySEC), the UK’s Financial Conduct Authority (FCA), the Australian Securities and Investments Commission (ASIC), the Financial Markets Authority (FMA) of New Zealand, the Financial Sector Conduct Authority (FSCA) of South Africa, the Monetary Authority of Singapore (MAS), and the Israel Securities Authority (ISA).

Plus500 is based in Israel and was founded in 2008.

Is Plus500 safe?

To be certain, we highly advise that you check two facts:

  • how you are protected if something goes wrong
  • what the background of the broker is

How you are protected

Plus500 operates several subsidiaries and which one will serve you depends on your residency. The investor protection amount you get depends on the country of the subsidiary you are signing up with.

For example, if you are from the UK, you account will be with Plus500UK Ltd and you will get £85,000 in investor protection. Plus500UK Ltd is regulated by the FCA, the UK’s financial authority.

Plus500 investor protection

Client country Investor protection amount Regulator Legal entity
EEA countries (EU, Switzerland, Norway) €20,000 Authorized and regulated by the Cyprus Securities and Exchange Commission (#250/14) Plus500CY Ltd
UK £85,000 Authorized and regulated by the Financial Conduct Authority (#509909) Plus500UK Ltd
Australia, New Zealand and South Africa No protection Licensed by the ASIC (AFSL #417727), Financial Markets Authority (FSP #486026), and FSCA (FSP #47546) Plus500AU Pty Ltd
Singapore No protection Licensed by the Monetary Authority of Singapore (#CMS100648-1) and the IE Singapore (#PLUS/CBL/2020) Plus500SG Pte Ltd
Israel No protection Licensed by Israel Securities Authority (#515233914) Plus500IL Ltd

Plus500 provides negative balance protection for forex spot and CFD trading, but only for retail clients from the European Union. Professional and non-EU clients are not covered with any negative balance protection. This means that if the balance on your account should go into negative territory, you will be protected.

Background

Plus500 was established in 2008. The longer track record a broker has, the more proof we have that it has successfully survived previous financial crises.

Plus500 is listed on the Main Market of the London Stock Exchange, which is a big plus for safety as Plus500 releases financial statements regularly and transparently. Other aspects, such as ownership and regulatory compliance are also all transparent.

A financially strong parent company is a plus since it can provide the online broker with additional capital if needed. In 2020, the biggest owners of the company were mostly large investment banks and asset management companies, like JPMorgan and Morgan Stanley. The biggest owner, Brighttech Investments, had a 9.99% stake. Alon Gonen, one of the founders, was also among the top shareholders, through Sparta24 Ltd.

Being listed on a stock exchange, providing financial statements and being regulated by a top-tier authority like the FCA are all great signs for Plus500’s safety.

Plus500 review
Bottom line

Plus500 is a good CFD and forex broker. It is recommended for traders who are aware of the risks of CFD trading. The broker is regulated by several financial authorities globally, including the UK’s FCA, and is listed on the London Stock Exchange. If you are not from the UK, you will most likely be served by Plus500 Cyprus, thus the Cypriot investor protection will apply.

Attention Daytraders! At Plus500 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.” If Plus500 believes you are scalping, your account may be blocked and closed. Therefore, if you plan to execute many trades within 2 minutes, Plus500 is not your broker.

The Plus500 platform is easy to use, with a great user experience, which even first-time users can navigate with ease. Spreads are competitive, but financing rates are quite high. Some more advanced research tools would be useful.

As there is no minimum balance required, no withdrawal fee above $100, and the inactivity fee only kicks in after three months, feel free to give Plus500 a try.

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76.4% of retail CFD accounts lose money

Plus500 Review

While Plus500 is a trusted global brand that offers an easy-to-use platform, the broker lacks competitive research, trading tools, and comprehensive educational resources.

Top Takeaways for 2020

After spending five months testing 30 of the best forex brokers for our 4th Annual Review, here are our top findings on Plus500:

  • Founded in 2008, Plus500 is publicly traded on the London Stock Exchange’s (LSE: PLUS) and is part of the FTSE 250 Index. Plus500 is regulated in three tier-1 jurisdictions and four tier-2 jurisdictions, making it a safe broker (low-risk) for forex and CFDs trading.
  • I view the Plus500 web-based trading platform as extremely user-friendly, making it excellent for beginner forex and CFD traders. Beginners aside, the Plus500 platform offers only basic features and, overall, lacks in depth when it comes to trading tools and research. Lastly, MetaTrader is not offered.
  • When it comes to pricing, Plus500 appears to offer competitive spreads on most of its major forex pairs, while minor pairs are a mixed bag. Discounts are not offered to active traders or VIP clients.

