Plus500 Review: CFD Trading and More

Plus500 is a trusted online broker and leverage platform which offers its large customer base the ability to trade Contractor-For-Difference (CFD) to speculate on cryptocurrencies, shares, Forex (FX), commodities, ETFs, options, and indices. The global CFD provider is based in Israel. Their presence in several jurisdictions around the world is regulated by top-tier authorities.  

In this review, we will focus on cryptocurrency CFD trading and how it compares to other well-known and global digital currency platforms. Plus500 is not a traditional cryptocurrency exchange. Traders and investors seeking to acquire and grow crypto should consider one of the top cryptocurrency exchanges in Australia.

CFPs are a leveraged product and can result in a total loss of your entire balance. Traders considering Plus500 should fully understand the risks involved.

Any affiliate links with our partners may result in MoreCrypto earning a small commission or compensation at no extra cost to you whatsoever. 

What is Plus500?

Plus500 is a leading provider of Contracts for Difference (CFDs) which allows its traders to speculate on cryptocurrencies, shares, Forex (FX), commodities, ETFs, options and indices. Plus500 is widely known for its beginner-friendly trading platform and one of the best mobile apps in the market. 

The platform offers its large customer base a beginner-friendly platform to trade the world’s most popular cryptocurrencies. Leverage of up to 30x is available on popular assets including Bitcoin, Ethereum, Litecoin, Neo, Ripple, EOS, Cardano, Tron and Monero.

Pros and Cons

Key takeaways

Name 

Core Services

Available cryptocurrencies

Deposit Options

Deposit Fees

Trading Fees

Withdrawal Fees

Mobile App

Plus500

CFD trading with leverage

Bitcoin, Ethereum, Stellar, Litecoin, Cardano, NEO, IOTA, EOS, plus other indexes

Credit/debit card, PayPal, Bank Transfer, Skrill and BPAY

None

No trading fees, spreads only

None

Yes

Top Features You Should Know

30x Leverage Trading

Plus500 is a unique platform that only offers CFD trading with leverage. There is a difference between buying and selling cryptocurrencies on an exchange and trading cryptocurrency CFDs on a platform like Plus500. When crypto is bought on a regular exchange, the crypto is stored in the exchange’s wallet or a personal wallet. With CFP trading, traders just speculate on the price action of the asset for a profit.  

With CFD/leverage trading, traders can benefit from rising prices by buying low and selling high, or from falling prices by selling high and exiting low. Positions close at a loss if market prices move in the direction that was predicted. Plus500 customers are able to use up to 30x leverage to access more capital 

Risk Management Tools

It is no secret that CFD leveraged trading may not be for the risk-averse trader. As such, Plus500 offers a variety of risk management tools.

‘Close at Profit’ (Stop Limit) or ‘Close at Loss’ (Stop loss) orders

Guaranteed Stop

Trailing Stop

These orders can be added when opening a new position or when editing an existing position. A specific rate can be set at which the position will closed, protecting your profit (Stop Limit) or minimising your loss (Stop Loss).

An absolute limit on potential loss can be set Even if the price of the asset moves significantly negatively, the position will automatically be closed at the specified price.

Placing a Trailing Stop order assists to lock in a certain amount of profits. A Trailing Stop order remains open as long as the price moves in a positive manner, but will automatically update/close if its price changes direction by a specified amount. 

Demo Account

Plus500 offers a free demo account that users can use to practice CFD trading, simulate real-world trades and explore the platform. The same trading features available in the real version can be used to buy and sell leveraged cryptocurrencies including Bitcoin, Litecoin, and Stellar. 

BITA Crypto Index

Plus500 is one of the few trading platforms that offer a crypto index fund. Cryptocurrencies held in the fund are not own, instead, customers speculate and profit on their price action. Having an index fund that contains a number of the top-forming cryptocurrencies is an investment option that will appeal to many. 

Plus500’s BITA Crypto 10 Index provides a transparent and objective measure of the Price Return Performance of a basket of leading cryptocurrencies, measured against the US dollar, trading at well-established digital asset exchanges. The allocation are below. 

Constituent

BTC

ETH

ADA

BNB

DOT

DOGE

UNI

LINK

LTC

BCH

Weight

25.66%

25.01%

15.62%

12.32%

6.34%

5.74%

2.91%

2.26%

2.12%

2.03%

Is Plus500 Regulated?

Plus500 is a legitimate and regulated CFD provider that serves over 70 countries throughout the world. In Australia, the company is licenced by the Australian Securities and Investment Commission (ASIC), AFSL #417727, and is authorised to offer CFD trading. ASIC is an independent government body that administers the Australian Securities and Investments Commission Act 2001.

Security Measures

Plus500 is a legitimate and safe platform that implements a range of best-in-class security protocols, including Two Factor Authentication (2FA) and separate storage of customer funds. The platform is protected by Secure Socket Layout (SSL) and all sensitive information such as credit card numbers and passwords are automatically transferred to a secure environment. 

What About The Fees?

Deposit & Withdrawal Fees

Plus500 do not charge any fees to deposit or withdraw funds into the the wallet. If the number of monthly withdrawals is exceeded then a $10 will be incurred. Deposits or withdrawals made using an international credit card or bank transfer may attract a currency a conversion fee as determined by the financial institution. 

Spreads

Plus500 is compensated for their services through buy and sell spreads that apply for each transaction. When a position is opened, the spread is “paid” for. Plus500 charge zero trading fees.

