Plus500 Market Review by BellsForex
This detailed review of Plus500 is part of the Broker Reviews at BellsForex, providing traders with insights into the broker's services, offerings, and whether it fits their trading needs.
Background and Overview of Plus500
Plus500 is a well-established online broker, known for its user-friendly trading platform and extensive range of financial instruments. Founded in 2008, the company has grown rapidly, becoming one of the most recognized names in the CFD (Contract for Difference) trading industry. Headquartered in Israel, Plus500 is publicly listed on the London Stock Exchange, which adds a layer of transparency and credibility to its operations.
Plus500 primarily caters to retail traders, offering a simple yet effective trading environment that is accessible through both desktop and mobile platforms. The broker is particularly popular in Europe and Asia, with a growing presence in other global markets.
Plus500 Regulatory Oversight
Plus500 operates under stringent regulatory oversight from several leading financial authorities, ensuring that it adheres to strict standards of operation, client protection, and transparency. The broker is regulated by:
- The Financial Conduct Authority (FCA) in the UK
- The Australian Securities and Investments Commission (ASIC)
- The Cyprus Securities and Exchange Commission (CySEC)
- The Financial Markets Authority (FMA) in New Zealand
- The Financial Sector Conduct Authority (FSCA) in South Africa
- The Monetary Authority of Singapore (MAS)
This multi-jurisdictional regulatory framework provides traders with a high level of confidence in the security and reliability of Plus500’s services.
Platforms and Technology
Key Features
Plus500 is known for its straightforward, user-friendly trading platform that appeals to both beginners and experienced traders. Key features include:
- Access to over 2,000 financial instruments across various asset classes
- Commission-free trading with competitive spreads
- Advanced risk management tools, including guaranteed stop-loss orders
- Mobile and web-based trading platforms
- Real-time market quotes and charting tools
- Instant account opening and fast deposit/withdrawal processing
Trading Platforms
Plus500 offers a proprietary trading platform that is available on multiple devices, including desktop, web, and mobile. The platform is designed with simplicity in mind, making it easy for traders to navigate and execute trades efficiently. Despite its simplicity, the platform provides a range of advanced features, such as customizable charts, technical analysis tools, and real-time alerts.
The mobile trading app is particularly popular, allowing traders to monitor and manage their accounts on the go. The app is available for both iOS and Android devices and offers the same functionality as the desktop version.
Range of Financial Instruments and Product Offering
Plus500 provides access to a wide range of financial instruments, making it possible for traders to diversify their portfolios across multiple asset classes. These include:
- Forex (Foreign Exchange)
- Indices
- Commodities
- Shares
- ETFs (Exchange-Traded Funds)
- Options
- Cryptocurrencies
This extensive product offering allows traders to engage in various trading strategies, from speculative trading in volatile markets to long-term investment strategies.
Competitive Price and Fees
Plus500 is well-known for its commission-free trading model. Instead of charging commissions on trades, Plus500 makes its money through the spreads on the instruments it offers. The spreads are generally competitive, though they may vary depending on market conditions and the specific instrument being traded.
Key pricing details include:
- No commission fees on trades
- Spreads vary based on the instrument and market conditions
- No fees on deposits or withdrawals
- Inactivity fee charged after three months of non-use
Overall, Plus500’s pricing structure is attractive to traders looking for a cost-effective way to trade a wide range of financial instruments.
Customer Service and Support
Plus500 offers customer support through various channels, including email and live chat. The broker is known for its prompt and efficient service, with support available 24/7. However, it is worth noting that Plus500 does not offer phone support, which may be a drawback for some traders who prefer more direct communication.
The broker also provides an extensive FAQ section on its website, which covers a wide range of topics from account management to platform use and trading strategies.
Educational Resources and Research
Plus500’s educational resources are somewhat limited compared to other brokers. The broker offers a basic education section on its website that includes information on trading CFDs and using the Plus500 platform. However, it lacks the comprehensive educational resources and research tools that some other brokers provide.
For traders looking for in-depth educational materials or market analysis, external resources may be necessary. Plus500’s focus is more on providing a straightforward trading experience rather than an educational one.
Deals for BellsForex Users
BellsForex users may benefit from exclusive promotions or bonuses when signing up with Plus500. These can include bonus trading credits, reduced spreads, or other incentives designed to attract new clients. It is recommended to check the BellsForex website regularly for the latest deals and offers available for Plus500 users.
Drawbacks and Considerations
While Plus500 offers many advantages, there are some drawbacks to consider:
- No phone support, which may be an issue for traders who prefer direct communication
- Limited educational resources and research tools
- Inactivity fee charged after three months of inactivity
- Limited customization options on the trading platform
- Not suitable for advanced traders who require more sophisticated trading tools
Case Study
To illustrate the practical use of Plus500’s offerings, consider a case study of a retail trader who is new to CFD trading. This trader, attracted by Plus500’s commission-free trading and easy-to-use platform, opens an account with a modest initial deposit.
The trader begins by trading forex pairs and commodities, using the platform’s built-in charting tools to monitor market movements. The availability of guaranteed stop-loss orders provides the trader with peace of mind, knowing they can manage their risk effectively.
Over time, the trader expands their portfolio to include indices and shares, taking advantage of the wide range of instruments offered by Plus500. Despite some initial losses due to inexperience, the trader finds the platform’s simplicity and transparency helpful in improving their trading skills.
After a few months, the trader has gained enough confidence to increase their trading volume, benefiting from the competitive spreads and fast execution times offered by Plus500. Although the lack of advanced educational resources is a challenge, the trader supplements their learning with external materials, allowing them to make more informed trading decisions.
Final Remarks
Plus500 is a strong contender in the online brokerage space, particularly for retail traders looking for a straightforward and cost-effective trading experience. With a user-friendly platform, commission-free trading, and a wide range of financial instruments, Plus500 is well-suited to beginners and intermediate traders.
However, the broker’s limitations in terms of educational resources and lack of phone support may be a concern for some traders, especially those looking for a more comprehensive trading environment. Nevertheless, Plus500’s regulatory oversight and transparent operations make it a reliable choice for those who prioritize ease of use and cost-effectiveness.
This detailed review of Plus500 is part of the Broker Reviews at BellsForex, designed to help traders make informed decisions when choosing a brokerage firm.