Plus500 2024 Review: Pros and Cons Revealed

Plus500
Founded in	2008
Registered Country	United Kingdom
Regulatory Oversight	Regulated by ASIC, FCA, FSA, CYSEC, FMA, MAS
Minimum Deposit	€100
Security Measures	Fund segregation, FSCS
Market Instruments	Indices, commodities, forex, shares, options, ETFs
Demo Account	✅
Leverage	Up to 1:300
Fees	Currency Conversion Fee: Up to 0.7%
	Inactivity Fee: Up to USD 10 per month
App/Platform	Plus500 Trading Platform
Promotions	✅

Plus500 is a global multi-asset fintech group listed on the London Stock Exchanges Main Market and is a constituent of the FTSE 250 index. Founded in 2008 in the United Kongdom, Plus500 operates proprietary technology-based trading platforms.

The broker currently offers a portfolio of more than 2800 instruments in indices, commodities, forex, shares, options and ETFs. There is also a trading academy with essential knowledge, from basic concepts to sophisticated strategies, to equip investors with necessary skills for successful trading.

Trades are executed on its proprietary “Plus500 Trading Platform” with features align with the broker's own business and services. Both deposit and trading are free of charge, while there will be overnight fees and inactivity fees for dormant accounts.

One of the broker's overwhelming advantages is the strong regulatory oversight by 7 supervisory authorities: ASIC, FCA, FSA, CYSEC, FMA and MAS in several countries, guaranteeing a certain level of credibility and reliability.

However, some negative reviews on WikiFX suggest there's still room for Plus500 to improve their operation efficiency and system stability.

Plus500 Pros & Cons

Plus500 Regulation & Security

Is Plus500 safe? When reviewing Plus500, one of the primary concerns for beginners is the platform's safety and security. This is a question that almost all newcomers to investing prioritize. To address this concern, we will explore it from two crucial aspects: regulations and protection measures.

Plus500 Regulations

Plus500 is currently regulated in different countries by 6 major financial authorities:

1. Australia Securities & Investment Commission (ASIC) in Australia
2. Financial Conduct Authority (FCA) in the United Kingdom
3. Financial Services Agency (FSA) in Japan
4. Cyprus Securities and Exchange Commission (CYSEC) in Cyprus
5. Financial Markets Authority (FMA) in New Zealand
6. Monetary Authority of Singapore (MAS) in Singapore

These regulatory bodies are authoritative in the industry, to some extent guarantees Plus500's stringent compliance to industry standards. When there are disputes, there will be intermediary reconciliation from these institutions.

Regulated Country	Regulator	Status	Regulated Entity	License Type	License No.
	ASIC	Regulated	PLUS500AU PTY. LTD.	Market Making (MM)	417727
	FCA	Regulated	Plus500UK Ltd	Straight Through Processing (STP)	509909
	FSA	Regulated	Plus500JP証券株式会社	Retail Forex License	関東財務局長（金商）第156号
	CYSEC	Regulated	Plus500CY Ltd	Market Making (MM)	250/14
	FMA	Regulated	PLUS500AU PTY LTD	Straight Through Processing (STP)	486026
	MAS	Regulated	PLUS500SG PTE. LTD.	Retail Forex License	Unreleased

You can always verify Plus500's regulatory status and explore its more details on WikiFX. WikiFX has the world's largest database of forex brokers, covering essential aspects such as company qualifications, regulatory status, historical performance, user reviews, and risk ratings, all rigorously verified. With over 60 regulatory agencies included, WikiFX provides a comprehensive resource for assessing the credibility of brokers like Plus500.

Security Measures

• Fund Segregation: All client money of Plus500 are held in segregated bank accounts in accordance with the Financial Conduct Authority's client money rules. And the company uses it own money for hedging and will never pass client money through to hedging counter-parties. This ensures that clients can always get the funds belong to them, even when the company goes bankruptcy.
• Financial Services Compensation Scheme (FSCS): Plus500 is an authorised financial services firms of the Financial Services Compensation Scheme (FSCS), which means that its clients are eligible to receive up to £85,000 in compensation if there were a shortfall in the segregation account when the firm becomes insolvent or ceases trading.

Plus500s safety features, including fund segregation, FSCS protection, and strong regulatory oversight by 7 recognized authority bodies, help ensure a secure trading environment for its clients.

How Does Plus500 Make Money?

