76.4% of retail CFD accounts lose money
Plus500 is one of the leading trading platforms that offer CFD trading in Shares, Indices, Forex, Cryptocurrencies, ETFs, Options, and Indices. The platform is owned and operated by Plus500 CY Ltd, a subsidiary of Plus500 Ltd which is listed on the London Stock Exchange’s Main Market. Plus500UK Ltd is authorised and regulated by FCA (Financial Conduct Authority)(# 509909). Plus500CY Ltd is authorised and regulated by CySEC (Cyprus Securities Exchange Commission) (# 250/14) and is headquartered in Limassol, Cyprus. Plus500AU Pty Ltd is regulated by the Australian Securities and Investments Commission, ), licensed by: ASIC in Australia (ACN 153301681). Plus500SG Pte Ltd holds a capital markets services license from the Monetary Authority of Singapore for dealing in capital markets products. Plus500IL Ltd is registered in Israel and licensed to operate a trading platform.
76.4% of retail CFD accounts lose money
The company claims that it doesn’t use the clients’ funds for hedging or other purposes, in accordance with the UK Financial Conduct Authority’s client money protection rules. Under these rules, it keeps clients’ assets in segregated bank accounts. The Plus500 CFD trading platform offers its services to members around the world through different subsidiaries. The web trading platform of Plus500 supports 30 different languages including Spanish, French, Italian, German and Portuguese.
The trading platform of Plus500 is both intuitive and user-friendly, to provide a seamless user experience. At the time of writing, Plus500 offers a portfolio of over 2000 instruments (including cryptocurrency CFDs) on its trading platform. It even allows users to buy and sell a Crypto10 CFD index which follows price movement of the top 10 cryptocurrencies. Moreover, the platform offers a free demo account to users allowing them to test and improve their trading skills without the risk of losing money.
The following review analyses several aspects of Plus500, whilst providing you with an all-rounded detailed overview of the platform and its services. Although Cryptimi does its best to provide you with accurate information, whilst aiming to update it on a regular basis, we strongly recommend that you visit their website for any important updates which might occur after this review has been published.
Plus500 claims that all the personal/sensitive information (credit card numbers, CVV, password, and so on) provided by users are automatically transferred by SSL (Secure Socket Layer) to a secure environment. Also, Plus500 offers Client Money Protection by not handling users’ funds for hedging or other investments. It securely stores users’ funds in segregated client bank accounts.
Plus500 allows users to trade CFDs of the most popular cryptocurrencies like Bitcoin, Ethereum, Litecoin. It also provides an option to trade the CFD named Crypto 10 Index. Apart from cryptos, it even offers CFD trading in Shares, Indices, Forex, Options, Commodities (Oil, Gold, Gasoline) and ETFs. To get the full list of instruments available on Plus500, check out their website.
To start trading crypto CFDs, users needn’t have an account or a cryptocurrency wallet. The platform offers a leverage of 1:2 for trading crypto CFDs and users can start trading with as little as 100 EUR.
The trading platform of Plus500 is quick and easy to navigate. It even provides an easy option to configure real-time alerts for the price movements of instruments. Basically, it offers three types of alerts:
Plus500 also offers a mobile app (Android / iOS ) to help users for trading on the go.
The sign-up process on Plus500 is straightforward since you only need to provide an email address to create an account. Apart from trading fees, there are additional fees which are clearly listed on the website. Additionally, Plus500 allows users to reset their password, in case they forget it.
Follow the below steps to create your account on Plus500:
Congratulations! You have successfully created an account with Plus500.
To log in to your account, follow the below steps:
After logging in to your account, you must provide your personal details and upload the required documents to verify your identity. Only then, you will be able to start trading on Plus500.
In order to start trading on Plus500, users need to verify their account by submitting all the required documents. Since Plus500 follows a strict KYC (Know Your Customer) policy, it expects its customers to verify their personal information, including their date of birth and other valid contact details. To verify their identity, users must upload a government-issued identification document which contains all the necessary information. For verifying the residential address, users can upload a copy of their utility bill, bank/credit card statement, phone/internet bill and/or a tax letter.
Some jurisdictions accept electronic verification, while others require users to provide a hard copy of their documents. Plus500 also asks for users to upload a copy of the bank statement or the front of their debit/credit card, to verify funds’ sources.
Follow the below steps to buy/sell Bitcoin CFDs on Plus500 trading platform. Before starting to place your order, make sure that you have deposited funds in your account.
Follow the below steps to deposit funds on your account. The minimum amount of deposit varies depending on the payment method. For example, you need to deposit at least 100 EUR, if you are using credit/debit cards.
Then, you will see a confirmation window with the message ‘Your deposit was approved!‘. Depending on the processing time of your payment provider, funds will be credited to your Plus500 account.
Now, let’s see how one can buy Bitcoin CFDs on Plus500:
Once your order is processed, real-time information about your open position such as required margin, Profit/Loss will be updated. To close a position, just click the ‘Close’ button that appears next to an open position.
Warning: Since CFDs are complex instruments, they always come with a high risk of losing money rapidly due to leverage. 76.4% of retail investor accounts lose money when trading CFDs with this provider. Hence, it is advised for you to fully understand how CFDs work and make an informed decision based on your research. It is up to you to decide whether you are willing to take the high risk of loss of assets or not. To find out more information about the risks in trading on this platform, it is highly recommended for you to check their disclosure page.
