Plus 500 Leverage

Plus 500 account leverage ranges based on the instrument traded ranging from 20:1 leverage for crypto including bitcoin, 150:1 for commodities like gold to 300:1 for forex with each Plus500 instrument traded having specific leverage that cannot be changed.

View the complete range of instruments that can be traded and their Plus500 leverage level below.

By Justin Grossbard / Updated: Tuesday, February 18th, 2020

Plus 500 Fees

Plus500 Leverage Levels

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

Plus500 InstrumentLeverage
Crypto20:1
Forex300:1
Index CFDs300:1
Share CFDs20:1
Commodity CFDs150:1
EFTs100:1

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 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 TradedPepperstone LeverageIC Markets LeverageIG Markets LeverageCMC Markets LeverageEasyMarkets LeveragePlus500 Leverage
Forex500:1500:1200:1500:1200:1300:1
Index CFDs200:1200:1200:1500:1100:1300:1
Share CFDs20:120:120:120:120:1
Commodities500:1500:125:1 to 200:1
150:1100:1 to 200:1150:1
Cyptocurrency5:15:110:120:150:120:1
Bonds200:1
Futures200:1
ETF20:1100:1
Treasuries400:1

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.

 

View The 'Head To Head' Comparisons Of Plus500 To The FX Brokers Below:

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