Plus 500 places itself in the niche of CFDs trading within the confines of online trading. This it does through its own-developed platform that is both available through web and various operating systems. This concentration within the CFDs asset class is notable foreground in that customers are already notified that they would be trading risky assets—and that the losses are more often than not linked to the brokerage but with the sensitivity of the asset itself.
However, brokerages are not entirely blameless with losses incurred by its users. Fact of the matter is, Plus 500 is not insulated from negative reviews. The trading company got a bad rap with a number of complaints, resolutions, and litigation experienced in its years of tenure.
To help us paint a complete picture of Plus 500’s over-all capabilities, the review team assessed the brokerage’s key offerings specifically, the trading accounts, the software for trading integrated in each, and of course the assets the brokerage allows access to.
Getting to Know Plus 500
Based in Israel, Plus 500 is a trading company that had began its operations in 2008. The company went on to conduct its business across the European regions and numerous countries within Asia.
Throughout its office bases, Plus 500 is sanctioned by the regions’ financial authorities. The only restriction that it has is the United States territories. This is not at all unusual as brokerages offering the same services are often not allowed within the country.
Plus 500 is a brokerage that is being traded publicly and is listed over at the LSE within the first chapters of the year 2018. It has a United Kingdom-based arm that is simply called Plus 500 UK Ltd that is under the stringent regulations of the FCA.
Plus 500’s international channels also undergo the sanction of leading financial authorities specifically, CySEC, the ASIC, the FSP, the FMA, SFSA, and is even licensed by the Monetary Authority of Singapore.
What this tells the readers is Plus 500’s clientele are assured legality of the company’s operations, not necessarily being absolved from any possible shady dealings or exponential losses that may be encountered while making utility of the company’s services.
What Plus 500 Clients Are Actually in For
The Financial Instruments
The countries that are allowed Plus 500’s services are able to access a range of assets including Commodities, Cryptos, ETFs, Foreign Currencies, Indices, Options, and Shares.
Among the notable things regarding the company’s offerings is the Bitcoin CFD; Plus 500 is the first broker to bring the contract to the market.
The product suite of the trading company is furnished with over 2,000 tradable assets through its own web-based software for trading, WebTrader. The spreads that are available through this is seen to be competitive while being free of commissions.
How Clients are Protected
Negative Balance Protection is available to Plus 500 clients. This is being offered through its membership with the ESMA and the rules that it implements that had been implemented back in 2018.
Stop Loss Orders that are guaranteed also comes into play with the firm’s aim of protecting its clients. This effectively protects the trader from the risk of market gaps that he or she may find on select assets that are highly reliant on the conditions fostered by the market.
The Web-based Software
It is highly likely that some of the unpleasant reviews come from Plus 500’s provision of WebTrader.
While the software can easily be used through its intuitive user interface and that it has access to over 2k assets it remains to be a closed system. Traders who are more tenured and are looking into making use of tools provided by third parties would not be allowed to do so given the exclusivity of the platform.
Webrader is bereft of standout features. It does not permit automated trading, does not allow for algorithmic trading, and is void of a back-testing function.
The platform is also found wanting of certain security measures, a considerable concern given that the software is actually a channel that directly funds accounts.
A trader can open what is called the Professional Account notable for its offering of leverages. The leverage may reach up to 1:300 from a measly 1:30.
The basic account may be created through a low amount of 100 units of the user’s chosen base currency.
Through these accounts, fees for overnight trading and inactivity are charged, much to the disappointment of some of its traders.
What We Can Actually Take From This Review
Given the features and offers that Plus 500 provides its clients, it is easy to see why trading with the company might seem like a good idea.
The asset selection is expansive and the safeguards implemented by the company, albeit limited, does well to protect the live accounts from reaching balances that are negative.
Despite what had been said in the beginning, Plus 500’s regulatory status is enough to assure its clients that they are in safe hands.