Is Plus500 a scam? You are probably wondering if Plus500 is a safe broker for online trading … Find it out thanks to our Plus500 reviews and opinions! On this tutorial, thanks to the opinions and guides collected by traders and users who have tested it, we will make you discover everything you need to know. The financial broker Plus500 is one of the most solid and reliable CFD brokers in the world market.
We can define it as one of the most loved and appreciated CFD brokers. In this guide we will discover through simple lessons all the pros and cons of Plus500 and how to trade with CFDs (contracts for difference) on:
- currency pairs (Forex);
A strength of Plus500 are certainly the very low spreads, but also very interesting is the absence of commissions on opening positions.
In our Plus500 review we will see all the pros and cons of this financial broker, trying to highlight every detail. Because if you want to decide whether to choose Plus500 as your CFD broker, it is good to know every aspect and functionality beforehand; it is not necessary to search for “Plus500 forums” on google, as many do, because the comments on the forums are not always real, even the forums can have comments and opinions directed by the owners of the product.
Plus500: opinions and characteristics of the broker
Plus500 is a company that has been operating in the financial markets for many years.
It was founded in 2008 with the launch of one of the first cutting-edge trading platforms, entirely designed for online trading. The purpose of Plus500 has always been to simplify trading operations as much as possible, to bring anyone closer to this new kind of activity, both trading experts and novice traders.
Plus500 has always done everything to ensure an easy online trading experience, without “side effects” and suitable for all types of traders.
Features of the broker in short
The following table shows the features of Plus500:
|Regulation||ASiC, CySEC , FCA|
|Platforms||Plus500 Trading Platform (standalone, web and mobile)|
|Trading Platform||Easy to use, intuitive, mobile App||Experts||Markets.com|
|Minimum deposit||€ 100||Everyone||eToro ($ 200)|
|Reliability||100% – Regulated by Cysec |
(License n. 250/14)
Plus500 scam? No, here the details about the regulation
To talk briefly about Plus500, before devoting ourselves to the review of Plus500 and its innovative trading platform for CFDs, we can say that year by year, Plus500 has established itself more and more in the financial markets.
|Country of the Customer||Investor Protection||Regulation||Regulatory Body|
|EEA Countries (EU, Switzerland, Norway)||20,000 €||Authorizedand regulated by the Cyprus Securities and Exchange Commission, CySEC (license n. 250/14)||Plus500CY Ltd|
|United Kingdom||50,000 £||Authorized and Regulated by the Financial Conduct Authority (n. 509909)||Plus500UK Ltd|
|Australia, New Zealand and South Africa||No Protection||Licensed by ASIC (AFSL # 417727), Financial Markets Authority (FSP # 486026) and AFSP (FSP # 47546)||Plus500AU Pty Ltd|
|Singapore||No Protection||Authorized by the Monetary Authority of Singapore (# CMS100648-1) and by IE Singapore (# PLUS / CBL / 2018)||Plus500SG Pte Ltd|
- As early as 2009, it became the first company in the world to offer CFDs on stocks.
- Time passes, but Plus500 improves and innovates more and more. In 2010 Plus500 decided to launch a web version of its trading platform, making online trading with CFD a reality also for Mac and Linux users.
- 2011 is a crucial year for Plus500. With a peak of over 2,000,000 monthly transactions, Plus500 also extends its portfolio of assets.
- In 2012 the Plus500 trading platform was made available for both Android and Iphone systems, thanks to the applications specifically created.
- Now you can also trade CFDs on Bitcoin, the famous virtual currency.
- In the past year, 2015, Plus500 presents its new app for Windows Phone. In addition, it also enters into a sponsorship agreement with Atlético de Madrid, the Spanish football club.
In short, from 2008 until today, the story of Plus500 speaks for itself.
Plus500: opinions and advantages of doing trading
- Possibility to trade with increased purchasing power;
- low spreads;
- zero commissions;
- minimum deposit of 100 euros;
- advanced and simplified risk management;
- maximum trading security;
- negative balance protection even before ESMA rules.