Plus500 primarily earns revenue through the Bid/Ask spread — the difference between the buying price (Bid) and the selling price (Ask) of a financial instrument. When traders execute orders, the broker typically sells at a higher price (Ask) and buys back at a lower price (Bid), pocketing the difference as profit.

This spread is applied to all trades and is a key component of Plus500's business model. Unlike many brokers, Plus500 does not charge commissions or fees on trades, making the spread the primary source of its income.

Market Instruments

Plus500 offers a broad range of more than 2800multi-asset CFDs, allowing traders to access some of the most popular and liquid markets worldwide. Key instruments include:

• Indices: Trade global indices like the S&P 500, Germany 40, UK 100, and more, with leverage.
• Forex: Access major currency pairs such as EUR/USD, GBP/USD, and USD/JPY, with real-time economic data and market events.
• Commodities: Trade CFDs on popular commodities like Gold, Silver, Oil, and Natural Gas, with a focus on supply and demand dynamics.
• Shares: Buy and sell share CFDs from top global companies like Apple, Microsoft, Tesla, and Meta.
• Options: Speculate on price movements with options CFDs, allowing both long and short positions on assets like indices and commodities.
• ETFs: Trade CFDs on Exchange Traded Funds (ETFs), including Bitcoin ETFs, Silver ETFs, and commodity index funds.

All of these instruments are said to come with competitive spreads, fast order execution, and the ability to trade on leverage.

The wide range of the tradable assets from Plus500 allow you diversify your investment portfolio and scatter risks across different markets.

Plus500 Account Review

Account Types

Plus500 provides a demo account that simulates real market conditions for users to practice and accumulate trading experience without losing real money.

Once traders are comfortable with their skills, they can upgrade to a live account which requires them to deposit at least $100 or equivalent.

Retail clients start with a basic retail account that offers essential functions and services. As they gain experience and meet the criteria, they can qualify for a professional account to access additional benefits without incurring extra costs. These benefits include:

• Cash rebates
• Client money protection
• Negative balance protection
• Best execution practices
• FSCS protection (Financial Services Compensation Scheme)
• Access to FOS (Financial Ombudsman Service)

To qualify for a professional account and enjoy these benefits, traders must meet at least one of the following criteria:

1. Perform 10 or more significant transactions per quarter over the last four quarters, either with Plus500 or other providers.
2. Have a financial instrument portfolio (including cash savings) of €500,000 or more.
3. Have worked in the financial sector for at least one year in a professional capacity requiring knowledge of financial transactions or services.

Premium Service

Plus500 will reach out and invite selected clients to access premium services with tailor-made solutions and additional exclusive benefits. These clients will enjoy a range of educational and support materials including:

• A dedicated client manage
• Periodic emails with expert analysis of upcoming trading events
• External trading webinars
• Priority support from premium service customer support team and more

Plus500 has multiple thresholds for accessing its premium services and professional accounts. The requirements—such as a significant trading volume, a large portfolio, or professional experience in the financial sector—are designed to ensure that only experienced and high-volume traders can access these exclusive benefits.

Less-experienced individual traders may find many of the broker's benefits and resources are restrictive to them.

Leverage

Plus500 offers varying leverage levels across different asset classes for professional accounts, allowing traders to amplify their positions.

These leverage levels are appropriate and basically align with the risk profile of each asset class. Professional traders can use them to maximize potential returns across different markets flexibly.

However, higher leverage also increases exposure to market fluctuations, so it's essential for traders to use leverage wisely and implement rational risk management strategies.

Plus500 Trading Platforms

Plus500 offers a proprietary trading platform, with an app version downloadable from both the Android and iOS phones. This is ideal and convenient for those who want flexibility and need to trade on the go without location restrictions.

However, there are no web or Windows versions of the platform available at this time, which can be a drawback for traders who prefer a more stable trading environment with larger screens for enhanced charting and analysis.

Furthermore, the industry leading MetaTrader platforms used by many reputable brokers are not available with Plus500, either. This might prevent those who are already accustomed to these convenient and advanced platforms from choosing Plus500.

Plus500 Fees Review

Plus500 offers a trading platform with a transparent fee structure, primarily focusing on spreads and overnight funding.

Spread

Plus500's spreads vary depending on products and market conditions. Up to Nov, 2024, spreads for major currencies offered by this broker are as below, most of which are relatively tight comparing to market avarage. For more details, you might need to register an account and check one by one.

