WHAT IS PLUS500?
Plus500 is a UK based online brokerage company focusing mainly but not only on the Forex market. Among other things, the company’s platform lets customers trade stocks and currencies via a financial instrument called Contract for Difference (CFD). The platform also offers the possibility to trade the spreads of stocks and currencies.
Unfortunately, if you are a US based trader you can’t open an account with Plus500 but there are then alternatives for you in terms of Forex oriented online brokerages. To see more on Plus500, you can view our review, or you can signup here.
IS IT ONLY FOREX ORD CFD I CAN TRADE?
No, aside from Forex Plus500 offers trading in a large pool of assets such as commodities, indices, stocks and ETFs.
IS IT AVAILABLE AS A WEBSITE ONLY?
No, Plus500 is available as a mobile app and tablet app for Android and Mac based products such as the iPhone, Apple Watch and IPad. The platform is also available as a downloadable version for your laptop use.
IS CFD DIFFICULT TO LEARN?
One interesting financial instrument you can use when trading Plus500 are Contracts for Difference (CFD). CFDs are basically reflecting the price of certain underlying assets without you having to own the underlying stock. This offers great possibilities to trade into assets you wish to invest in and using leverage.
IS SPREADBETTING FOR ME?
The main idea behind spreadbetting is that you can gain money from the spreads stocks and currencies have, i.e. the difference in the bid and ask prices (e.g. buy and sell prices).
HOW DO I GET STARTED?
You need to start an account with Plus500, which you can easily do directly by going into their website and clicking the “Start trading” button. You can choose to start trading using a demo account at first.
The platform is available online, via mobile and tablets and offers trading in real time, technical analysis and news notices related to market moving indicators and information.
HOW DOES THE DEMO ACCOUNT WORK?
You can open a demo account whenever you want, for free. There is no time limit, so you can keep paper trading and learning for as long as you want. This is great, as you can see live how your strategies work without having to risk actual money testing your ideas.
HOW DOES THE REGULAR ACCOUNT WORK?
To open a regular account, you have to deposit a minimum of £100 into your account. Once you are ready to open a regular account you follow the instructions given to transfer funds to your account. To withdraw money, you need to send in a copy of your Photo ID and validating your address for the fraud check – a check all financial investment firms need to do to make sure you are not trying to do anything illegal. Don’t worry, this is an easy step and is not at all time consuming.
HOW DOES TRADING ON MARGIN WORK?
When you trade via Plus500, you can get leverage up to 1:294. What leverage means is that you borrow money, in other words you can borrow £294 for every £1 you put in. Trading using margin can get dangerous if your position develops badly so make sure to not borrow more than you can handle, and use stop-losses; limits that end your trade position once your losses reach a certain level.
IS PLUS500 LEGIT?
As will be mentioned below, Plus500 is regulated by the British Financial Conduct Authority (FCA) that have very strict rules on how business is conducted. The FCA is a very active regulatory institution and does not accept business that are not serious. Plus500 is also a listed company on the London Stock Exchange, an exchange that also puts requirements on the firms connected to them in any way. If you want to check the status of Plus500 with the FCA you can do it using their registration number, #509909. Go into the FCA online register to check the authorization status, using this link.
IS PLUS500 RELIABLE?
Plus500 is an Israel based but UK registered firm. It is listed in the AIM list and is traded on the London Stock Exchange (LSE) and abides by the same financial regulations as all other UK registered financial companies.
In terms of the reliability of the platforms, there are no issues that we know of and no downtime server wise.
IS PLUS500 SAFE TO USE?
Plus500 is authorized and regulated by the British Financial Conduct Authority (FCA). Their registration number is #509909. As an organization, we would say yes, the firm is under regulatory supervision and must comply to fairly strict requirements in terms of how they handle the money of their customers and how the platform they offer works.
Should you trade with Plus500? Are CFDs and Forex trading something for your portfolio?
Look, as with everything else, it depends on how you are as a trader and if you actually understand what it is you are doing!
Do not trade on margin if you do not have the means to do so, and use stop-losses to minimize your losses should a trade go south. Stick to the assets you know at the beginning before you venture into trading anything overly exotic; if you do not understand Forex, do your research and paper trading before you start!
Use the demo account to check if your trading ideas are sound and if they work when trying them out in real life. Remember, the demo account reflects a real one with the slight difference that you will not be trading real money.
The Plus500 platform offers risk management tools, technical analysis tools and charts; use these to help you keep your risks at a minimum.
The Plus500 platforms are available via several types of platforms, opens up a world of assets at your fingertips to trade with and the choice to trade on margin if that suits you. As an online broker, Plus500 is a choice for you who do not want to only trade stocks and in a single market.