Plus500: reviews on trading safety
Plus500 Ltd is a Cyprus based company with offices in Limassol, and for this reason it is authorized and regulated by the Cyprus Securities and Exchange Commission, the Cypriot financial body which has the task of supervising the financial brokers operating in Cyprus, license N. 250/14.
This means, in simple terms, that the money we entrust to Plus500 is truly safe and that there will be no negative surprises (as unfortunately happens if you deal with brokers not regulated by the competent supervisory authorities).
This license is valid in all European countries and protects the customer from fraud, including the same funds deposited by the customer.
But it doesn’t end there. Plus500 is also regulated by:
- Plus500 UK Ltd is authorized and regulated by the Financial Conduct Authority (FRN 509.909);
- Australian ASIC, for what concerns Australia
In short, on the reliability and safety side, Plus500 is the top that a trader can ask. Let’s move on to see the fundamental “core” of Plus500. We are talking about the trading platform offered by Plus500 to its customers.
Is Plus500 safe and reliable?
So, if you are thinking it’s a scam, we advise you to change your mind. Plus500 is one of the most regulated brokers ever. We would like to point out, however, that online trading per se is dangerous and therefore it is also possible to lose all the capital invested. Plus500 also offers a brokerage service only for experienced traders and not for beginner traders.
For anyone who has doubts, it is good to dispel them immediately: Plus500 is not a scam. It is a financial broker that allows you to operate with CFDs (or “contract for difference”), on thousands of different assets.
You can invest in stocks and equity indices of the main world stock exchanges, as well as on commodities thanks to CFD trading. Virtually unlimited choice for traders who decide to open a trading account with Plus500.
Trading terms and conditions
Before proceeding with the registration and opening an account with Plus500, you must take into consideration some very important elements.
Contract with the user
The contract with the user is that contract entered into in order to regulate the relationship between the customer user (in this case you) and the company (Plus500).
All the terms and conditions relating to the use of the trading service offered by Plus500 have been illustrated and reported within this document.
Access to the platform is regulated by terms and conditions imposed by the broker.
More details are available by contacting customer service!
“76.4% of retail investor accounts lose money when doing CFD trading with this provider. Consider whether you can afford to take this high risk of losing your money.”
All the risk disclosure notices that are provided to you regarding CFD trading are explained in detail in the information documents which can be consulted directly on the broker’s website.
We believe these warnings are important in order to fully understand the risks involved in online trading before deciding to enter into a business relationship with Plus500.
All Plus500 apps are designed and set up in order to protect all your data and that of your colleagues who have chosen Plus500 for their investments.
Plus500 therefore implements a healthy policy regarding the management and protection of personal information and also the use and management of cookies.
This policy illustrates the systems and procedures put in place in order to ensure non-injurious activity and which therefore is not involved in money laundering or terrorist financing operations.
These processes involve:
- identification of the customer;
- Due diligence checks in order to verify the data of the customers.
Conflict of interest policy
The policy on monitoring and managing potential conflicts of interest that arise within Plus500 between different companies and between companies and traders, are managed by Plus500 itself within Plus500CY.
Keep in mind that all goals are aimed at defending customer interests.
Execution of orders policy
The policy adopted by Plus500 is to offer “execution at the best conditions” in order to execute orders on behalf of customers.
Plus500CY takes all reasonable measures in order to obtain the best possible result for all its traders.
It is therefore his duty and that of all traders to conduct business honestly, fairly and professionally and to act in the best interests of the customer when executing orders.
Investor Compensation Fund
Finally, we would like to specify that Plus500CY is a member of the Investor Compensation Fund (“ICF”), which provides compensation to eligible retail clients, in the event that a Cypriot investment company is unable to fulfill its obligations towards its customers.
All details that are not listed here can be requested free of charge and without obligation from Plus500 customer service.
To request assistance, open a Plus500 demo account and log in, without anycommitment. Click on the link below to register for free!
“76.4% of retail investor accounts lose money due to CFD trading with this provider. Consider whether you can afford to take this high risk of losing your money.”
