Subject to regulation by the UK Financial Services Authority, Plus500 is an online trading center that offers trading of CFDs, commodities, stocks, ETFs, and indices. This online trading center boasts of over a million users, with a large percentage of them coming from Asia and Europe.
Plus500 is considered as one of the simplest trading centers that one can conduct his or her dealing with, offering as lows as 2 pips a spread to traders which is more attractive when compared other brokers. What makes Plus500 so popular in the trading industry and is it recommended by many? Let’s take a closer look and find out.
What Plus500 Offers to Traders
In a nutshell, Plus500 is known to provide the no-frills style of trading to its account holders. It does not offer multiple trading platforms, but rather, provides its own in-house trading platform that is developed by its own team. This proprietary platform can be used by traders depending on the version they use. At present, Plus500 has their trading platform up and running for Windows and Mac PCs, a web interface, and mobile devices running on Android and iOS. Those who wish to trade on Plus500 can use any one of these versions regardless of the type of trade being made, so there is no need to switch to another platform to be able to trade indices after trading in stocks for example.
What’s good about this is that Plus500 traders can switch between versions without hassle, allowing them to be on the go even while conducting their dealings through the trading platform. Aside from this, the interface provided by Plus500 is clean and uncluttered, without the usual overload of indicators and information feeders that are common in almost any type of platform being used these days. Users only have one screen to work with, eliminating the difficulty of toggling multiple screens and switching from one to the other while trading. The broker’s proprietary trading platform is designed to work for experienced traders and novices alike, which is probably the reason why it has become quite popular among online traders.
Plus500 also makes it simple for anyone interested in trading to sign up, offering just one type of account across all users regardless of the amount of capital. A free demo account is provided to all Plus500 account holders, and deposits are pegged at a minimum of 100 Euros for those who wish to do live trading. Like most brokers, the company also doesn’t charge commissions on executed trades but relies on spreads charged to traders once a trade is executed.
How It Works
Traders who wish to take advantage of the Plus500 platform are encouraged to sign up for an account and are given an unlimited demo account upon doing so. Deposits can be made through wire transfer, credit card, and Moneybookers. PayPal is not offered as a viable means of deposit, so one would have to rely on one of the three choices mentioned above. Withdrawals on the other hand are processed in a timely manner, with traders receiving their funds in their bank accounts as soon as the proper clearances have been accomplished.
Advantages and Disadvantages of Plus500
The broker’s proprietary trading platform is clearly one of its biggest advantages, offering an interface that is free from distraction yet full of the essential services that any trader needs to perform. It is simple enough to manage yet effective enough to produce positive results. The low spreads being offered to traders is also another plus for the broker, allowing its account holders to take home more profits.
Aside from this, the fact that it is regulated by the FSA sends a clear signal that it is a very legitimate trading enterprise. It puts interested parties at ease should they decide to try the service out, knowing that the trading platform they use is regulated and subject to fines and penalties should an anomaly occur while trading. Novice traders are also more likely to choose Plus500 because of its simplicity. It allows them to develop their trading strategies without the risk of losing real capital because of the unlimited demo account provided. This means one can take as much time as needed before being confident enough to trade in real time.
The downside to Plus500 as I see it is the lack of live support while in the trading platform. There is no chat support available although its customer service reps usually respond to a query within 30 minutes or receiving a support ticket. If you’re the type of trader who relies heavily on interaction while trading, Plus500 may come as a disappointment.
Another drawback to the Plus500 system is that it does not offer trading in some countries across the globe. This limits its reach to various traders in my opinion, seeing that those in other countries will not be able to access the proprietary platform and will therefore just choose to do business with other brokers that can offer the services they need. Using a proxy server or hiding your IP won’t work either, because the site is protected and only those from allowed countries are able to load the main site.
Final Word on Plus 500
With the number unregulated trading systems online, it is easy to get sucked into a never ending process of trading and waiting for profits to be honored or credited. Worse, the increasing number of unregulated brokers means that scams are more than likely to proliferate quite rapidly. This makes it really difficult to identify which brokers are legit and which ones are not. Those who use Plus500 can be secure in the knowledge that the broker is regulated by a recognized financial agency, and as such, they can go about their trade dealings without worry. The simple proprietary trading platform being offered does wonders for beginners and experienced traders, and the low spreads are very attractive especially to those who don’t have much capital to begin trading and trying to gain profits on their investments.