Plus500 Rating: Summary

Plus500 offers all the necessary tools for technical analysis with charts that are better than the competition.

This is an extremely reliable CFD broker that offers a fast and simple-to-use trading platform (though not right away, as it can be a bit complicated at first; you have to get used to it); the smartphone app in particular is very well done.

  • Opening a demo account is a simple process that takes little time and no effort.
  • You can withdraw your money easily and free of charge.
  • Spreads are competitive and trading costs are therefore low.

What we do not like

Overnight funding is average compared to other competitors.

Is Plus500 Trusted and Reliable

Rating: 5/5★★★★★ – We have never had any problems. Plus500 is regulated and listed in the UK.

Plus500 is a trading company regulated by the FCA in England. Plus500CY Ltd authorized & regulated by CySEC (#250/14 regulation number).

Warning

79% of retail investor accounts with this provider lose money trading CFDs. You should therefore weigh up whether you can afford to take the risk of losing your money.

Plus500 is also registered with various regulatory authorities.

Certification by a European supervisory authority (e.g. FCA, Consob, CySEC) is necessary to operate legally in Europe and is a good starting point to distinguish brokers who work according to the rules from those who use illegal channels and should therefore be eliminated from the outset.

In our opinion, however, and contrary to what one reads on the internet, these certificates are not sufficient to determine which brokers are trustworthy.

To understand whether they are trustworthy, brokers need to be tested by investing real money, and that is exactly what we have done.

In dozens of hours of testing, we have never had any problems with Plus500, even with real capital, so we are confident that it is trusted and reliable.

Plus500 is also listed on the stock exchange and is therefore subject to numerous controls by shareholders, auditors (anyone can view the annual report) and regulatory authorities.

Plus500 Withdrawal and Deposit

Rating: 4.5/5 ★★★★☆- Both deposits and withdrawals at Plus500 are excellent. You have many options to choose from and the process is simple and almost always free.

Both depositing and withdrawing funds is really easy.

Deposits

To make a deposit, simply go to ” Funds”, select “Deposit” and choose the most convenient method from the list:

  • Visa or Mastercard credit/debit card
  • PayPal or Skrill
  • Bank transfer

Bank transfers can take a few days, while the other deposit methods work instantly. Please note that the card used must be in your name.

The minimum deposit at Plus500 is €100, but more on that later.

Payment

Withdrawing is also intuitive: simply click on “Withdraw” in the “Funds” section.

Every month you can withdraw money 5 times for free, after that you will be charged a fee of $10. Much better than many other brokers, e.g. eToro, which charge per withdrawal.

The minimum amount for a withdrawal is 50 euros for credit cards, Paypal and Skrill and 100 euros for bank transfer.

Withdrawals usually take a few working days, as all the necessary security checks have to be carried out.

Plus500 takes one business day to complete the checks. After that, the broker delegates the process to the external party processing the payment (e.g. PayPal or your bank), which performs its checks in its own timeframe.

We tested all available deposit and withdrawal options and always received our money within 3-5 business days.

Plus500 Commissions

Rating: 4/5 ★★★★☆ – Plus500 has no commissions (spreads only) and no standard fees to speak of. Overnight funding is average.

In the world of online brokers, there are 3 types of commissions:

  • Trading commissions: These can be either real commissions or spreads. The spread is the profit the broker makes when he buys an asset at a certain price and resells it at a premium of a few cents. You can think of the broker as a trader who buys at the wholesale level and then resells at the retail level at a slightly higher price, in return for the service provided
  • Overnight funding: This is needed if you hold a leveraged position in your portfolio for more than one day. A leveraged instrument means that you borrow money from the broker at a certain interest rate to trade.
  • Standard fees: such as withdrawal fees or inactivity fees

Overall, Plus500’s commissions are good (especially compared to the quality of the broker) and low compared to the competition.

But let’s take a closer look at Plus500’s costs:

Trade commissions

Plus500 does very well here as there are no direct commissions. The broker charges a spread like any other financial trader, but it is very competitive.