Plus500 risk management tools
The Plus500 broker provides its customers with different tools with which it is possible to manage the risk associated with CFD trading. After all, every form of trading carries risk and every trader’s goal is to learn how to control risk.
In fact, only in this way a trader can aim to obtain long-term profits. Taking losses is normal, but the important thing is to remedy them. From this point of view, Plus500 offers different tools for risk management in online trading.
Among these tools we obviously find the leverage, which as we know well, allows us to increase the capital at our disposal with which to invest. It is a tool to be used with caution, since if it’s used in the wrong way, it also risks increasing our losses.
There are also the Stop Loss and Take Profit tools, which as mentioned in the previous paragraphs, are fundamental to set for each operation we carry out. In fact, these are two levels that we can set manually and, if reached, will automatically close the position.
Just to give an example of Stop Loss and Take Profit: let’s imagine we have invested € 100 with max leverage. of 1:300, but remember that only professional traders can use this level of leverage.
Thanks to leverage, we are actually moving € 10,000: a figure with which we want to invest upwards, opening a long position. The cost of an Apple share is € 80 when we invest: using € 10,000 we can invest on 125 Apple shares. At this point, we need to set both the Stop Loss and Take Profit levels.
Now let’s see what can happen:
- Contrary to our prediction, prices begin to fall and not to rise. Luckily we had set a stop loss level, let’s imagine at € 78. As soon as the prices reach € 78, the position is closed automatically and we suffer a loss of only € 250. Let’s say “only € 250”, because prices continued to fall and the previously set Stop Loss prevented us from suffering further losses.
- Prices follow our forecasts and go up, touching our level of Take Profits, which we had set at € 84. Again, the position is closed automatically and we earn € 500.
In short, the Stop Loss and Take Profit levels help us protect ourselves from the risk of our operations.
In fact, we must apply these levels before investing, therefore with a clear and rational mind. Also because, when we open the operation, emotions always risk making us make the wrong decision. Finally, among the risk management tools of Plus500, we must mention the “Price Notices”, which allow us to stay informed on the price changes of the assets on which we have invested.
As for the last of the Plus500 risk management tools, or the Guaranteed Stop functionality, we will discuss it in detail in the next paragraphs.
This request usually occurs only once, just for the first withdrawal, while subsequently you will not need to perform this whole procedure. The documents that are generally requested are the following.
- Photocopy of your ID or other photo identification document.
- Scanning of your Visa / Mastercard card, in case it’s used to deposit. Obviously part of the sensitive numbers must be covered in the image (usually the CVC and the last 4 on the front). However, this document is not always required.
- Photocopy of a utility bill (phone, gas, electricity, etc …) or a bank statement (covering sensitive data), where there must be your name and your written and visible address.
Guaranteed Stop Functionality
The guaranteed stop, as you can easily guess from the name, is a particular type of Stop Loss offered by Plus500 to its customers.
Through this Stop Loss, even in the event of large and sudden market changes in the value of an asset, your position will be closed exactly at the price you specify. Without the risk that the position will not be closed precisely because of this strong market movement.
Plus500 offers the Guaranteed Stop functionality only on some of the assets available on its trading platform. It is therefore necessary to verify if this option is available or not for the chosen asset.
Guaranteed Stop, being a rather particular type of Stop Loss, has some terms and conditions that the trader must respect. We list them below.
- It can only be seton a new trade and cannot be added to an existing position.
- It can be activated / modified only when the tool is available and negotiated. Once active, it cannot be removed, you can only change its value.
- The “Guaranteed Stop” extra spread is not refundable once activated and will be shown before approving a Guaranteed Stop.
- It must be placed some distance from the current price at which the instrument is traded.
In short, the Guaranteed Stop proves to be an excellent ally in case of opening positions with significant amount. To further clarify the function of the Guaranteed Stop, we will use a simple example.
- Apple SELL / BUY = $ 498 / $ 500.
- You buy 10 Apple shares, let’s say the guaranteed stop extra spread is $ 10. You place a guaranteed stop at $ 450.
