On its website, broker Plus500 describes its approach to fees and charges as “competitive, straightforward and with no surprises”. There is no doubt that it’s absolutely true that most of the company’s services are free of fees, which is of great benefit to trading customers. Where Plus500 charges do apply, the company makes it perfectly clear what these are and the basis for calculating and applying them. The Plus500 fee structure is based on a trader’s specific activity and the company’s tight spreads – acknowledged as among the lowest across the entire industry.
Info: A trader with a Plus500 account can trade CFDs on underlying financial instruments such as Forex, Stocks, Crypto currencies, Commodities, Options and Indices.
80.6% of retail investor accounts lose money when trading CFDs with this provider.
When trading with Plus500 there are no fees required for a very wide range of services. These include making deposits and gaining access to dynamic charts and graphs. Obtaining live share CFD prices is also fee-free as are opening and closing trades. Traders can obtain Forex quotes in real time and roll their position without incurring any costs whatsoever.
Plus500 trading fees may apply in certain circumstances, however. For example, if an overnight funding amount is either subtracted from or added to a trader’s account when a position has been held for a certain time trading fees would apply. This is usually referred to as “the overnight funding time”. To calculate the daily overnight funding amount of a position Plus500 uses a formula comprising the size of the trade, multiplied by the opening rate, multiplied by the percentage applied to daily overnight funding. For additional information traders can go to the main screen of the trading platform for the relevant instrument and check the “Details” link beside it.
The Plus500 inactivity fee is a modest cost applied to a trader’s account should they fail to log in to an account for a three-month period. Normally this is in the region of about $10.
Usually, Plus500 will not charge for deposit or withdrawal fees. However, in certain circumstances traders who exceed the maximum permitted number of withdrawals will be charged Plus500 withdrawal fees.
Plus500 does not charge any commissions on trades. In any Plus500 fees comparison, it’s clear that this makes the broker very attractive to traders. Other brokers who charge commissions do this as their way of making money. Plus500, however, is compensated for its services through the Buy/Sell (Ask/Bid) spread: When a trader opens a position, they essentially “pay” the spread. However, this spread is built into the rates quoted by Plus500 and does not represent an additional charge or fee payable by the trader. Instead traders may be liable to pay a modestly larger widened spread on the funds in which they are trading.
The spreads begin at a lower level and they differ according to the kind of assets that are being traded. Market factors will cause variations during the day on the buy and sell price of any currency pairing. It’s worth noting that Plus500 spreads are not the lowest in the industry as other Forex brokers do offer lower rates, although they also charge commissions.
Plus500 offers a variable or dynamic spread for its trading instruments. When a position is open, the dynamic spread can change from the time a trader opens the position until it is closed. Frequent traders can find it very difficult when trading costs are inconsistent.
Plus500 is attractive to many traders because of its free services and zero commissions. For example, costs for the currency pairing EUR/USD all-in spread including commission vary with other brokers. However, they don’t apply at all at Plus500.
As with City Index the minimum deposit required by Plus500 is $100, whereas Pepperstone requires a deposit of $200 and Forex.com, $250. In terms of the total number of CFDs offered, Plus500 offers 2,045. Brokers such as IG Group and City Index offer 15,000 and 10,000 respectively, while Pepperstone offers 26 and Forex.com offers 97.
Plus500 offers a competitive leverage at 1:30.
In any broker comparison, one essential factor that should not be overlooked is the ease of use of the broker’s site and platform. A comparison of trade speeds and ease of use demonstrates that Plus500 scores well on both counts, with speeds being moderate and ease of use gaining 4 out of 5 points. A selection of other brokers’ scores were:
A recent Plus500 review published by an Australian comparison site found that most customers are generally positive about the broker compared to other Forex trading brokers. Many traders have also left upbeat comments on the Plus500 website itself.
As well as taking note of fees, commission and charges, it’s important that traders are fully aware of the trading instruments provided by brokers. For example, the instruments provided by Plus500 vary by region so it’s best to check beforehand what is available locally. Overall, the broker provides trading opportunities in CFDs on shares, meaning equities or stocks, as well as CFDs on:
Plus500’s trading platform allows customers to access the world’s most actively traded shares via CFDs.
