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Trading with Plus500: Simple strategy that is efficient
Plus500 is a broker of whom you must have heard. You may praise it or curse it as many traders do. Let’s throw prejudices away and look at Plus500 without bias. Having tested the basic features for you, you can compare to what extent our experience regarding its trading platform and the opening of an account meets your expectations.
Plus500 is a CFD broker, established in 2008. It is an Israel-based broker with affiliations in London and Limassol. Its key advantage is an in-house platform, which requires a standard internet browser. Plus500 has been offering support in various languages and trading in all different currencies for literally years.
I assume that you want to start your trading with a demo account. Which is exactly what we recommend. Nothing is easier than to open an account with Plus500. Within a minute everything is done. You just enter your e-mail, password and get access to the trading platform with a virtual million on your account. All this is happening in your browser, so you don’t have to make any installations.
The availability of choosing any platform is a big plus to start with. Especially users of OS X, (i.e. Apple product) will be happy because a lot of trading platforms offer Windows only. Plus500 has also an application for Windows. As to the operating systems and the usage, you can rely on platforms for both iOS and Android allowing you to watch your trading from any place, indeed.
The disadvantage of doing business over an in-house platform is that you can’t accommodate the chart to be better readable. This is a minor flaw. But you can still open MT4 aside; just in case. If you decide to enter a trade you will log in (in the browser) and execute the trade.
Plus500’s demo platform
The trading platform as such is very simple and mostly intuitive. This is what some experienced brokers may see as a disadvantage. After opening the system, in the top section of your screen, you will see a list of instruments, in the lower section the chart. You can easily choose your preferred instrument by the name or go through the list. Given the countless number of currencies, cryptocurrencies, commodities, shares, indices, I recommend that you enlarge the chart to cover all your screen and read it in detail. A quick trading order to sell or buy can be chosen from the preview. Look at the picture above.
Your chosen instrument is complemented by sentiment. Be careful, brokers offers this data from time to time but usually this data is data from a given broker i.e. client data. Even the biggest retail trading broker is not big enough to keep its data absolutely accurate. There is a way to make the data more precise, which is to add some data from futures. Anyway, I don’t think that Plus500 is using this method. Be cautious with this indicator.
As to the list, details about currency rates in various time zones are more interesting – unit volumes, leverage or a tight spread. Useful is also the below information including trading hours. This list is highly appreciated.
So far, so good. All looks nice and transparent. What about the number of instruments offered by Plus500 for analyzing the market? Here I must admit this is one of the limitations of having a trading platform in a browser. If you work with MetaTrader in more detail perhaps you download or create your own indicators and insert them in MetaTrader folder (typically on disc C://Program Files/Meta Trader/Indicators). With a browser you don’t do such things, do you? Well, but is it necessary?
Making a basic analysis of trend lines is an easy task, no problem. You can also add Fibonacci lines, an arc, a fan or just some text. The portfolio is broader one may get the impression that nothing is missing. Or am I wrong?
With Fibonacci setting, I appreciate the possibility of adding your own level. This is a fundament. The portfolio offers default basic values but some forex traders use their own values. I personally tested some more levels and from time to time displayed them on the screen, just in case. With Plus500 this is not possible which is a pity. In the top section next to the timeframe, you can see a traditional coordinates cursor.
Those who prefer indicators such as ADX or Stochastic will surely appreciate it, I think the selection is more than sufficient.
Fortunately, the broker did not forget about the setting of indicators so you can choose a period you like. This is an area without limitations.
You will not be surprised by the simplicity of all transactions, taking a long or short position, trading commodities or application of indicators. Here I must warn you. It’s the default amount. This may not comply with your money management and you will feel that it is too high. Always check the amount of your trade first before placing the order.
How to trade with Plus500 (strategy)
A natural question: How to trade? We described the process several times in the past. There are hundreds or even thousands of forex trading strategies. Of the quantity available on the internet we have shown you some ways for example gap trading.
In gap trading you speculate on filling gaps occurred usually over weekends when trading is closed. Another option to apply this strategy is to find three candlesticks where the high of the first one does not overlap the low of the third one (in case of an upward formation) or the low of the first one does not overlap the high of the last one.
Using these levels, you will draw trend lines and after a breakthrough takes place you will speculate on filling the gap. It may look as follows: (middle candlestick is the 6 th from the right, the chart includes highs of the previous one and lows of the next one, they don’t overlap but logically form a gap).
