Plus500: An In-Depth Review of the Leading Online CFD Trading Platform

 

Since its inception in 2008, Plus500 has evolved into one of the most popular online trading platforms, providing access to a wide range of financial instruments through CFDs (Contracts for Difference). The platform is well-known for its user-friendly interface, competitive pricing, and extensive regulatory oversight, making it a preferred choice for traders across the globe.

This detailed review will cover all the aspects of Plus500, including its regulatory licenses, platform features, fees, and potential drawbacks.

Regulatory Licenses and Security

One of the strongest selling points of Plus500 is its strict regulation across several jurisdictions. It operates under the oversight of top-tier financial authorities, ensuring a high level of security and trustworthiness.

Here’s a breakdown of its licenses:

1. Financial Conduct Authority (FCA) – UK

   • License Number: 509909
     Plus500UK Ltd is regulated by the FCA, one of the most reputable financial regulatory bodies in the world. This ensures that the platform adheres to strict guidelines related to customer protection, data security, and fair trading practices.

2. Australian Securities and Investments Commission (ASIC) – Australia

   • License Number: AFSL #417727
     Plus500AU Pty Ltd holds a license from ASIC, a stringent financial regulator that oversees the integrity of Australia’s financial markets. ASIC’s regulations are aimed at ensuring that client funds are safeguarded and that brokers operate transparently.

3. Cyprus Securities and Exchange Commission (CySEC) – Cyprus

   • License Number: 250/14
     Plus500CY Ltd is licensed and regulated by CySEC, ensuring compliance with European Union financial laws under MiFID (Markets in Financial Instruments Directive). This allows Plus500 to operate across the European Economic Area (EEA).

4. Financial Markets Authority (FMA) – New Zealand

   • License Number: FSP #486026
     Plus500NZ Ltd is registered under New Zealand’s FMA, adding further credibility to its international operations.

5. Financial Sector Conduct Authority (FSCA) – South Africa

   • License Number: 47546
     Plus500SA Pty Ltd is regulated by the FSCA in South Africa, a growing market for CFDs and forex trading.

6. Israel Securities Authority (ISA) – Israel
   Plus500IL Ltd is regulated by the Israel Securities Authority, ensuring strict compliance with national financial laws and regulations.

Key Features of Plus500

1. Wide Range of Tradable Assets

Plus500 offers an extensive range of CFD products, covering a variety of asset classes, including:

• Forex: Over 70 forex pairs, including major, minor, and exotic currencies.
• Stocks: Thousands of CFDs on global stocks from leading exchanges like the NYSE, NASDAQ, LSE, and more.
• Cryptocurrencies: CFDs on top cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and more. It’s important to note that users don’t own the underlying asset but can speculate on its price.
• Indices: Access to major global indices such as the S&P 500, FTSE 100, and NASDAQ 100.
• Commodities: Trade CFDs on commodities like gold, silver, crude oil, natural gas, and others.
• ETFs: A wide range of CFDs on ETFs (Exchange Traded Funds) enables further diversification of trading strategies.

2. Leverage and Margin

Plus500 provides leveraged trading, allowing traders to magnify their exposure with a smaller capital investment. The leverage available depends on the asset class:

• Forex leverage: Up to 1:30 for retail traders.
• Cryptocurrency leverage: Up to 1:2.
• Stock leverage: Up to 1:5.
• Commodity leverage: Up to 1:20.

For professional traders, the platform offers higher leverage options, but it’s important to note that increased leverage also amplifies the risk of loss.

3. User Interface and Trading Tools

The platform is known for its clean, intuitive interface, making it easy for both beginners and experienced traders to execute trades. The web-based platform is available via a browser, and there are dedicated apps for iOS and Android users. The mobile app is highly rated for its responsive design and functionality, offering nearly identical features as the desktop version.

Some of the key trading tools offered include:

• Price Alerts: Set real-time notifications for price movements.
• Stop Loss and Take Profit Orders: Tools to automate risk management, ensuring trades are automatically closed once they hit predetermined levels.
• Guaranteed Stop: This feature ensures that even in volatile market conditions, your trade will be closed at the exact price set. However, it comes with a wider spread.
• Trailing Stop: A more advanced tool that follows favorable price movements, locking in profits while minimizing losses.
• Advanced Charting: Though not as sophisticated as some competitors, Plus500 provides adequate charting tools with technical indicators to assist traders in making informed decisions.

4. No Commissions and Transparent Fees

Plus500 operates on a zero-commission model, meaning that traders are not charged commissions for opening or closing positions. Instead, the platform makes money from the spreads (the difference between the buy and sell prices). The spreads are relatively tight, especially for popular forex pairs and major indices.

Other fees to be aware of include:

• Overnight Funding (Swap): A fee charged for positions held open overnight, which varies depending on the instrument.
• Inactivity Fee: A fee of $10 per month is charged if the account is inactive for more than three months.
• Guaranteed Stop Fee: Wider spreads apply if you use the guaranteed stop feature.

Pros and Cons of Plus500

Pros

• Regulated by top-tier financial authorities: Plus500’s regulatory status across multiple regions adds a layer of trust and security.
• User-friendly platform: Easy to navigate, ideal for beginners and intermediate traders.
• Wide asset variety: Access to CFDs on stocks, forex, cryptocurrencies, indices, commodities, and ETFs.
• No commissions: All trading fees are incorporated into the spread, making it simple to understand the costs.
• Risk management tools: Stop-loss, take-profit, guaranteed stops, and trailing stops available.
• Free and unlimited demo account: Allows users to practice strategies with virtual money.

Cons

• CFD-only platform: Traders do not own the underlying assets, which may not be suitable for those looking for long-term investments.
• Limited research tools: Although Plus500 provides basic market data, the platform lacks in-depth research, news feeds, and advanced charting features that might be required by advanced traders.
• Inactivity fee: Some users may find the inactivity fee annoying if they don’t trade frequently.
• No MetaTrader support: Unlike some other platforms, Plus500 does not support MetaTrader 4 or 5, which is a popular choice for many professional traders.

Final Thoughts

Plus500 stands out as one of the most accessible and trusted CFD trading platforms, thanks to its user-friendly design, regulatory compliance, and wide range of tradable assets. It is ideal for traders looking for an easy-to-use platform with competitive spreads and solid risk management tools. However, the lack of advanced charting, research tools, and support for long-term investment options may deter more advanced traders.

For those focused on short-term CFD trading and looking for a reliable, regulated, and commission-free platform, Plus500 is a solid choice. Always remember, though, that trading CFDs with leverage involves a high level of risk, and you can lose more than your initial investment if markets move against you.