When you’re looking into obtaining a broker to help you in the financial markets, you may become overwhelmed with all of the options available. Plus 500 looks like a great candidate to consider, since they have accumulated a number of positive reviews from global investors. But you should never take reviews you find online when it comes to your financial security. That’s why we have produced this thorough and comprehensive review. Once you have finished the following guide, you’ll have an idea of whether you should invest in Plus 500 or keep looking for a better fit for your needs.
Keep in mind that just as there are personal feelings regarding choice of foods and sports teams, there will be personal opinions that disagree with the most positive review available online. What brokerage firm customers choose when the dust settles is the firm that offers them the benefits that they need the most, while limiting the components of their service that customers disagree with, or at least allow customers to look past the few discrepancies to the vision of their ideal firm.
Plus 500 is one of the most diverse CFD brokerage platforms in the financial markets field. Investors have access to stocks, metals, Forex, commodities, indices and cryptocurrencies, among other financial assets. Their reputation is unquestioned, as they serve as the official sponsor of Atletico Madrid, a renowned Spanish soccer club. Among the tools customers have access to: trading platforms, market news and a daily market analysis.
Pros:
They offer a demo account with digital money to try out your trading strategies before you spend real money.
- They have a mobile app for iOS users and Android
- The company is publicly listed, putting its reputation higher than other unlisted companies
- They do not charge commission
- They support multiple currencies
- They offer very tight spreads on all of their assets
- Users have access to CFDs, cryptocurrencies, ETFs, options, forex, shares, commodities and indices
- The broker offers a variety of payment options
- Over 2,000 financial instruments supported
- Leverage is up to 1:300
- Order execution is fast and reliable
Cons
- They do not offer corporate accounts
- They don’t offer many educational tools to learn more about the different markets
- They don’t offer 24/7 customer service options
It should be noted that although the pro/con list seems to support Plus500 as “the best” firm for clients to choose, the intent is simply to provide the most obvious benefits and disadvantages of choosing to work with the brokers at Plus500. Clients should make their final decision based on the information they have found as well as their personal needs and future plans for their trading funds. There are no contracts or obligations to stick to working with one company for the entirety of their trading experience.
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3. Why is Plus500 Different than other companies?
Plus500 is a platform that offers a few unique benefits. One is that they don’t charge any commission for transactions conducted using their platform. There is no transaction fee to withdraw or deposit funds from the platform. Their spreads are one of the tightest around, so they are very attractive as a CFD broker. With support for multiple base currencies, people all over the world can trade on the platform using their own currency. Plus500 has millions of customers around the world with a transaction value of more than $200 billion in the last four years.
Another benefit that Plus500 offers is a wide variety of supported financial markets, including cryptocurrencies, stocks, commodities, metals, Forex and many more, that are supported with advanced technology that offers an easy trading platform for even the newest trading enthusiast.
A Discussion of Experience on the Plus500 Platform
As with any trading platform, a practical experience Plus500 is essential to determine how efficient the company is when the investments are in real currency. There are three crucial components of a good trading experience. We talk about each of those below:
The trading platform itself: Plus500 uses the WebTrader platform that allows access from any web browser. Trading is simple due to a well-designed UI that offers easy access to multiple financial markets. Placing a buy order as well as a sell order results in an immediate process notice, giving users a sense of confidence that their buying and selling decisions can be implemented quickly.
Customer Service: Although they do not offer a 24/7 customer service experience, their customer support does seem to be pretty good. A test of the support ticket process was positive. Customer service agents are available to talk to users in more than one language using email, phone or live chat. When the support ticket was submitted, there was an immediate confirmation of receipt and there was a solution to the ticket within an hour.
The Withdrawal Process: How easy is it for users to withdraw their money from the platform? This is an important point to consider because the user needs to know that they are free to remove their money at any point. In the case of Plus500, funds were added during the initial registration. Almost immediately the user filled in a withdrawal request and submitted it with the proper proof of identification. Funds were released in under an hour. Of course, this was digital payment, allowing for quicker disbursement. For those using a bank wire, it could take up to five days to be refunded money.
It appears that from a user’s perspective, Plus500 gets a good grade for having a simple and efficient User Interface, excellent customer service and a speedy and respectful withdrawal process.
Is Plus500 Legit?
