Plus500 Review

 

Plus500 is an online Trading Platform regulated and authorized by CySEC (license number 250/14) CONSOB (registration number 4161).
It is by far one of the most popular Trading Brokers online and is well known all around the globe, with many people using it, especially to trade forex, and buy stocks with CFD Trading.

This trader attracts a lot of customers because it does not require a large deposit to start trading and it gives its customers the opportunity to choose to invest in online trading using different types of instruments.

Founded in 2008, Plus500 has become an international brand name, also found as the main sponsor on various events and sports teams, including Atletico Madrid Football Club and the Brumbies Rugby team.

The markets covered by Plus500 include different sectors:

  • Currency Pairs
  • ETF;
  • Market indices;
  • Equity Securities;
  • Raw material;
  • Options
  • CFDs (NOTE: 80.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money)

Plus500 Broker Review and Opinions

plus500 online broker

Plus500 was founded in 2008 and is one of the most popular brokers since it has a history that many brokers do not have. It is possible to find many Plus500 opinions online and generally, they are all very positive, because it is one of the few brokers that offer a free demo account to trade without requiring the user to make a real money deposit first.

Only if you intend to invest real money will a deposit be necessary. Otherwise you can use the free demo without problems.

The characteristics for which it is most appreciated are:

  • Immediate software available for free;
  • App and Online platform makes it easy to trade from anywhere;
  • Free Demo Account with 40,000 Euros (test money): Click here to Open a Free Demo Account on Plus500;
  • Very fast assistance.

The Plus500 Broker Platform

Thanks to the web application and the smartphone app compatible with all operating systems, the platform is very simple to use.

The concept with Plus500, is that you do not trade on a single asset but on a derivative contract (called the Contract for Difference). The advantage derives from the simplicity of the operations that allow you to earn both when the market goes down and when the market goes up (obviously with the right forecast).

The platform to work with Plus500 is available for both Desktop on your computer or laptop and on your smartphone or tablet.

Both the following trading platforms work perfectly well:

  1. WebTrader: It is the platform most used by traders in Europe and Asia. This is because no download and installation of any software on PC is required. WebTrader only requires an updated browser to start trading immediately;
  2. Mobile Trader: It is an app available for iOS and Android, download on the Apple store and Google Play Store and allows you to be updated on all developments in the financial markets and to operate from wherever you are.

Home page of plus500

The platform provides a demo account and does not have an expiration period. It is very useful as a pre-testing platform to try out new-concept trading strategies, or for those who want to familiarize themselves with the platform before investing real money.

To open a demo account, simply complete the registration on the portal and select the demo mode.

How to Open a Demo Account with Plus500

First, let’s go to the homepage of the site www.plus500.com and click on: Start trading now.

This will take you to a new page where you are asked to enter your email and password to log in. Since you probably still need to create an account, you need to click on: “Don’t have an account? Create one now! “.

Here you will find a screen similar to the previous one, where you will have to enter your email and create a password in order to create a new account on the plus 500. You can also log in with your facebook or Google user account.

Once entered, click on “Create account”.

Before accessing the platform, this message will appear: “Information € 40,000 has been added to your account”.

Obviously, this is not real money, but virtual money that you can use in the free demo platform, to practice forex trading or any other type of trading you would like to try out.

Click ‘Ok’ and you will see a screen in front of you that will present you with a Demo screen containing all the assets on which you can trade.

At the top left you will notice that it is possible to choose any of the following assets to trade on:

  • Commodities;
  • Crypto;
  • Forex;
  • Options;
  • Shares;
  • ETF.

You will simply have to click on “Sell and Buy” to start carrying out the first trading operations.

Example of Trading Operation with Plus500

As an example we choose an equity, Apple, clicking on it you will notice that on your right will open a window that will list a series of information such as the opinion of traders, live statistics etc. Before these, however, just below the Apple word there is written Sell or Buy.

If you think that the Apple stock will go up on the stock market, click on Buy;
If you think Apple stock will go down, click Sell.

Let’s assume the stock goes up. We buy Apple shares: we choose the quantity of shares we want to buy and click on buy.

This way you opened a trade.

If you see that your operation follows your prediction (in this case that Apple will go up), you are making money.

This means that, once you reach a profit threshold, which you had planned on, you will be able to collect the amount reached.

To see the trade position that you have opened, left click on “open positions”. You will notice that Apple appears in the list.

On the net income statement, you can see how much you are making in the currency of your account.

To close the trade you need to click on close, which is located exactly in the center of the row.

A notice will open on your right to confirm the closure of the operation. If you are convinced that you want to close it, click on close position.

Plus 500 Account types

In addition to the demo account, Plus500 obviously has a real money account available for its customers where people can actually trade in forex, equities etc, with real money and make real profits (or losses).