This trading strategy matches with the Plus500 concept as it is simple, transparent and – in the opinion of many traders (me inclusive) – functional. Obviously, it depends on the settings, instrument etc. If you are interested in this trading strategy test it on a demo account using historical data. We don’t recommend that based on this article you start trading with a live account. Ideas are nice but the practical making of a trading strategy is your homework.
Plus500 manages more challenging analyses. Overall, the number of limitations is minimal. I dare say that 75 % of traders are happy with the existing amount of features. Otherwise, they would not continue trading with this broker.
Start trading with Plus500
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More about the author J. Pro
Unlike Stephen (the other author) I have been thinking mainly about online business lately. I wasn’t very successfull with dropshipping on Amazon and other ways of making money online, and I’d only earn a few hundreds of dollars in years. But then binary options caught my attention with it’s simplicity. Now I’m glad it did because it really is worth it. More posts by this author
Basic Forex Trading Strategies and Indicators
Traders use a wide range of FX trading strategies. Each strategy can be customised or tailored to the individual needs of a trader and used in conjunction with other strategies.
When considering which trading strategy is best for you, you need to take into account your personal goals, risk appetite, experience and trading preferences. Before exploring the different trading strategies, we will first outline two key trading methodologies: fundamental and technical analysis.
Fundamental Analysis vs. Technical Analysis
Traders generally sit in one of two categories: fundamental or technical.
Fundamental traders will look for wider economic variables to determine whether or not a currency pair will appreciate or depreciate To take a basic example, if an economic report came out that was particularly strong, then it might indicate a currency could appreciate relative to another currency. However, if all traders expected the economic report to be strong (prior to the report being released), the impact of the report would already be ‘priced in’ to the market.
On the other hand, technical analysis utilises chart indicators and patterns to analyse past performance in order to determine whether a currency pair, such as the Euro to US Dollar (EUR/USD), is overbought or oversold. By relying on statistical trends or patterns, like volume and price movement (appreciation/depreciation), traders seek to predict which way a currency pair may swing. Of course, traders can utilise a blend of technical and fundamental analysis to evaluate potential investment opportunities.
In light of the above trading methodologies, below is an outline of a number of approaches and indicators that can be used when trading forex.
Position trading is a strategy where traders hold positions for longer periods of time, usually weeks or months. Position traders will generally utilise fundamental analysis and economic data. However, when opening a new position, position traders might make use of technical analysis.
A position trader may wait until a currency pair reaches a (predetermined) support level before taking a long position and holding it for a few weeks. There is presumably less immediacy associated with this type of trading, as traders are not necessarily concerned with intraday prices and generally open fewer positions (when compared to other trading strategies). However, as is the case with any kind of trading, traders need to have a firm grasp of market fundamentals and position trading largely relies on fundamental analysis.
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Best Choice for Beginners — Free Education + Free Demo Acc!
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Simple Moving Average
Simple Moving Average (SMA) is an important technical indicator and one of the most frequently used trading strategies. SMA is used to determine if an asset price will move up or down. It is calculated by taking the closing daily price of an asset and dividing it over the total days to get an average. The line that is created by the SMA is then used, along with other technical indicators, to gauge price movements. An SMA line can be of any duration, however, technical traders tend to follow the 50-, 100- and 200-day moving averages. You can test different strategies utilising our charting system.
Exponential Moving Average
An exponential moving average gives more importance to recent closing prices. When using these lines, it is advised to take into consideration that they are lagging indicators which may not respond quickly to sharp changes. Short-term trading periods might not have enough price indicators to be reliable. However, they do give a clear visual picture of overall trends and can be very useful in currency trading. EMAs place more importance on recent data than on older data, so they tend to be more reactive to price changes than SMAs. This makes results from EMAs more efficient and is one of the reasons why they are the preferred average among many traders.
Relative Strength Index
Relative Strength Index (RSI) can be used in tandem with the SMA line for additional clarification on the possible trend of an instrument. RSI demonstrates whether an asset is overbought or oversold, based on an index of 0 – 100. Typically, an asset under 30 is seen as oversold, whereas an asset over 70 is seen as overbought. So, if an asset is under 30, it might be a good time to buy, and it might be a good time to sell if it is over 70. Remember, this is just a general indicator and you will often need to tailor your forex trading strategies depending on the asset in question.
