Review of Plus500 Platform - Safety or Scam?

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Plus500 is a cryptocurrency trading platform, specializing in trading across various financial markets with relatively low spreads, no commissions, but limited additional services. Established in Israel and operating in the UK since 2008, Plus500 focuses on forex and CFDs (contract for difference) trading.

Article Contents:
1. Pros and cons of Plus500.
2. Trading fees.
3. Account opening.
4. Deposits and withdrawals.
5. Web trading platform.
6. Markets and trading.
7. Is Plus500 safe?

Currently, subsidiaries of Plus500 are authorized and regulated by various entities, including top organizations like the Financial Conduct Authority (FCA). Plus500 is considered a secure cryptocurrency trading platform as it operates on the stock exchange, discloses financial information publicly, and is overseen by reputable authorities.

1. Pros and Cons of Plus500

Plus500 is recommended for experienced traders seeking a user-friendly platform with an excellent user experience.

2. Trading Fees

2.2. Financial Proportions

Annual financial ratios at Plus500 soar impressively. Brokers calculate financial interest if you maintain a leveraged position for over 1 day. However, Plus500's ratio is only disclosed on the trading platform, with a non-transparent calculation method. Plus500 reserves the right to alter prices at any time based on their decisions, potentially impacting your trading fees if you tend to hold positions longer.

2.3. Non-Trading Fees

Plus500's non-trading fees are rated moderately, and their withdrawal fee policies are relatively favorable. You can make up to 5 free withdrawals per month, followed by a charge of $10 or less. Additionally, bank transfer withdrawals incur a fixed fee of $6 per transaction. Inactivity fees are not excessively high, with a quarterly charge of $10 after 3 months of inactivity.

3. Account Opening

The process of opening a Plus500 account is remarkably seamless, swift, and modern.

3.1. Who Can Open a Plus500 Account?

Plus500 welcomes clients from around the globe, with only a few exceptions. For instance, residents of the United States, Canada, Cuba, Iran, Syria, etc., are ineligible to open an account.

3.2. Minimum Deposit

The minimum deposit at Plus500 is 100 USD for debit/credit cards and e-wallets, and 500 USD for bank transfers.

3.3. Account Types

Plus500 offers only one direct account type, catering to individual accounts and does not provide corporate accounts.

3.4. Account Opening Process

For a swift account opening, Plus500 will assist you in completing it within one day.

4. Deposits and Withdrawals

Depositing and withdrawing with Plus500 is highly convenient. You have multiple options, the process is user-friendly, and it is often free of charge.

4.1. Base Currency Account

You can open your account in various basic currencies, even low-value ones are supported. Contact support if you wish to change your base currency, ensuring you do this before depositing funds.

4.2. Deposit Fees and Options

Plus500 offers free deposits with a variety of options:
+ Bank Transfer
+ Credit/Debit Cards
+ Skrill
+ PayPal

Bank transfers may take several working days, whereas e-wallets and credit/debit cards can be supported instantly. Note that you can only deposit funds from sources in your name.

4.3. Withdrawal Fees and Options

Plus500 supports free withdrawals 5 times per month, then $10 per transaction. Additionally, the platform specifies a minimum withdrawal of $50 for Paypal and $100 for bank transfer or credit/debit cards. You can only withdraw funds from sources in your name.

5. Web Trading Platform

Plus500's trading platform is highly user-friendly, but its drawback is the lack of customization options.

Plus500 features its own developed web trading platform, available in 30 languages, supporting both web and mobile versions. Additionally, Plus500 provides investment portfolio reports and transparent fee disclosures.

6. Markets and Trading

At Plus500, you can only trade with CFDs and forex. There are nearly 2,000 CFDs for you to choose from.

7. Is Plus500 Safe?

Plus500 is regarded as a secure trading platform. It operates a range of subsidiaries, and depending on your residence, one of these subsidiaries will serve you. The investor protection amount you receive depends on the country of the subsidiary you register with. For example, if you're from the United Kingdom, you'll register with Plus500UK Ltd and receive investor protection up to £85,000. Plus500UK Ltd is under the regulatory authority of the FCA.

Plus500 is listed on the Main Market of the London Stock Exchange—a significant security advantage. Other aspects such as ownership rights, company profits, regulatory compliance, etc., are transparent, well-documented, and disclosed in Plus500's annual reports.

A financially strong parent company is also an advantage for Plus500, as it can provide additional capital to the online broker if needed. As of March 9, 2018, the largest owners of the company are predominantly major investment banks and asset management companies such as JPMorgan and Morgan Stanley. Additionally, you can explore more about AxiTrader: What is it? Is it safe or a scam?

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Frequently Asked Questions

What are the main benefits of using Plus500 for cryptocurrency trading?

Plus500 offers several advantages for cryptocurrency trading, including low spreads, no commissions, and a user-friendly platform. It's suitable for experienced traders looking for a seamless trading experience across various markets.

How does Plus500 ensure the safety and security of its users?

Plus500 is considered a secure trading platform as it operates under regulatory authorities like the FCA. It provides investor protection depending on the user's location and has transparent financial practices.

What fees should I expect when using Plus500 for trading?

Trading fees on Plus500 can vary, with low spreads and some non-trading fees. Users benefit from up to five free withdrawals per month, while inactivity fees apply after three months of non-use.

Is there a minimum deposit required to open an account with Plus500?

Yes, the minimum deposit for Plus500 is 100 USD for credit/debit card and e-wallet transactions, while a higher minimum of 500 USD is required for bank transfers.

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