Plus500 Strengths & Weaknesses
Our 2020 Plus500 review found a number of positive and negative elements which are listed below.
‘Top 3’ Plus500 strengths
‘Top 3’ Plus500 weaknesses
Plus 500 is a CFD provider based in Israel and listed on the London Stock Exchange. The global online broker is regulated by top-tier authorities around the world, including MAS (Singapore), ASIC (Australia), CySEC (Cyrpus), and the FCA (UK).
‘Your capital is at risk’
Plus500 – Review of Strengths
1) Fees and Low Spreads
Plus500 earns money through the difference of bid/ask spreads when users trade the financial instruments offered by the online broker. As seen below, Plus500’s spreads are very competitive compared to other local forex and CFD brokers.
The only other fees Plus500 charges is for long term currency holding (1+ hour or overnight fee) and an amount of $10 USD if you don’t use your account for 3 months (inactivity fee). View the full fee article for greater detail on Plus500 fees.
2) Customer Service
Within global financial markets, Plus500 is one of the most reputed CFD traders with high turnover and outstanding corporate governance. The firm has a mission and motto named “Sustainable and Perfectionist Trading Services” and the company strives to match the standards of the market. The CFD provider makes use of the latest security protocols and technology, providing Plus500 clients’ the best trading environment with minimum security loopholes. As far as customer support is concerned, Plus500 offers bilingual support which is comprehensive with fast responses. Support is also 24/7 with chat support in 16 different languages. An even greater advantage is the fact that the platform is available in over 30 languages with a local Sydney office meaning issues are resolved in a timely manner.
Plus500 Staff Support
When completing this review we found Plus500 staff members to be cordial and efficient. They provided immediate attention to our enquiries and we didn’t encounter any delays in their responses. Customer support is available in several languages via email and live chat. Another positive feature of Plus500 is the numerous “Traders Guide’s” available to customers on the main website.
3) Ease of Use
When our forex traders reviewed Australian forex brokers, it was found that Plus500 trading platform is the most user-friendly forex platform and interface. This was based on spending significant time testing out the CFD Provider’s live account while comparing Plus500’s features to other online brokers.
Unlike their competitors, Plus500’s does not offer MetaTrader 4 but instead offers its own trading platform that is compatible with PC and mobile-based platform (Android and iOS). The online broker also offers their platform as an online, webtrader platform, allowing users to access their account from anywhere. The platform focuses on ‘no frills’ trading with all the key information required to trade on a single screen. This can be useful for beginner and intermediate traders as all the critical information needed to make a trade is at their fingertips, yet it may be too restrictive for expert traders.
*Your capital is at risk
Plus500 Review of Limitations
1) Low Leverage Levels
Plus500 only offers a maximum leverage level of 300:1. Some other CFDs leverage level is lower as you read on the complete 2019 leverage analysis. While this may be adequate for an intermediate forex trader an expert conducting a Plus500 review would find this level to be too restrictive as the best Australian Forex brokers offer levels of 500:1
With any leverage produce leading to high risk, a positive of Plus500 Australia is they offer negative balance protection. This means that a trader’s losses won’t exceed their deposit regardless of market conditions. The Plus500 platform will exit the trader when they reach their margin call and any additional losses will be paid by the CFD broker. It’s also recommended to activate stop-loss orders on trades to set the maximum loss allowed. These shouldn’t be confused with a guaranteed stop-loss which guarantees losses won’t exceed this level.
2) Unique Broker Platform
As explained before in our Compare Forex Brokers’ Plus500 review Australia advantages, the company uses its own trading platform interface. Expert CFD Traders that are used to other platforms such as MetaTrader 4 may find this too restrictive with no option to use features such as an API feed and advanced charting. Overall, the Plus500 platform is great for those looking for just the data that matters, not those experts who require advanced features.
Plus500 Australia CFD trading can be completed on mobile devices including android which offer:
There is also an iPhone and iPad application available for apple devices. Each mobile app allow for not only CFD mobile trading but also includes price alerts and the ability to get real-time quotes on stocks and currency pairs. This is ideal for technical analysis and developing trading strategies. They also offer demo accounts or you can start trading with real money through a live account. It’s recommended to commence on a demo account first and build up trading experience prior to a real account.
3) No immediate support
Although the customer support of Plus500 is listed as a strength, and remains so, one concern for Plus500 LTD is their lack of immediate contact. Although they have email addresses, live chat and office hours, there is no direct phone line. As such, customers with pressing issues are unable to make fast contact with the broker. As the industry of forex trading happens very fast, with decisions sometimes needing to be made quickly, this is a concern for customers of Plus500 looking for advice. This really needs to be addressed for Australian fx traders.