Plus500 uses dynamic spreads that vary depending on the asset you choose.

To give a concrete example: The spread for an Apple share is 1.12 dollars. However, this spread is called dynamic because it can change (slightly) as market conditions change.

Overnight trading

The broker will charge you overnight funding if you hold a leveraged position for more than one day. The interest rates for funding are variable and are published transparently on the Plus500 platform.

In general, they are average compared to other brokers. For CFD purchases of Apple shares, Plus500’s overnight funding is currently 0.0288% (or 0.000288).

Standard commissions

They are quite advantageous: you get 5 free withdrawals per month, which is usually more than enough. After the fifth withdrawal, the commission is only $10.

Plus500 will charge a currency conversion fee on all trades on instruments traded in a currency other than that of your account. The currency conversion fee currently reaches up to 0.7% of the realised profit or loss of a trade at Plus500 and is reflected in real time in the unrealised profit or loss of an open position.

Finally, there is an inactivity fee that comes into effect if you do not trade on the trading platform for 3 months. The cost of this is $10 per month, provided it happens after this period. The fee does not apply if you have no funds in your account or if you are no longer inactive by making a trade.

Plus500 Webtrader Platform

Rating: 4/5 ★★★★☆ – Clean and simple interface, but few customisation options. Initially, the platform may not be intuitive.

We continue our review of Plus500 by considering the ease of learning the platform and the comfort we find in day-to-day trading.

Plus500 does not require a download, you can make all trades directly from the website.

User-friendliness

Plus500 features simple, well-designed graphics, but it takes a while to become familiar with them. The platform called Plus500 WebTrader is not very customisable.

Registration and security

The registration process at Plus500 is simple and secure as you can use a two-step authentication procedure. The broker also offers the option to identify yourself via Google or Facebook.

Search function

On the left-hand side is a handy index grouping the assets you can trade, while at the top is the responsive search bar.

Plus500 Trading and Investments

Rating: 4/5 ★★★★☆ – More than 2,000 CFDs on various assets.

Plus500 offers CFD trading in more than 2,000 assets including:

  • Indices
  • Forex
  • Commodities
  • Cryptocurrencies
  • Shares
  • Options
  • ETFS

Contracts for Difference (CFDs) allow you to invest online in two ways:

  1. Trading on rising prices: You make profits when the price of the asset you have invested in rises (and lose when it falls).
  2. Trade on falling prices: This is the exact opposite, i.e. you make money when the price of the asset falls (conversely, you make a loss when the price rises).

This way, if you invest in the right trend, you can close your position with a profit both when prices are rising and when they are falling.

The number of instruments made available is higher than with other brokers, but the entire offer is based on CFDs.

The leverage for each instrument is set by default by the platform and varies from asset to asset.

Overall, we think that even the most hardcore traders will be satisfied with Plus500, especially when it comes to Forex.

Attention Day Traders: Scalping is not allowed at Plus500 in any way! Scalping is a trading strategy where a significant portion of positions are opened and then closed within 2 minutes. So be very careful, because if this is the strategy you want to use, Plus500 is not for you!

Plus500 Technical Analysis and Charts

Rating: 4/5 ★★★★☆ – Plus500 offers the best interactive charts on the market, ideal for technical analysis. The trader’s opinion feature is very useful. But that’s where the useful tools end.

Trading relies on different types of analysis and consequently on different strategies, such as analyst recommendations, fundamental analysis, technical analysis indicators and the main news published by a company or the media.

Plus500 excels in the area of technical analysis by providing interactive charts in which all types of indicators can be implemented.

Another useful feature of Plus500 is “Trader Sentiment”, which shows in percentage terms whether other investors are buying or selling a particular asset, so you can get a feel for market sentiment.

Plus500 customer support

Rating: 4/5 ★★★★☆ – Plus500 has a good customer service. The staff are quick and efficient, both via live chat and email, and available throughout the day.

You can contact customer service via the live chat on the website, WhatsApp and email. Telephone support, on the other hand, is not available.