- Apple drops to $ 400, but you will exit the position at $ 450 and not $ 400 dollars.
With guaranteed stop: Income statement = $ 4500 – $ 5000 – $ 10 [extra guaranteed stop spread] = – $ 510 Without guaranteed stop: Profit and loss = $ 4000 – $ 5000 = – $ 1000
“76.4% of retail investor accounts lose money due to CFD trading with this provider. Consider whether you can afford to take this high risk of losing your money.”
How does Plus500 work?
As we will see shortly, with Plus500 it is possible to trade with CFDs or with a derivative contract that replicates exactly the price of a financial asset.
Plus500 allows you to work with a single platform, which is moreover structured in a simple way. In practice with Plus500 it is possible to operate with CFDs on a very wide range of financial assets with a single account.
How does Bitcoin trading with Plus500 work?
With Plus500 you can choose to trade Bitcoin and other cryptocurrencies.
On the other hand you can choose to invest with a demo account or with a real account. In this case, just € 100 is enough to open a real account.
Plus500 also offers you the possibility to trade by controlling profits and losses but also by setting, as we will see during this review:
- price alerts;
- Stop loss;
- Traling Stop, ecc.
All these tools give you the possibility to manage the risk.
Moreover, Plus500 also allows you to invest 7 days a week, 24 hours a day, with the exception of Sunday, when market is open from 12:00pm to 2:00pm UTC.
With Plus500 you can therefore invest and trade on Bitcoin but also on other cryptocurrencies, such as:
- Bitcoin Cash;
Features of Bitcoin trading
Finally, you can also choose to use:
- free and unlimited demo account;
- low spreads;
- a reliable and safe platform;
- simple, intuitive and user friendly graphic interface.
In order to trade Btcoin you just need to open a demo account or a real account. If you don’t know how to do it, just read the steps given in the specific paragraphs.
“76.4% of retail investor accounts lose money due to CFD trading with this provider. Consider whether you can afford to take this high risk of losing your money.”
How to trade Bitcoin with Plus500
At this point, once you have access to your account, you can choose the asset you prefer to trade online.
In this case, you choose to invest with Bitcoins and you can also analyze the chart, which is set with time horizons that you can choose between 5 and 15 minutes in order to analyze the next prices movements of the digital currency.
It is also possible to choose a low time horizon that allows you to analyze the smallest variations and thus insert a new order.
How to buy and sell Bitcoin with Plus500
In order to buy and sell Bitcoins you need to predict the price trend. In this case, you will click on the sell button if you expect the price to drop; buy if you expect the price to go up.
The target? That of obtaining a profit always and in any case, regardless of the movement of the market.
Plus500 CFDs: what they are
Before going into the full Plus500 review, we would like to briefly discuss what CFDs are. If you are an experienced trader, you will certainly already have the answer.
In this case you can go directly to the next paragraph of the Plus500 review, which is the paragraph dedicated to the Plus500 trading platform. If not, it’s good that you know what we’re going to talk about in our Plus500 review.
To put it simple, CFD stands for Contract For Difference. CFD therefore turns out to be a derivative instrument.
The CFD can be defined as a contract between two parties in which the buyer, upon payment of an interest rate, receives the return of an underlying financial asset, while the seller of the contract, against the collection of interest, agrees to pay the return on the underlying asset.
The two parties agree to exchange the financial flow deriving from the differential between the prices of an underlying financial asset at the time of the opening (start) of the contract and at the time of its closing (conclusion).
Characteristics of the CFDs
The gain in CFD trading is based entirely on the price differences of the contracts you buy or sell.
The difference between the purchase and sale price is then multiplied by the number of CFDs traded. In other words, it may seem very similar to the common stock trading that takes place on the stock exchange. But it differs from it because:
- It is not necessary to pay the full value of the CFD purchase / sale transaction, since it is sufficient to deposit a margin (which normally varies between 10% – 20% of the transaction value).