To open the account just enter all the required data on the form found on the Plus500 website and make a deposit using either your credit card or any one of the available e-wallets offered by the platform.

For those who have already opened a demo account, all you need to do simply switch to real account mode. After you have practiced with the demo account, if you intend to invest real money, you will need to make a deposit. To do this, in the screen below, you will find the words “switch to real money”.

There is a verification process you need to go through in order to open a real money account and make a deposit. This process can seem tedious but keep in mind that it is required for 2 reasons:

  1.  A pre-requisite of the licensing body within all serious countries as a method to prevent money laundering
  2.  As a means for the broker to guarantee you security and keep away fraudsters who may try to take advantage of other users within the community;

Now that the verification is done click on deposit to make the first payment.

The minimum deposit is 100 euros, and you can use any of the following payment methods:

  1. Credit or Debit card: this is the easiest deposit method;
  2. E-wallets such as PayPal or Skrill: These are electronic wallets, similar to PayPal and you will need to have or create an account with them before you can start using them for deposits. Keep in mind that these e-wallets might charge you a certain % on deposit for using them;
    Both methods above usually ensure quick transfer of funds which means you get the funds in your Plus500 account instantly and you can start trading immediately.
  3. Wire transfer: this is a normal transfer from your bank to your Plus500 account. This is the slowest method since the broker needs to wait for the bank transfer period to receive the funds and confirm them. After this operation and the confirmation of the deposit on your account, you are in effect a new Plus500 customer and you can finally start your trading. The time needed to process the request is approximately 3 working days.

Keep in mind that as a measure of preventing money laundering Plus500, like any other online trading platform will always return funds (ie any withdrawals you make from your Plus500 account) through the same method used for depositing funds. All this to ensure that the transfer of funds complies with all anti-money laundering regulations.

Trading Charges

Plus500 does not charge traders any transaction or trading fees. Instead the broker makes its income from the spread between the bid price and the Ask price of each transaction. The Plus500 spreads are very competitive and one of the lowest in the online trading market.

Plus500 Training and Knowledge Center

This section of the website or platform, will ask you some questions that relate to your trading knowledge, and will also ask you some questions about the your risk threshold. These questions are intended to understand your level of knowledge and what type of trading style you practice, ie aggressive as opposed to safe trader. This will help them guide you in the day to day trading operation and suggest the best trades to suit your risk tolerance.

After these simple steps you then choose how much you want to deposit in your Plus500 trading account. The minimum deposit is 100 euros.

Finally, you must read and accept the Risk Warnings attached to trading with CFDs.

Plus500 Online CFD and Forex trading

As an online Trading broker, Plus500 is mainly specialized in CFD Trading and Forex Trading.

What is online trading?

Online trading is very simple to understand. In a few words it is simply the purchase and sale of transactions within the financial markets that take place through trading platforms. These Trading platforms are found on the web and you can download them for free, in our case, Plus500 has been making its trading platform available to users for more than 10 years.

The use of online trading increased between the mid and late 1990s with the introduction of high-speed PCs and affordable Internet connections. Forex/currencies, securities, bonds, mutual funds, ETFs, options and futures can be traded online. This is sometimes referred to also as self-directed investment or as e-trading.

As we said initially, the platform is based on CFD Trading and Forex Trading. Let’s explain what they are in more detail.

What is CFD Trading?

Trading CFDs (Contracts for Difference) gives Traders the opportunity to sell or buy an instrument, depending on whether it is believed that its value will decrease or increase. The goal is to monitor the best price movements whether they go up or down.

The Trader’s job is to predict the right direction of the price and then take action when the time is right. For example, if you initially decided to sell the underlying asset and your forecast will be correct, you can then buy the instrument at a lower price.

But if the forecast does not go in the right direction, and the asset value increases, then your initial investment is lost (this is why you have to be cautious with your trading funds and decide on the right strategy beforehand as to how much of your funds you will invest in each single trade).

The Contract for Difference therefore offers its investors the opportunity to profit from the price trend without owning the underlying asset. This is done through a contract between the client and the broker. CFD trading offers several important advantages that have increased the instrument’s enormous popularity over the past decade.

How CFD trading works

With CFD trading, the underlying asset is not sold or bought, but a certain number of units are bought and or sold for a specific instrument, depending on whether you think prices will rise or fall.

The main feature is that with CFDs the agreement entered into is a forward contract. CFDs offer investors all the risks and benefits of owning a security without actually having it.

Therefore the CFD is a contract that is negotiated between the investor and the broker, who exchange the difference in the current value, for example of a share, a currency, and its value at the end of the contract.

Another feature is that CFDs have a higher leverage compared to traditional trading. So lower margin requirements mean fewer expenses and higher potential returns for the Trader.

