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You can’t venture into financial instrument trading, without registering and funding a trading account with a reputed CFDs (Contract for Difference) broker.
The function of this account is to help a trade make speculation on the rise and fall of a particular trading instrument without owning a right to the instrument itself.
This is achieved through a process referred to as Margin trading. Naturally, if a trader intends on owning some financial asset like oil, gold or another type of high priced stocks, he or she will need to have a large account balance. But with a margin account, such a trader just needs to have a fraction of the money needed to be able to trade such CFD instrument. Example of such CFDs broker is Plus500. However, please remember that your capital is at risk.
What is Plus500?
Plus500 is a CFD service broker, with headquarters in Israel and several other subsidiaries across the world. CFDs are the only product you will find on Plus500.
They help to provide traders with an account to speculate on underlying assets through margins, without having to own such an asset. They offer CFDs on over 2200 financial instruments which include;
- Stocks: For those with interest in speculating on the rise and fall of top stock like (Apple: APPL Microsoft: MS), prices.
- Cryptocurrency: Plus500 Cryptocurrencies products are 10 in numbers, which includes all major crosses such as (BTC/ETH, ETH/USD, and BTC/USD). You allowed opening buy and sell positions on the listed cryptocurrency with a leverage of 1:20 and a minimum balance of $/£/€100.
- CFDs Commodities: Plus500 also offers a trade on soft commodities (Agricultural products,g. wheat, cocoa) and some hard commodities (Precious and industrial metals,e.g. Gold, Copper, and Oil) instruments.
- Forex – Currencies are the number one traded instrument on most broker platforms, and Plus500 is not excluded. Plus500 offers Trade on many major and minor Forex pairs which very competitive spreads.
- ETFs-With plus500 you are allowed access trade multiple ETFs assets across 20 different country stock exchange. This will help to balance your risks and increase the diversity of investment.
- Indices – Plus500 list more than 20 Indices for traders to make a buy or sell order on. This ranges from the popular one such as the US500, UK100 to the less popular ones such as Hungary 12, and Greece 20. This will give traders the option of selecting the Indices that they are more comfortable with or maybe familiar with.
- Options – Option trades on popular indices such as UK, French, German, US, Italian and Dutch index options. Options on stocks such as Apple, Facebook, Deutchebank and Alphabet options
Plus500 Ltd is listed on the AIM, section of the London Stock Exchange. Plus500 was founded in the year 2008 by 6 alumni of the Technion – Israel Institute of Technology, with an initial investment of $400,000 contributed by Alon Gonen, the current managing director of the broker.
Plus500 has its headquarters in Israel, with subsidiary companies in various part of the world such as United Kingdom, Cyprus, Australia, New Zealand, South Africa, Singapore, and Bulgaria. This has made it possible for them to be able to serve a large number of traders across All of Europe (Expect Belgium). Most African and Asian Countries clients are not allowed to register on their platform. Clients from the USA are also not welcomed on their platform.
Plus500 is also listed on the London Stock Exchange AIM section under the ticker (PLUS).
Plus500 is authorized to operate by all it subsidiaries home country financial regulatory bodies. These bodies include; Financial Conduct Authority ( FCA ), the Cyprus Securities and Exchange Commission ( CySEC ), the Australian Securities and Investments Commission ( ASIC ), the Monetary Authority of Singapore ( MAS ), and the Israel Securities Authority ( ISA ). This has shown that any Plus500 complaint will be well handled across any of these bodies, which reduces your chances of being frustrated out of your hard-earned money.
How Plus500 work?
Just like every other CFDs broker, plus500 works by providing its clients with access to the financial market. They make it possible for traders to be able to open buy and sell position on financial instruments without having actually to bear the risk of owning such instrument. The traders are able to do this through the leverage benefits provided by Plus500. This leverage maximizes the traders buying and selling ability by multiplying the actual account balance of such trader in retrospect to the amount of margin chosen upon sign up.
Plus500 Cryptocurrencies Trading- how it works?
The rise of Bitcoin has made the world switch their attention towards cryptocurrency trading. With many people now buying into various ICO (initial coin offering), cryptocurrency trading is showing no sign of slowing down anytime soon. This is why Plus500 has focused a lot of attention on cryptocurrencies.
Plus500 makes it possible for traders to make buy and sell trades on Cryptocurrencies without having actually to own them. They simply speculate on whether this Cryptocurrency will increase in its value or reduce in value.
Bitcoin is the most traded Cryptocurrency on the broker platform. Though with the previous leverage of up to 1:30, the reduction of the leverage to a maximum of 1:5, which translate into having every $/£/€ invested worth just 5 times its original value. This hasn’t stopped traders from still getting involved with Plus500 Bitcoin trading.
Plus500 Available Cryptocurrencies
Plus500 provides traders with access to an open position on 10 different crosses of cryptocurrency against each other or the USD currency pair.
The available cryptocurrencies cross on the Plus500 platform includes:-
- BTC/USD (Bitcoin)
- ETH/BTC (Ethereum / Bitcoin)
- BCH/USD (Bitcoin Cash)
- ETH/USD (Ethereum)
- NEO/USD (NEO)
- LTC/USD (Litecoin)
- XRP/USD (Ripple)
- IOTA/USD (IOTA)
- XMR/USD (Monero)
- EOS/USD (EOS)
In my experience from reviewing other CFDs broker, although the Cryptocurrencies listed are the prominent ones with the highest transactions rate across all brokers. For a broker the size of Plus500, they are still not enough. More cryptocurrencies need to be added to the platform for traders to benefit from the jumps experienced when trading them.
