Plus500 Review 03/2018 | Scam or Legit Forex Broker?

Plus500 in the test:
One of the oldest, most well-known and most popular brokers for exclusive trading in CFDs (Contracts for Difference) is definitely Plus500 in almost all countries. We looked closely at the company, which has always been found in the media, and explained in our review what interested traders should look out for. After an assessment of Plus500 legitimacy, we focus more on the actual offer of this CFD service and show which factors decide whether a registration with the top broker is worthwhile or not.

Background: Is Plus500 legit or not?
Plus500’s roots are in the UK. There is also the company behind it, Plus500 UK Ltd. reportedly. Plus500 is a trading company that is now offering services in many countries around the world. The CFD Broker was launched one year later after the company was founded in 2008 and was at that time the first company to offer trading in CFDs completely free of charge. At that time, this was a real innovation and has brought the company many satisfied and loyal customers. It is now possible to trade in contracts for difference in more than 2,000 markets. Plus500 has been available in over 20 languages for several months and attracts new customers worldwide. In addition, Plus500 is the main sponsor of the Spanish football club Atletico Madrid, which won the Primera Division in the 2013-2014 season. This shows how much money is really behind the company.
Plus500 UK LTD
Address: 78/Cornhill, London EC3V-3QQ
Regulation/License: FCA – 509909
Support: Contact form & support (at) plus500.com
Live Chat: Not available!

According to online data, Plus500 is completely debt-free and has a high liquidity. It is also worth noting that client funds are held separately from company assets in accordance with applicable law. Specifically, this has the advantage for traders that in the event of a bankruptcy of Plus500, a repayment of large parts of their deposits can be retrieved. Creditors then have no chance to get money from this amount when collecting the debt.

Of course, Plus500 is also regulated and authorized. This is done by the respective competent authorities of the countries with the three main branches. In London, UK, this is for Plus500 UK LTD the Financial Conduct Authority (FCA), in Sydney, Australia, for the Plus500 AU LTD the Australian Securities and Investments Commission (ASIC,) and Limassol, Cyprus, for the Plus500 CY LTD the Cyprus Security and Exchange Commission (CySEC.) These governing bodies take great care of all the concerns that arise with Plus500. The financial supervisory authorities are subject to direct instructions, for example from the European Union. The laws to be adhered to are the same. Especially the English authority is known for its accurate, strict, and sound controls. Users of Plus500 can therefore assume that this is not a fraud, or rip-off and that there are no dubious business practices, such as manipulating the prices.

Not all traders are completely satisfied with Plus500. A quick internet search or a look at the comments on the company’s Facebook page shows that communication between Plus500 and its customers is not always flawless. For example, accounts are frozen without further justification. On demand, it then becomes clear that an account is being transferred and that it should be free to use again within a few days.

These and other examples make some dealers grudging. They do not trust Plus500 fully and make it clear in various reviews online. Time and again, however, it becomes clear that Plus500 is blamed for the simple loss of money. Forex trading is a risky business where a trader can quickly gain a lot of capital but also lose it. No one has said that Plus500 can be seen as a kind of money printing machine. Therefore, critical comments must always be read and considered with great care. If the system does not lead a forex-trader to the desired outcome, it does not mean that Plus500 must be to blame.

In our test, of course, we have also taken all support options under the microscope. Typically, larger forex brokers not only offer contact via email, but also a free phone number and sometimes also a live chat. Questions and answers in the form of a FAQ are also communicated online via a support page.
Well, at Plus500, all of this does not happen :( Compared to nearly all competitors we have tested, Plus500 service is extremely miserable. A service number is waived as well as a live chat. You cannot find a single phone number online, which you can use to contact Plus500 directly and clarify questions and problems personally. Instead, a contact form is available, through which customers have to report to the provider. In our report, we would now like to describe our opinion on this type of contact. Because in our test contact attempts, they have been answered only after a few working days. We felt we were being stopped here.

Nevertheless, on most of our questions, we have also received an answer through the use of an internet search engine. Thanks to Plus500, we noticed that direct support via customer service representatives is not absolutely necessary. However, this should not excuse or defend the bad customer service of the company. We give a bad grade to Plus500 here.

On paper, Plus500 looks extremely reputable. The company is growing and growing, and now offers its services in various countries around the world. The fact that even a large and well-known Spanish team is sponsored shows how healthy the company is and how much capital it really stands behind. Moreover, the regulations in two different countries of the European Union make it clear that Plus500 is reputable. There is also a deposit insurance for the customer funds, so that in the event of an unlikely bankruptcy of the company funds are guaranteed to be repaid.