- By purchasing CFDs, you don’t obtain the ownership of the underlying asset, but a position is created that replicates the trend of the value of the chosen asset. So if you trade CFDs related to a stock, you will never really own such stock.
Without forgetting that during the period in which the position remains open, the CFD holder is charged or credited with a sum reflecting the adjustments of interest and dividends.
In the case of long positions, dividends are received and interest paid. The latter are usually calculated by adding a fixed percentage (spread) to a base reference rate. The opposite occurs in the case of ‘short’ positions (interest is calculated by subtracting a fixed percentage from the reference rate).
Opinions on Plus500 WebTrader: let’s discover the platform for web trading (no download)
Here we are at the centerpiece of our Plus500 review: the Plus500 WebTrader platform. We can anticipate that it is one of the lightest, most functional and stable trading platforms out there that on’t need any download.
Plus500’s WebTrader platform has a clean and non-confusing look, allowing traders to carry out their operations in complete tranquility and with easy moves.
A trading platform that has no bugs or connection problems (as far as we could find during our test), being among other things a trading platform that uses encrypted and therefore protected connections. Not only that, the Plus500 WebTrader platform is also available for smartphones and tablets, both for Apple and Android systems.
From the Plus500 WebTrader platform it is possible to submit all the purchase orders you want in a few simple clicks. Once the position opening order (whether long or short) is sent for a specific asset, it will be possible to add:
- A stop loss level (the trader’s best friend, along with the financial chart), at which the trading platform will automatically close the position. It is used to protect against losses caused by sudden market movements, often caused by financial news or macro economic data.
- A take profit level (also called profit limit), at which the trading platform will automatically close the position. It is useful to take profits once they reach a certain value you set.
Plus500 allows you to trade CFDs with a really interesting amount of assets, all different from each other. Whatever your preferred trading style and asset is, you can rest assured that you will definitely find it on Plus 500. In fact, Plus500 offers over 1000 assets, included:
- Shares of the main international markets (as many as 23 different national exchanges, including the most important ones such as the USA ones, the English ones, the Hong Kong ones, but also the Italian, French and German ones).
- Sstock indices of the main international markets.
- Options and ETFs.
Among the most useful and innovative features introduced by the Plus500 WebTrader trading platform we cannot fail to list the following: the Rollover and the Guaranteed Stop. Let’s see them one by one in detail in the next 2 paragraphs of our Plus500 review.
Plus500 mobile trading platform
The trading platform offered by Plus500 is really well made, as well as available on different operating systems: not only computers, but also smartphones and tablets, to trade CFDs wherever you want and in total comfort.
Plus500 mobile: characteristics
Control your trading operations from everywhere thanks to the mobile app.
Use all the tools of the mobile app and scan the advanced features in order to better control your account.
Set from mobile:
- Stop Loss;
- Take Profit;
- Trailing Stop;
- Guaranteed stop;
- FREE Notifications;
- Protection against negative balance.
Thanks to the mobile app you can trade on the most popular markets in the world and explore inexhaustible trading options.
Plus500 offers you thousands of financial instruments, with FREE quotes in real time and 24/7 online assistance.
Remember: Plus500 is not suitable for unexperienced traders.
The Rollover functionality
Instruments traded on futures contracts have an expiration date. When the expiration date arrives, the position is automatically closed. For this reason, this innovative feature was introduced, often called “Rollover”.
Rollover allows you to extend the expiration date of your operation. Maybe you’ve noticed that you can take more profits if you still keep the position open. And the Rollover comes to help you in such situations.
It should be noted, however, that activating the Rollover on a position has an application cost. This cost depends on the number of CFDs you are trading with, as well as the price difference between the initial price of the asset when you opened the position, and the current market price of the asset when you decided to apply the Rollover.
Example of rollover
You have a BUY position of 100 oil contracts. The rates of the oil contracts at the time of the rollover:
- Rate of:
- existing contract = $ 45,30;
- new contract = $ 46,50.
- existing contract = $ 45,25;
- new contract = $ 46,45.
