Open A Plus500 Account For One Of The Best FX Brokerage Services In The Market
Introduction To Plus500 Trading Accounts
Having a solid foundation in the financial markets is essential for a Forex or CFD broker to offer a reliable brokerage service. Traders are becoming increasingly aware of the scams and broker malpractices that plague the financial markets, which is one of the major reasons why regulatory organisations from countries all over the world are moving towards a more controlled and regulated Forex trading environment.
In a highly competitive market, where new brokers are raising the standards for FX trading services, there are very few brokers such as Plus500, who concentrate on improving their products and trading platforms to ensure that the company continues to offer the best services to its clients. Plus500 is also one of the leading CFD brokers in the market for comprehensive access to the global financial markets, helped in part by the incredible choice of over 2000 underlying financial instruments. Is Plus500 suitable for all types of traders? Find out more in our Plus 500 review.
Plus500 launched its online brokerage service back in 2008, right at the peak of the financial market turmoil of the time. However, Plus500 has managed to weather the storm by developing a unique and dependable brokerage product, which can be attributed as the main reason behind the company’s success and growing popularity. Plus500 now caters to around 155,000 customers from all over the world, except countries such as the US and Canada, with a cumulative traded volume of more than $1 trillion since the founding of the company.
Plus500 has different branches in Cyprus, the UK, and Australia, with its global support offices operating across the Americas, Africa, and the Asia-Pacific. Plus500 is regulated by three different regulatory agencies such as the Cyprus Securities and Exchange Commission (CySEC of Cyprus), the Financial Conduct Authority (FCA of the UK), and the Australian Securities and Investments Commission (ASIC of Australia). Plus500 is fully EU authorised under the European Economic Area (EEA) agreement and is MiFID (Markets in Financial Instruments Derivatives) compliant for offering financial services to European traders.
Plus500 also puts its Australian Financial Services License (AFSL) to good use by offering regulated services for traders in the Asia-Pacific, but some Asian countries such as Japan require companies to be regulated by their own regulatory agencies to be able to operate in the country. Nevertheless, Plus500 is as good as a regulated company as the leaders in the market, as the broker moves all clients’ deposits to segregated accounts and submits routine audit reports to the CySEC and the ASIC for financial transparency.
Plus500 is also a member of the Investor Compensation Fund, which is a compensation program that is exclusively available for EU investors in the case of a broker default. The ICF provides compensation of up to €20,000 in the case of broker insolvency, but as a part of its FCA regulation, Plus500 is also a member of the Financial Services Compensation Scheme (FSCS that offers up to £50,000 in compensation, depending on the investor and the company. These investment programs do aim to reassure traders about the security of trading with regulated Forex brokerages, which is all a trader needs in this confusing and risky market.
Plus500 Trading Instruments & Margin
Plus500 has more than 2000 instruments offered through its trading platform, making it one of the leading service providers for a comprehensive choice of assets. Plus500 only deals in CFDs or Contracts For Differences for all markets, and the broker provides an option to trade Forex, indices, commodities, cryptocurrencies, shares, options, and ETFs. The following are some of the highly popular assets offered to Plus500 traders:
Indices: USA 30, UK 100, Germany 30, ASX 200, Hong Kong 50, Netherlands 25, France 40, Swiss 20, USA 2000, Europe 50, US-TECH 100, Spain 35, USA 500, Austria 20, Japan 225, Italy 40, Greece 20, Denmark 20, Poland 20, Germany MCap, Hungary 12, Norway 25, Sweden 30
Forex: USD/ZAR, EUR/USD, USD/JPY, U.S. Dollar Index, GBP/USD, GBP/JPY, NZD/USD, EUR/JPY, AUD/USD, EUR/GBP, USD/CAD, USD/CHF, GBP/AUD, EUR/AUD, EUR/NZD, GBP/CAD, AUD/CAD, AUD/CHF, AUD/JPY, AUD/NZD, AUD/SGD, CAD/CHF, CAD/JPY, CHF/DKK, CHF/JPY, CHF/NOK, CHF/SEK, DKK/NOK, EUR/CAD, EUR/CHF, EUR/CZK, EUR/HUF, EUR/MXN, EUR/NOK, EUR/PLN, EUR/SEK, EUR/SGD, EUR/TRY, GBP/CHF, GBP/DKK, GBP/NOK, GBP/NZD, GBP/SEK, GBP/ZAR, NZD/CHF, NZD/JPY, SEK/NOK, USD/CNH, USD/CZK, USD/DKK, USD/HKD, USD/HRK, USD/HUF, USD/MXN, USD/NOK, USD/PLN, USD/RON, USD/RUB, USD/SEK, USD/SGD, USD/TRY