Like the RSI, Bollinger Bands are often used with SMA lines as one of many trading strategies. But Bollinger Bands are inseparable from the SMA line. They are created by calculating the standard deviation from a given SMA line. Standard deviation is simply a measure of volatility. When the bands widen, this is an indication that the market has become more volatile. When they contract, the market has become more stable. A Bollinger Band will have an upper and lower threshold above and below the SMA line. The SMA line is sometimes referred to as the ‘middle’ Bollinger Band 1 .
These are just 4 of many different forex trading strategies that traders adopt to help enhance their trading success. There are numerous combinations of FX trading strategies and no limit to the number of technical indicators that you can use.
If you want to learn more advanced trading strategies, then consider our CFD trading platform, featuring more than 90 technical indicators, advanced drawing tools and in-depth analytical tools which will help you learn the nuances of forex CFD trading. You can also practice your skills in our risk-free, unlimited demo account.
To try our indicators, simply sign up/log in, select an instrument, go to its chart and click on the (Fx) icon.
This article contains general information which doesn’t take into account your personal circumstances.
1 A screen capture of the Plus500 platform, as of September 2020. Illustrative prices.
Day trading strategies are essential when you are looking to capitalise on frequent, small price movements. A consistent, effective strategy relies on in-depth technical analysis, utilising charts, indicators and patterns to predict future price movements. This page will give you a thorough break down of beginners trading strategies, working all the way up to advanced , automated and even asset-specific strategies.
It will also outline some regional differences to be aware of, as well as pointing you in the direction of some useful resources. Ultimately though, you’ll need to find a day trading strategy that suits your specific trading style and requirements.
Also, ensure your choice of broker suits strategy based day trading. You will want things like;
- Excellent trade execution speed,
- Price action data ( + Level 2 if possible)
- Ability to trade direct from graphs,
- Trade automation,
- Stop losses and take profit orders
- Etc etc.
Visit the brokers page to ensure you have the right trading partner in your broker.
Top 3 Brokers Suited To Strategy Based Trading
Trading Strategies for Beginners
Before you get bogged down in a complex world of highly technical indicators, focus on the basics of a simple day trading strategy. Many make the mistake of thinking you need a highly complicated strategy to succeed intraday, but often the more straightforward, the more effective.
Incorporate the invaluable elements below into your strategy.
- Money management – Before you start, sit down and decide how much you’re willing to risk. Bear in mind most successful traders won’t put more than 2% of their capital on the line per trade. You have to prepare yourself for some losses if you want to be around when the wins start rolling in.
- Time management – Don’t expect to make a fortune if you only allocate an hour or two a day to trading. You need to constantly monitor the markets and be on the lookout for trade opportunities.
- Start small – Whilst you’re finding your feet, stick to a maximum of three stocks during a single day. It’s better to get really good at a few than to be average and making no money on loads.
- Education – Understanding market intricacies isn’t enough, you also need to stay informed. Make sure you stay up to date with market news and any events that will impact your asset, such as a shift in economic policy. You can find a wealth of online financial and business resources that will keep you in the know.
- Consistency – It’s harder than it looks to keep emotions at bay when you’re five coffees in and you’ve been staring at the screen for hours. You need to let maths, logic and your strategy guide you, not nerves, fear, or greed.
- Timing – The market will get volatile when it opens each day and while experienced day traders may be able to read the patterns and profit, you should bide your time. So hold back for the first 15 minutes, you’ve still got hours ahead.
- Demo Account – A must-have tool for any beginner, but also the best place to backtest or experiment with new, or refined, strategies for advanced traders. Many demo accounts are unlimited, so not time restricted.
Components Every Strategy Needs
Whether you’re after automated day trading strategies, or beginner and advanced tactics, you’ll need to take into account three essential components; volatility, liquidity and volume. If you’re to make money on tiny price movements, choosing the right stock is vital. These three elements will help you make that decision.
- Liquidity – This enables you to swiftly enter and exit trades at an attractive and stable price. Liquid commodity strategies, for example, will focus on gold, crude oil and natural gas.
- Volatility – This tells you your potential profit range. The greater the volatility, the greater profit or loss you may make. The cryptocurrency market is one such example well known for high volatility.
- Volume – This measurement will tell you how many times the stock/asset has been traded within a set period of time. For day traders, this is better known as ‘average daily trading volume.’ High volume tells you there’s significant interest in the asset or security. An increase in volume is frequently an indicator a price jump either up or down, is fast approaching.
