What do traders think about Plus 500? Is it a trustworthy broker? Opinions by expert traders and by these reviewers agree that it is. For us, Plus500 is one of the safest CFD providers. This is why we can say that, at the moment, Plus500 is one of the best brokers available in 2021. We will be talking more about this in the rest of the review (76,4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money).
In order to claim that Plus500 is one of the best CFD brokers in 2021 (to be exact, we think they are number one), we based ourselves on the opinions and experiences of knowledgeable traders and investors, on the regulation to which the broker is subject, as well as their absence of trading commissions and low spreads. We will look more at each one of these aspects later on. Before we go into more detail on this particular broker, we need to emphasize that when trading CFDs, your capital is at risk.
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In our opinion, Plus500 is one of the highest-quality brokers around at the moment. One of the reasons we claim this is because of the safety and obedience to regulation which they bring to trading CFDs. Another reason is thatPlus500 Ltd is listed on the Main Market of the London Stock Exchange. The simple fact of being listed on an exchange is not a sufficient reason to have confidence in a company. It does, however, mandate that the company complies with many very strict norms, especially if it does not want its share price to drop. A listed company also has to make public its accounts each semester, of every year. For this reason, the information available for a listed company is much more ample than for one that does not have any stocks listed on an exchange. Moreover, listed companies need to satisfy auditors from trustworthy bodies, and in general some oversight is better than none.
Is Plus500 Safe? Is it a Scam? Regulation
While we consider the fact of being listed on a stock exchange to be an advantage, we can not overlook other criteria necessary for evaluating the broker and establishing a complete picture of its reliability. Another important element for evaluating the quality of a CFD provider, as is the case with this broker, is to verify which regulatory bodies oversee it, if we are looking to avoid scams. This is where we feel that Plus500 really stands out above the rest, since it is Plus500CY Ltd authorized and regulated by CySEC (#250/14), as well as Plus500UK Ltd is authorized and regulated by the British FCA. Plus500AU Pty Ltd (ACN 153301681) is licensed by the ASIC in Australia, AFSL #417727, FMA in New Zealand and the FSP #486026; Authorised Financial Services Provider in South Africa, FSP #47546 (You do not own or have any rights to the underlying assets. Please refer to the Disclosure documents available on the website).
To finish with our rating of Plus500’s safety and reliability, we need to add that it has one significant advantage over all other brokers. Plus500 participates in the Investor Compensation Fund for clients of Investment Firms regulated in the Republic of Cyprus. Plus500 affords you the security, resources, global coverage and service of a multinational organisation with more than 1,000,000 clients worldwide carrying out millions of transactions per month. Furthermore, Plus500 is debt free, has substantial liquidity and significant surplus regulatory capital reserves over its regulatory requirements. Without doubt, this places Plus500 a step ahead of its competition, such as Markets.com, AvaTrade, XM, XTrade or eToro.
Will the full knowledge that this is not something that can be said with 100% accuracy, after investigating the regulatory considerations, we feel that Plus500 is not only not a scam but also a safe and reliable broker.
While we have looked at its reliability, we would also like to know whether this company makes it difficult for investors to receive their money. Although the vast majority of comments made by investors that we were able to find on the internet stated that they had no difficulty claiming their money. In other words, Plus500 pays out in full and in time. If you would like to withdraw your funds, you will receive them to you bank account in a few short days. As a result, we feel that it is not only a reliable broker, but also one that pays out properly.
When choosing a broker, there is one thing which can not be overlooked, that is the costs charged for trading, that is why it is always better to look for a cheap broker. In general, the costs are two-fold: commissions and spreads.
In Plus500’s case, it has a big advantage going for it, it does not charge any commissions. This means that you are not required to pay the brokerage fees that other brokers charge for buying, selling or making any other kind of investment. Luckily, all these costs are waived when dealing with Plus500. What does exist, however, are spreads – which are an unavoidable aspect of trading nowadays. A spread is the difference in price between what something is bought and sold for – it means for you an extra cost while trading. The lower the spread, the more the trader’s profit margin.
As far as spreads are concerned, if we compare with the rest of the brokers, we can see that Plus500 offers the best spreads of the entire market. Although the specific spread depends on the product being traded as well as the moment at which it is traded, for the most traded Forex currency pair, Euro/Dollar, is low. Spreads for stock shares are also dependent on the individual stock, but as a general rule Plus500 offers the most reasonable spreads from among the various CFD providers.
