Plus500

Overview of Plus500

Plus500 Ltd (PLUS.L) is a publicly traded company on the London Stock Exchange (LSE) and part of the FTSE 250. Its subsidiary, Plus500UK Ltd, is authorized by the FCA, and CySEC, operating in London. The parent company is headquartered in Israel.

The company is a broker offering clients from over 50 countries access to various CFDs, including forex, stock indices, shares, commodities, ETFs, and cryptocurrencies (depending on regulations). Notably, Plus500 introduced the first Bitcoin CFD in 2013. They also provide options CFDs for speculative trading on different markets, settled in cash.

Pros and cons

Regulatory Authority

Plus500 is regulated by several regulatory authorities. It is regulated by the Cyprus Securities and Exchange Commission (CySEC) under the regulation number 250/14. The regulation status for Plus500CY Ltd is “Regulated” with an Investment Advisory License.



Additionally, Plus500 is regulated by the Financial Conduct Authority (FCA) with the regulation number 509909. The regulation status for Plus500UK Ltd is also “Regulated” with an Investment Advisory License.



Finally, Plus500 is regulated by The Seychelles Financial Services Authority (FSA) with the regulation number SD039. The regulation status for Plus500SEY Ltd is “Exceeded” with a Common Financial Service License.



Trading Markets

Plus500 offers a diverse range of trading markets, catering to a wide spectrum of investment preferences and strategies.

CFDs: Plus500 specializes in Contracts for Difference (CFDs), allowing traders to speculate on the price movements of various assets without actually owning them. This includes CFDs on cryptocurrencies, indices, forex, commodities, shares, options, ETFs, and more. CFD trading offers flexibility and the potential for profit in both rising and falling markets.

Cryptocurrencies: Plus500 provides a platform for trading CFDs on a variety of cryptocurrencies, enabling traders to capitalize on the volatility of digital assets such as Bitcoin, Ethereum, Ripple, and more. This allows for exposure to the cryptocurrency market without the need for a cryptocurrency wallet.

Indices: Traders can access CFDs on major stock indices from around the world, including the S&P 500, FTSE 100, NASDAQ, and many others. This allows for diversified investments in global stock markets.

Forex: Plus500 offers a wide range of forex pairs, allowing traders to participate in the foreign exchange market. This includes major currency pairs like EUR/USD and GBP/USD, as well as minor and exotic pairs.

Commodities: Plus500 enables traders to speculate on the price movements of commodities such as oil, gold, silver, and more through CFDs. This provides exposure to the commodities market without the need for physical ownership.

Shares: Traders can access CFDs on shares of major companies listed on stock exchanges worldwide. This allows for trading stocks without owning the underlying assets.

Options: Plus500 offers CFDs on options, providing a derivative trading opportunity based on the price movements of options contracts.

ETFs (Exchange-Traded Funds): Plus500 allows traders to speculate on the price movements of ETFs, which represent a basket of assets such as stocks, bonds, or commodities. This provides exposure to diversified investment portfolios.

Plus500's comprehensive range of trading markets caters to both novice and experienced traders, offering opportunities to diversify portfolios and trade across various asset classes using CFDs.

How to open an account？

The registration process of Plus500 can be completed in six simple steps:

1. Visit the Plus500 website and click on the “Start Trading” button to begin the registration process.



2. Fill in your personal information, including your name, email address, and phone number.



3. Create a password for your account and select your preferred currency for trading.

4. Verify your email address by clicking on the verification link sent to your inbox.

5. Complete the verification process by providing the necessary documentation, such as proof of identity and proof of address.

6. Once your account is verified, you can deposit funds into your trading account and start trading virtual currencies.

How to buy Cryptos？

Plus500 serves as a CFD trading platform that offers a convenient method for engaging in cryptocurrency trading without the need for actual ownership or storage concerns. Here's a systematic guide to buying cryptocurrencies on Plus500:

Account Creation: Initiate the process by visiting the Plus500 website and selecting the “Sign Up” option. Proceed by providing your email address, establishing a secure password, and consenting to the terms of service. Validate your email address by clicking the link sent to your inbox.

