Plus500 Review 2024: Pros & Cons

Plus500 stands as a reputable global brand, providing a user-friendly trading platform for online traders. With the Plus500 Invest platform offering share trading, access to U.S. market futures, and a comprehensive selection of CFDs through the Plus500 CFD platform, the company caters to a diverse range of trading preferences.

Originally founded in Israel in 2008 and now based in the UK, Plus500 has around 400,000 active users and subsidiaries across several countries, including Australia, Bulgaria, Cyprus, Israel, Seychelles, Singapore, and the United States.

Regulated by the Financial Conduct Authority (FCA), it ensures investor protection through the Financial Services Compensation Scheme (FSCS). Plus500 distinguishes itself with its simplified trading interface, making it appealing for beginners, while continuously expanding its educational content.

Despite its progress, the platform's limited market research may leave more active traders seeking additional resources.

Plus500 Fees Overview:

As we delve into the Plus500 fees, it's essential to understand the cost structure of this trading platform.

• Trading Fees: No commissions; the platform charges a spread with varying rates for different markets.
• Inactivity Fees: A monthly fee of $10 if no login activity for three consecutive months.
• Rollover/Overnight Fees: Applied to positions held overnight, with the rate available in the 'Details' link for each instrument.
• Withdrawal Fees: No charges for withdrawals.
• Spreads: Platform applies dynamic spreads, dependent on market conditions.
• Conversion Fees: Currency conversion fee of up to 0.70% on realized profits and losses.
• Guaranteed Stop Order Fee: Incurs a fee by widening the spread on the asset when using a guaranteed stop order.

How Plus500 Fees Work:

Now, let's examine how these fees work as part of our Plus500 review.

• No Trading Commissions: Plus500 operates on a spread-based model, with no additional commissions or transaction fees.
• Spread Calculation: The spread is automatically adjusted and calculated by the difference between the buy and sell prices of a trading instrument.

Notable Trading Fees:

1. Overnight Funding Fee: Applied for holding positions after a specific time, with percentages available in the 'Details' link.
2. Currency Conversion Fee: Up to 0.70% charged on realized net profit and loss for trades in a different currency.
3. Guaranteed Stop Order Fee: Triggers a wider spread, incurring a fee for the added protection.
4. Inactivity Fee: $10 per month after three months of no account login activity.

Average Spreads and Fees on Plus500:

• Cryptocurrencies: From 2%
• Commodities: From 0.04%
• Currencies: From 0.8%
• Indices: From 0.7%
• Stocks: From 0.08%

Plus500 offers commission-free trading, with fees primarily based on spreads, inactivity, and specific trading features. Traders should carefully consider the applicable fees, especially for overnight positions, currency conversions, and guaranteed stop orders. Additionally, Plus500 does not charge withdrawal fees, providing a transparent fee structure for users.

Is Plus500 Safe?

• Regulatory Compliance: Plus500 is authorized by six Tier-1 regulators, including the Financial Conduct Authority (FCA) , Australian Securities & Investment Commission (ASIC), and others.
• Segregation of Funds: Client funds are kept in segregated bank accounts, separate from the company's finances, ensuring protection in case of financial difficulties.
• Negative Balance Protection: Complies with EU law to offer Negative Balance protection, preventing users from incurring losses beyond their investment.
• Global Regulatory Presence: Plus500 operates through subsidiaries regulated in various jurisdictions, such as Cyprus, Australia, New Zealand, and South Africa, providing a globally compliant trading environment.
• Financial Services Compensation Scheme (FSCS): Traders are protected under the FSCS , offering compensation in case of insolvency or failure to meet financial obligations.
• Risk Disclosure: While well-regulated, it's important to note that CFD trading involves risk, and 81% of retail investors lose money when trading CFDs with Plus500.

In summary, Plus500 prioritizes regulatory compliance, employs robust security measures, and offers client fund protection, making it a secure trading platform. However, users should be aware of the inherent risks associated with CFD trading.

Plus500 Account Types

One notable feature of Plus500 is its commitment to treating all traders equally by offering a single trading account type. Unlike some platforms that upsell better trading conditions with higher deposits, Plus500 maintains a uniform account structure. The minimum deposit required for a live account is $100, and the maximum leverage varies based on jurisdictional regulations.

Plus500 Demo Account

For those looking to explore the platform without risking real money, Plus500 provides free and unlimited demo accounts. The default demo balance is $50,000, and if the portfolio drops to $200, Plus500 automatically restores the starting balance.

It's worth noting that while demo amounts may not always reflect real-world scenarios accurately, traders have the flexibility to self-adjust their demo account balance. This feature allows users to personalize their simulation experience and align it with their actual investment goals.

Account Types Overview

• Live Account: Requires a minimum deposit of $100, and the maximum leverage depends on the trader's jurisdiction.
• Demo Account: Offers a risk-free environment for users to familiarize themselves with the platform. The default demo balance is $50,000, with the option for users to self-adjust their demo account balance. This flexibility enhances the simulation's effectiveness and aligns it more closely with real trading scenarios.

Plus500's straightforward approach to account types, coupled with the provision of a customizable demo experience, caters to both novice and experienced traders, fostering a user-friendly environment for all.

