Online trading platforms are becoming a major part of the financial landscape in the 21st century and their popularity is increasing all the time. They allow everyone access to the markets they service, from the experienced trader to the novice who wants to get involved around their regular daily work routine. Plus500 is a successful and well-established platform that deals in Contracts for Difference (CFDs) and provides innovative trading technology. So how does it work and where does it fit in to the digital financial landscape?
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.
Plus500 is one of the leading providers of Contracts for Difference (CFDs), providing trading facilities on forex, commodities, options and indices and shares, combined with innovative trading technology. If you are doing a broker comparison just search CFD trading apps on Apple’s App Store and Google Play where it is one of the highest rated due to its ease of use combined with its powerful and advanced features. It also includes CFDs on popular financial instruments. Founded in 2008, Plus500’s Trading Platform allowed clients to trade on movements in the price of things such as shares and commodities without having to buy or sell the underlying instrument.
It is one of many online and downloadable trading platforms, such as GFKX MetaTrader, which allows everyone access to markets. By 2011, the group had grown to more than 2,000,000 monthly transactions and also launched the first iPhone and iPad apps allowing clients to access its services wherever they were. Plus500 mobile app proved a smashing success and became the highest rated CFD trading app on Apple's app store. UK-based, with offices located in the city of London, it is authorised and regulated by the Financial Conduct Authority (FCA) to offer CFDs and currently offers a portfolio of over 2000 instruments. Plus500 Ltd is listed on the Main Market of the London Stock Exchange.
Trading via Plus500 is done by opening positions on financial instruments, each instrument of which has a unit amount. This is the minimum size of trade of number of shares or contracts required to open a position. There are also Plus500 Minimum deposit amounts per payment used and these can be seen on the Funds Management screen on the trading platform. You can also search the platform to find the Plus500 minimum trade. The minimum deposit is 100 euros on most funding methods such as debit or credit cards and electronic wallets and a 500 euro minimum on bank transfers. The company doesn’t charge customers for deposits and it doesn’t pass on any such charges levied on them.
If a deposit is made by a user in a different currency to the one in which it is started in, Plus500 may pass on commissions and charges that incur in currency conversion. All of Plus500’s subsidiaries are authorised and regulated in their jurisdictions and comply with all the client money rules there. Any funds sent to a customer’s account with Plus500 are classified as client money and therefore given the maximum protection stated by regulatory requirements. Client funds are placed in segregated trust accounts and the company does not use these funds for any investment or business purpose including hedging.
CFDs or Contracts for Difference have become very popular over recent years, particularly with consumer investors, and there are new CFD brokers launching regularly so researching what’s on offer is essential to find the best CFD broker. Plus500 is a well-established and well-regarded platform, as is GFKX MetaTrader. One reason is that the enhanced disclosure requirements for hedge funds have helped improve the image of CFDs as a valuable part of a diverse and profitable portfolio. Also, some of their features make them attractive to investment managers, contributing to their popularity as an instrument.
In essence, CFD trading allows you to speculate on the rise or fall of prices for fast-moving financial markets (or instruments), for example commodities, currencies and shares. You can trade on margin and go short (sell) if you think prices will fall or go long (buy) if you think they will rise. You don’t deal with the underlying asset, but a number of units for a specific instrument depending on what you think will happen to the prices. Plus500’s online trading platform enables retail customers to trade CFDs internationally over more than 2,200 underlying financial instruments including equities, commodities, cryptocurrencies and foreign exchange, and in more than 50 countries.
Accessible from multiple operating systems such as web browsers, Android and Windows phones, iOS tablets, the trading platform has been designed to be easy and intuitive to use and has also been localized into 32 languages. Guidance on how to use Plus500 can be found on their webpage, but there are certain features worth highlighting. You can manage your risk with the company’s trading tools, by choosing “close at profit” or “close at loss” orders which can be added to your trades when opening a new position/pending order or when you are editing a current position.
These mean you can set a specific rate at which your position will close, to protect any profit, or to minimize your loss. If you add a Guaranteed Stop order it puts a limit on your potential loss. Even if the instrument moves against you, your position will be closed at the specified price without a risk of any Slippage.