Plus500 Australian Forex Brokers Compliance
Plus500au Pty Ltd is the Australian regulated subsidiary of Plus500 for Australian traders. The head office is in Sydney (1 O’Connell Street) and trades under AFSL #417727. This means they are regulated by the Australian Securities And Investments Commission (ASIC regulated) and are also regulated by the Financial Conduct Authority (FCA) in the United Kingdom under the name Plus500uk Ltd with FRN 509909. Other regulation includes the Cyprus Securities and Exchange Commission under plus500cy LTD. They also have a derivatives licence in New Zealand under FSP #486026 and operate in South Africa under FSCA 47546. Their head office is in Israel.
Other Plus500 Trading Products
A trader with a Plus500 account can trade CFDs over financial assets such as Forex, Stocks, Commodities, Options and Indices. Trading CFDs is similar to Forex with leverage provided to amplify any movements in either direction for traders. This increases the opportunity and risk of trading but is necessary for something like indices CFDs trading which normally only moves a few percentage points each day.
As of 2017, with thanks to advances in the safety and security of Cryptocurrency markets, Plus500 does offer bitcoin trading and other Cryptocurrencies. Traders can access competitive spreads and leverage of up to 20:1 to in an attempt to generate returns from greater trade sizes.
For trading CFDs, Forex & Cryptocurrency a Plus500 account can be funded by:
- Credit Cards including Mastercard & Visa
- Skrill (formally Moneybookers)
- Wire Transfer
Withdrawals can be made to the same four funding sources shown above provided they are verified by the user. PhotoID will be required and in some cases, additional documentation to avoid fraud and scams. The number of business days a transfer takes depends on the withdrawal method used and the banks involved. All client funds are segregated in a separate Bank Account are required by ASIC’s regulations for trading CFD brokers.
The minimum deposit differs depending on the deposit method. A bank transfer minimum deposit is $100 while a credit or debit card minimum requirement is $114. There are constant across all retail investor accounts.
Does Plus500 have a local office?
Yes. Plus500AU is a subsidiary of Plus500 international. Not only is Plus500 AU regulated by the Australian regulator, they also have an office located in Clarence St, Sydney with local support. Their parent company headquarters are in Israel.
Does Plus500 offer bitcoin trading?
Not only does Plus500 offer bitcoin trading, they boast a range of cryptocurrencies for trading and speculation too. If you’re wanting to take advantage of the hype and volatility of cryptos such as Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Ripple and IOTA with Plus500 you’re in luck. Unlike other financial markets, the cryptocurrency market is open 24/7. If you’re wanting to trade on the weekends, no problems as long as its not for 2 hours between 12:00 and 14:00 UTC on Sundays.
What is the difference between Plus500 webtrader & windows trader?
The Plus500 webtrader platform is a desktop based platform that is accessed via a web browser. No software needs to be downloaded or installed onto a PC. All that is required is an internet connection. The Plus500 windows trader on the other hand is a program that needs to be installed on your desktop.
What is the Plus500 minimum withdrawal amount?
Yes. All withdrawal methods supported with Plus500 carry a minimum withdrawal threshold. To find out the exact Plus500 minimum withdrawal amount please refer to the trading platform’s withdrawal screen.
Is Plus500 the right CFDs Provider for beginners?
The Plus500 platform is one of the most user-friendly platforms out there, yet, it includes advanced features attractive to experienced traders. Their risk management tools including guaranteed and trailing stops Plus500 would suit traders with the relevant experience. On the other hand, the Plus500 demo account is a great tool for beginners. Remember, trading financial instruments such as Forex, CFDs and Cryptos carries risk so spend time researching, learning and practicing on a demo account FIRST!
Our Plus500 review found that this company among other Australian Forex brokers is perfect for fx traders with relevant experience. This is because they have low fees and fixed spreads, negative balance protection and a simple to use platform combined with a guaranteed stop offering. Expert CFD Traders though may not like these features and prefer more mainstream forex platform options and higher leverage to increase their risk profile. They may also appreciate the vast amount of trading products the company offers. Overall, the CFDs Provider is worth considering for those looking to make their first steps towards currency trading. You can check out our comparison with IG Markets here.
About Compare Forex Brokers
All reviews and forex broker comparison tables were created by Australians who don’t work for any of brokers compared. The forex broker comparisons information was gained from each provider’s website (including this plus 500 review) or from demo & trading accounts. The forex broker comparisons looks at elements including the Australian forex brokers platform used, spreads and features. Each financial services provider compared must be ASIC regulated including the account types offered. Tables were designed to make forex trading setup easier providing pros/cons of different providers. The brokers selected for comparison were also all nationally certified with strong market share to avoid scams or other poor conduct of some smaller unregulated brokers.