A company whose main business is to provide online trading in contracts for difference, or cfds, delivered through a custom trading platform via the internet and other electronic channels, is known as Plus500, a trademark of Plus500 Ltd.
The Israel-based company was established in 2008 and is registered with the necessary regulatory bodies. It operates through a number of subsidiaries throughout Europe and the
Asia-Pacific region. Like many CFD brokers, Plus500 does not permit traders from the United States. The business does provide a brand-new futures trading platform called tradesniper. American traders have access to this platform.
The publicly traded plus500 review Ltd (PLUS.L) is a component of the FTSE 250 and has been listed on the London Stock Exchange (LSE). The Financial Conduct Authority (FCA #509909) has approved and regulated Plus500UK Ltd., a UK-based business with offices in the City of London. The parent business, Plus500 Ltd., is based in Haifa, Israel.
The broker provides access to a wide range of cfds on numerous instruments, including forex, stock indices, individual shares, commodities, etfs, options, and cryptocurrencies to clients in more than 50 countries (availability subject to regulation). In 2013, Plus500 was the first broker to release a Bitcoin CFD.
Additionally, the broker provides access to trading in options cfds on several marketplaces. These are different from normal options in that they are cash-settled, allowing you to speculate on the price of the underlying reference instrument in the future.
Who is Plus500 For?
Plus500 is for anybody looking for affordable trading fees, access to a variety of financial markets, and straightforward, useful trading software. On its trading platform, Plus500 provides over 2,800 CFDs at affordable spreads and with no fees.
The seasoned trader who likes to do business manually and thinks the cheaper cost justifiable given the absence of additional features some rivals provide should be attracted by this.
Pros
- More than 2,800 cfds are available.
- Practical and user-friendly platform
- Governed by the FCA (U.K.)
- Orders for guaranteed stop losses
- Positive balance defence
Cons
- Inadequate customer support
- Refuses to take on American customers
- It is not possible to combine a trading platform with other trading tools or platforms.
Pros Presented
A wide range of cdfs, including those on currency, stock indexes, individual shares, commodities, etfs, options, and cryptocurrencies, are accessible to Plus500 clients in more than 50 countries (availability subject to regulation).
Their trading platform includes a user-friendly design that makes it simple to make watchlists, examine charts, and place and track transactions.
The FCA, one of the primary regulatory bodies in the U.K., is known for being stringent in enforcing market practises that are equitable for both people and companies. The FCA regulates Plus500. Simply said, a company’s legitimacy is greatly enhanced by its regulation by a respectable government-backed organisation.
Depending on the state of the market, certain instruments may be eligible for guaranteed stop loss orders, which shield the trader from market gap risk but come with a larger spread.
As required by ESMA regulations that took effect in 2018, Plus500 provides negative balance protection to make sure that customers cannot lose more money than they have deposited into their accounts.
Cons Explanation
The only customer service alternatives offered by Plus500 are whatsapp chat and email assistance; the most obvious omission is the absence of a phone number, even for sales questions.
Due to the fact that CFD trading is often illegal in the United States, Plus500 does not accept U.S. clients. The business does provide a brand-new futures trading platform called tradesniper. American traders have access to this platform.
Advanced traders will be let down because none of these tools can be directly connected with webtrader and they rely on using third-party analytical and automation tools in their trading process. Additionally, there is no facility for back-testing.
Costs
As is customary in the brokerage sector, Plus500 primarily derives its income from client trades that “cross” the industry-competitive bid/ask spread. On any client transaction, the business does not levy commissions. Although it is clear that each unit is paid for, the spread remains consistent with trade size.
Additionally, the merrill edge review broker makes money by adding premiums, which are essentially financing fees, to positions that clients hold overnight.
These positions may incur currency conversion fees if the client trades in a currency different than the base currency of the account. Additionally, there are “guaranteed stop loss orders” (GSLO) costs, and inactivity fees begin to accrue after a three-month period of inactivity for an account.
The expenses are the same for traders who are eligible for a “professional” account, which allows larger leverage. For some products, investors with professional accounts may boost their maximum leverage to as much as 1:300.
The fact that Plus500 does not impose ancillary fees on customer accounts is one of its selling features. Normal withdrawals and account termination are free of charge. The underlying instrument affects how much capital is required to trade. Bank cash transfers, e-wallets (paypal or Skrill), and Visa or mastercard debit/credit cards are available as funding methods.