Overnight Funding Fees

If a position is held overnight, Plus500 charges an Overnight Funding Fee (also known as Swap). This fee is either added or subtracted based on the position's size and the underlying market's conditions.

• Calculation Formula: Trade Size x Position Opening Rate x Point Value x Daily Overnight Funding %
• CFD Calculation Formula: Trade size * Daily Close Rate * Point Value * Daily Overnight Funding % (Daily Close Rate is the average [(Buy+Sell)/2] of the last quote 30 minutes before the Overnight Funding time)

No Deposit and Withdrawal Fees

Plus500 does not charge any fees for deposits or withdrawals, though third-party fees may apply in certain situations (e.g., international card transactions, forex conversions, or bank transfer fees), and the fees are determined by investor's payment provider or bank.

Currency Conversion Fee

If you trade instruments denominated in a currency different from the currency of your account, Plus500 charges up to 0.7% of the net profit or loss (P/L) for that trade.

Inactivity Fee

If there is no login activity for at leastthree months, Plus500 charges an inactivity fee of up to $10 per month. The fee is deducted monthly until the account is reactivated by logging in.

Stop Loss Orders & Execution Risk

In volatile market conditions, the Stop Loss Order may not be executed at the exact price level you selected. While this helps limit losses, it may result in wider spreads during periods of market volatility.

From above, we can see that Plus500 offers a relatively straightforward fee structure focused on spreads and overnight funding. While there are no fees for deposits or withdrawals, traders should be mindful of currency conversion fees and the inactivity fee.

Education

Plus500 offers a wide range of educational resources so traders of all levels can understand the platform more easily.

• Traders Guide: Comprehensive tutorials on using the platform and understanding how to trade a variety of instruments.
• Beginners Guide: An introduction to CFD trading and the financial markets, perfect for those new to trading.
• Webinars: Live, expert-led sessions that offer in-depth insights into trading strategies and market trends.
• eBook: A downloadable guide that covers key trading principles and strategies for improving performance.
• FAQ: A section with answers to common questions about the platform and its features.

Overall, Plus500s educational resources are helpful and accessible for beginner to intermediate traders, but more advanced content could make it even more valuable for experienced users.

User Feedback on WiKiFX

WikiFX exposure section is a prism to reflect a broker's performance where traders can release their opinions and feelings trading with brokers. So far, 27 traders have left their footprint and shared their trading experience with this broker, with 3 praised the broker for pleasant platform, responsive customer service and good returns.

However, 20 negative reviews are recorded on WikiFX at the same time, pointing areas that need improvements. Most of these complaints are withdrawal difficulties, together with other issues like system slippage, frozen accounts and malicious spread. These issues, if not addressed timey and appropriately, are believed to bring customer loss and customer disatisfaction. Therefore, the broker obviously needs to take immediate actions to improve its withdrawal process and system stability to maintain positive customer experience and long-term success.

Traders are encouraged to interact with each other and share their trading experience within WikiFX community through the exposure section. Our professional team is here to give hands anytime if you encounter problems and report awkward issues in this area.

Compare to Similar Brokerages

Logo
Broker	Plus500	IG	Robinhood	Fidelity
Regulators	ASIC, FCA, FSA, CYSEC, FMA, MAS	ASIC, FCA, FSA, AMF, FMA, MAS, DFSA	FINRA	FSA
Product Offerings	Indices, commodities, forex, shares, options, ETFs	CFDs on shares, indices, forex, commodities, cryptos, options, interest rates, bonds and ETFs	Crypto, Options, Retirement, ETFs	Mutual Funds, Cryptos, Direct Indexing, Fixed Income, Bonds & CDs, ETFs, Options
Account Minimum	/	$0	$1	$10
Commission	$0	0.08-0.35% for share CFDs	$0 per trade	$0 per trade
Promotions	✔	✔	✔	❌

The Bottom Line

Overall, Plus500 is a well-regulated broker supervised by several financial authorities in various countries, with its financial activities monitored and rectified by these institutions. Though sevel negative reviews recorded on WikiFX and the broker has been abstract when offering information about overnight funding and spread, it still remains as a user-friendly option for most traders due to competitive spreads, trading fees, and proper security measures.

For professional traders who can access premium services with adequate capital, high trading volume and frequency, Plus500 can be an even more appealing choice with overwhelming privileges.