Considering personal and industry-wide experience with Plus500, it does appear that the company is a trustworthy brokerage firm. The reasoning behind this judgment follows:
Plus500, located in London, is listed on the London Stock Exchange (LSE) under the parent company of Plus500UK Ltd. As a public company, it is regulated and authorized by the Financial Conduct Authority, which gives the company the ability to serve customers in Europe and Asia. The company is bound to the rules of the Anti-money Laundering (AML) regulations as well as the Know-Your-Customer (KYC) regulations, providing clients with a transparent and trustworthy platform for customers.
It is important that clients read and understand their terms and conditions page to get an idea of the currencies they deal with and the proper process of withdrawing funds. Customers must also accept the verification process that requires personal identification, as it is the high level of security features that gives Plus500 its status as a dependable and trustworthy trading platform.
More About the Safety of Your Money
Plus500 is very strict when it comes to the safety of client funds. When customers register with Plus500, their funds are put into a segregated bank account that is separate from the company’s working capital. This is a safeguard to ensure that the clients’ money stays in a safe location at all times and is not used by the company for other purposes.
Account Types at Plus500
Plus500 only offers individual accounts, provided in either demo mode or Real money mode. The demo mode allows customers to use digital funds to test how their trading strategies level with the market, and also features the same benefits as the live version, including the latest market news, access to trading tools and fast order execution.
The live version allows the user to deposit funds in an account and trade with one of more than 2,000 financial markets. Clients can deposit as much as they want to.
Trading Conditions at Plus500
Availability of Stop Limit and Stop Loss as well as Trailing Stop for all clients
Protection against a Zero account balance
Tight spreads for all clients
No charges for withdrawing or depositing funds
Access to a guaranteed stop loss protection
No trading discounts for large-volume clients
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Spreads and Fees
Plus500 doesn’t charge their customers a commission or to deposit/withdraw funds. In fact, the platform is a transaction-free location, and they stick to that system. It is important to note, though, that clients’ banks do often charge for depositing or withdrawing.
The spread on Plus500 is tight, a feature that benefits the individual account holder and gives traders a competitive advantage in the markets.
What is it like to Open an Account with Plus500?
The process of starting an account with Plus500 is easy and quick. Clients can visit the Plus500 homepage and click on “Start Trading” to register. Customers will need to provide their name, email address, country of residence, phone number and a password. Once that is complete, the client submits the application, verifies their email and enters the site to begin trading.
The Means and Procedure for Deposits and Withdrawals
Once the client has registered with Plus500, the process of depositing funds into the account is relatively simple. First they must log in, click the “Deposit” button, choose the currency that they are wanting to use for the funds, and submit.
Clients will be asked to choose their method of payment. Choices include bank wire transfer, e-wallet, e-banking, or credit/debit card. More on the payment methods is included below
After choosing method of payment, the client will be asked to insert the amount of funds they wish to deposit to the trading account and then submit the information. Once verified, the funds will be credited and reflected in the account.
On Plus500, the following payment methods are accepted:
Bank Wire: This is a popular form of payment and withdrawals, since it involves a direct connection to the client’s home bank. However, bank wire payments take 2-3 days to reflect to the trading account, and the same can be said of withdrawals going from the account back to the bank account.
E-wallet: Clients can deposit or withdraw funds immediately using electronic wallets like those from Neteller, Skrill and others. There are no fees for moving funds to and from these wallets, making it both convenient and quick.
Paypal: The legitimacy of online banking is beginning to stack up, but it is not a popular method of payment in the forex market. Plus500 allows clients to maintain their trading account with Paypal, which offers immediate payments and withdraws.
Credit/Debit: The most popular form of payment and withdraw is the credit or debit card. Plus500 accepts Mastercard, Visa, American Express, Maestro, and others.
Clients will need to provide proof of their identification before withdraw earnings from their trading account, which requires account verification first. Therefore, clients will have to prepare for identification verification. This is an FCA regulation and is not a policy created by Plus500. In order to verify their identities, clients should be prepared to provide a driver’s license, International passport or National ID that shows a clearly visible photo in addition to a full name, ID number, expiration date and date of birth.
Other Verification Requirements
Residence: To provide proof of residence, clients will have to provide any of the following that has been issued by a government, judicial or financial agency, or a utility company such as an electric provider or water company. Some of the accepted documents include
Tax letter
Phone or Electric bill
Credit card statement
Internet bill
Council tax bill
Bank statement
Phone Number: Clients will need to verify the phone number that they used during the registration process. This is usually done with an SMS that contains a verification code which clients will have to submit for verification.