5 Day Trading Strategies
Breakout strategies centre around when the price clears a specified level on your chart, with increased volume. The breakout trader enters into a long position after the asset or security breaks above resistance. Alternatively, you enter a short position once the stock breaks below support.
After an asset or security trades beyond the specified price barrier, volatility usually increases and prices will often trend in the direction of the breakout.
You need to find the right instrument to trade. When doing this bear in mind the asset’s support and resistance levels. The more frequently the price has hit these points, the more validated and important they become.
This part is nice and straightforward. Prices set to close and above resistance levels require a bearish position. Prices set to close and below a support level need a bullish position.
Plan your exits
Use the asset’s recent performance to establish a reasonable price target. Using chart patterns will make this process even more accurate. You can calculate the average recent price swings to create a target. If the average price swing has been 3 points over the last several price swings, this would be a sensible target. Once you’ve reached that goal you can exit the trade and enjoy the profit.
One of the most popular strategies is scalping. It’s particularly popular in the forex market, and it looks to capitalise on minute price changes. The driving force is quantity. You will look to sell as soon as the trade becomes profitable. This is a fast-paced and exciting way to trade, but it can be risky. You need a high trading probability to even out the low risk vs reward ratio.
Be on the lookout for volatile instruments, attractive liquidity and be hot on timing. You can’t wait for the market, you need to close losing trades as soon as possible.
Popular amongst trading strategies for beginners, this strategy revolves around acting on news sources and identifying substantial trending moves with the support of high volume. There is always at least one stock that moves around 20-30% each day, so there’s ample opportunity. You simply hold onto your position until you see signs of reversal and then get out.
Alternatively, you can fade the price drop. This way round your price target is as soon as volume starts to diminish.
This strategy is simple and effective if used correctly. However, you must ensure you’re aware of upcoming news and earnings announcements. Just a few seconds on each trade will make all the difference to your end of day profits.
Although hotly debated and potentially dangerous when used by beginners, reverse trading is used all over the world. It’s also known as trend trading, pull back trending and a mean reversion strategy.
This strategy defies basic logic as you aim to trade against the trend. You need to be able to accurately identify possible pullbacks, plus predict their strength. To do this effectively you need in-depth market knowledge and experience.
The ‘daily pivot’ strategy is considered a unique case of reverse trading, as it centres on buying and selling the daily low and high pullbacks/reverse.
5. Using Pivot Points
A day trading pivot point strategy can be fantastic for identifying and acting on critical support and/or resistance levels. It is particularly useful in the forex market. In addition, it can be used by range-bound traders to identify points of entry, while trend and breakout traders can use pivot points to locate key levels that need to break for a move to count as a breakout.
Calculating Pivot Points
A pivot point is defined as a point of rotation. You use the prices of the previous day’s high and low, plus the closing price of a security to calculate the pivot point.
Note that if you calculate a pivot point using price information from a relatively short time frame, accuracy is often reduced.
So, how do you calculate a pivot point?
- Central Pivot Point (P) = (High + Low + Close) / 3
You can then calculate support and resistance levels using the pivot point. To do that you will need to use the following formulas:
- First Resistance (R1) = (2*P) – Low
- First Support (S1) = (2*P) – High
The second level of support and resistance is then calculated as follows:
- Second Resistance (R2) = P + (R1-S1)
- Second Support (S2) = P – (R1- S1)
When applied to the FX market, for example, you will find the trading range for the session often takes place between the pivot point and the first support and resistance levels. This is because a high number of traders play this range.
It’s also worth noting, this is one of the systems & methods that can be applied to indexes too. For example, it can help form an effective S&P day trading strategy.
Limit Your Losses
This is particularly important if you’re using margin. Requirements for which are usually high for day traders. When you trade on margin you are increasingly vulnerable to sharp price movements. Yes, this means the potential for greater profit, but it also means the possibility of significant losses. Fortunately, you can employ stop-losses.
The stop-loss controls your risk for you. In a short position, you can place a stop-loss above a recent high, for long positions you can place it below a recent low. You can also make it dependant on volatility.
For example, a stock price moves by £0.05 a minute, so you place a stop-loss £0.15 away from your entry order, allowing it to swing (hopefully in the expected direction).