Identity Verification: In adherence to regulatory requirements, Plus500 mandates identity verification. This procedure encompasses uploading a photo of your government-issued ID and confirming your residential address. Occasionally, you might be prompted to take a selfie for identity verification purposes.

Funds Deposit: Following successful identity verification, proceed to deposit funds into your Plus500 account. Multiple methods are available for depositing fiat currency (e.g., USD, EUR), including bank transfers, credit cards, and online payment services.

Search for Desired Cryptocurrency: Utilize the search bar to enter the name of the cryptocurrency you wish to trade. Plus500 boasts an extensive selection of cryptocurrencies, encompassing options like Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Dogecoin (DOGE).

Initiate a Trading Position: Once you've identified the cryptocurrency of interest, click on the “Buy” or “Sell” button. Specify the quantity of cryptocurrency you intend to trade, and carefully review the order details. Finally, execute the trade by clicking the “Open Position” button.

Monitoring Your Trading Position: The “Positions” tab within your Plus500 account facilitates the monitoring of your trading position. You retain the flexibility to close your position at any time by selecting the “Close” button.

This approach to cryptocurrency trading on Plus500 provides a streamlined and secure method for speculating on digital asset price movements, all without the complications associated with ownership and storage.

Other Services

Another service offered by Plus500 is its affiliate program, which provides an opportunity for website owners and affiliates to monetize their traffic and earn commissions by promoting Plus500 on their websites. Here's an overview of this service:

Monetize Your Traffic: Plus500's affiliate program allows website owners to monetize their website traffic by promoting Plus500's trading platform. Affiliates can earn commissions for referring traders to Plus500 through their website.

High Conversion Tools: Plus500 provides high-conversion marketing solutions and tools to help affiliates maximize the potential of their websites when promoting Plus500. These tools are designed to attract and convert visitors into active traders.

Personal Support & Guidance: Each affiliate is assigned an Affiliate Manager who offers personal support and guidance. This manager can assist affiliates with questions, provide marketing strategies, and help optimize their promotional efforts.

If you're a website owner looking to earn commissions by promoting Plus500's trading platform to your audience, the affiliate program offers a structured and supportive way to do so. Affiliates can leverage Plus500's marketing resources and guidance to enhance their earning potential.



Trading Platform

Plus500 offers its proprietary WebTrader platform for both Plus500 Invest and CFD accounts. The platform provides an intuitive dashboard, customizable features, and technical analysis tools. Notably, MetaTrader 4 is not available.

+Insights Feature:

WebTrader includes “+Insights,” allowing users to explore trends like most bought, most sold, and profitable positions. It provides a list of the top instruments based on these trends, giving insights into market sentiment.

Instrument +Insights Tab:

A new addition, this tab offers a detailed look at each instrument. It shows trading data and analyses news sentiment, comparing opinions to real-world data and providing news source details.

In short, Plus500's WebTrader platform offers an easy-to-use interface with innovative features like “+Insights” and the “Instrument +Insights Tab,” though it lacks MetaTrader 4.

Fees

Plus500 ensures transparency and simplicity regarding fees, offering most services without charges and providing clear information on applicable fees. The company's revenue primarily comes from tight Bid/Ask spreads, which are recognized for their industry competitiveness and are monitored internally.

Transparent Cost Structure

When clients engage with Plus500, they can expect:

- No Fees for:

- Deposits

- Live share CFD prices

- Real-time forex quotes

- Opening and closing trades

- Dynamic charts and graphs

- Rolling positions

Bid/Ask Spread Mechanism

Plus500's revenue model revolves around the Buy/Sell (Bid/Ask) spread. Essentially, this means the spread is the cost associated with trades. This cost is integrated into the quoted rates on Plus500's platform and doesn't involve extra charges beyond these rates.

