Plus500 Leverage Levels
Leverage with Plus500 varies by the financial instrument traded as shown on the table below.
View the detailed instruments below offered by Plus500 and their corresponding leverage levels for 2020.
Plus500 Crypto Leverage
Plus500 offers cryptocurrency CFD trading. Maximum leverage for Crypto CFD trading is lower than other instruments due to the high risk and volatile nature of the financial instrument. Volatility can be double digits on some days making leveraged positions leading to significant losses or gains. Plus500 offers the following cryptocurrency CFD trading:
- Bitcoin Cash ABC
- Ripple XRP
On top of the 12 cryptocurrency instruments above traders can also trade the crypto 10 index (the top 10 cryptocurrencies combined). The Ethereum / Bitcoin pairing can also be traded. For all 12 crypto CFDs and the two additional options, the leverage is 20:1. This means that the movements are amplified by a factor of 20 which is high compared to some of the mainstream forex and CFDs brokers shown below.
Plus500 Forex Leverage
Forex (currency trading) is the most popular instrument to be traded worldwide and Plus500 is no exception. Over 70+ forex pairs can be traded with the main base currencies of the top pairing including the:
- Australian Dollar (AUD)
- British Pound (GBP)
- Euro (EUR)
- United States Dollar (USD)
- Japanese Yen (JPY)
- Swiss Franc (CHF)
- New Zealand Dollar (NZD)
- Canadian Dollar (CAD)
- South African Rand (ZAR)
- Singapore Dollar (SGD)
- Danish Krone (DKK)
- Czech Koruna (CZK)
With currency pairings movement on average single figures, it’s critical to have leverage to make net profits substantial with successful trades. Most forex brokers offer their highest leverage levels to forex and Plus500 is no exception with 300:1 leverage for currency. This isn’t the highest of the Australian forex brokers but compared to brokers worldwide remains significant.
It’s important to note that Plus500 does not allow leverage to be adjusted for financial instruments and trades, including currency pairs. This feature is offered by many other brokers in the comparison above which can be important for those looking to lower their exposure to currency markets. This is discussed further at the bottom of this Plus500 leverage review.
Plus500 Index CFDs Leverage
Plus500 index CFDs offer both country indices and sector indices trading for retail traders. Example of country indices include the:
- ASX 200
- ES USA 500
- NIY Japan 225
Sector indices include:
- BGCANG Cannabis Stock Index
- BUKHI50P UK Brexit High 50 Index
- BUBIOG US Biotech Giants Index
- FNG NYSE FANG+ Index
- BUSCYG Cybersecurity Giants Index
Index CFDs leverage is level with forex trading at 300:1 leverage. This is one of the highest of any Australian CFDs brokers which are shown below. As high leverage comes with high risk that may lead to great gains or losses, it is important to understand the risks of CFD trading.
Commodity Plus500 Leverage
Plus500 allows commodity classes from Silver, Oil to Gold to be traded as contracts for difference (CFDs). With commodity CFDs, you do not own the commodity, rather you trade based on movements. The most popular commodities offered are:
- Heating Oil
- Natural Gas
Leverage available for commodity CFDs trading is 150:1. This is at the lower end with Pepperstone and IC Markets offering 500:1 while other Australian forex brokers such as CMC offer 150:1.
Plus500 ETFs Trading Leverage
The final asset class that offers leverage are Exchange-Traded Funds (ETFs). Plus500 offers over 90 ETFs to be traded as CFDs. The leverage available across these ETFs is 100:1, which is higher than the other popular forex broker offering (IG) who offer 20:1.
ETFs are known to have large movements when market-sensitive information is released. Based on this, the negative balance guarantees CFDs brokers provide need to be understood. It means that a trader can’t have a balance that is less than their deposit. Even if this occurs due to slippage in times of extreme market volatility, the trader won’t be out-of-pocket. Rather, Plus500 will pay the difference. For this reason, a trader may consider keeping their balance on the lower-end and only having within the account any amount they are willing to lose.
Due to the high risk nature of ETFs combined with Plus500’s high leverage of 100:1, it is recommended that ETF CFDs are only considered by experienced traders with a higher risk profile.
Plus500 Leverage FAQs
Can you change leverage on Plus500?
No, every instrument has a specific leverage level that cannot be adjusted by a trader, unlike other forex brokers such as Pepperstone and IC Markets.
What Is The Plus500 Leverage On Crypto
Cryptocurrency CFD trading leverage is 20:1 which includes Bitcoin trading. Compared to other Australian Forex Brokers, Plus500’s maximum leverage on crypto is relatively high.
Can you trade Plus500 with no leverage?
Plus500 in Australia only offers CFD products. As such, leverage levels for different instruments are predetermined and cannot be removed with the CFD broker.
Plus500 Leverage Conclusion
The table below compares Plus 500 to other leading Australian forex brokers. It highlights that Plus500 offers some of the highest leverage levels on instruments from ETFs to cryptocurrencies. Other mainstream instruments such as forex and commodity leverage are more modest.
|Instrument Traded||Pepperstone Leverage||IC Markets Leverage||IG Markets Leverage||CMC Markets Leverage||EasyMarkets Leverage||Plus500 Leverage|
|Commodities||500:1||500:1||25:1 to 200:1||150:1||100:1 to 200:1||150:1|
Overall, the leverage levels offered by Plus500 should suit most traders. What may be the issue is that traders cannot change their leverage levels when using Plus500 as their CFD broker. This applies to all instruments and may rule out traders that require flexibility in regards to leverage. It may also make the broker not suitable for traders who are risk-adverse. Yet this is a minority of traders, therefore the leverage offered by Plus500 should suit most individuals CFD trading needs.
More About Leverage
Leverage allows traders to be more exposed to markets. This increases any profit or loss from movements which is critical for instruments like forex. This is because currency movements are normally single figure percentage movements. Without leverage these movements would be so modest it would be hard to make meaningful gains/losses on most days.
Essentially, leverage is similar to a short-term loan. Leverage of 100:1 means that for every $1 traded that Plus500 will allow a trader to trade $100. So as an example, if a trader has a deposit of $1,000 and trades the full amount on forex which has 300:1, the total trade would be $300,000. A currency pair movement of just 0.2% would then leave to a profit or loss of $600. That is over half the initial deposit highlighting how leverage amplifies the risks of trading. Some locations such as UK limit leverage for Plus500 and Pepperstone in Europe.
Risk Management Features By Plus500
With risk amplified by leverage and no ability to reduce it by Plus500, a trader should know the broker’s features. One such feature is the guaranteed stop order which can only be placed on new orders. Once placed, a trader can choose the maximum amount they are willing to profit or loss on the trade. Even when conditions don’t allow the broker to exit at this rate, Plus500 will still honour the amount set. Losses on that trade will not exceed this amount. It should be noted the Plus500 guarantees stop losses have an additional fee attached to its usage.
The second risk management feature Plus500 offers is negative balance protection. This ensures a trader’s losses don’t exceed their deposit. It has been known in extreme market events of brokers losses far exceeding their deposit. Brokers have then chased up for the funds they are owed. This will never be the case for Plus 500 based on this negative balance protection feature.