Investing

Plus500 Review

plus500 review

Anyone who deals with CFDs in depth will inevitably hear or read about the broker Plus500 more often and not without reason. This broker opened its doors in 2008 and is a trading company based in the UK, which is also subject to regulation there. This ensures a high level of seriousness and security. An indispensable must for every broker.

  • Account (from) 100 €
  • Leverage (max) 50:1
  • Spread: 2 pips
  • Regulated by FCA, CySec, ASIC
  • Demo account: yes

General information about Plus500

Plus500 is a CFD broker that specializes primarily in trading currencies. Regardless of whether these are major currency pairs or those with lower liquidity. The range seems to be almost unlimited. The whole thing is still rounded off by selected stocks, indices and commodities. Thus, even trendless markets can be bridged by switching to other assets in the short term. The selectable stocks span the entire globe, from Australia to Europe to the USA. This makes the whole thing not only exciting, but also interesting. Furthermore, it is possible to trade several ETFs.

The spread is just one pip for major currency pairs, which means that even the smallest price movements can be traded profitably. Since there are no other fees apart from the bid-ask spread, as is the case with conventional brokers, these are almost zero.

Open an account with Plus500

Since a trade can be traded with a very small stake due to the leverage, the first trades can already be placed. To take the first steps, however, it is recommended to open a demo account, which Plus500 offers the same. Thus, faux pas that happen out of ignorance, can be avoided from the beginning with the real money account. Whether it concerns the order type or the traded value. Many CFD brokers offer such access only for a few days to a few weeks, here it is not so – it has an unlimited term.

The trading environment

The software is simple, yet packed with many features. This is downloaded to your computer and you log in with your personal data. The registration is done within 5 minutes and normally requires no further verification. In individual cases, however, it may happen that Plus500 requires proof of identity. This is done within a very short time. The main reason for this is primarily to protect against fraudsters and to make the software more secure. Both for the trader, as well as for the broker itself.

Maximum leverage

Another aspect that makes Plus500 tasty is the fact that the maximum leverage is up to 1:200. This means that if the traded value moves up by one percent, the actual profit is at a fabulous 200 percent. However, the trader should also bear in mind that this can also occur in the event of a losing trade. Money and risk management must be absolutely adhered to. There are many books and interesting articles on the net.

The deposit options are as versatile as the tradable values. In addition to the conventional transfer method, there is also the possibility to deposit via PayPal or Skrill. Many more exist and make the whole thing a bit safer for the end user. The duration of the credit depends on the chosen method, whereby the instant transfer is the one with the longest waiting time. However, this is only slightly longer and should not discourage choosing this method of deposit. The withdrawal is just as fast as the deposit.

Languages

The offer of Plus500 is offered in over 31 different languages and also almost on as many different websites. Plus500 is one of the brokers with the largest international presence. On the German market, the broker can be reached at Plus500.de.

Plus500 trading instruments

The specialty of Plus500 broker is CFDs (contracts for difference), its wide range includes CFDs for stocks, indices, forex, commodities, options and ETFs. With its product range currently comprising more than 2000 trading instruments, Plus500 is decidedly ahead in the CFD field and has long been in the top ranks among its competitors from Europe and Asia. Compared to some of its competitors, this gives the broker a big head start.

Plus500 trading environment

In addition, Plus500 provides enormous flexibility in trading as well. With the WebTrader worldwide without download and installation, with the Plus500™ trading software on the home PC and with the apps also on mobile devices (smartphone, iPad, iPhone). The trading environment scores in all variants with clear structure and ease of use. Plus500 offers modern technical analysis tools for trading and provides real-time quotes free of charge. Numerous very detailed information is offered as assistance.

Account opening

To start trading at Plus500, the trader must open an account after installation, for which less than five minutes are enough. To give you a first overview of the account opening process, we have compiled a step-by-step guide with screenshots for you.

Step 1 – Account selection

You can choose between a demo account and a real money account. For the real money account, you have the choice between downloading the software for the PC and using the WebTrader (without download). This is primarily a matter of taste, as all variants are very simple to set up and understand. In our example, we will choose WebTrader.

Step 2 – Account mode

After we have decided on the WebTrader, we are asked again whether we want to trade with real money or with play money in demo mode. We decide to trade with real money. As we will see later, you can switch between real money account and demo account with just one click, even if you do not explicitly open a demo account.