Since trading in CFDs is completely different to trading cryptocurrencies, it is highly recommended to understand the following terminologies:
Plus500 allows users to withdraw their funds using different payment methods like bank transfer, credit/debit cards or electronic wallets (PayPal/Skrill). The minimum withdrawal requirements vary based on the payment method. Follow the below steps to place your withdrawal request:
Then, you will see a confirmation window with the message ‘Your withdrawal was successfully submitted’. Generally, the processing time for a withdrawal request is one business day. Depending on the processing time of your payment provider or bank, funds will be credited to your account.
At the time of writing, Plus500 supports the following cryptocurrency CFDs:
To get the full list of cryptocurrency CFDs supported by Plus500, check out their website.
Plus500 accepts members from over 50 countries worldwide to trade.
Except for the countries listed in the below section, Plus500 is available for all countries including the EU, United Kingdom (UK), Australia, Switzerland, United Arab Emerites, Qatar, New Zealand, Netherlands, South Africa, Spain, Sweden, Singapore, Saudi Arabia, Portugal, Oman, Mexico, Malaysia, Italy, Germany, Bahrain, Hong Kong, Austria, Chile, Colombia, Cyprus, Crech Republic, Denmark, Finland, Israel, Luxemburg, Poland, Argentina, Bulgaria, Greece, Ireland, Latvia, Malta, Romania, Slovakia and many more countries.
At the time of writing, Plus500 does not accept users from the following countries: US, India, Japan, Canada, El Salvador, Belgium, Turkey and Vietnam.
Every CFD trading platform has its own fee structure and limits.
Since Plus500 is mainly compensated for its services through the market spread, it doesn’t charge any commissions on each trade. However, a fee is applicable if you place a ‘Guaranteed Stop Order’. An Overnight Funding fee (explained below) might be applicable, depending on your trading activity.
The overnight funding amount will be added to or subtracted from your account when holding a position after a certain time. The fee varies depending on cryptocurrency chosen. For example, overnight funding percentage for Bitcoin (BTCUSD) is 0% (Sell) and -0.0503% (Buy). To find out Overnight fee for specific crypto, navigate to their Instruments page, select the crypto and click the link titled ‘View full details’.
A fee of up to $10 is applicable if users would not have logged on to the trading platform for a period of three months. However, the fee will be deducted only if there are sufficient funds available in the account.
Plus500 offers a fixed or dynamic spread for its instruments. The calculation of spread can be conducted by subtracting selling price from buying price of the instrument. The dynamic spread can change during the period a position is open, whereas fixed spread remains unchanged from the time you open the position until the position is closed.
To find out the spread fee for a crypto, navigate to their Instruments page and click ‘View full details’ for the crypto you would like to trade. This section has other information which includes initial margin, maintenance margin, leverage and overnight funding fee.
At the time of writing, the ‘Spread‘ and ‘Spread (%)‘ for various cryptocurrency CFDs were as follows:
Generally, Plus500 doesn’t charge any fee to deposit/withdraw funds. However, a fee of $10 is applicable if users exceed the maximum number of monthly withdrawals, which is 5. If you are making international credit card transactions and using a currency that is not supported by the platform, then a Forex conversion fee may be applicable. In this case, the conversion fee will be determined by your payment provider or bank, and not by Plus500. Refer to the ‘Fees’ and ‘Limits’ sections of this review to know more about deposit/withdrawal limits.
The deposit/withdrawal limit varies depending on the payment method and it will be displayed on your account dashboard. For example, the minimum deposit/withdrawal limit for credit/debit card is 100 EUR. For trading cryptocurrency CFDs, your account balance should be greater than or equal to the initial margin which is calculated using the following formula:
IM = position’s opening price*size of the trade*initial margin percentage
Initial margin percentage for cryptocurrency CFDs is fixed at 50.00%. The leverage offered by Plus500 for all cryptocurrency CFDs is 1:2.
Plus500 supports a wide range of fiat payment options which are given below:
Like most platforms, Plus500 also provides 2FA protection (via SMS) to protect users’ accounts from unauthorized access. In addition to this, users can also be notified if a login is attempted from a new device.
The trading platform offers 24/7 support to its customers via Email and WhatsApp. To contact their customer support via email, navigate to their support page, fill out the required information and click on ‘Send query’. Alternatively, you can send a message to their WhatsApp number, and you will probably get a much quicker response. For general queries, users can refer to the articles listed on the FAQs section of the website.
Both platforms offer trading in CFDs for the most popular cryptocurrencies like Bitcoin, Ethereum, Litecoin. Like Plus500, eToro is also authorised and regulated by CySEC. Regarding fees, Plus500 doesn’t charge any fee for deposits/withdrawals, whereas a small crypto transfer fee is applicable with eToro, which incidentally supports more cryptocurrency CFDs than Plus500.
Both CFD trading platforms are regulated by European financial regulator and offer trading in CFDs for the top cryptocurrencies including Bitcoin, Ethereum, Litecoin. Both Plus500 and AvaTrade allow users to trade on the go with their mobile apps. When compared to AvaTrade, Plus500 supports a large number of instruments including shares, commodities, cryptocurrencies and more.
With its intuitive user interface, a free demo account and 24/7 customer support, Plus500 is an excellent platform for trading CFDs. Since it is regulated, it can be guaranteed that the platform operates correctly by following all protocols. However, it is highly recommended for users to be conversant in CFDs and how they actually work before taking the plunge and deciding to trade. Moreover, users should consider the fact that 76.4% of retail investor accounts lose money when trading CFDs with this provider.
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