A checkbox can be used on the platform for Guaranteed Stop when an instrument is available for trading. If you place a Trailing Stop order it will help lock in a particular amount of profits and when you open a position or pending order with this it will stay open for as long as the price moves in your favour, closing automatically if the price changes by a certain amount. If this is something you’d be interested, be sure to check out the plus500 minimum deposit UK for opening an account.
On its website, Plus500 says it offers the complete package, including leverage of up to 1:30, no commissions, tight spreads, free notifications and speedy and reliable execution of orders. There are many other trading platforms available, such as GFKX MetaTrader for example, which means the competition is stiff. However, our Plus500 review indicates that the company has a very straightforward and simple to use trading platform and the mobile platform is very well designed, too. Opening an account is completely digitalized, its FX spreads are very competitive and it provides excellent innovative solutions, such as cryptocurrency CFDs.
However, a negative can be seen in the fact that Plus500 does limit itself to providing only CFDs. Also, reviews claim that the fee structure is not particularly easy to follow as all Plus500's trading-related fees are built into the spread and the overnight rate calculation method is not obvious. A simple search of its website shows that in 2017 there were more than 37 million positions opened via the platform, with over 317,000 active customers and more than $1270 billion traded value. If you want to explore the platform before you start trading, you can practice online with its simple tools. Also, the website is easy to navigate, so if you type in Plus500 minimum trade, for example, it’s easy to find. The platform is widely regarded as being most suitable for intermediate to experienced traders.
For many years, trading was mainly the preserve of City insiders. The revolution of information that the internet provides, followed by the rise of smart devices has been steadily disrupting this, facilitates the designing of platforms that allow anyone to trade instruments easily and at a low cost. Previously, traders and investors could pick trades themselves, but information on stocks and other instruments wasn’t easily available. Now, however, the fintech industry means that information is more directly available. New traders are coming onto the market and people can trade in their spare time instead of it being a full-time job.
There is also the rise of the cryptocurrency, virtual currency which is designed to work as a medium of exchange. Cryptography can be used to verify and secure transactions, as well as to control the creation of new units of particular currencies. They are limited entries in a database that no one can change unless under specific conditions. If you’re looking to break into the ever-growing market of cryptocurrencies, check out the plus500 minimum deposit UK before getting started.
Plus500 also enables trading in cryptocurrencies using its CFD service. Mainly spearheaded by Bitcoin, Cryptocurrencies are increasingly part of the financial landscape. The word cryptocurrency is a general summary for all digital ways of exchange that use a cryptographic framework and security features so that they are protected by technology that makes it impossible to expand the supply by more than a predetermined algorithmic rate already known to the public. They also have no physical form and only a digital value, existing solely in the “cloud.” At the moment, although there are over a thousand cryptocurrencies only a very few are accepted by retailers as a method of payment including Bitcoin, Litecoins, and Peercoins.
Bitcoin is the most well-known cryptocurrency and fluctuations in its price drive what happens to others. Since it was launched in 2009, the price of a Bitcoin has risen from $1 to over $1000. At the moment having cryptocurrencies as a speculative asset rather than real currency is more attractive, and with no government backing up the currency, their only foundation is people’s faith in their value, and so its only the market mechanism determines the prices of cryptocurrencies. There is more information on dealing in cryptocurrencies on the Plus500 website, where you can find out information such as the Plus500 minimum deposit UK for this.
Plus500 is certainly a quality broker, and only comparing it with other CFD traders can determine if it’s among the best Best CFD brokers. Online trading is increasing in popularity, as the internet and social media begin to dominate our lives and expectations. Certainly, the Millennial generation expect everything to be available online, including managing their finances and investments. This means that financial institutions have to constantly evolve their technological offering and how they offer their business. Plus500 is accessible and its platform, from customer feedback, seems easy to use. It’s important to investigate all the information there, including the background information on how to trade.
The immediate accessibility of platforms like this does not mean that dealing in CFD’s should be taken lightly. Even if things are done simply and virtually with a click of a button, the money being spent is real and there is always an element of risk to any trade. Solid research into things such as the Plus500 Minimum Deposit, spreads, fees and risks should be made before making a decision and if advice is available, take it. Traditional methods of trading stocks and shares are still the mainstay of the financial world, but even these are being done with more technological means which are constantly improving. We live in an increasingly digital world, meaning things that once seemed out of reach, can now be done by anyone, at any time, anywhere in the world.