Step 3 – Registration

Now you just need to enter an e-mail and a password. The password must not be longer than 12 characters. If you have any questions to the support until here you can click on “Live Chat” in this step to get immediate support.

Step 4 – The WebTrader in real money mode

After you have entered your data, the WebTrader interface appears in the next step. At the top you will see a note about the 25 EUR bonus, which will be credited after the phone number has been confirmed. We will not go into the functions of the WebTrader in more detail for now, it is first about the account opening. Interesting is in this train also the possibility to immediately switch to a demo account. To make it clear to you, we will now click on the button “Switch to demo mode” below.

Step 5 – The WebTrader in demo mode

After clicking on the button we are now in the demo mode interface and 20,000 EUR of play money has been directly credited to our account.

As you can see, the demo mode does not differ from the real money mode in terms of interface and functions. So if you prefer to get used to the demo mode first, you can still do that. Switching back to real money mode is just as easy by clicking on “Switch to real money trading”.

Step 6 – Complete your data

In order to complete the registration process you must now complete your data by adding your first name, last name, address and phone number. A confirmation that you are not a citizen of the USA, Gibraltar, Guernsey, Isle of Man or Jersey is also required. Separate regulations apply to these countries.

Step 7 – Questionnaire

Regulated brokers like Plus500 are required by authorities and laws to learn something more about your relevant experience as well as your prior knowledge with investment products. In the screenshot above we have shown a part of the questionnaire and filled it out as an example.

Customer Services at Plus500

For many traders, support is an important criterion for choosing a broker. Especially in the initial phase, one has a lot of questions that should be answered quickly and competently. During our test, we asked support questions of varying difficulty on three different days and received a timely and targeted solution to all of them. The support team can be reached by e-mail. Those who do not necessarily need telephone support and are satisfied with an answer by e-mail will have nothing to complain about with Plus500 in this regard.

Deposit methods

Plus500 accepts deposits by

  • Credit card (Visa, MasterCard, American Express)
  • EC card
  • PayPal
  • Giropay
  • Instant bank transfer
  • Bank transfer
  • Skrill

Plus500 Account Types

  • Real money account: The minimum deposit required at Plus500 is 100 Euros, but it also depends on the customer’s preferred deposit method.
  • Demo account: Especially for beginners, the option to use a demo account is very helpful. If you have no experience with trading forex or CFDs, you are probably wondering what a demo account is all about. It is basically a play money account, which is in no way inferior to the real money account. The only difference is that you do not risk any real money when trading and can thus approach trading playfully.

Plus500 Conclusion

The customer support is available 24/7 and does not leave the trader, whether beginner or professional alone in the rain. He stands by one energetically and above all helping. They are both competent and friendly. The contact is currently only via e-mail to save costs, since a telephone support would only drive the spread unnecessarily high due to higher costs. The website also has its own help page, where the most common problems and questions are listed and explained. Here, the trader should take time and read them first, because this way mistakes can be avoided from the start.

Plus500 is reputable, offers attractive conditions, a low minimum deposit, an unlimited demo account and is supervised by three regulatory authorities worldwide (FCA, CySEC, ASIC). Only the maximum leverage of 200:1 could be an obstacle for some professional traders. When choosing the right broker, the question of regulation is very crucial. Unfortunately, there are far too many unregulated brokers on the market that you should keep your hands off of. However, the broker Plus500 is regulated by the respective regulatory authority in all three locations (London, Sydney and Limassol).

Perhaps for one or the other trader the fact that Plus500 does not have a branch in Germany may be a negative point of criticism but this is definitely not the case. Plus500 is absolutely reputable and has been active on the market for years. Provided that a broker violates the strict guidelines of the regulatory authorities, there are serious fines up to the withdrawal of the license. A great advantage in terms of security of customer funds is that they must be managed separately from their own funds. If the broker should get into payment difficulties, the customer does not have to fear for his money.

The Plus500 broker is suitable for both beginners and advanced traders. Among other things, the low minimum deposit of EUR 100, the large selection of underlying assets and the regulation by three financial supervisory authorities have positively influenced the result. Exemplary is also the free and unlimited usable demo account, which is both visually and functionally in no way inferior to the real money account. The maximum leverage of 200:1 is not a major point of criticism, but still important to mention, as some traders prefer an even higher value.