Plus500 Trading Strategies: Understand and Learn from an excellent CFD Broker

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10 min read/Updated: 30.07.2020

Possessing a clear cut and well-defined strategy is important when conducting online trading. If you are new to the business of trading, understanding the various Plus500 trading strategies will give you a clearer idea of how to begin trading and how to use the risk management tools to your maximum advantage. All said and done, Plus500 is one of the best CFD broker in the business. Regulated and authorised by the Cyprus Securities and Exchange Commission (CSEC), the platform comes with a user-friendly, all inclusive interface. You can come up with the Plus500 strategy by taking into account these factors:

  • An extensive and seamless trading platform
  • Straightforward funding and withdrawal
  • Innovative and comprehensive product portfolio
  • Reasonable fee structure

Info: A trader with a Plus500 account can trade CFDs on underlying financial instruments such as Forex, Stocks, Crypto currencies, Commodities, Options and Indices.
76.4% of retail investor accounts lose money when trading CFDs with this provider.

An Extensive And Seamless Trading Platform

Plus500 comes with a refreshingly uncomplicated, simple to understand and goal-oriented trading platform. Although certain features such as customisation, research tools and a leverage setting option are not present, it is clean and well designed. This makes it incredibly easy for even a beginner to explore and navigate around. It is available for as many as 32 languages. These include Arabic, Chinese and even Hungarian. Logging in to this platform comes with a two-step authentication process. The platform comes with easy to use search options and charts. You can come up with the best plus500 trading strategies by simply making use of the search function.

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When you find the desired asset, a basic one-liner shows bid, price change, ask as well as every day highs and lows. You can then include the asset into your set up alerts and favourites in order to gain further information about the asset. There is also a chart analysis tool. This helps you add 20 indicators to the chart, set the time range as well as change candle and line graph styles. In addition to this, you can even set up email or SMS alerts with the alert function. These factors help you come up with a suitable trading strategy.

Straightforward Funding And Withdrawal

Plus500 strategies relies a great deal on funding and withdrawal. With this platform, you gain access to straightforward, easy to manage funding and withdrawal. You can take your pick from various kinds of funding options. This includes:

  • Debit/credit card: You are required to either upload a photo or scan your card, a bank document or credit card statement
  • Bank transfer: you are required to transfer to a UK Barclays account. Verification requires you to scan or upload a photo of a bank statement or proof of payment
  • Electronic wallets: This includes Skrill and Paypal

Withdrawing money is also a seamless process with this platform. Withdrawal comes with no cost attached for up to five per month. After that, you are charged $10. You may also be charged $6 for a bank transfer withdrawal. There is also a minimum withdrawal amount. For credit card and bank transfers, the minimum withdrawal amount is $100. For Paypal, the amount is $50. Withdrawing a lower amount comes with a $10 charge while closing your account and withdrawing all your money incurs a charge of $10 (except if you withdraw from a credit card). Plus500 allows you to withdraw funds to the same channel as you deposited that is through credit/debit cards, bank transfers and electronic wallets.

Innovative And Comprehensive Product Portfolio

When conducting CFD broker comparison, Plus500 was undoubtedly the best owing to the fact that it offered only CFDs. Traders can opt from a wide variety of over 2,200 products. This also takes into account innovative products such as cryptocurrencies. The product range at Plus500 is huge. It includes:

  • ETFs, indices and equities
  • Commodities and cryptos
  • Forex and options

With CFDs, you can trade with leverage. You can increase the leverage any time right up to the maximum. The platform comes with around 80 different ETFs and a choice of commodity, major stock and other indexes. Plus500 also provides a good stock CFD on major stock markets as well as a few smaller markets. It has an average coverage of the biggest equity indices, but no commodity or other non-equity indices are available. In total, there are 17 commodity CFDs offered. This includes energy, precious metals, agriculture and industrial metal. A wide variety of forex selections are also available. You can also expect a short list of equity index and share options while a wide choice of cryptos are also available, denominated in USD. This makes it possible for traders to trade with Bitcoin Cash, Bitcoin, Zcash, NEO, Litecoin and Monero in addition to others. Based on these factors, you can set up your Plus500 trading strategies.