- Purchase rate difference = [New contract sale rate] – [Existing contract sale rate] = $ 46.45 – $ 45.25 = $ 1.2
- Purchase value adjustment = – ([Contract amount] * [Purchase rate difference]) = – (100 * $ 1.2) = – $ 120.
- Spread Adjustment = [Contract Amount] * [New Contract Spread] = 100 * ($ 46.50 – $ 46.45) = $ 5
- Purchase Total Adjustment = [Purchase Value Adjustment] – [Spread Adjustment] = – $ 120 – $ 5 = – $ 125
- You will continue to have the same position as 100 oil contracts.
- You will receive an adaptation of – $ 125.
- Your capital remains the same excluding the $ 5 spread.
Withdrawal and deposit on Plus500
With such a high level trading platform, it is obvious to say that Plus500 offers an excellent withdrawal and deposit service.
The opinions on Plus500 from this point of view are more than positive. To open a trading account with Plus500, an initial deposit of € 100 will be enough to start trading with CFD contracts on all types of assets you want.
As for the withdrawal side instead, a topic that is important to to all traders, we can say we are more than satisfied. Plus500 offers different options for deposits and withdrawals, listed right below:
- Prepaid/credit Mastercard and Visa cards;
- Skrill virtual wallet;
- Paypal virtual wallet;
- Bank transfer.
The withdrawal and deposit policy implemented by Plus500 proves to be the same as that used by many other financial brokers in the sector.
That is, withdrawals will be made (if possible) using the same method you used to initially deposit your trading capital.
Otherwise you will have to contact the broker’s customer support and find an agreement. Plus500, being controlled by CySec and FCA here in Europe, must often implement anti-money laundering practices.
In a few words, Plus500 will request a series of documents from the customer once they request their first withdrawal.
Plus500: demo and real account
One of the most interesting features of Plus500 is the presence of a demo account with unlimited virtual funds. There are very few brokers who decide to offer demo accounts to their customers.
But this is not the case with Plus500, where the Demo account is also provided by simply signing up, without therefore the need to make a deposit in your account.
The possibility of using a Demo account on the Plus500 trading platform is really awesome. All traders will be able to use it to test their trading strategies, thus trying to improve them step by step. But the Plus500 demo account also lends itself well to novice traders, i.e. those who have just approached the world of online trading.
It will be possible for them to take their first steps without running the risk of losing their capital.
Because as we all know, making evaluation errors is human, especially in online trading. But the most inexperienced ones risk making a lot of mistakes, which the more experienced traders instead would have easily avoided thanks to their cultural background related to the knowledge of online trading.
For this reason the demo account of Plus500 really deserves a note of merit. It is rare to find brokers who offer a demo account with unlimited virtual funds and always available.
Many times brokers do not offer at all this possibility. Either sometimes it is possible to access a Demo Account only for a short period of time, or it can only be accessed by depositing a certain amount of money as the first deposit.
Be wary of brokers who force you to deposit more than you would have liked just to get a trial account. This is a sign that the the Broker is more interested in your money than inyou as a customer.
Plus500 academy section
We are probably going to deal with the weakest point of Plus500, the so-called Achilles heel. In fact, many opinions on Plus500 do not count among the pros the educational service and the customer support.
The reasons are clear. Speaking of the educational section, we can find that Plus500 does not offer a complete training, which would still be worthy of its name as an excellent broker for CFDs.
Plus500 only offers a few pages, short but clear and precise, to explain the functioning of CFD trading with the related risks.
The explanations are easy but, as already mentioned, somewhat hasty.
Strategies for online trading
What are the best strategies for trading with Plus500? A question of this type is very frequent among those who trade with CFD and Forex.
As you have certainly already understood in this article, we will try to give concrete answers to questions that are not just for expert traders.
Contrary to what you may think, in fact, very often beginner traders are also looking for techniques to trade seriously and professionally with Plus500.
Always remember that online trading is dangerous and you may lose your entire invested capital.
Strategy to trade with Plus500: where to start
It is unthinkable to go hunting for the best tricks and the best strategy for trading online if you don’t really know the broker.