Additional Fees

Overnight Funding

Guaranteed Stop Order

Inactivity Fee

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’).

A unique order type is used to help you manage risks by guaranteeing the stop loss level. If you choose to use this feature, please note that as it guarantees that your position closes at a specific requested rate, it is, therefore, subject to a wider spread.

If an account is not logged into for a period of 3 months, then a $10 fee will be incurred. The fee will be charged every month thereafter until account activity occurs.

Accepted Countries

Plus500 is available to investors and traders in over 70 countries around the world including Australia. The company is licenced by ASIC (AFSL #417727) as an authorised provider of CFD trading services.

Getting Started

Creating An Account & Registration

Creating a Plus500 account only requires an email address and password. Following log in, the Plus500 WebTrader can be accessed. We recommend activating Two-Factor Authentication (2FA) to provide better-secured access to the account and minimise the potential for security breaches. The 2FA works similar to that of other platforms where a code will be sent via SMS to the nominated mobile device.

In order to start depositing funds into the wallet, registration of the account must be completed. The user will be prompted to complete a brief questionnaire that will cover the following: 

  • Brief contact details including full name and address.
  • Previous trading experience with CFD, indices.
  • Any professional experience that may assist in understanding the nature and risks of CFD trading.
  • Employment status and field of work.
  • Brief financial details (e.g. annual income, amount available for trading).
  • A series of questions to determine eligibility to trade with Plus500.
  • Acknowledgement of Plus500 disclaimers.

Deposit Methods & Limits

Plus500 customers are able to deposit funds into the account wallet using credit/debit card, PayPal, Skrill, BPAY, or direct transfer from an Australian bank account.

Method

Credit / debit card

PayPal

Skrill

BPAY

Bank transfer

Minimum / Maximum Limits

$200 / $60,000

$200 / $60,000

$200 / $60,000

$100 / $300,000

$500 / no limit

Time

1 – 3 business days

Instant

Instant

Instant

Up to 5 business days

User Experience

Plus500 WebTrader Interface

Plus500 users will be greeted with a clean, carefully laid out, and customisable charting display. On the left, the CFD tradeable assets including indices, cryptocurrencies, Forex, and commodities are displayed. Selecting a class will display the assets in the middle window.  The display has been tailored for beginner and intermediate CFD traders in mind, however, there are a number of advanced charting tools available for advanced traders. These include but are not limited to: 

  • Simple Moving Averages
  • Relative Strength Index
  • Bollinger Bands
  • Average True Range

CFD traders will be able to access summaries of their open positions, current orders, and closed positions by selecting the tabs on the far left of the interface. Additionally, key account information including AUD funds available, equity, margin, and profit/loss indicators are clearly presented at the top of the page.

Trading CFDs

Buy and sell positions can be achieved by clicking on either of the “Buy” or “Sell” buttons on an asset. An order box (shown below) will be presented. The current rate (price), amount of contracts (size of trade), view of the position value, and required margin to open the trade will be shown. This information is helpful for traders to calculate the trade risk of their total capital. 

Traders will also have the option of applying a “Close at Profit” or “Close at Loss” to protect profits or minimise losses.

Customer Support & reviews

The Plus500 customer support team can be accessed via the live chat tool or e-mail. Users will also have access to the following education tools and resources:

  • Plus500 Trader’s Guide – a series of educational videos that describe the ‘how-to’ of CFD trading.
  • An ebook that outlines the basics of CFD trading with Plus500 and how to get started.
  • A comprehensive Frequently Asked Questions (FAQ) section that provides concise answers to common queries including the account verification process, deposits, fees and charges, and CFD trading.

Plus500 has fairly mixed reviews on Trust Pilot. With a score of 3.5they have several past customers complaining about poor customer support, trouble with both withdrawals and deposits, and the high fees charged for keeping a position open overnight. While the overnight fee is undoubtedly a pain point for many traders who have not experienced this before, my own experience with Plus500’s customer support was immaculate. They replied within a few minutes through their live chat and were extremely helpful.  
 
There are also a number of great reviews that speak very highly of their trading experience, but it’s important to keep in mind that these are just individual opinions and no single review should be taken as a complete reflection of the platform overall. Given that Plus500 offers a lot of features that other exchanges don’t, we still think it’s an attractive option for trading crypto CFDs despite the negative reviews it has received. 

Mobile App

A Plus500 app is available for iOS and Android devices. Receive price alerts from within the app so you can trade on the go. 

Frequently Asked Questions

Is Plus500 Beginner Friendly?

The Plus500 platform is one of the most user-friendly platforms on the market. Despite offering a form of trading that suits experienced traders with a high risk tolerance, Plus500 manages to simplify CFDs while not compromising on advanced features needed to optimise your trading strategy

Does Plus500 Have A Demo Account?

Plus500 offers a free demo account that users can use to practice CFD trading, simulate real-world trades and explore the platform. The same trading features available in the real version can be used to buy and sell leveraged cryptocurrencies including Bitcoin, Litecoin, and Stellar. 

Our Verdict

Overall, Plus500 is a trading platform that has made crypto CFD/leverage trading incredibly accessible to people of all experience levels. They offer several unique features, including a crypto index fund, a 24/7 live chat and a demo account as well as thousands of different financial instruments to trade with.

While some of the fees can be quite high and their range of cryptocurrency is limited, they are a safe and high-quality platform that should be considered if you are in the market to trade crypto with leverage.

Leave a Comment

Your email address will not be published. Required fields are marked *