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Plus500 CFD Service - Review: Is it a scam?

Plus500

Plus500 is a well regulated broker and is also listed on the London Stock Exchange (AIM: PLUS).

* Plus500 CFD SERVICE - Your capital is at risk.

Plus500 was one of the first brokers that offered an easy to use platform which made CFD and forex trading possible for new retail traders. Nowadays it still is one of the best platforms if you want to start trading Forex and CFD's. They offer negative balance protection, so you cannot lose more than your deposit. Together with Markets and Fortrade they are one of the few brokers that offer this kind of protection. Beware that CFD's are leveraged products, so at most brokers you can end up in debt when you are trapped at the wrong side in a sudden and big move in the markets. Luckily this is not the case for Plus500 clients.

Sure, there are a lot of better brokers around, but most of them have minimum deposit requirements you have to meet before you can start trading. At Plus 500, you can start trading with a small account! And ofcourse, you can lose more than your deposit with most other brokers, which is a huge risk for a beginning trader.

The best way to get convinced about the Plus 500 platform is to check it out yourself. Plus500 offers an unlimited free demo with virtual money. No strings attached. It's absolutely RISK FREE, so give it a try by clicking here.

You can easily fund your account with your Skrill account or a credit card.

Looking for a great bonus? Try Fortrade instead.

No commissions

Plus500 offers very tight spreads, for example a minimum 0.8 pip spread on EUR/USD. You never pay commissions: the spread of the instrument that you are trading and the funding premium cover all the costs. You only pay the funding premium if you hold on to your position for longer than 1 day. It's a specific percentage per day that varies from the instrument that you are trading.

So trading EUR / USD with a 10 000 euro position only "costs" the spread, which is €0.8. This is a huge advantage! Other brokers or regular banks mostly ask a fixed commission and you would pay more than 20 euros for opening and closing such a position.

Platform examples

Here are some examples from a demo account on the Plus 500 platform.

Plus500 platform

Say you want to go short on the euro, you just have to push the "sell" button.

Plus500 EURUSD

If you push the sell button, the next screen pops open.

Plus500 short euro

For opening a 2500 euro short position, you only need EUR 12,50 on your account. You can immediately place your stop loss and profit target. If you click advanced, you can also choose a trailing stop.

Plus500, not a scam?

A lot of people think that Plus 500 is a scam, because it sounds too good to be true. The fact that they don't ask commissions is one reason of concern for some people. However, we know for a fact that the spread (the difference between bid and ask) and the funding premium should be enough to cover all their costs. In 2016 Plus500 made a net profit of $117.2m.

Plus500 is authorized and regulated by the Financial Conduct Authority, as you can read here. They are also listed themselves on the London Stock Exchange, which underscores that it's a reliable company.

A real disadvantage is that you can't call them. They do offer live support though. And questions by email also get an answer pretty fast. Our experience is that you usually get an answer within a few hours.

A popular concern is withdrawing money from your account. Some people expect problems with that. We have withdrawn money to our Skrill account (a service like Paypal) and the money arrived there after two days. So we had absolutely no problems with that. That's exactly what one would expect from a FCA approved and LSE listed company. As a CySEC regulated company they even have to process all withdrawal requests on the same business day!

The above mentioned disadvantages haven't kept us from using their platform though. Overall, we are very satisfied with this broker. In our opinion, it's one of the best brokers to get to know forex and CFD trading.

Start trading now!

Visit the Plus 500 website and try the free demo or open an account. Funding your account can be done with as little as $100. The platform is also supporting 24 different languages, so chances are high that Plus 500 is available in your native language.

Visit Plus500

* Plus500UK Ltd is authorised and regulated by the Financial Conduct Authority (FRN 509909).

* Plus500CY LTD is authorised and regulated by the Cyprus Securities and Exchange Commission (Licence No. 250/14).

* Plus500AU Pty Ltd, AFSL #417727 issued by the Australian Securities and Investments Commission is authorized to issue these products to Australian residents.

* Plus500AU Pty Ltd is also authorized by The New Zealand Financial Market Authority (FMA).


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