What we have just said seems to be an obvious thing, but experience, on the other hand, teaches something else.
We believe that this approach to the world of trading (Forex & CFD) is instead completely wrong.
In fact, before looking for the best strategies you should learn how to trade CFDs properly!
To achieve this you need to open a demo account which, in the case of Plus500, is absolutely free and very easy to manage as confirmed by the opinions about the broker.
The problem is that many novice traders often rate the demo account as just a waste of time, and they are happy to do without. We, on the other hand, believe that it is very important because you need to learn how to use the Plus500 platform.
This is only possible by opening a demo account; then just log in to Plus500 and start testing the trading platform with the demo account.
Plus500 opinions: how to start to do trading?
After having clarified the importance of the demo account, without the need to read forums, we can now go to the heart of this article. How to trade professionally with Plus500?
Let’s start by saying that this broker is authorized and absolutely legal.
You can rest assured that nobody will steal your money until you continue to use regulated and authorized brokers as Plus500!
Not only that, but the amount on the real account is always available and you can withdraw it whenever you want. From this point of view, then, you have all the necessary guarantees.
Is there any trick to trade with Plus500?
We want to be clear with you. If someone approaches you talking about real tricks to trade online, he is either in bad faith or is uninformed. There are no real tricks to trade online, but only a lot of goodwill.
What you can do, instead, is to improve yourself and study the best online trading techniques with Plus500, without tricks or luck.
In this sense, you are completely safe because Plus500 obviously acts well. The broker, in fact, is one of the most reliable existing today and therefore you can feel comfortable during your trading activity.
Tools to invest with Plus500
In the previous paragraph we clarified that there are no real tricks to trade with Plus500.
Once again, therefore, we invnite you to open a Plus500 demo account, also to be able to test yourself immediately and understand, practically, what we will now explain to you.
The best strategy for trading with Plus500 is that of volatility bursts.
This technique is used in Forex Trading and consists in taking advantage of the high volatility phases that often characterize the trend of the currency pairs.
We are sure that at this moment you will be thinking something like: but if the Forex market is volatile by its nature, how can I understand when there is higher volatility?
This statement is only partially true.
Forex, in fact, is volatile by nature but there are times when this volatility, which we can also define as congenital, increases. In fact, it has been shown that it more convenient doing Forex trading at certain times than others.
For this reason we advise you to know, like your pockets, what are the best times to do Forex trading.
Underlying assets available on Plus500
Thanks to Plus500 all traders can trade with the best underlying assets.
In this case, you can invest in important financial instruments that guarantee the trading activity with CFDs.
You can choose to operate with one of the instruments below.
|Options||The trading operations offered in this field concern only trading operations without commissions. It means being able to trade CFD (call or put) not only on the most popular indices such as the Dax30, S & P500, CAC40, MIB40, AEX25 but also on stocks such as Apple. You can also take advantage of advanced real time charts in order to perform graphical analysis operations in the best way with important financial instruments.|
|Indices||Again, please note that the transactions carried out do not require additional commissions. |
You can trade on the most important indices such as FTSE / MIB40, S&P 500, NASDAQ100, FTSE 100, DAX30, CAC 40 and NIKKEI 22.
All this also using the excellent real-time graphics service.
|Currencies||No commissions of any kind are required on this market. Furthermore, free trading tools and the possibility of exploiting leverage at the highest levels are included with this asset. You can invest in the forex market on the major currency pairs.|
|Stocks||Also on this asset you can take advantage of the opportunity to trade on the markets of over 20 countries, not only European but also American. In addition to this, there are free tools useful to control profits and losses.|
|Commodities||If you choose to invest with this asset it means being able to take advantage of zero commissions and very low spreads. Not only! You can also set buy and sell positions and have complete control of profits and losses on trading activities.|
|ETF||Also this category of instruments can be traded for free, without commission.|
All the tools we have just analyzed can be traded after opening a new account on Plus500.
Review Plus500: how to do Forex trading?