Commodities: Oil, Gold, Natural Gas, Copper, Silver, Palladium, Platinum, Heating Oil, Cotton, Wheat, Brent Oil, Sugar, Gasoline, Coffee, Corn, Soybeans, Cocoa
Crypto: Bitcoin, Bitcoin Cash, Ethereum, Monero, Ripple, Litecoin, Dash, NEO
ETFs: iShares Silver, USO-Oil Fund, UNG-Gas Fund, OIH-Oil Service, GLD Gold, Commodity Index Fund, ETFS Gold, VXX Volatility, GDX, iShares R2000, SPY, EDC, XLV, VWO, SPXL, VNQ, TNA, iShares China, XLU, SPXU, QQQ, IWO, VTI, iShares Korea, iShares EEM, QLD, EWZ, iShares Japan, TLT, IYR, DIA, iShares UK 100, SPDR ASX 50, TBT, XLK, iShares EU50, HYG, EFA, QID, IWN, LQD, FXE, TZA, IJR, FAZ, SDS, TWM, XOP, XME, iShares DAX, ERX, RSX, Lyxor CAC, XLB, ACWI, XLE, iShares AEX, EWW, EWH, MDY, XLF, IWF, SSO, SPDR ASX 200, SH, JNK, BND, XLY, AGQ, VGK, EWT, DVY, SPDR EURO 50, FAS, XLP, XRT, XHB, XLI, UPRO, IAU
Options: Germany 30, France 40, UK 100, Netherlands 25, USA 500, Italy 40, Alphabet, Facebook, Apple, Hong Kong, DeutscheBank, Snap
Shares: USA, UK, Germany, France, Italy, Ireland, Hong Kong, Denmark, Holland, Poland, Finland, Belgium, Sweden, Switzerland, Japan, Portugal, Greece, Australia, Spain, Norway, Austria [We have only listed the countries, as Plus500 offers almost all major share CFDs from the countries outlined.]
Plus500 supports trading on margin, with a maximum Plus500 leverage of 300 for FX and some CFD products. The leverage is certainly lower than what we expected, as most brokers in the market offer anywhere between 1:400 and 1:1000 leverage on most FX currency pairs and other CFDs.
There are even companies that offer a staggering 1:3000 leverage, but we believe that a leverage of 1:500 to be acceptable under normal trading conditions. Of course, lower leverage is indeed far more preferred than high-risk trading, but the main advantage of Forex and CFD trading is the high leverage available to traders.
The higher minimum margin requirements will result in a higher capital outflow, particularly for traders opting for high-risk CFD products. Plus500 is a market maker broker, and there may be a conflict of interest while trading their products. We will take a closer look at the account options for in-depth trading information.
Plus500 Account Options
Plus500 only offers a regular market maker account for its CFD products, where all contracts are transferred through the broker’s internal dealing desks. Plus500 has indeed developed a sophisticated automated dealing desk platform, but there is still a conflict of interest that comes from a market maker model. The broker can act as a counterparty to their traders’ orders, or pass it on to other traders according to the liquidity in the market. Nevertheless, a market maker model does not offer the sense of security or direct market access trading conditions as offered by an STP/ECN broker.
As a CFD broker, Plus500 only asks its traders to make a minimum deposit of $100 for opening an account. The Plus500 minimum deposit is just about feasible to cover the entire retail trading market, as it is neither too high, nor too low. However, the broker may charge an additional $10 per month, if the account stays inactive for around three months, which is not really a great indication of the quality of services.
The Plus500 spread is rather competitive, considering that the company offers a market maker account. The minimum spread is quoted as 2 pips, which is not too expensive, but there are brokers that offer even more competitive spreads starting from 1 pip on the major currency pairs. However, the spreads are subject to market volatility and other trading conditions, as the broker can be seen to widen the spreads during high-impact news events or during times of low volatility.
One of the significant drawbacks of Plus500 is their inability to cater to traders who wish to scalp the markets. Plus500 has several limitations when it comes to scalping or short-term trading, as the market maker conditions do hinder the broker’s ability to meet its clients’ volume requirements. On the contrary, ECN/STP accounts do provide better options for scalping, along with amazing liquidity for round the clock trading.
All financial transactions are carried out through the broker’s trading platform, including deposits and withdrawals. The broker has an option to make a payment through credit/debit cards, or through bank wire transfer and online e-wallets such as Skrill and Neteller. The company does not charge any commissions for deposits, but traders will have to account for withdrawal fees, depending on their choice of withdrawal option.
