Plus500 Review: Summary
Plus500 offers all the tools you need for technical analysis with charts that are better than the competition.
It is a highly reliable CFD broker that offers a fast and easy to use trading platform (although not straight away as it can be a little complicated at first; it takes some getting used to); 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 for free.
- Spreads are competitive and trading costs are therefore low.
What we do not like
Overnight funding is average compared to other competitors.
82% 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.
Is Plus500 trustworthy and reliable
Rating: 5/5★★★★★ – We have never had any problems. Plus500 is regulated and listed in the UK.
Plus500 is regulated in the UK by the FCA. In other European countries, Plus500CY Ltd is authorised and regulated by CySEC under regulatory number #250/14.
Plus500 is also registered with various regulatory authorities.
Licensing by renowned European regulatory authorities, such as FCA, Consob or CySEC, is essential to be able to operate legally in Europe. It serves as a first point of reference to distinguish reputable brokers from potentially dubious providers.
However, these certifications alone are not sufficient to fully assess the trustworthiness of a broker.
While many opinions on the internet rely on such certifications, we believe that the actual performance and reliability of a broker only becomes visible when trading with real money. This is exactly what we did with Plus500.
In numerous test sessions with Plus500 involving real money, we have not encountered any problems. This strengthens our confidence in the reliability of the broker. However, it should be noted that trading CFDs can bring both profits and losses.
In addition to internal reliability, Plus500 is listed on the stock exchange. This means that the company is subject to additional reviews by shareholders, external auditors and other regulatory bodies. The annual report is publicly available and provides additional transparency.
Plus500 Withdrawal and Deposit
Rating: 4.5/5 ★★★★☆- Deposits and withdrawals at Plus500 are extremely user-friendly. There are a variety of options available and the processes are straightforward and, in most cases, fee-free. Adding and withdrawing funds at Plus500 is efficient and hassle-free.
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.
Withdrawal
Withdrawing at Plus500 is straightforward: all you have to do is click on “Withdraw” in the “Funds” section.
Up to five withdrawals per month are free of charge. A fee of $10 is charged for each additional withdrawal. In comparison, some brokers, such as eToro, charge a fee for each withdrawal, which makes Plus500 much more customer-friendly.
For withdrawals via credit card, Paypal and Skrill, the minimum amount is $50, while bank transfers require a $100 minimum.
Withdrawal requests usually take a few business days as all the necessary security checks are run through. Plus500 itself takes one business day for the internal checks. The withdrawal request is then passed on to the external payment service provider (e.g. PayPal or your bank), which then goes through its own verification processes.
Based on our testing of the various deposit and withdrawal options, we found that funds were always received in our account within 3-5 business days.
Plus500 Commissions
Rating: 4/5 ★★★★☆ – Plus500 has average spreads. Overnight funding is average.
In der Welt der Online-Broker gibt es 3 Arten von Kommissionen:
- Trading fees: These can be either in the form of direct commissions or as spreads. The spread represents the difference between the buying and selling price of an asset and thus represents the broker’s profit. In simple terms, the broker buys an asset at a certain price and sells it to the trader at a small premium. You can think of the broker as a middleman: He buys assets at wholesale price and offers them to the trader at retail price, compensating him for his services.
- Overnight funding: This charge applies if you want to hold a leveraged position overnight. By using leverage in trading, you are basically using capital provided by the broker and this may incur interest charges if the position remains open beyond one trading day.
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:
Trading fees
At Plus500, users benefit from a clear advantage as there are no direct trading commissions. Like most CFD brokers, Plus500 also earns through spreads. The difference: The spreads offered by Plus500 are extremely competitive.
The broker relies on dynamic spreads, which can vary depending on the chosen trading instrument.
A practical example: For an Apple share, the spread at Plus500 is 1.12 dollars. It is important to note that such a spread is considered “dynamic”. This means that it can adjust in response to market changes.
Holding positions overnight
Plus500 charges an overnight funding fee if you hold a leveraged position open for more than one day. The interest rates charged for this vary, but are transparently displayed on the Plus500 website.
In an industry comparison, Plus500’s fees are in the middle of the pack. As an example: For holding a CFD on Apple shares overnight, the current fee at Plus500 is 0.0288% (or 0.000288).
Fee structure
Plus500 offers a clear fee structure. Five free withdrawals are available each month, which should be enough for most traders. From the sixth withdrawal within a month, a fee of $10 is charged.
Plus500 also charges a currency conversion fee for transactions made in a currency other than that of your account. Currently at Plus500, this fee is up to 0.7% of the realised profit or loss of a transaction. This is applied in real time to the unrealised profit or loss of an open position.
Another point to note is the inactivity fee. This comes into effect if you have not carried out any trading activity on the platform within three months. From this point onwards, a monthly fee of $10 will be charged. However, should you have no funds in your account or end your inactivity by making a trade, this fee will not apply.
Plus500 Webtrader Platform
Rating: 4/5 ★★★★☆ – The platform is characterised by a clear and concise user interface, but offers limited possibilities for individual customisation. For newcomers, it might not seem entirely self-explanatory at first.
In our evaluation of Plus500, we place particular emphasis on the user-friendliness and practical use of the platform in daily trading.
Another plus point for Plus500 is that no software download is necessary. All trading activities can be conveniently carried out directly via the broker’s website.
User-friendliness
Although Plus500 features clear and attractive graphics, it can take some time to get used to them. Plus500 WebTrader offers limited customisation options compared to some other platforms.
Registration and security measures
Registering with Plus500 is straightforward, and there is the option of two-factor authentication for added security. In addition, the broker allows identification via social media such as Google or Facebook, which further simplifies the registration process.