The Forex market is the largest market in the world and at Plus500, CFDs can be traded on some of the world's most popular currency pairs, such as the EUR/USD.
As a stock index is actually a statistic that reflects the blended value of a group of stocks, then an index lists stocks that have similar characteristics such as belonging to the same industry, having similar market capitalisations or trading on the same stock exchange. Plus500 makes available some of the world leading indices for trading through CFDs.
When buyers are seeking contracts offering the right to buy or sell a particular number of units of an asset, but without an obligation to do so, they will often turn to options. The price (called a strike price) is usually predetermined and the contract generally has a specific expiry date. Plus500 lets traders use CFDs options on indices at various strike prices most relevant to the underlying index rate.
With such a good deal available on Plus500 fees and Plus500 commission, many traders look into Plus500 prices before making a decision. These are obtained via a range of third party independent providers of market data and these providers source their price feeds from exchanges relevant to the trades. Plus500 then applies an automatic adjustment or spread to arrive at the final Plus500 price for each financial instrument.
Remember that traders can find information about spreads for specific instruments on the main website or on the trading platforms by clicking the “Details” link.
Traders therefore pay the spread as it’s incorporated into the quoted rates, so it isn’t an extra payment or additional charge. Both fixed and dynamic spreads are available for financial instruments. As Plus500 also offers trades in cryptocurrencies, pricing for these is generated from specific exchanges, which can vary widely.
Among the cryptocurrencies traded are Bitcoin, Bitcoin Cash and EOS, as well as:
Traders can make deals on cryptocurrencies around the clock as the market is open 24/7 including weekends (Excluding Sundays at 13:00-14:00 UTC).
As well as saving money on Plus500 fees and commissions, customers can be reassured that their funds are safe when trading with the company. Plus500 is based in Sydney and trades worldwide.
Plus500UK Ltd is authorized and regulated by the Financial Conduct Authority (#509909). Plus500CY Ltd authorized & regulated by CySEC (#250/14) Plus500SG Pte Ltd, licensed by the MAS (#CMS100648-1) and IE Singapore (#PLUS/CBL/2018). Plus500AU Pty Ltd (ACN 153301681), licensed by: ASIC in Australia, AFSL #417727, FMA in New Zealand, FSP #486026; Authorised Financial Services Provider in South Africa, FSP #47546. The investor has no rights to the underlying assets. Trading is conducted in the form of CFDs. The investor has no rights to the underlying assets. Trading is conducted in the form of CFDs. Further information is available on the Plus500 website.
This means it does not use clients’ funds for hedging, instead holding them on trust in a segregated account. Clients’ money is therefore protected by law and administered according to the Corporations Act.
Client funds are never invested by Plus500 or involved in business transactions. The company uses its own funds for hedging and never uses traders’ money for any kind of speculative venture. Traders do not pay any Plus500 charges apart from those already mentioned. However, there are some occasions on which a trader’s bank may charge for certain transactions. For instance, when a trader is using an international credit card and transactions are being processed through foreign acquirers, some charges may apply. Similarly, when traders are transferring money from their bank accounts to Plus500, and vice versa, the banks may charge for the transaction.
Generally, reviews published on a number of international comparison sites have been mostly positive when the broker is compared to others offering similar services. If traders were concerned about the safety of their funds, this would not be the case.
As a broker, Plus500 seems to live up to its claims on the company website. The fact that it makes no charges for services or commission is a major bonus for traders. Instead, rates quoted are all-inclusive so traders are clear from the outset on what commitments they will need to make. Both fixed and dynamic spreads are offered beginning at two pips, depending on the asset being traded. Plus500 has a straightforward platform that is easy to use and liked by the company’s customers. The trading platform is accessible from several operating systems, including Windows, smartphones (Android, iOS and Windows Phone), tablets (Android, iOS and Surface) and web browsers.
Leverage is competitive and a wide range of trading instruments include cryptocurrencies, Options and Forex. Plus500 retail customers using the online trading platform can trade CFDs internationally in more than 50 countries across in excess of 2,200 different financial instruments. These include equities and indices as well as commodities. Historically Plus500 has paid significant dividends to shareholders and intends to continue to pay dividends to provide a cash return to shareholders on their investment.