Reasonable Fee Structure

A broker comparison found that Plus500 has a reasonable fee structure. Forex spreads are competitive while their financial rates one of the highest in the market. The platform’s website states that their fees are clear-cut while no hidden charges and surprise costs exist. While many of their fees do not have charges attached, any costs incurred are explained beforehand.  All in all, the structure of fees varies depends upon your trading activity and tight spreads. No charges or hidden costs are levied for rolling your position, live share CFD prices, opening and shutting down trades and deposits, dynamic graphs, real time forex quotes and charts. The platform also comes with a perfect structure for non-trading fees. In non-trading fees, three categories exist:

  • Financing cost: Popularly known as a ‘premium’ and is an overnight fee
  • Inactivity fee: If you have not conducted any trading activity for about three months, you have to pay a quarterly fee of U.S. $10
  • Withdrawal fee: In case of bank transfers, a U.S. $6 withdrawal fee exists. Also, when you withdraw under the minimum withdrawing amount, you are charged U.S. $10 fee. This condition does not stand true for credit/debit cards

In a month, for a normal usage account, you are allowed to make five free withdrawals. You are charged a U.S. $10 fee for any amount that exceeds this limit. When coming up with the Plus500 best strategy, it is imperative to consider the trading and non-trading fee structure systematically.

Finding The Perfect Trading Strategy

Plus500 provides online trading with over 2,000 various financing instruments. Their client-friendly policies, tight spreads, no commissions as well as fast and reliable order execution all play a vital role in developing a good strategy. After understanding how to utilise the risk management tools to your advantage, practising the strategy before using real money is imperative. This gives you much-needed experience when trading with real money. Not having a well thought out strategy increases the risk of losses. Whether you are trade intraday or even swing trading, having a strategy is imperative. Setting a risk limit that you are willing to take for a particular trade is a good way to start.

On an average, it is a stop loss order at the level of 2-10%of account loss. Maintain an investment diary and include details of why you have decided to open a particular position and what are the results. After a closure, examine the situation and come to a conclusion whether it was successful or not. If it was a success, check the reason why it succeeded with the reason for the position opening. This helps you get a broader perspective of your trading activities which in turn helps you steer clear of the same mistakes.

  • More than 2,000 financing instruments to choose from
  • Zero commissions and client-friendly policies empower users
  • Develop skills and knowledge of trading before investing personal finances

Customer Service And Support

When coming up with Plus500 trading strategies, getting help and assistance from customer service can improve the chance of successful trades. With this platform, you gain prompt and reliable customer service. While getting in touch with this facility can be done through live chat or email, the former option has advantages. Users can rate their customer service agent. This helps you obtain better and more productive help. In case live chat isn’t available, you can still get through to Plus500’s representatives via Contact Us. Support provided through email does not come with any kind of issues. One thing that was found lacking when conducting the Plus500 review is that the platform does not come with telephone support.

This can be disappointing particularly during the times when your computer crashes or your internet connectivity is slow and you want to carry out trading activities. Live chat can come with its share of hurdles, especially when you cannot find a productive answer to your query. However, with email support, you do not find issues with communication.

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Tips To Keep In Mind When Strategizing And Trading

When taking part in trading processes, concentrate on a few instruments. Focusing on certain commodities helps you get a clearer idea of the trading routine.  It is better to put in time, money, effort and attention on a few instruments rather than pondering the entire market which helps you enhance your trading. Take advantage of technical analysis, fundamental analysis and indicators. Make use of all the instruments that enhance your trading. Utilise commands such as ‘Trailing Stop’, ‘Stop Limit’ or ‘Stop Loss’. This is particularly beneficial during money management during drastic changes in stocks, currency repair or commodity.

These commands help to keep any remaining amount of money in your account secure. Remember to trade small quantities, especially at the start. The more you have does not necessarily mean the more you lose as long as you trade with care and put in cash responsibly. It is always a good idea to open a demo account when you are a beginner. It takes just about five minutes to do so and helps you learn the ropes of trading in a successful manner. You can switch back from real money mode to demo mode by selecting ‘switch to demo mode’ in the main platform screen. You can also do this from the apps menu. You can also open a demo account at the time of registration by clicking on ‘demo mode’ in the ‘select account mode’ window.

The Ultimate Verdict On Plus500

Plus500 is a good choice for those looking for a multi-asset and user-friendly trading platform. They obtain data from dependable sources and trustworthy third-party sources, who in turn obtain data from exchange feeds. Plus500’s main screen offers users access to hundreds of different instruments. This helps in a big way as you don’t have to open any extra windows. While seasoned traders can take advantage of tight deal spreads, beginners can learn the ropes of the trade effectively since you can use the demo account without any time duration restrictions.

The fee structure of this platform is reasonable while its features can easily be picked up by veterans as well as beginners. Advanced traders who prefer customised trading advisors and indicators, on the other hand, might find this platform a little less adequate. Since financing rates are high, it would have been good to see a few research tools. Nevertheless, it is a powerful, seamless and simple platform that helps you come up with the Plus500 best strategy for all your trading activities.