Overall Summary

Feature Plus500
Overall 4 Stars
Trust Score 99
Offering of Investments 4 Stars
Commissions & Fees 4 Stars
Platform & Tools 3.5 Stars
Research 3.5 Stars
Mobile Trading 3.5 Stars
Customer Service .1 Stars
Education 3 Stars

Is Plus500 Safe?

The bottom line is that Plus 500 is regulated, licensed, and is a safe broker to trade forex and CFDs with. Plus500 is considered low-risk, with an overall Trust Score of 99 out of 99. Plus500 is publicly traded but does not operate a bank. Plus500 (or one of its subsidiaries) is authorised by the Financial Conduct Authority (FRN 509909), Cyprus Securities and Exchange Commission (Licence No. 250/14), ASIC (AFSL #417727), FMA in New Zealand (FSP No. 486026), FSCA in South Africa (Provider #47546), and the Monetary Authority of Singapore (License No. CMS100648-1).

Feature Plus500
Year Founded 2008
Publicly Traded (Listed) Yes
Bank No
Tier-1 Licenses 3
Tier-2 Licenses 4
Tier-3 Licenses 1
Trust Score 99

Offering of Investments

Plus500 offers 2033 CFDs, including on 50 currency pairs, which is slightly higher than most forex brokers. All of Plus500’s products are CFDs. Plus500 allows cryptocurrency to be traded as a CFD, but not as the actual asset with wallet storage.

Feature Plus500
Forex: Spot Trading Yes
Currency Pairs (Total Forex pairs) 50
CFDs – Total Offered 2033
Social Trading / Copy-Trading No
Cryptocurrency traded as actual No
Cryptocurrency traded as CFD Yes

Commissions & Fees

Plus500 has a minimum deposit of €100 and does not give discounts to active traders or VIP clients. Plus500 appears to offer competitive spreads on most of its major forex pairs, while minor pairs are a mixed bag.

Forex pairs: In our analysis, some forex pairs had spreads that were priced competitively, while spreads on other pairs were more expensive. For example, in August 2020, the USD/CAD seemed to be priced competitively at Plus500 with an observed spread of 1.3 pips. Meanwhile, other pairs offered, such as the USD/CHF and NZD/USD, had higher spreads than some competitors, with the spread on USD/CHF at four pips, and NZD/USD at 3.6 pips.

Spreads: On the EUR/USD, the spread in the platform was listed as fixed at 0.00006, which is 0.6 pips, yet it is essential to note that while fixed spreads are not variable, they are subject to adjustments. During October 2020, the spread from Plus500 for the EUR/USD was 0.6 pips. Because Plus500 doesn’t publish “average” spreads, which can help traders get an idea of what spreads are like at a broker, it is challenging to compare Plus500’s prices to other firms at any given time.

Feature Plus500
Minimum Initial Deposit €100
Average Spread EUR/USD – Standard 0.6 (as of Aug 2020)
All-in Cost EUR/USD – Active N/A
Active Trader or VIP Discounts No

Platforms & Tools

Available for desktop, web, and mobile, the Plus500 platform can be an excellent choice for casual investors due to its ease of use; however, MetaTrader is not offered, and the Plus500 platform provides only the essential, necessary tools required for trading. The few advanced features available within Plus500’s flagship platform include trailing-stops and gaurunteed stop-loss orders (GSLO), which can be helpful risk management tools for traders.

Ease of use: If you have never traded before, the Plus500 WebTrader (browser-based) platform could be a place to start before graduating to a more advanced platform. Both the desktop and web-based versions of the platform are cleanly designed and focus on simplicity. Note: For desktop, a Chrome app version of the Plus500 platform is available, whereas the Windows 10 version was no longer available and did not work during our testing even after updating the already installed desktop software.

Charting: Plus500’s WebTrader platform provides robust charting with offers over 100 optional technical indicators alongside the ability to save chart templates. Also, there are 21 drawing tools in the charts to aid in technical analysis.

Default watchlists: Plus500 continues to make small improvements to its WebTrader and desktop platform, such as the addition of default watch lists including a Risers & Fallers and Popular assets category, to help traders identify trending markets.

Advanced trading: Unfortunately, MetaTrader is not offered at Plus500 (see: Best MetaTrader Brokers 2020). Also, Plus500 is not built for active traders as the range of research and trading tools trails most other multi-asset brokers. For example, both algorithmic trading and social copy-trading are not supported at Plus500. See: Best FX Brokers for Copy Trading 2020

Indicative prices for illustration purposes.

