Plus500 Leverage Levels

Leverage with Plus500 varies by the financial instrument traded as shown on the table below.

Plus500 Instrument Leverage
Crypto 20:1
Forex 300:1
Index CFDs 300:1
Share CFDs 20:1
Commodity CFDs 150:1
EFTs 100:1

View the detailed instruments below offered by Plus500 and their corresponding leverage levels for 2020.


Our Rating

The overall rating is based on review by our experts

5.83
Spreads
8 / 10
Leverage
6 / 10
Trading Platform
5 / 10
Risk Management
4 / 10
Range of Markets
5 / 10
Customer Service
7 / 10

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:

  1. Plus500 CryptoBitcoin
  2. Bitcoin Cash ABC
  3. NEO
  4. Ethereum
  5. Ripple XRP
  6. Litecoin
  7. IOTA
  8. Stellar
  9. EOS
  10. Cardano
  11. Tron
  12. Monero

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:

  1. Plus500 Forex TradingAustralian Dollar (AUD)
  2. British Pound (GBP)
  3. Euro (EUR)
  4. United States Dollar (USD)
  5. Japanese Yen (JPY)
  6. Swiss Franc (CHF)
  7. New Zealand Dollar (NZD)
  8. Canadian Dollar (CAD)
  9. South African Rand (ZAR)
  10. Singapore Dollar (SGD)
  11. Danish Krone (DKK)
  12. 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:

  1. Index CFDs Plus500ASX 200
  2. ES USA 500
  3. NIY Japan 225
  4. SPI200
  5. UK100

Sector indices include:

  1. BGCANG Cannabis Stock Index
  2. BUKHI50P UK Brexit High 50 Index
  3. BUBIOG US Biotech Giants Index
  4. FNG NYSE FANG+ Index
  5. 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.

Share CFDs Plus500 Leverage

From the USA to Australia and the UK, Plus500 allows trading on the most popular shares offered by major exchanges. Markets where share CFDs are available include:

  1. Plus500 Share CFDsAustralia
  2. USA
  3. Hong Kong
  4. UK
  5. Germany
  6. France
  7. Italy
  8. Japan
  9. Singapore
  10. Holland
  11. Finland
  12. Belgium
  13. Ireland

Individual shares can have large movements during key economic and corporate events. These include annual reporting, company announcements, industry changes and changes to domestic economies. Due to these fluctuations, the leverage available across all Australian forex brokers that offer share CFDs is 20:1 as shown below. Features such as guaranteed stop-loss trades should be considered when trading share CFDs to reduce the high risk and limit exposure to the market.

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:

  1. Gold
  2. Copper
  3. Oil
  4. Gasoline
  5. Platinum
  6. Palladium
  7. Wheat
  8. Heating Oil
  9. Soybeans
  10. Silver
  11. Natural Gas
  12. Cotton
  13. Coffee
  14. Cocoa

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

EFTs Plus500The 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

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.

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.

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
Forex 500:1 500:1 200:1 500:1 200:1 300:1
Index CFDs 200:1 200:1 200:1 500:1 100:1 300:1
Share CFDs 20:1 20:1 20:1 20:1 ✘ 20:1
Commodities 500:1 500:1 25:1 to 200:1
 150:1 100:1 to 200:1 150:1
Cyptocurrency 5:1 5:1 10:1 20:1 50:1 20:1
Bonds ✘ 200:1 ✘ ✘ ✘ ✘
Futures ✘ 200:1 ✘ ✘ ✘ ✘
ETF ✘ ✘ 20:1 ✘ ✘ 100:1
Treasuries ✘ ✘ ✘ 400:1 ✘ ✘

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.

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Plus500 Features

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.

 

About the author: Justin Grossbard

Justin Grossbard has been investing for the past 20 years and writing for the past 10. He co-founded Compare Forex Brokers in 2014 after working with the foreign exchange trading industry for several years. He also founded a number of FinTech and digital startups including Innovate Online and SMS Comparison. Justin holds a Masters Degree and an Honours in Commerce from Monash University. He and his wife Paula live in Melbourne, Australia with his son and Siberian cat. In his spare time, he watches Australian Rules Football and invests on global markets.

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