The fees structure on the broker’s platform is basically categorized in two, namely;
- Spreads – A spread rate is a difference agreed upon by the broker and trader, to enter a particular trade. The spread is like a slight increase in asking or bidding price injected at the broker’s discretion on any trading instrument. This means whether you are opening a sell or buy position, you will be entered into a trade with a little loss at first. On the Plus500 platform, the spread rates are very competitive, and it’s mostly negligible if your trade happens to fall on the winning side.
- Overnight commission – This is the number of fees charged by Plus500 to carry your long trades into the following trading day session. But if it’s a short trade, you are going to get credit for your overnight trades.
- Withdrawal fees– Plus500 fees for withdrawals on the first five withdrawal of the month is zero. After that, withdrawal attracts a fee of $6- $10 depending on the option used.
Plus500 accounts and verification
There are two main types of accounts that can be registered on the Plus500. The Demo trading account and the real trading account.
Demo trading account
It should be noted that this account is not available for cryptocurrencies trading. The demo trading account is pretty much meant for practice purposes and nothing more. Here you will be able to make trades like you are in a real live market. As a matter of fact, it is the exact mirror of what you should except trading a real account, with the only difference being the fact that all win or loss is not real money.
Unlike the real trading account where you need to submit some means of identification before you can have full access to your trading account, all you need do is to confirm that your email address is accurate. This can be done by clicking on the verification link sent.
Real live account
With the real trading account, you are now exposed to the risk that comes with trading in the financial market. Here you need to deposit some certain amount of money which is a minimum of $//£/€ 100 on the Plus500 platform before you are allowed to buy or sell a position.
To get your real account running seamlessly, you need to verify that your submitted details are accurate.
This is done by submitting a means of identification which may include (International Passports, National ID cards, and Drivers license), a means to verify your residential address which includes (Utility bills, Tenancy agreements, and bank Statement of account).
The verification usually takes less than 24hours, and you will be contacted in case of any issues with the submitted document.
Plus500 offers traders the ability to trade and view transaction details on Apple wristwatch.
The platform is also known for its comprehensive Traders Sentiment indicator. This a unique trading tool which shows the total percentage of long and short trades made on a certain instrument;
The platform also features the ability to get alerts and notifications on any instrument’s sentiment, price and daily percentage change.
Is Plus500 safe?
Plus500 is a big broker with stock listed on the London Stock Exchange.
A brokerage account can as well be likened to a normal bank account, so security is a key feature in selecting the best broker for you. Plus500 security entails high-end encryption to each account, with a verified SSL certificate. They also offer a two-step verification system, which makes it harder to access your account with just a password. All these are normal security protocol observed by brokers in general. So Plus500 safety protocols are nothing exceptional.
Plus500 has invested a lot in getting a good team for the customer care department. The customer support always tries to do all it can in making sure your questions are being answered whether you have an account with them already or not.
At some point, during the testing, we had to wait about 9 minutes before we got a response. Nevertheless, they made sure to inform us beforehand, of how swamped their customer care unit currently was. The interesting thing is that during the waiting period all the emails sent were promptly replied.
Whether it’s via live chat or email message, as long as your questions are being answered, you should not have not a problem. From experience, their customer care service can be considered to be first class.
All trades on the Plus500 platform are being handled automatically by software and system put in place for that sole purpose. So your trades are being handled with zero lag.
How to use Plus500
The first step to using the Plus500 platform usually involves creating a trading account.
This account could be a Demo account for practice purposes or a real live account.
Upon filling out the online forms and confirming your email address, you need to go to the verify account section of the website to submit your valid documents and also verify your mobile number.
Deposits are being made into your plus500 trading account through any of the following methods.
Electronic wallets: Paypal and Skrill
Debit or Credit bank Card
Banks transfer into Plus500 UK Barclays account.
NB: You may be asked to provide proof of account statements among other verification procedures.
Downloading and choosing of the trading
Plus500 has its own in-house trading terminal that is available as a web, downloadable and mobile version. The terminal can be easily downloaded on the official Plus500 webpage.
This terminal is a comprehensive trading station, with a lot of bells and whistle expected from a standard trading platform. The terminal is quite simple to use, that a total beginner upon logging in will be able to understand what is going on clearly. Everything is well arranged with some functions in chronological orders.
Addition of instruments to your terminal is made easy through the use of tools bar, and a quick search box to select the asset needed.
Making your trade
This is the final stage. Before getting to this stage, it is always advisable that you spend a lot of time training and practicing well on how to make right trading decisions.
The real account is a risky environment so you need to master it well on a demo account before you can think of going live.
Plus500 Review Summary
- Well regulated
Plus500 is known for having regulated subsidiaries. This makes it an ideal trading platform for traders with big trading accounts since they are protected to some extent by the regulatory bodies.
- Competitive spread rate.
Plus500 doesn’t charge any other commission apart from the spread placed on each trading pairs. These spreads are quite small and very affordable which makes trading with hem very appealing
- Mobile platform
With a trading terminal on apple wristwatch and a well-designed mobile platform, Plus500 traders can now easily make trades on the go, without having to worry about anything.
- Country covered
In terms of coverage, Plus500 is seriously lagging behind, especially when it comes to Asian and African market. The broker also doesn’t accept USA clients.
- Lengthy registration and verification process
Before finally gaining access to your account, you need to fill a registration form, then give an answer to a test designed to know your financial trading history, after which you then have to proceed to account details verification and phone number verification.
For some people, this process might just be too long and uncomfortable.
Thank you for reading our broadly outlined Plus500 review. We are glad to have played a significant role in contributing to your knowledge. You are welcomed to view other insightful pieces of articles on our site to keep you updated on similar topics, and everything else crypto-related.