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Plus500 Fees Explained: Costs Review for 2017

Fees, fees, fees! Transaction costs, withdrawal costs, deposit costs … which fees do you need to keep track of when trading with Plus500? What are they, and which ones do you need to keep track of when? Relax, it’s fairly simple and this article will explain it all. There are a set of fees that are normal to find with most brokers, and these fees vary from zero to quite a high figure or percentage point. We will list all of these fees, and explain how they look like with Plus500.

WHAT DOES PLUS500 CHARGE IN COMMISSION FEES?

Nothing! Plus500 charges zero transaction fees for all assets you trade, be it stocks, CFDs, ETFs, commodities or indices. As you may already know, a commission is a fixed fee put on every trade.

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The level of commissions levied is an important factor to keep track off; commissions make up the largest part of transaction costs connected to trading and usually eat up a large amount of profits made. No commissions then, is quite a good attribute.

Why do other brokers choose to take out a commission fee? As mentioned above, commissions are very attractive as they can get quite high depending on the instrument you are trading, and are a large part of the revenues gained for brokers. Letting go of commission fees then is something that can set a broker apart from the rest.




WHAT DOES SPREAD ONLY MEAN?

Plus500 is a spread only broker, as they do not charge commission fees as mentioned above. A spread is the difference between what you pay to buy an instrument and the price you can sell it for via the broker. The spread is always there, no matter which broker you trade with – as you might have thought about already, it is difficult to make any money if the buy and sell prices are the same!

When you open a demo account or regular account, you will be able to observe the spreads on different instruments via the Plus500 platform.

WHAT DOES IT COST TO HOLD AN OPEN POSITION OVER NIGHT?

Plus500 takes a premium for positions that are open overnight. You get either paid or have to pay depending on the status of the trade, that is if it is above the current funding you have available or below it. There is information on when the premium sets in under each instrument you trade in the details page. The overnight period is basically the period when the market is closed, and this can of course differ depending on the instruments or assets you are trading.

So why do brokers charge a fee to keep transactions open overnight? It is a risk for the broker to keep a trade open overnight, and to cover the expenses associated with this brokers need to charge a fee.

The premium amount needed to be paid depends on the instrument or asset you have traded and the market trading hours associated with it; check the details page connected to each instrument you have traded to check the specific premium fee associated with them.

Keep calm, the premium fee is all about correcting a position that changes over night and is usually quite a bit below 1%.

WHAT HAPPENS IF I AM INACTIVE?

If you forget about your trading account, which we hope you don’t, your account is seen as inactive and will get an inactivity status. Plus500 has a fee connected to inactivity, the inactivity fee of up to $10, that is levied if you do not use the platform for a longer period of time (3 months, see more information in the Plus500 User Agreement). The fee is set to cover the fact that the account is still being made available, incurring costs to the company to provide the service even if it is not used. This is the case with many services you may enjoy; a simple example would be that of renting an apartment.

Even if you choose not to use your flat, the owner of that apartment still has costs associated with it and as you might already know, you still need to pay your rent! The difference here however is that when you use your account regularly, it is at your disposal for free. Now that is not something you can say about most services, or renting an apartment for that matter.

HOW MUCH DOES IT COST TO WITHDRAW OR DEPOSIT ON PLUS500?

It does not cost anything to withdraw money from or deposit money to Plus500. This is independent of how many times you choose to deposit or withdraw money to your account.

As with commission fees, withdrawal and deposit fees can with certain brokers and banks be quite high and limit your possibility to access your money or add funds to your trading portfolio. Having money tied up is a great risk to run, as your trading success is so heavily tied to your money management strategy and how what you can do with your money and when you can access them. No withdrawal or deposit fees then, as with the no commission aspect, quite a good attribute associated with Plus500.

CONCLUSIONS

No commission fees and no withdrawal and deposit fees, we could summarize the article with those statements and really keep it at that. The most important thing relating to fees connected to Plus500 was said in the first chapters; no commissions and no withdrawal or deposit fees.

Trading basically does not cost anything using Plus500, if you do not keep a position open over night or are inactive during a longer period of time. The overnight charge and inactivity fees are in line with what other online brokers take, so when comparing with other platforms you need to check the commissions taken and what the fees together add up to. With Plus500, the total fees paid for trading do not amount to much at all. There is basically not much to say about fees connected to Plus500, as there are hardly any.

If that has convinced you, then be sure to signup to Plus500 here.

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