We are a little worried about the reviews of other customers. Should it really be a common practice not to answer inquiries or only inadequately, then there is a trust problem with Plus500. Also, the quasi non-existent customer support bothers us in our review extremely. Our experiences are also not intoxicating. We would like to recommend the broker, who is internationally active and one of the top options for beginners and beginners, to rethink its policy regarding customer support.

In the second part, we take a close look at the advantages, disadvantages, terms, and benefits of Plus500. For each sub-point, we have created a short review that provides a comprehensive insight with which interested traders can opt for or against this broker. All information has been obtained to the best of our knowledge and belief after our personal experience.

Plus500 started as a pure forex and CFD broker. However, traders now also have opportunities to trade other financial products such as indices and commodities. It must be mentioned that CFD stock trading does not incur commissions, which would have to be paid to Plus500. It should not only attract currency traders but also traders who want to try other financial products. Plus500 can be seen as a true all-rounder, which has almost all important and interesting trading variants available for trading in the program. Over 2,000 markets are tradable.

At Plus500, many traders do not rely on a pure price-cost strategy, which should flatter the users. With regard to the fixed spreads, for example, relatively high values starting at two pips are required for majors such as EUR/USD. As a result, customers do not have the opportunity to quickly break into profit, but have to hold their assets for a little longer. Two pips are above average in direct comparison to other providers. Especially the brokers with a higher minimum deposit, which specialize in experienced traders, are significantly lower with their spreads. For beginners, Plus500 should be in the frame. After some time, however, newcomers would have to think about changing the provider.

The maximum leverage that is offered in Forex trading is in the average range. While not all currency pairs are subject to the leverage of 200:1, this amount is again applicable to majors such as EUR/USD. The leverage on exotic currencies pairs is significantly lower. For CFDs, the maximum lever is also 200:1. For indexes, Plus500 has slightly increased it to 300:1. ETFs, however, are assigned a maximum lever of only 100:1.

Trading software
The negative point first: the software MetaTrader 4, which is revered by many traders because of their clarity and individual adaptability, can unfortunately not be used with Plus500. Instead, Plus500 provides its own web trader, which, thanks to its fantastic structure, makes it easy for new entrants to enter the foreign exchange market.

In addition, there is also an in-house trading platform from Plus500, which is available for download. There you only have to register quickly with your key data and can trade directly through your own computer. In our review, we find that this trading software is much less flexible than Webtrader. We would therefore recommend to take advantage of the feature directly in the browser.

Plus500 also provides you with a free app. This is currently only usable for Android and iPhone users. But you can do that, unlike many other providers. According to statistics released recently by Plus500, more than 40% of all trades are now completed via the mobile app. However, we do not want to propagate the use of such an app. The price overviews are often very small and difficult to recognize. This makes successful trading difficult.

Deposit and withdrawal
Deposits can be made at Plus500 simply by bank transfer, credit card, and various other services that promise a direct transfer of money to the online account. These include, for example, well-known payment systems such as Skrill, PayPal, and Giropay. Overall, we are very enthusiastic about the abundance of different possibilities.

Overview of the Plus500 payment options
Payment options: Visa, Mastercard, Skrill, Bank Transfer, PayPal
Minimum deposit: $100
Fees: none
Account management possible in: Euro, US Dollars, British Pounds
Withdrawal Options: Visa, Mastercard, Skrill, Bank Transfer, PayPal

Payouts are basically made the same way as the money is transferred to the online account. The most common is the classic bank transfer. Judging from the experience of some customers, the transfer of funds is not always smoothly. Plus500 often asks for more documents and spends a lot of time checking the submitted documents. Also we had some problems in the test with our payment, but found the money in the end reached our account.

Bonus and promotions
Due to regulatory requirements, there is no bonus for new customers at Plus500. This once again underlines the seriousness of the broker, as he keeps to the regulation.

Only $100 minimum deposit
Also designed very fair is the low minimum deposit required by Plus500. Small/Private traders too can trade quickly and easily. However, with such an amount, interested individuals should not enter into any big or serious Forex trades. The money is difficult to split, because too small positions in trading make no sense. It is advisable to enter the forex broker with at least 500 dollars.

Over 50 currency pairs available
Currency trading takes place at Plus500 with over 50 currency pairs. In addition to the majors are also some exotic couples including. The list is constantly being expanded according to our experience.

No education, but demo account
Regarding the training opportunities, Plus500 is conceivably poorly equipped. There are only a few articles and informational text about what forex trading is. Information on webinars, seminars, videos, and eBooks, was completely omitted.
On the bright side, there is a free demo account included, which can be used indefinitely.

Overall rating: 7.6/10
One of the largest forex brokers in the world left a rather mediocre impression in our test. While the basic offer, the internationalization, and the background check turned out quite positively, the forex broker fails in important places, such as the further education possibilities and the customer support.

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