One popular strategy is to set up two stop-losses. Firstly, you place a physical stop-loss order at a specific price level. This will be the most capital you can afford to lose. Secondly, you create a mental stop-loss. Place this at the point your entry criteria are breached. So if the trade makes an unanticipated turn, you’ll make a swift exit.
Forex Trading Strategies
Forex strategies are risky by nature as you need to accumulate your profits in a short space of time. You can apply any of the strategies above to the forex market, or you can see our forex page for detailed strategy examples.
Cryptocurrency Trading Strategies
The exciting and unpredictable cryptocurrency market offers plenty of opportunities for the switched on day trader. You don’t need to understand the complex technical makeup of bitcoin or ethereum, nor do you need to hold a long-term view on their viability. Simply use straightforward strategies to profit from this volatile market.
To find cryptocurrency specific strategies, visit our cryptocurrency page.
Stock Trading Strategies
Day trading strategies for stocks rely on many of the same principles outlined throughout this page, and you can use many of the strategies outlined above. Below though is a specific strategy you can apply to the stock market.
Moving Average Crossover
You will need three moving average lines:
- One set at 20 periods – This is your fast moving average
- One set at 60 periods – This is your slow moving average
- One set at 100 periods – This is your trend indicator
This is one of the moving averages strategies that generates a buy signal when the fast moving average crosses up and over the slow moving average. A sell signal is generated simply when the fast moving average crosses below the slow moving average.
So, You’ll open a position when the moving average line crosses in one direction and you’ll close the position when it crosses back the opposite way.
How can you establish there’s definitely a trend? You know the trend is on if the price bar stays above or below the 100-period line.
For more information on stocks strategies, see our Stocks and shares page.
Spread Betting Strategies
Spread betting allows you to speculate on a huge number of global markets without ever actually owning the asset. Plus, strategies are relatively straightforward.
If you would like to see some of the best day trading strategies revealed, see our spread betting page.
Developing an effective day trading strategy can be complicated. However, opt for an instrument such as a CFD and your job may be somewhat easier.
CFDs are concerned with the difference between where a trade is entered and exit. Recent years have seen their popularity surge. This is because you can profit when the underlying asset moves in relation to the position taken, without ever having to own the underlying asset.
For CFD specific day trading tips and strategies, see our CFD page.
Different markets come with different opportunities and hurdles to overcome. Day trading strategies for the Indian market may not be as effective when you apply them in Australia. For example, some countries may be distrusting of the news, so the market may not react in the same way as you’d expect them to back home.
Regulations are another factor to consider. Indian strategies may be tailor-made to fit within specific rules, such as high minimum equity balances in margin accounts. So, get online and check obscure regulations won’t impact your strategy before you put your hard earned money on the line.
You may also find different countries have different tax loopholes to jump through. If you’re based in the West but want to apply your normal day trading strategies in the Philippines, you need to do your homework first.
What type of tax will you have to pay? Will you have to pay it abroad and/or domestically? Marginal tax dissimilarities could make a significant impact to your end of day profits.
Strategies that work take risk into account. If you don’t manage risk, you’ll lose more than you can afford and be out of the game before you know it. This is why you should always utilise a stop-loss.
The price may look like it’s moving in the direction you hoped, but it could reverse at any time. A stop-loss will control that risk. You’ll exit the trade and only incur a minimal loss if the asset or security doesn’t come through.
Savvy traders don’t usually risk more than 1% of their account balance on a single trade. So if you have £27,500 in your account, you can risk up to £275 per trade.
It will also enable you to select the perfect position size. Position size is the number of shares taken on a single trade. Take the difference between your entry and stop-loss prices. For example, if your entry point is £12 and your stop-loss is £11.80, then your risk is £0.20 per share.
Now to figure out how many trades you can take on a single trade, divide £275 by £0.20. You can take a position size of up to 1,375 shares. That is the maximum position you could take to stick to your 1% risk limit.
Also, check there is sufficient volume in the stock/asset to absorb the position size you use. In addition, keep in mind that if you take a position size too big for the market, you could encounter slippage on your entry and stop-loss.
Everyone learns in different ways. For example, some will find day trading strategies videos most useful. This is why a number of brokers now offer numerous types of day trading strategies in easy-to-follow training videos. Head to their learning and resources section to see what’s on offer.