Customer Reviews and Support at Plus500

Plus500 holds a 'Great' rating on the independent review site Trustpilot , with a score of 4.0 out of 5.0 from over 11,500 reviews. Positive feedback emphasizes the app's user-friendly nature and the availability of a risk-free demo account. However, negative reviews highlight concerns about complex fees and delays in the withdrawal process.

On mobile app platforms, Plus500 scores 4.3 out of 5.0 from over 100,000 reviews on Google Play and 3.7 out of 5.0 from almost 3,000 reviews on the Apple Store. The diverse feedback from users underscores the platform's strengths and areas where improvement may be needed.

Customer Support at Plus500

Plus500 offers 24/7 customer support through various channels, including email, live chat, and WhatsApp. The absence of telephone support may be a drawback for those seeking faster responses than email.

The Help Centre and FAQs serve as valuable resources for self-assistance. Live chat embedded within the trading platform is recommended for quick queries, ensuring traders have access to prompt assistance during their trading journey.

While Plus500 strives for operational excellence and clarity in its services, the availability of responsive customer support enhances the overall user experience.

Pros of Plus500:

• Established Reputation: Founded in 2008, Plus500 is a publicly traded company (LSE: PLUS) and part of the FTSE 250 Index, showcasing its stability and market presence.
• Regulatory Compliance: Regulated in six Tier-1 jurisdictions, three Tier-2 jurisdictions, and one Tier-4 jurisdiction, providing a high level of trust and security for traders.
• User-Friendly Platform: The web-based trading platform is beginner-friendly, catering to novice traders while acknowledging the risks associated with trading.
• +Insights Analytics Tool: Incorporates proprietary sentiment data and integrates advanced sentiment features from Trading Central and FactSet, enhancing analytical capabilities.
• Robust Charting: Both the web platform and mobile app offer robust charting features, ensuring a consistent user experience across devices.
• Diverse Tradable Symbols: With 2,800 tradeable symbols available as CFDs, Plus500 provides a good range of options for traders.
• Competitive Spreads: The broker appears to offer spreads close to the industry average, especially on major forex pairs.
• CFD Option Contracts: CFD option contracts are available for over 20 popular symbols, expanding trading possibilities.
• Specialized WebTrader Platform: A dedicated WebTrader platform designed for CFD trading, providing a clean and uncluttered interface.
• Commission-Free Trading: Plus500 offers commission-free trading on a diverse range of markets, minimizing additional fees for traders.
• Adaptable Leverage: Traders can utilize adaptable leverage for long or short positions, enabling more strategic trading opportunities.
• Demo Account Excellence: Plus500 offers an excellent demo account, providing a risk-free environment for users to practice and learn.
• Weekly Fee Rebates: Active day traders benefit from weekly fee rebates, providing an added advantage for clients after making a deposit.

Cons of Plus500:

• Limited Research Tools: The platform lacks detailed research tools and features, potentially hindering in-depth market analysis.
• Inactivity Fee: Plus500 charges an inactivity fee after three months of account inactivity, which may impact occasional traders.
• Customer Service Concerns: Some Trustpilot reviews raise questions about the level of customer service provided by Plus500.
• No Support for MetaTrader or cTrader: Lack of support for MetaTrader or cTrader charting tools, possibly a drawback for advanced day traders seeking familiarity.
• Limited Educational Resources: Educational resources are limited compared to top-tier brokers like eToro, affecting the learning curve for beginners.
• No Social Trading: The absence of social trading features means users cannot follow and replicate trades of experienced traders.
• Restricted Research and Analysis Tools: Compared to competitors, especially IG, Plus500's research and analysis tools are limited.
• No Support for Algo Trading and Scalping: Algo trading and scalping are not supported, potentially discouraging some day traders.
• Less Attractive for Active Traders: While the Plus500 platform offers more than basic features, it might be less attractive for active traders seeking advanced functionalities.
• Limited Trading Academy: Despite growth, Plus500's Trading Academy still trails behind leading brokers in terms of educational content for learning financial markets.
• Absence of News Headlines: The platform lacks news headlines despite having an integrated economic calendar and +Insights sentiment data.
• Limited Research Content: Research content consists of a few daily articles, and video content lacks comprehensive market updates or analysis.

Final Thoughts on Plus500:

Despite its limited educational content, Plus500 stands out as a top choice for less-experienced traders seeking simplicity and ease of use. It remains an excellent option for beginners, excelling in categories like ease of use and Trust Score.

The platform's integrated economic calendar, enhanced charts, and the new +Insights tool contribute to an improved web platform. However, advanced traders who require additional tools and in-depth market research may find Plus500 lacking. For those seeking a more advanced trading experience, alternatives like IG and CMC Markets are worth considering.

With nearly 2,000 CFDs available and a low minimum deposit requirement, Plus500 provides an easy entry point for newcomers to explore online trading. The platform caters well to manual CFD traders, offering a well-regulated and publicly listed environment in the UK. Trusted by over 430,000 traders, Plus500's lightweight web-based platform is user-friendly, providing essential trading functions. The inclusion of a guaranteed stop-loss order enhances risk management capabilities.

In summary, Plus500 offers a slick online platform, a user-friendly app, and competitive pricing, making it a sound choice for experienced and professional investors. However, inexperienced investors should approach with caution due to the inherent risks associated with CFD trading. Starting with a Demo account or considering platforms with no leverage, such as Freetrade , may be a wise approach for beginners.