Plus500 used to provide a no-questions-asked 30% bonus on deposit for all traders, but the company had to withdraw its bonuses to comply with several regulatory directives issued by the CySEC and other European regulators. Presently, Plus500 does not offer any bonus to its traders from the EU, but international traders may be able to receive a bonus, depending on their country. Due to the strict regulations on Bonuses, it would not be recommended to sign up for a bonus trading account, as it may put unnecessary restrictions on how you can access your account and trading capital. These bonuses also stipulate several trading volume conditions, which can always make it difficult for traders to satisfy the trading conditions before making a withdrawal.
Plus500 Trading Platforms
Plus500 has always deviated from the norm while offering its services to traders, and it has been a trademark of the company ever since it started operations in 2008. Plus500 launched its services by offering a proprietary trading platform and has opted to ditch the popular and tested MT4 terminal. Instead, the company has developed an innovative trading platform that was developed completely in-house, allowing the company to tweak and improvise the platform according to the varying requirements of its traders.
Today, Plus500 has a dedicated Forex trading platform for every device, including a dedicated trading interface for the Windows desktop platform. Although the broker has managed to cater to a majority of Windows desktop users, the company does not offer a dedicated platform for Mac OS users yet. Therefore, to cover Mac users, the broker has developed a standalone WebTrader, which not only works with web browsers but offers excellent trading functionality over both desktop and mobile devices.
The Plus500 platform gives access to all the different financial instruments, including CFDs on shares, indices, commodities, options, and ETFs. Traders can choose their preferred assets from the large pool of instruments and can create their own unique portfolio. The Plus500 trading interface does provide some advanced trading features, but the platform misses out on some added trading tools that traders have come to expect from other leading platforms such as the MT4 and the cTrader. The Plus500 platform also does not support automated trading, but being a market maker broker, we hardly expect the company to support trading with Expert Advisors or automated trading bots.
Plus500 Mobile Trading Platform
Plus500 really shines in the mobile app department, as the broker has individual apps for iOS, Android, and Windows devices. The iOS Plus500 app is available for iPhones, iPad, and even the Apple Watch, which makes it a unique platform offering in the world of Forex trading apps available for mobile trading. Aside from the iOS trading app, the Plus500 Android app and the Windows app are also heavy on features, which can easily replace the desktop trading interface. In fact, the Plus500 mobile apps for all platforms are better than the options offered by other third-party platforms, which essentially gives a unique trading advantage to Plus500 account holders.
The WebTrader is also compatible with most mobile web browsers and can offer similar trading features as its desktop version. The broker has paid particular attention towards ensuring that all traders receive the best trading conditions through its platforms, but there are still a few drawbacks when it comes to the outright trading features and analytical tools.
Plus500 Customer Service
Plus500 has a 24X7 customer support channel, primarily through its live chat feature, but traders can also contact the broker through email, web contact form, or phone for timely service. The customer service channel is highly proficient and customer-friendly, resulting in an excellent customer service experience. Trading with Plus500 can be a highly rewarding prospect, as the broker pays immaculate attention towards enhancing customer satisfaction through proactive customer retention strategies. The customer service department indeed has a prominent role in helping Plus500 maintain its market share, along with helping acquire new traders at will.
Plus500 does not appear to offer any trading resources, tools, market research, or any other analytical reports to its traders. Unlike its immediate competitors, Plus500 is not too concerned about its lack of trader tools or supporting resources. We even found it strange that the broker does not offer a basic educational program for its newbie traders, but we wouldn’t demerit Plus500 for its lack of trading tools or knowledge base. There are plenty of resources available online, which can provide better value than the information provided by brokers.
- A leading broker that offers more than 2000 financial instruments.
- Regulated by the CySEC, the FCA, and the ASIC.
- Excellent security of funds and guaranteed withdrawals.
- Proprietary trading platform with access to the global financial markets.
- Minimum deposit starts from $100, along with wide range of payment options.
- Competitive spreads starting from 2 pips.
- Plus500 only offers the market maker account.
- Comparatively lower leverage of 1:300.
- Account inactivity fees.
- Plus500 does not support Auto trading or scalping.
Is Plus500 A Scam?
Plus500 is not a scam, as the company is regulated by three of the leading regulatory agencies in the financial markets.
Does Plus500 Offer MT4 For Trading?
No, Plus500 offers a proprietary trading platform, which has independent apps for different desktop and mobile devices.
What Are The Account Deposit/Withdrawal Options?
Traders can make a deposit or withdrawal through bank wire transfer, credit/debit cards, or through online payment programs such as Skrill and Neteller.
Can I Get A Plus500 Bonus?
Plus500 does not provide a bonus to its EU traders, but international traders may get in touch with their account manager for a personalized bonus offer.
Plus500 offers a highly reliable and reputed Forex and CFD brokerage service, which is regulated by several leading regulatory organisations. There are some inherent weaknesses of trading with Plus500, but retail traders will find Plus500 to be a solid choice of brokerage.