To determine volatility peaks on the Forex market are not only the times, but also the presence or absence of macroeconomic events of a certain weight.
To find out if on a given day there are macroeconomic events that are capable of increasing the volatility of Forex, you must always check the macro calendar.
You can find the agenda of macroeconomic events that you will need to implement your investment strategies on Plus500. It offers all registered traders a detailed and always updated calendar. The most important macro appointments are also highlighted.
In concrete terms, this means that you can already know beforehand what the macro data are and at what time it is scheduled to publish, which are more capable of determining strong volatility on the currency pairs concerned.
The Plus500 Forex trading strategy consists precisely in the correct positioning in view of the publication of these data. It is in fact logical that if the data beats the analysts’ expectations, there will be a sharp increase in the price, vice versa if the data were to disappoint expectations then the price would drop.
Plus500 reviews: money management
Alongside the strategy of volatility, there is also another path which, more properly, concerns money management.
This second strategy, unlike the volatility strategy, is set in the long run . Specifically, in order to trade with Plus500, the conditions for rational money management must be created.
Therefore, never bet all the capital on a single asset, but instead prefer a complete diversification on the various markets.
Everything has been said about the allocation of capital as a strategy for trading with Plus500.
Objectively speaking, there is no better way than another. The best capital allocation strategy depends on what the investor’s characteristics are.
To summarize to the maximum, therefore, if you have doubts in investing in individual stocks, it is better to invest in equity indices to lower the level of risk.
Obviously this is just an example.
The important thing is that the trading capital is managed in such a way as to avoid in the most absolute way that the loss entails the zeroing of your account. Each loss must not impact more than 5% on the total capital of the account.
Trading with Plus500 – considerations
This article does not pretend to exhaust the talk about the tricks and strategies for trading with Plus500.
In fact, if you try to talk with other traders, you will find that everyone has their own recipes and secrets for trading on Plus500.
Our suggestions, however, are very valuable because they represent typical cases suitable for different types of traders.
For example, if your interest is to make your trade successful in in the short term with Plus500 (also intraday), then the strategy you can use is that of volatility.
Conversely, if your goal is to invest in the long term, then you have to pay close attention to what your capital allocation will be.
It is precisely in the light of these considerations that we can say that the best strategy for trading online with Plus500 must adapt to what are the psychological characteristics of those who apply them, i.e. the traders.
The second, and last, weak point of Plus500 concerns customer support. We are not saying that customer support is absent or unreliable.
In fact, Plus500 offers its own customer a support service.
You can choose to communicate with Plus500 via e-mail contact form and online chat.
But, unfortunately, there is no phone number to call in case of need. Although there are both Facebook, Twitter and Google+ pages, which you can refer to for faster contact.
The absence of telephone assistance may sound strange, but it will certainly be a company policy, to focus on saving on this service, and thus be able to offer low spreads.
Plus500: final opinions and considerations
To summarize, also based on all Plus500 reviews, it is one of the best brokers out there to trade CFDs on a practically unlimited choice of assets (over a thousand are the ones available among which Plus500 traders can choose). Withdrawals and deposits spin smoothly without problems.
In addition, the possibility of using the Plus500 demo account without even having to deposit the first deposit is to be commended. The only two flaws remain the lack of an educational section (although in the end, Plus500 is a CFD broker, not a finance portal) and the absence of a customer support phone number (available only via email, contact form from the site and through the pages of the most famous Social Networks).
For these reasons Plus500 passes our review with flying colors, even if it does not get praise for the lack, above all, of a telephone line dedicated to customer support. However, Plus500 is a recommended CFD broker.
If you have searched for Plus500 opinions, information on demo and signing up process, or how Plus500 works, we hope you have found what you needed in this article.
No, Plus500 offers its customers a selfmade platform, developed by the broker and owned byit.
No, it isn’t. The same broker points out that Plus500 is a broker particularly suitable for professional traders or, in any case, with some experience in the financial markets.
Yes, it does and it is completely free. Here you can test not only the broker’s platform, but also your skills on the financial markets with CFDs.