Source of Funds: Customers should be able to prove that they have the money available to trade. Sources of proof of funds can be a scan or copy of any of the following:
Debit or Credit card
Recent credit card statement
Bank statement
Plus 500 Trading Platform
Plus500 uses the WebTrader platform for its traders. There are many benefits to using this platform. Clients have access to a demo account, where they can “practice” their trading strategies in a real-like setting. The platform also has market news and analysis so traders can make better decisions based on current market information. The UI is simple and made for the layperson with no installation required. Best of all, clients can access the platform from all browsers as well as mobile devices.
Educational Resources
Perhaps their one fault, Plus500 doesn’t have a huge library of materials or resources that could be considered educational. There are some videos related to the process of trading with Plus500, as well as a few videos on CFD trading and popular trading methods. However, they do not offer access to material that explains more of the financial market behind the scenes of the trading floor.
That being said, the WebTrader platform does have other resources, including notification alerts and risk management tools to provide clients with the information they need to make good trading decisions.
Customer Service
As has been mentioned before, Plus500 offers the trader a positive customer service experience. Customer service agents are polite and helpful with the knowledge to back up their advice or troubleshooting fixes. The team is quick to respond and easy to reach through email, live chat or telephone. Although they do not offer 24-7 access to customer service agents, their response is still quick enough to solve most problems that traders might experience.
Frequently Asked Questions
Below you will find the most frequently asked questions that potential clients have regarding Plus500.
What is Plus500 About?
Plus500 is a financial asset brokerage platform which provides access to more than 2,000 sources of assets, including cryptocurrencies, commodities, stocks, CFDs and currencies.
Is the Company Regulated?
Plus500 is regulated by the FCA. It is a public listed company that appears on the London Stock Exhange under its parent company Plus500 Ltd, based in London.
Is Plus500 a Respectable Trading Platform?
Using the reviews of thousands of clients and its status as a publicly traded company, Plus500 is one of the most reputable brokerage firms in the financial asset industry. They have handled billions of dollars in transactions and have top-level security processes that ensure the safety of their clients’ funds.
Who does Plus500 Target for Clients?
Plus500 is a firm that specializes in individual accounts. They do not currently provide access to corporate accounts. The set-up of the Plus500 platform is simple and intended for use by beginning and advanced traders alike, no matter the area they are from or their previous level of experience with trading platforms or the trading industry itself.
How does Plus500 work?
The process of registering and depositing funds is straightforward and allows clients immediate access to a demo or live trading account. Those who use bank wire as their primary form of making deposits or withdrawing funds may have to wait for funds to be verified by their home bank before they can actively trade. Once they are registered and have funds in their trading account, clients can access more than 2,000 financial assets that they can trade in. Customer service representatives are available for questions or problems involving the trading platform.
What is the process for Registering a Trading Account with Plus500?
The homepage for Plus500 is easy to navigate, allowing visitors to sign up for an account simply by clicking the “start trading” link in the upper right corner of the home page. Once directed to the trading page, visitors can click on “sign up” and provide their information. Then they hit the submit button. Traders will then be asked to verify their email. Once they have completed the verification process by following the email instructions, they are ready to deposit funds in their trading account and join the trading community.
Where is Plus500 based?
Plus500 is based in London, England. Their physical address is South Quay Plaza, 183, Marsh Wall, London E14 9SR. It is simple to get in touch with the Plus500 team through live chat, email, or phone call.
Conclusion
For Plus500, its status as a publicly traded company gives it a legitimacy that cannot be disputed. But that doesn’t guarantee a positive trading experience. For that, traders need to consider the experiences of those who have signed up with the company as well as the benefits and limitations that the company provides for traders who want an enjoyable and potentially profitable trading experience.
In many categories, Plus500 appears to be an ideal trading platform for all levels of traders. The only negative points to be made about the firm involves a possible lack of educational resources provided on site that help to teach traders more about the financial industry, resources that can be found on many other brokerage sites. One more potential negative may revolve around the seeming lack of customer service agents available on a 7-24 basis, which can be argued by noting that even without such availability, the customer service experience of most traders appear to be quite positive, with problems addressed quickly and thoroughly.
No one trading company can provide the ideal experience for all traders. If Plus500 doesn’t seem to meet up with one person’s expectations, there are plenty of other options available. The financial trading market is extensive and ever-changing. Traders should stay aware and as ready to move from one brokerage firm to another depending on their personal needs.