To review the spread for a specific instrument:

1. The user logs into their account.

2. They search for the desired instrument.

3. Clicking on the Details icon (i) directs them to the Info section.

The platform interface highlights the Info section.

Additional Fees

Additional fees might be relevant based on trading activities:

1. Overnight Funding: Holding positions beyond a specific time (Overnight Funding Time) leads to either positive or negative adjustments to the account balance. Detailed information is available here.

2. Currency Conversion Fee: When trading in a currency different from the account currency, a Currency Conversion Fee is applicable. This fee is dynamically incorporated into unrealized profit and loss. Learn more here.

3. Guaranteed Stop Order: This order type enhances risk management by guaranteeing the stop loss level, albeit with a slightly wider spread due to the guaranteed closure at a specified rate. Additional insights can be found here.

4. Inactivity Fee: In the event of no account logins for a period exceeding three months, an inactivity fee of up to USD 10 per month is incurred. This fee recurs monthly during account inactivity.

Plus500's fee structure prioritizes clarity, equipping traders with essential information for effective management. Comprehensive resources on fees and charges are accessible to provide a deeper understanding.



Deposit & Withdrawal

Plus500 provides a range of deposit and withdrawal options designed to cater to the diverse preferences and requirements of its users. These options encompass credit/debit cards, bank transfers, PayPal, and Skrill.



Educational Resources

Plus500 provides a range of educational resources and tools to assist users in their trading journey. These resources include trading guides, video tutorials, and webinars, which aim to educate users about various trading concepts and strategies. These materials can help users enhance their understanding of the virtual currency market and make more informed trading decisions.

Customer Support

The customer support of Plus500 is available 24/7 to assist users with any inquiries or issues they may have. Users can contact the customer support team through various channels, including email and live chat.

Plus500 also provides a comprehensive FAQ section on their website, which addresses common questions and concerns. This can be a helpful resource for users seeking quick answers to their queries.

In terms of supported languages, Plus500 offers support in multiple languages to accommodate users from different regions. These languages include English, Spanish, German, French, Italian, Dutch, Polish, and more.

Compare with other exchanges

Aspect/Exchange	Plus500	Coinbase	Binance	Kraken
Fees	No commission, tight spreads, various additional fees (e.g., overnight funding, inactivity fee)	Percentage-based fee for trades, additional fees for different services	Low trading fees, additional fees for various services	Low fees for trades, additional costs for other services
Types of Cryptocurrencies	Wide range of CFDs on cryptocurrencies, limited selection of actual cryptocurrencies	Large variety of cryptocurrencies available for trading	Extremely wide range of cryptocurrencies	Wide range of cryptocurrencies available
Regulatory Compliance	Regulated by FCA, CySEC, and Seychelles FSA	Subject to US regulatory oversight, licensed in various jurisdictions	Regulated in several countries, with a complex global structure	US-based, complies with US regulations, licensed in various countries

FAQs

Q: What factors should I consider when choosing a virtual currency exchange？

A: When choosing a virtual currency exchange, it is important to consider factors such as trading fees, user experience, available trading options, and regulatory compliance. These factors can vary among different exchanges, so it is advisable to carefully review and compare them before making a decision.

Q: What deposit and withdrawal methods does Plus500 offer？

A: Plus500 offers various deposit and withdrawal methods, including credit/debit cards, bank transfers, PayPal, and Skrill. The processing time for deposits and withdrawals can vary depending on the chosen method.

Q: Can I access Plus500's customer support 24/7？

A: Yes, Plus500's customer support is available 24/7 to assist users with any inquiries or issues they may have. Users can contact the customer support team through email and live chat.

Q: Is Plus500 suitable for beginner traders？

A: Plus500 can be suitable for beginner traders as it provides educational resources such as trading guides, video tutorials, and webinars to help users understand the basics of trading. The platform also offers a user-friendly interface and intuitive trading platform.