Plus500 is an online broker based in Limassol, Cyrpus, which customers can trade in CFDS, forex currency pairs, shares, indices, commodities and ETFs. The company was founded in 2009 and is officially regulated by Cyprus Securities and Exchange Commission (CySEC). The british branch, Plus500 UK Ltd, is also licensed by the british Financial Conduct Authority (FCA).
Over the course of our test Plus500 convinced us that we could have a good experience with the seller in both the services and benefits, as well as the conditions. Among the points that were particularly convincing, among others, was the easy-to-use trading platform. In addition, the demo account can be used without time limit and the minimum deposit size is a rather small 100 euros, which should be very interesting for any trader.
Table of Contents
- 1 5 Arguments for Plus500
- 1.1 Headquarters and Regulation: Plus500 as a fully regulated broker
- 1.2 Trade Offer: More than 2,000 markets available
- 1.3 Trading conditions and minimum deposit: Trade possible with 100 euros
- 1.4 Trading platform and mobile trading: In-house usage
- 1.5 Opening an account and bonuses: No deposit bonus available
- 1.6 Demo account: free and unlimited
- 1.7 Service and Education: Not convincing in our test
- 1.8 Deposits and withdrawals: Several methods available
- 1.9 Trustworthiness: Plus500 is a trustworthy broker
- 1.10 Conclusion: Our Plus500 experience: A trustworthy, regulated broker
5 Arguments for Plus500
- Easy-to-use trading platform
- Unlimited demo account
- Small minimum deposit of 100 euro
- Competitive spread EUR/USD of 2 Pips
- Almost 50 currency pairs are available
Headquarters and Regulation: Plus500 as a fully regulated broker
The business Plus500CY Ltd was founded in 2008 and the headquarters are in Lissaamol, Cyprus. In 2009 Plus500 was the first business worldwide which offered trade with CFDs on shares free of charge.
From a legal perspective it is an investment company that specialises in CFDs, among other things, is regulated in the EU. Regulation is carried out by the Cyprus Securities and Exchange Commission (CySEC) and already this proves that Plus500 is a trustworth company.
Plus500 is a “Compensation Investor Fund”, a company specialising in the investment of compensation funds, and is controlled by Cyprus. Furthermore the broker is debt-free, not burdened by government debts, and it has, by its own admission, enormous liquidity as well as large surplus capital reserves. The customer deposits are kept separate from company assets and the brokers only use their own capital.
Trade Offer: More than 2,000 markets available
As already mentioned, Plus500 started as a broker for CFDs so it provides a very wide range of basic values, in this trading area. These start with stocks and range from different indices to diverse commodities, including gold and oil. In addition the trader can also trade almost 50 currency pairs.
In CFD stock trading traders can gain access to German and European shares without commissions. All the major currencies are offered for forex currency pairs, as well as numerous ‘exotic’ pairs. Altogether more than 2000 markets are freely negotiable. In our test this offer managed to convince us, across the board, and with this variety no wishes remain unfulfilled.
Trading conditions and minimum deposit: Trade possible with 100 euros
Meanwhile Plus500 handles more than two million transactions a month. Whoever wants to open a trading account and begin trading must first capitalise on their account. In order to begin trading the minimum deposit of 100 euros is required.
As far as the leverage is concerned for all asset classes are subject to varying regulations. So the forex trade, for example, has a maximum leverage of 1:200, which is also applied to CFD trading, whilst indices has a leverage of 1:300. The ETFs has the maximum possible leverage of 1:100.
Trading platform and mobile trading: In-house usage
The trading platform belonging to Plus500 has many benefits. Although use of the forex software ‘Metatrader’ is possible, a trading platform specially designed by Plus500 called ‘Webstrader’ compares favourably and is clearly structured. At the same time, in-house trading software is available for download. This offers a bigger receiving function than the Webtrader but has the disadvantage of being not as flexible in regards to access and a new download is required for any new computer one might use. Plus500 has also offered an Android and iOS app so that trading on your mobile is possible. Each of the platforms is free and ready in only a few steps.
Opening an account and bonuses: No deposit bonus available
A trading account with Plus500 can be opened for free, they collect no fee. Both opening an account and making the first deposit takes little more than five minutes altogether. In comparison to most other brokers opening an account with Plus500 is very easy. Only a valid email address and a username are necessary. Then the account is created and the trading platforms are available for testing.
Plus500 also offers its customers bonuses. This bonus amounts to a fixed 25 euro for trading with CFDSs and this is granted without any initial deposit. In order to receive the bonus, however, it is necessary to confirm your telephone number. Then the bonus will be accredited to your account and you can begin trading with it immediately. Furthermore there are ‘deposit bonuses’, which depend of the amount of the trader’s initial deposit. Other free extras include professional and modern trading tools. Here you will find even more information about how to download the trading platform.
Demo account: free and unlimited
Directly after opening an account not only is the live trading platform available but a demo account is also automatically created. This can be used to make first trades with virtual capital and the trader can learn about the trading application in great detail. For the demo account there is no time limit and, with one click, the trader can choose between the live and demo version. Because of this it is possible to practice new trading strategies under realistic conditions without risking your own money, even after entering real money trading.
Service and Education: Not convincing in our test
In our test Plus500 failed to convince in terms of service and education opportunities. There is, for example, no service hotline that the customers or prospective customers could use for support, not even a live-chat feature. Only an email address could be found and the processing of the emails was like to take a few days.
In regards to the supply of knowledge and information Plus500 has not improved much. Although there were some articles around the world of CFD trading there were no webinars, video tutorials or an in-house academy, which can be found with other brokers.
Deposits and withdrawals: Several methods available
Payments into the account can be made in different ways, such as: credit card, bank transfer, Giropay, Skrill or Paypal. Depending on the chosen method the transaction could take several minutes or even several days to process. The withdrawal is, as a rule, done the same way as the deposit and those who wish for a different withdrawal method best contact Customer Support. Before a withdrawal can happen, the customer must prove their identity by way of PostIdent, which can be done in a post office.
Trustworthiness: Plus500 is a trustworthy broker
Perhaps some traders and perspective traders will question whether Plus500 is fraudulent or not. This question can be easily answered. From our own experience as a broker on this website we can conclude that Plus500 is trustworthy. During this in-depth test there wasn’t even the slightest indication of fraudulent behaviour. Of course, the fact that they are also regulated by the strict British Financial Conduct Authority makes this even more unlikely. You should only be aware of the high level of risk involved in trading CFDs.
Conclusion: Our Plus500 experience: A trustworthy, regulated broker
The conclusion, which can be drawn from the Plus500 providers, is very positive for several reasons. Even with some conditions that may not be perfect even for the professional traders and aren’t initially relevant for beginners with a rather low trading volume, such as the lack of forex ECN trading, there are very positive terms and service. This makes the offer from Plus500 a successful, all-round package for all traders in CFD and forex trading.