Research

As far as forex and CFDs research goes, Plus500 leaves much to be desired. Plus500 does not offer basic research options such as daily market commentary, forex news, or weekly webinars. Also, Plus500 does not provide social copy trading tools. The broker is, however, starting to roll out educational video content under its Trader’s Guide series.

News and research: It was surprising to see there is no research shown within the Plus500 demo. For example, there are no top-tier news headlines from providers such as Dow Jones, Reuters, Bloomberg, or even technical-related analysis content from the broker itself or third-party sources.

Forex calendar: I was pleased to see that Plus500 incorporates an economic calendar powered by Dow Jones on its WebTrader platform, and which is also available on the broker’s website. Plus500 also shows trader sentiment data, which can be useful to gauge consensus.

Indicative prices for illustration purposes.

Mobile Trading

Consistent theme: The Plus500 mobile app is similar to the web and desktop versions, with a consistent look and feel and simple design and platform layout. That said, the app lacks the advanced tools and all-around functionality to challenge industry leaders.

Trading tools: The Plus500 app allows users to set basic alerts and trade forex and CFDs. Charts come with 18 indicators; however, no drawing tools are available. Unfortunately, the mobile app has plenty of room for improvement in terms of the number of features as news, research, and trading tools are all lacking.

Indicative prices for illustration purposes.

Final Thoughts

Plus500 can be an ideal choice for less-experienced traders as the platform is straightforward to figure out and designed to making the trading experience simple throughout. In 2020, Plus500 finished Best in Class across three categories, including Ease of Use, Trust Score, and Beginners (1st place).

That said, client education materials are mostly absent from the Plus500 offering, and the trading platforms available are very light compared to Plus500’s competitors.

Considering the range of tradeable instruments, with over 2,000 CFDs available, including 50 forex pairs, together with a low minimum deposit to open a live account, Plus500 provides new market entrants an easy way to test the world of online forex and CFDs trading.

About Plus500

Founded in 2008, Plus500 is publicly traded on the London Stock Exchange’s (LSE: PLUS) and is part of the FTSE 250 Index. The broker serves forex and CFD traders through its regulated subsidiaries that hold licenses in major financial hubs, including the United Kingdom, Australia, New Zealand, Israel, and Singapore.

Plus500 offers over 2,000 tradable products, including forex pairs and CFDs on shares, indices, commodities, ETFs, options, and digital assets. For trading its product offering, clients at Plus500 can choose between desktop, mobile, and web-based trading platforms. Read more on Wikipedia about Plus500.

Plus500 Trading Features

Feature Plus500
Virtual Trading (Demo) Yes
Proprietary Platform Yes
Desktop Platform (Windows) Yes
Web Platform Yes
Social Trading / Copy-Trading No
MetaTrader 4 (MT4) No
MetaTrader 5 (MT5) No
cTrader No
Charting – Indicators / Studies (Total) 103
Charting – Drawing Tools (Total) 21
Charting – Trade From Chart No
Watchlists – Total Fields 10
Order Type – Trailing Stop Yes

Plus500 Research Features

Feature Plus500
Daily Market Commentary No
Forex News (Top-Tier Sources) No
Weekly Webinars No
AutoChartist No
Trading Central (Recognia) No
Delkos Research No
Social Sentiment – Currency Pairs No
Economic Calendar Yes

Plus500 Mobile App Features

Feature Plus500
Android App Yes
Apple iOS App Yes
Trading – Forex Yes
Trading – CFDs Yes
Alerts – Basic Fields Yes
Watch List Yes
Watch List Syncing Yes
Charting – Indicators / Studies 18
Charting – Draw Trend Lines No
Charting – Trend Lines Moveable No
Charting – Multiple Time Frames Yes
Charting – Drawings Autosave No
Forex Calendar No

2020 Review Methodology

For our 2020 Forex Broker Review we assessed, rated, and ranked 30 international forex brokers over a five month time period. Each broker was graded on 105 different variables and, in total, over 50,000 words of research were produced.

While encouraged, broker participation was optional. Each broker had the opportunity to complete an in-depth data profile and provide executive time (live in person or over the web) for an annual update meeting.

All data submitted by brokers is hand-checked for accuracy. Ultimately, our rigorous data validation process yields an error rate of less than 1% each year, providing site visitors quality data they can trust. Learn more about how we test.

Forex Risk Disclaimer

“There is a very high degree of risk involved in trading securities. With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or related instrument. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses.” Learn more.

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