In addition, the CFD market in investments is not limited by minimum amounts of capital or by the number of exchanges for day trading. With CFDs you have easy access to any market, you can trade CFDs on stocks, indices, currencies and commodities. In addition, the trade can be closed at any time and little or no commission is charged because brokers have the opportunity to make money with CFDs from the spread.

Advantages of CFD Trading

With CFDs you don’t make physical purchases, you have to pay a margin deposit to manage your position.

Commissions relating to CFD trading are included in the trading spread. There are usually no other types of payments because the platforms make available, completely free of charge, various tools such as basic and advanced Trading charts, Trading signals and other valuable research tools. In addition, you can view prices in real time on all markets.

The Plus 500 CFD Trading platform is complete and easy to use, and they also make the Mobile Trading app available. As we have seen, there are many reasons to start trading with CFDs.

Investing with CFDs is very simple, just buy or sell at the market price in real time and pay a small commission to open and close the position. Simply open the CFD contract to go short (sell) or go long (buy). Another of the advantages is that CFDs are not used exclusively for stock trading, but also on indices, forex, commodities, and all this through a single online trading platform.

When trading CFDs on non-equity markets, you buy or sell a certain number of contracts, where each contract represents a specific risk or return on the underlying asset. The Trader is free to decide how long the contract will remain open. There is no fixed expiration date. You simply have to close the contract when you are ready, at which point the difference between the opening price and the closing price is calculated. This determines the value of your profit or loss.

What is Forex Trading

Specifically, Forex is a decentralized global market where all the currencies of the world are traded. The forex market is the largest and most liquid market in the world.

It has been estimated that it has an average daily trading volume of over $5 trillion. Forex or Currency trading is simply the conversion of one currency with another.

When doing so, the Forex exchange rate between the two currencies, based on supply and demand, determine the amount you get in exchange for your traded currency. For example, the EUR/STG forex rate determines how many euros you get for your pounds.
The exchange rate fluctuates continuously and as is the case with equities, with Forex Trading you exchange currency based on what you think is its value, or where it is headed. So if you believe that a currency will increase in value, you can buy it, but if you think it will decrease, you can sell it.

To trade with Forex it is important to follow market movements, for example if you hear the news that Japan is devaluing its currency to attract more foreign companies to its country, and if you think that the trend will continue, you could decide to sell the Japanese currency against another currency, such as the US dollar. Hence, the more the Japanese currency devalues against the US dollar, the higher the profits.

How Forex Trading Works

 

Before doing Forex Trading it is important to understand how it works. We are dealing with currency pairs. The currency we see on the left is called the base currency, and it is the one you buy or sell; then there is the currency that is on the right which is called secondary currency, and it is the one that is used to carry out the transaction.

Each pair has two prices, i.e. there is the price to sell the base currency, i.e. the offer, and a price to buy it, or the request. The difference between the two currencies is called the spread, which represents the amount that is charged by brokers to open the position. Generally in the Forex market the most popular pair traded is EUR / USD.

Experienced Traders usually decide their strategy based on market trends. They follow the most relevant global events, in order to anticipate changes in the market with the aim of maximizing their profits from currency trading.

In each currency pair, the value is represented with four numbers after the dot, for example 2.2796. In the case, for example of EURUSD, this indicates that for every euro that the Trader buys he must invest 2,2796 US dollars.

Any change occurs in the value of the currency, seen on the fourth digit after the dot, this is known as a pip. Normally spreads, gains and losses are presented in pips.

Advantages of Forex Trading

Today Forex Trading has many advantages. One of these is that it can be done safely from home through specialized online trading platforms. In the past, the investor had to call the broker who gave him instructions on the actions to be taken.

So today all operations are carried out directly by the investor. Forex Trading platforms are available for both computers and mobile devices. Traders usually choose platforms based on their strategies, it is important that the Trader manages to operate in the best possible way, he must feel safe and at ease. The Forex market has high liquidity, and this is due to the high demand and supply rate. So when a currency has high demand, its value will increase relative to other currencies and vice versa.

Among other advantages, with online trading brokers there are usually no commissions. Most brokers profit from the spread, i.e. the difference between the demand and the offer (bid / ask spread). Transaction costs are very low. In addition, the forex market is open 24 hours a day and 5 days a week, so you can trade from Monday to Friday without ever stopping. The first market to open is the Australian one and the last one to close is the New York one.

In this way the Trader can freely choose when to trade. Then there is the lever that gives Traders the possibility of obtaining excellent profits by investing a minimum part of their capital. To date, everyone can invest in Forex Trading because many brokers offer Trading accounts in which anyone can start trading with just a minimum deposit of $10.00. This has made Forex Trading much more accessible and is within everyone’s reach.