​Plus500 Review - ​The big breakdown?

Plus500 is an online broker founded in 2008. With close to $1 Billion in revenues, it has grown to become one of the most popular brokers for forex CFD trading.

And for good reasons too- It has passed the tightest of regulatory controls, offers great customer service and trading platforms, and charges very competitive fees.

​An important consideration to take is that plus500 offers only CFDs, so if you’re looking to trade binaries, you should consider other brokers.

Today, we’ll show you why plus500 is our preferred broker for CFD forex trading.

But before we get into the review, it is important to note that as with any forex broker, there are risks associated with trading with plus500: 76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Review summary:

93%


With a score of 93%, plus500 ranks in our top 5 overall best brokers for forex trading.

It is particularly good for CFD traders who like to conduct their research outside the trading app.

Pros:

  • Tightly regulated
  • Solid financials
  • Clean desktop and mobile interfaces
  • Stellar customer support

Cons:

  • In-app research is lacking

Warning: 76.4% of retail CFD accounts lose money when trading CFDs with this provider

Is it safe?

​This is probably the most important question to ask when considering a forex broker.

Luckily, plus500 hits the safety trifecta:

  1. It’s publicly listed at the LSE
  2. ​Regulated and authorized by some of the most stringent entities. ​It is important to note that Plus500UK Ltd is authorized & regulated by the FCA ​(#509909).
  3. ​Publicly discloses its financials, which have consistently held up against financial analysts’ scrutiny.

One of the most impressive facts about plus500 is its above average profitability. Due to their efficient risk management strategy and focus on CFDs, the broker has managed to achieve a net margin of over 50% in 2018, which is almost unheard of in this industry.

They’ve never had a liquidity issue and with such solid results are unlikely to have any in the future.

We’d therefore consider it one of the ​most secure forex brokers in the market.

Commissions and Fees

​Plus500 offers no commission trading and withdrawals. ​An overnight funding amount is either added to or subtracted from your account when holding a position after a certain time (referred to as the “Overnight Funding Time”). The exact details of this fee varies ​depending on the trading instrument ​and how long the position has been held. When inside the Plus500 platform click on 'details' beside the instrument to find out more.

At the time of writing this article, their spread for the EUR/USD CFD was 6 pips, a very competitive rate. (07/12/2019 at 16:42)

Their inactivity fee is of $10 a month after 3 months of no logins.

All in all, they offer some great conditions for active CFD traders.

Commissions and Fees Summary:

Feature

plus500

Minimum Initial Deposit:

$100.00

Inactivity Fee:

$10.00 / month after 3 months of no logins

Spread:

Variable: ​(depending on trading instrument)

Overnight Holding Fee:

Variable: ​(depending on trading instrument)

Platforms and Tools

Like most competitors in the space, plus500 offers a browser-based trading platform and a mobile app.

The platform comes with your standard customizable dashboard. Here you’ll find a price list for the major currency CFDs, as well as some simple yet highly useful candle price charts.

With sidebar tabs for Open Positions, Closed Positions, Orders, Funds, and Live Chat, we found this platform to be refreshingly simple.

One feature that caught our attention was the in-app live chat support tab. This allows you to talk with a support agent without leaving the trading web app, which is extremely useful for debugging any issues.

A notable absence is the lack of in-app research tools. Plus500 is lacking a news feed, ​​although ​they do offer an economic calendar​.

The only research tool we found in the app were the technical pattern indicators, as exemplified below by their Bollinger bands view.

The available indicators were quite extensive though, better than any app we’ve tested yet.

All in all, if you’re looking for a simple interface with loads of technical indicators, plus500 is your broker.


click images to enlarge

​Illustrative prices

Customer Service

One of the standout features of plus500 is its stellar 24/7 support.

It has most of the usual channels available: online chat, email, and social media.

There is one notable absence though: Phone support.

Despite the fact that both their live chat and email support were quick to answer any queries, we still consider it important to have a human available through the phone in case of emergencies.

Research

​To put it bluntly, plus500’s research section is underwhelming.

It lacks a lot of the major research features that most of its competitors offer: Macroeconomic news feeds, in-app articles and trade signals, and fundamental data.

It does offer some good technical charts and a simple economic calendar on the mobile app, but based on the competitive landscape, plus500 is lacking in this area.

click images to enlarge

Bollinger bands technical chart view

A sample of the technical indicators available to plot in the price charts.

It seems as though plus500 assumes you will make your own research outside the app, which is a reasonable assumption for advanced traders. And since CFDs are

If you’re just starting out and are looking for extensive in-app research, this might not be the best broker to choose.

Mobile Trading

To end on a high note, we found plus500’s mobile trading app to be better than most of its competitors.

Much like its browser counterpart, it offers one of the simplest mobile interfaces we’ve seen in the industry, and that’s a major plus.

In our experience, mobile trading is usually for opportunistic trades done on the fly. This means that apps don’t need sophisticated layouts and features. Simple trade execution is a most, and plus500 offers one of the cleanest trading interfaces in the mobile forex app landscape.

It also includes an economic calendar and market news notifications.

Mobile app trading dashboard

Mobile app economic calendar

Tabs available for the mobile app

Conclusion

​All in all, if you are looking for a reputable CFD broker with relatively low costs that won’t run away with your money, plus500 should be your number 1 choice. Although if you're still unsure feel free to read our breakdown of all the top Forex brokers.

It has solid apps and customer support and is a specialist when it comes to CFD, offering industry-leading variable spreads.