Plus500 is an Israel based trading site that started its operations in 2008. It provides investment products and services to clients. The firm is safe to trade but lacks many other aspects like customer support, research material, educational content, lack of transparency, and many charges, not mentioned clearly on the site. Note that the broker only deals in CFD financial instruments and actual trading or possession of assets is available with Plus500 brokers. More than 76.4% of the retail investors who traded CFDs with the trading site encountered losses, as mentioned on their website.
Here, in this article, we would provide the unbiased Plus500 review 2021 for all the beginner traders who want to invest.
Plus500 Broker: Scam or Safe?
The broker Plus500 is licensed and regulated under financial authorities, including CySEC (Cyprus Securities Exchange Commission), Financial Conduct Authority (FCA), ASIC (Australian Securities & Investment Commission), New Zealand’s FMA, FSA, FSCA, ISA, and more, but they cannot guarantee the safety either way. The firm doesn’t hold a banking license, and no negative balance protection is provided to the clients outside the EU. The ICF security, which offers insurance up to 20,000 euros for client funds, is limited to the EEA member and the UK and no protection is available to other country clients.
Although there are several authorities working to ensure it remains safe, as a beginner, you cannot commit to these claims and ruin your trading experience. Hence, you must choose Plus500 at your own risk.
- Inactivity Charge
- No MetaTrader Platform available
- Limited Tools for trading.
- Poor Quality Research Material
- Not Enough Educational Videos
- No News
- Doesn’t hold a banking licensing
- No Customer Support on Calls
Plus500 Broker Review – Features
Plus500 Account Types
It provides only one retail trading account to the clients for investment, which might create hurdles in segregating beginners and professionals. Most of the top brokers today, like Global TradeATF, Oinvest and TradedWell, offer three different retail accounts, namely, silver, gold, and platinum, useful for different types of traders. The retail account is useful but only to average investors’ limited extent, not for beginners and professionals.
The leverage provided goes as high as 1:30 that might create obstacles for traders in making high profits through meagre capital. Overall, the beginners and professionals might need to look somewhere else, and middle-level traders can go for Plus500 without any doubt. Notably, there is one professional and demo account too available for trading.
Plus500 Broker Trading Platforms
The broker provides its proprietary trading platform, WebTrader, to cater to the different needs of clients. The platform is available in the website and mobile versions, but no desktop portal is released yet. The firm doesn’t use the widely known MetaTrader 4, which can be a significant shortcoming for most day traders. Although the firm’s platform is easy to use and facilitates varied features, the MetaTrader 4 is used by most of the top brokers due to its wide range of tools, easy UI/UX, and many more features.
Further, there is limited customizability for charts, indicators, and workspace in the Plus500 platform, which can irritate the long term traders.
Plus500 Markets and Products
There are limited trading assets available with Plus500, and only CFD trading is allowed, and no actual investments on financial instruments are accessible. There is a wide range of products on CFDs, but the clients are not allowed to change the leverage level in trades, which is a significant drawback. Changing the margin level is useful in mitigating the risks associated with trades. Furthermore, the range of assets except stocks are limited; only 25 commodities are available for trading.
Note that CFDs are complex financial instruments, and more than 76.4% of retail investors lost money while trading contracts for differences (CFDs) with Plus500 broker.
Plus500 Account Opening
The account opening process for Plus500 broker is not simple, and it takes time. Moreover, the minimum deposit to open an account with $100 can become an obstacle for people with little funds. If a trader wants to add money through bank transfer, then the minimum amount rises to $300. The broker doesn’t accept clients from the US, Canada, Iran, Cuba, and many other countries. Note that the verification process is time taking with Plus500 and requires several documents like proof of residency, ID cards, bank statements, salary slips, toll taxes letters., salary slips, and more, which can be a daunting task for clients.
Plus500 Commissions and Fee
The average charge with Plus500 broker is way above the industry standards. The average spread to trade with Plus500 broker is 2 points for Europe 50 CFD. There is nothing special which other brokers are not offering to clients. Hence, a trader can put down the broker like a hot potato.
|Apple CFD fee||$13.5||$6.7||$17.9|
|Europe 50 index CFD fee||$2.9||$2.7||$1.9|
|S&P 500 index CFD fee||$2.3||$1.6||$1.9|
|Vodafone CFD fee||$10.3||–||$19.3|
Apart from these high spreads, there is also an inactivity fee, whopping $10 per month. Besides, swap overnight charges, and withdrawal fee, making the broker expensive for beginner traders. As compared, HFTrading and 101investing are excellent and affordable trading brokers.
Plus500 Deposit and Withdrawal
There are limited payment options to add or take out funds with Plus500 broker. The available methods are bank transfer, debit/credit cards, and PayPal. It can possess great difficulty to those who have e-wallets funds like Skrill, Neteller, VPay, or Trustly. So, traders have another reason to chuck the broker and move on.
Further, the site also mentions Skrill payment option but was not available at the time of deposits, which is a deceitful attribute. There is a high withdrawal charge as compared to other trading brokers. Another major drawback that was witnessed with them was the clients can only deposit or withdraw funds from cards that are on their name. The bank transfer takes several days to process, and the withdrawal charge is $10 per transaction, which is higher than the normal charges by other counterparts.
If the client wishes to withdraw less than the specified limit, he needs to pay the $10 penalty, which is strange and not good for beginner traders. Withdrawal takes more than five days, and limited options were available for it. The process is also complex to understand for novice traders.
The highest leverage mentioned on the site for retail investors with Plus500 broker is 1:30, which is extremely low. For example, the leverage provided to trade cryptocurrencies and stocks is only up to 1:2. Further, the margin varies, which does not help on the time of the trade and type of trading asset. Hence, it is frustrating.
The tactic to promote leverage as high as 1:30 and providing as little as 1:2 is ethically wrong. And can stop the clients from making huge profits.
Plus500 Poor Research
There is no dedicated portal for research on the Plus500 trading site, and the beginners might get confused while looking for them. Further, the research material is not impressive and of low quality. There are no trading ideas, no news flow, unavailability of fundamental data. The broker is challenging to understand UI are some of the top drawbacks. There is one economic calendar which seems to be outdated. The design is a big turn-off.
Plus500 Customer Service
The customer support by the Plus500 team is limited to the extent of email and live chat only; no call service is facilitated. Further, the response time was too lethargic and does not permit any relaxation to the customer. Thus, the bad experience resonates with a trader, and people would instead quit working with the broker than seeking assistance from it.
There is no dedicated educational portal at Plus500 broker site, and the client needs to navigate under the “Trader’s Guide”. The videos seemed outdated and added no value to the trading education of any client. There are no educational articles, webinars, or trading platform tutorial material on their site.
In comparison, most of the other top brokers like HFTrading, and TradedWell provide full support and top-notch educational & research content for enhancing trader’s skill base.
The Bottom Line
Overall, Plus500 is a trading site with below-average services but is expensive for beginner traders. Moreover, the services, charges, and tools are not clearly described, sending a lack of transparency. An excellent alternative to them is HFTrading, IGM FX, Oinvest, to say the least. That offers similar products and services to all the clients but at super affordable prices. You can visit the broker here or the broker’s free demo account to test their services & practice.
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