The support is in different languages.

We have tried the live chat several times. The staff were always prompt, responsive and reliable. For example, they answered our questions about commissions comprehensively and honestly.

The customer service is also efficient via email. We were contacted in less than an hour, while other brokers take much longer.

Moreover, they are available 24 hours a day, 7 days a week – something unusual.

Plus500 Rating: Teaching Material

Rating: 2.5/5 ★★★☆☆☆ – Plus500 does not explain how to trade, but offers a demo account to learn how to use the platform.

There is no educational material that teaches how to plan trades: Plus500 does not provide any guidance.

Plus500’s official forum, which could have answered questions from new users, is also not available.

We believe this is a missed opportunity for a broker that otherwise ensures high quality.

However, Plus500 offers a demo account, a free account with the same features as the real account, which allows you to learn how to use the platform.

For more information, see the following sections.

Plus500 minimum deposit and demo account

Bewertung: 4/5 ★★★★☆ – Free and unlimited demo account. Minimum deposit of 100 euros.

Demo account

The demo account allows you to trade online with fictitious money (you can invest €40,000 virtually, which can be automatically recharged when empty) to gain experience.

The demo account is free and identical to the real platform (except for the virtual money, of course). So if you can master the demo, you can master the real platform.

Minimum deposit

A minimum deposit of €100 is required to switch to a real account, which is very little in the world of trading.

Also remember that this €100 is NOT a payment to Plus500, but a deposit into your account that you can fully invest in trading.

With a bank transfer, the minimum deposit is €500, which we generally do not recommend as it takes longer.

To open a real account, in addition to the minimum deposit, you must also send a photo of your documents to confirm that the account really belongs to you.

So much conscientiousness is to be interpreted positively: Plus 500, as a regulated broker, must undergo multiple controls and comply with numerous laws, including that against money laundering and terrorist financing.

Therefore, you must provide your data so that everything is done transparently and in the light of day-to-day business.

You need to do this in particular:

  • Send a photo of your identity card
  • Proof of residence (a utility bill in your name is usually sufficient).
  • Read some documents
  • Fill in a questionnaire

Once this is done, you can proceed with the actual trading.

But you’ll take care of that later, because the first step to entering the world of trading is definitely to open a demo account, which is free and only takes a few seconds (you don’t have to send any documents, just enter an email address and a password).

Is Plus500 a scam?

In the last paragraph of our Plus500 review, we will answer the most persistent question of those who want to start trading with this broker: Is Plus500 a scam?

This fear is completely unfounded: Plus500 is not a scam, but a large, listed company (like Amazon, Google or Apple) with a turnover of around half a billion euros per year.

The broker has been offering online trading services since 2009 and every year around 250,000 people invest with Plus500, which – unsurprisingly – has become the official sponsor of Atletico Madrid and Atalanta.

Plus500 would never cheat anyone, not least because this would not be in their interest at all: you earn more money if you do your job well, but loose more money if you do your job not well.

The right question to ask yourself is whether Plus500 is the right broker for you. It is one of the best brokers around and offers many advantages:

  • Exceptional charts
  • Numerous assets to buy/sell via CFDs
  • Reasonable trading costs and fees
  • Good customer support

Overall, we would recommend Plus500 to all traders who want to invest using technical analysis and benefit from a trusted broker with competitive spreads.

The disadvantage is the lack of teaching material to learn the trade.

This is related to the last part of our assessment: you should start your financial journey with a broker that fully supports new users who are probably unfamiliar with many aspects of stock market investing. Plus500 does not offer copy trading!!!

Thanks to eToro’s CopyTrader, you can imitate the trading strategies of experienced traders on the platform. The service is free of charge and is one of the standard features available to every subscriber.

In addition, the platform allows the direct purchase of shares, cryptocurrencies and ETFs without the use of CFDs: these are usually leveraged derivative contracts that are more suitable for experienced users.

Warning

79% of retail investor accounts with this provider lose money trading CFDs. You should therefore weigh up whether you can afford to take the risk of losing your money.