Test Plus500

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Plus500 is a broker offering CFDs on indices, currencies, commodities, shares and for some time now also on crypto. The company was founded in 2008 and is based in London. This means that Plus500 is supervised and regulated by the UK Financial Services Authority (FCA). There are three trading platforms available, two of which were created by the broker himself. Plus500 has variable leverage. Among the many benefits of Plus500 are an intuitive trading platform and a low minimum deposit of €100. Under the new ESMA regulations, 80.6% of all retail investors lose money when trading with this service provider. You will find everything you need to know about Plus500 in our review.

Trading Platform

Plus500 should convince particularly beginners in the field of trading platforms. This is mainly due to the fact that the platform is very simple. Everything is clear and visible at a glance. There are three trading platforms that customers can choose between Forex or CFDs trading.

Two trading platforms are owned by the broker. These in turn are offered in two versions, namely as WebTrader on the one hand and as trading platform on the other. This one must be installed with the software. As far as the design of the trading platform is concerned, it is relatively attractive, clearly arranged and contains no disturbing elements. In both cases the emphasis is of course on functionality and simplicity. This is certainly helpful for beginners, but for more advanced traders the functional level of trading platforms may be too limited.

Unlimited demo account

Let’s move on to an issue where Plus500 is particularly beneficial, concerning the possibility of a demo account. Available for an unlimited period of time!

It’s actually a real account, but with unrealistic funds. This allows you to trade money without having to worry about deposits and withdrawals. It also means that the account can be used even if the investor has not deposited any money. Another advantage of the account is, as we have already mentioned, the possibility of temporarily unlimited use. This is definitely a big advantage over other brokers, because there the demo account can be used for 14 or 30 days maximum. It is also worth noting that Plus500 Broker of course also offers mobile trading via the app.

Plus500 rules and fees

Differentiation on trading platforms and demo account depends on the volume of trade and transactions. This can be seen in the example of the minimum deposit, set at a relatively moderate level of 100 euros. Plus500 is one of the more profitable brokers in terms of estimated margins, as they start at 0.6 Pips for the EUR/USD currency pair, for example. Though obviously they vary depending on the assets traded. However, spreads have one thing in common. They are not the cheapest. Other brokers are definitely better at it. The trader can find out the exact spreads that are estimated when trading CFDs in detail on the broker’s website. The maximum level has been reduced since the ESMA regulation. The problem with the fact that leverage is at a moderate level concerns only professional investors. The minimum trading volume in foreign exchange is 1,000 units, which corresponds to the so-called micro lot (10,000 units).

Different deposit and withdrawal methods

There are many Forex and CFDs brokers available on the market, which offer very limited payment options. Often only credit cards and bank transfers. Plus500 offers a wider choice. In addition to the above mentioned methods, PayPal, a very popular payment method among many traders, is also available.

Types of transactions and assets at Plus500

Plus500 specializes in offering trading in currency pairs, but also in CFDs. So there are two main and interesting trading types that can be used by the client. The choice in the area of currency pairs is not significant, as there are about 50 currency pairs available. On the other hand, the offer is very large when it comes to trading CFDs. Customers can choose from over 1000 underlying assets. CFDs from all categories (stocks, indices, commodities, currencies and cryptocontracts CFDs) are tradable.

Plus500 also offers crypto-CFDs for trading

In addition to speculating on underlying assets such as commodities, currencies and indices, Plus500 has also been offering cryptographic currencies for some time. This gives all registered customers the opportunity to speculate on price developments in some of the most popular digital currencies. Currently, the following cryptographic currencies are available which traders can choose from among suitable underlying assets for CFD trading:

  • Bitcoin
  • Cash
  • Litecoin
  • Ethereum
  • NEO
  • Ripple
  • Monero
  • IOTA
  • EOS

At the moment, these digital currencies can only be traded against the US dollar, while it is planned to allow trading against the euro. The spread is variable and depends on the cryptographic base currencies chosen by the client. For example, for cryptographic Bitcoin CFDs the spread is often 60 points. A special aspect of this area is that the leverage with which clients can trade cryptographic CFDs for this type of assets is relatively high. The possible leverage reaches 1:20. Given the fact that cryptographic currencies are very fluctuating, this gives much greater profit opportunities in the future. Crypto CFDs can be bought by investors for just €100.

Deposit regulation and protection at Plus500

Plus500 is based in London. This obviously has an impact on the regulations that are administered by the Financial Security Authority (FCA). In addition, it should be noted that each customer also has the usual UK deposit insurance of £50,000. These conditions guarantee the security of the client’s deposits in the account, even if the broker becomes insolvent.

Customer service with good accessibility

Plus500 is available in 3 versions: installation version, online version (directly in the browser) and mobile versions of android and IOS, the latter being among the top rated CFD trading applications including Apple AppStore and Google Play.

Customer service is available in several methods: phone, e-mail and live chat. According to Plus500, friendly employees are available at all times from the very beginning of the demo account and will answer any questions that arise, especially newcomers often have at the beginning. In our test we have received a relatively quick response in each of the above mentioned ways. However, when you look at the critical feedback from customers, you will notice that many have had trouble contacting or resolving problems with their account.

Wide range of products on offer

Although Plus500 is primarily a CFD broker, a wide range of other products should also be mentioned. This way you can trade not only classic stock CFDs but also commodities and ETFs. Plus500 customers can also trade CFDs on DAX, S&P 500. As Plus 500 is mainly aimed at beginners, the offer is really satisfying.

Our experience with Plus500

We are mixed up in our views on the Plus500 broker. It undoubtedly has many advantages: the platform is very simple and therefore certainly suitable for beginners. The proprietary trading software is easy to use and through countless tools the risks associated with trading are minimized. A low minimum deposit also speaks in favour of a broker. The most commented negative aspect, however, is that Plus500 has no MetaTrader 4 trading platform available, which is most commonly used by brokers. Another big disadvantage is that traders with years of experience may lack a tool or feature.

 

 

 

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