Search tool
The platform has a clear menu on the left-hand side, where the tradable assets are categorised. At the top of the page is an efficient search bar that provides quick results.
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:
- Trading on rising prices: You make profits when the price of the asset you have invested in rises (and lose when it falls).
- 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).
Plus500 allows you to invest specifically in market trends. If you’re right, you can make profits whether prices rise or fall. But beware: if your predictions are wrong, you can also suffer losses.
While Plus500 offers a wider range of instruments compared to many other brokers, the focus of the offering is on CFDs.
The leverage preset by the platform varies depending on the asset. It is important to note that the use of leverage carries both opportunities and risks.
Many traders find that Plus500 meets their requirements, especially in the area of CFD trading.
A special note for day traders: scalping is not permitted at Plus500. This refers to a trading strategy where positions are opened and closed in a short period of time. If scalping is your preferred trading style, you should consider that Plus500 may not be the broker for you.
Plus500 Technical Analysis and Charts
Rating: 4/5 ★★★★☆ –
Plus500 provides one of the most outstanding interactive charting solutions in the market segment, which is excellent for technical analysis. The “Trader Sentiment” feature is a particularly valuable resource. However, other helpful tools remain rather scarce.
Stock market trading is based on different analytical methods and accordingly different strategies, such as expert advice, fundamental analysis, technical analysis indicators or authoritative news reports from companies and the media.
In terms of technical analysis, Plus500 sets standards through the integration of interactive charts that are suitable for a wide range of indicator settings.
Another Plus500 highlight is the “Trader Sentiment” feature. This shows in percentages whether other investors are currently tending to buy or sell. This gives you an insight into the prevailing market sentiment.
Plus500 Customer Support
Bewertung: 4/5 ★★★★☆ – Plus500’s customer service scores points for efficiency and speed. Whether via live chat or email, the employees are available to you around the clock.
You have various ways of contacting support: via the live chat on the website, via WhatsApp and email. However, telephone support is not offered.
Our experiences with the live chat were consistently positive. The response time of the employees was always quick and the answers precise and reliable. For example, we received detailed and transparent information about the fees incurred.
Plus500’s customer service was also efficient via email. Our queries were usually answered within an hour – a clear advantage over some other providers.
A special plus point: The service is available 24/7, which is not the case with all brokers.
Plus500 does not focus on educational resources, but does provide a demo account to get to know the platform.
A clear disadvantage of Plus500 is the lack of educational materials. You will look in vain for instructions or courses that teach you how to trade.
An official forum that could help beginners understand their first steps in trading is also missing.
This is regrettable, as educational offers are often an added value, especially for a broker that otherwise consistently shows quality.
Nevertheless, Plus500 offers a demo account. This free account has all the features of a real account and allows newcomers to familiarise themselves with the platform.
More about this in the following sections.
Plus500 minimum deposit and demo account
Bewertung: 4/5 ★★★★☆ – Unlimited demo account at no cost. Starting capital is only 100 euros.
Demo account
Plus500’s demo account allows you to trade with virtual capital (a starting balance of €40,000 which can be replenished if needed) so you can try trading risk-free.
There is no difference between the demo account and the real trading account – apart from the virtual capital. Thus, if you find your way around in the demo mode, you are also equipped for the real trading action.
Minimum deposit
To switch to the live account, an initial deposit of 100 € is required. A comparatively low amount in the trading sector.
It is important to stress that this €100 is not a fee for Plus500. It is your investment that you can use for trading.
If you deposit via bank transfer, the minimum amount increases to €500. Generally, we do not recommend this method as it takes more time.
To open a real account, in addition to the minimum deposit, it is necessary to provide proof of identity. This ensures that the account really belongs to you.
This thorough procedure should be seen as positive. As a regulated broker, Plus500 is subject to strict regulations, including anti-money laundering and terrorist financing regulations.
Therefore, it is necessary to verify your identity to ensure transparency and legality.
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 trustworthy?
In our final Plus500 review section, we would like to clarify a frequently asked question: Is Plus500 trustworthy or just another scam?
Let’s get this straight: Plus500 is not fraudulent at all. It is a renowned, listed company, comparable to big players like Amazon, Google or Apple, which records revenues of almost half a billion euros annually.
It would not make sense for Plus500 to use fraudulent tactics. This would cause significant damage to their business model and reputation. A reputable broker benefits by offering its services efficiently and in the best interest of its clients.
So the real question is not whether Plus500 is reputable, but rather whether it is the right broker for your needs. Plus500 stands out for many advantages and is one of the top brokers in the industry. It is up to you to decide whether the offer meets your requirements.
- Exceptional charts
- Numerous assets to buy/sell via CFDs
- Reasonable trading costs and fees
- Good customer support
Our final verdict on Plus500
Plus500 is an excellent broker for traders who are already familiar with the intricacies of trading and place particular emphasis on technical analysis. The platform convinces with its security measures and offers very competitive spreads.
However, there are downsides. The lack of educational resources is a significant drawback, especially for newcomers to the trading world. It is crucial to choose a broker that offers comprehensive support to its users, especially if they are new to the business. Plus500 may offer an impressive platform for experienced traders, but it is not ideal for beginners, apart from the possibility to use the demo account.
It is also important to point out that Plus500 does not offer a copy trading service. In contrast, eToro’s CopyTrader offers a platform where less experienced traders can mimic the strategies of more accomplished traders. This service is free of charge and is part of eToro’s standard offering.
In addition, eToro offers the direct purchase of shares, cryptocurrencies and ETFs without having to resort to CFDs. CFDs, often leveraged derivatives, are usually more complex and better suited for traders who already have some experience in the field.
Overall, traders should carefully consider which broker best suits their individual needs and experience.
Warning
82% 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.