You can read more about spreads at Plus500 by clicking here (76,4% of retail CFD accounts lose money).
Positive and Negative Comments
It is to be expected that companies receive both positive and negative feedback. If anything is for certain, it is that in this world there is no such thing as absolute unanimity. This having been said, what we can say for sure, as far as this broker is concerned, is that the majority of forum comments are very favorable towards it. And what do these comments and analysis say? Many things. We will start by looking at the negative aspects.
The negative point which is most often raised is that Plus500 does not make available the MetaTrader 4 platform, which is the most widely used by traders. Instead, this broker provides a a proprietary platform which is also very easy to use and very functional, and which can be used on all devices, be it on a computer, tablet, smartphone (the app is available for Android and iOs). But, traders used to MT4 might not be willing to accommodate themselves to a new platform.
As far as positive comments and opinions are concerned, Plus500 stands out in many respects. On the one hand, it is a very highly valued broker from the standpoint of the safety it offers thanks to the regulatory considerations we spoke about before. Another positive aspect is that there are no brokerage fees to be paid when investing, and the spreads are among the lowest on the market. Lastly, traders feel that the platform, although it is not the one they are used to, is very easy to use and offers the tools and trading signals necessary for novice, as well as experienced, traders to succeed.
If you would like to start real money trading right away, you have the option of depositing money. In this way, you will be trading with your own funds, and we need to remind you again that your money will be at risk. Plus500 has a minimum first deposit of 100 euros/dollars. This deposit amount is among the lowest that we know about. For example, one of their competitors is Interactive Brokers, who have a minimum first deposit requirement of 10 000 euros. In comparison, 100 euros is a very reasonable and advantageous amount.
Another advantage is that there is only one type of real money account, and everyone has the same privileges, whether you decide to make a small or a large deposit. If you would like to know more about how to make the minimum deposit at Plus500, click here (76,4% of retail CFD accounts lose money).
How to Deposit and Withdraw Funds
The depositing process is really very easy, and the withdrawal process is quite similar, with the exception that it has one extra step. The first thing you need to do when you are using the platform is to go to “Fund management” at the top of the screen.
As you can see, you have the choice between depositing and withdrawing. When depositing you will need to choose the method which is most convenient for you, since when you make a withdrawal you will be paid by that same means. Among the options for depositing and withdrawing you will find:
- Credit cards
- Bank transfer
Plus500 offers a free demo account to practice investing with virtual money. By using this type of account, novices can practice making trades without putting any of their own money at risk, since the investments are done with virtual money.
Without a doubt, this type of account offers great advantages since it allows for experimenting with different strategies without putting any money at risk. In this way you will be able to learn how strategies work with regards to Forex investing, or the buying and selling of other assets such as stock shares and commodities. You will be able to observe their fluctuations relative to economic and corporate news without risking any money. Once you feel at ease with your investment scheme, you can switch to operating with real money – once you don’t feel like a novice anymore (76,4% of retail CFD accounts lose money).
Final Thoughts About this Broker
Before making our final commentary on Plus500, we would like to present to you a short list of its strong and weak points. You should realize that this is only our opinion and it may differ from other reviews.
- A publicly traded company with the added reliability associated with this fact
- A high level of regulation, superior to other brokers
- Lower spreads and almost non-existent commissions
- A highly valued trading platform optimized for both novice and advanced traders
- An entire website available in English
- A high-quality customer service and chat available for any type of consultation
- Investors with many years of experience will miss more advanced trading tools
- MetaTrader 4 is unavailable
In our opinion, Plus500 is one of the best broker around in 2021 for trading CFDs. If offers CFDs for all available financial assets, such as shares on the stock exchange, currencies in the Forex market, commodities such as gold, oil and others, or indexes such as FTSE100 or the S&P500.
If Plus500 is among the best options available at the moment in the world of CFDs, it is due to several factors: they do not charge brokerage fees for placing trades, they have tight spreads, they offer a leverage of 1:30, their entire website is available in English, they provide a high degree of safety due to strict regulation and ultimately, due to the many favorable reviews given to them by traders. (76,4% of retail CFD accounts lose money).