If you’re looking for the best day trading strategies that work, sometimes online blogs are the place to go. Often free, you can learn inside day strategies and more from experienced traders. On top of that, blogs are often a great source of inspiration.
Some people will learn best from forums. This is because you can comment and ask questions. Plus, you often find day trading methods so easy anyone can use. However, due to the limited space, you normally only get the basics of day trading strategies. So, if you are looking for more in-depth techniques, you may want to consider an alternative learning tool.
If you want a detailed list of the best day trading strategies, PDFs are often a fantastic place to go. Their first benefit is that they are easy to follow. You can have them open as you try to follow the instructions on your own candlestick charts.
Another benefit is how easy they are to find. For example, you can find a day trading strategies using price action patterns PDF download with a quick google. They can also be very specific. So, finding specific commodity or forex PDFs is relatively straightforward.
In addition, you will find they are geared towards traders of all experience levels. Hence you can find for beginners PDFs and advanced PDFs. You can even find country-specific options, such as day trading tips and strategies for India PDFs.
Having said that, a PDF simply won’t go into the level of detail that many books will. The books below offer detailed examples of intraday strategies. Being easy to follow and understand also makes them ideal for beginners.
- The Simple Strategy – A Powerful Day Trading Strategy For Trading Futures, Stocks, ETFs and Forex, Mark Hodge
- How to Day Trade: A Detailed Guide to Day Trading Strategies, Risk Management, and Trader Psychology, Ross Cameron
- Intra-Day Trading Strategies: Proven Steps to Trading Profits, Jeff Cooper
- The Complete Guide to Day Trading: A Practical Manual from a Professional Day Trading Coach, Markus Heitkoetter
- Stock Trading Wizard: Advanced Short-Term Trading Strategies, Tony Oz
So, day trading strategies books and ebooks could seriously help enhance your trade performance. If you would like more top reads, see our books page.
Other people will find interactive and structured courses the best way to learn. Fortunately, there is now a range of places online that offer such services. You can find courses on day trading strategies for commodities, where you could be walked through a crude oil strategy. Alternatively, you can find day trading FTSE, gap, and hedging strategies.
Trading For A Living
If you’re looking to pack up the day job and start day trading for a living, then you’ve got a challenging but exciting journey ahead of you. You’ll need to wrap your head around advanced strategies, as well as effective risk and money management strategies. Discipline and a firm grasp on your emotions are essential.
For more information, visit our ‘trading for a living‘ page.
Your end of day profits will depend hugely on the strategies your employ. So, it’s worth keeping in mind that it’s often the straightforward strategy that proves successful, regardless of whether you’re interested in gold or the NSE.
Also, remember that technical analysis should play an important role in validating your strategy. In addition, even if you opt for early entry or end of day trading strategies, controlling your risk is essential if you want to still have cash in the bank at the end of the week. Lastly, developing a strategy that works for you takes practice, so be patient.
Plus500 Review | Broker breakdown
December 2, 2020
Plus500 Review – Is it Safe, legit or Real?
Plus500 is an online broker founded in 2008. With close to $1 Billion in revenues, it has grown to become one of the most popular brokers for forex CFD trading.
And for good reasons too- It has passed the tightest of regulatory controls, offers great customer service and trading platforms, and charges very competitive fees.
An important consideration to take is that plus500 offers only CFDs, so if you’re looking to trade binaries, you should consider other brokers.
Today, we’ll show you why plus500 is our preferred broker for CFD forex trading.
But before we get into the review, it is important to note that as with any forex broker, there are risks associated with trading with plus500: 76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
With a score of 93%, plus500 ranks in our top 5 overall best brokers for forex trading.
It is particularly good for CFD traders who like to conduct their research outside the trading app.
Warning : 76.4% of retail CFD accounts lose money when trading CFDs with this provider
Is it safe?
This is probably the most important question to ask when considering a forex broker.
Luckily, plus500 hits the safety trifecta:
One of the most impressive facts about plus500 is its above average profitability. Due to their efficient risk management strategy and focus on CFDs, the broker has managed to achieve a net margin of over 50% in 2020, which is almost unheard of in this industry.
They’ve never had a liquidity issue and with such solid results are unlikely to have any in the future.
We’d therefore consider it one of the most secure forex brokers in the market
Commissions and Fees
Plus500 offers no commission trading and withdrawals. An overnight funding amount is either added to or subtracted from your account when holding a position after a certain time (referred to as the “Overnight Funding Time”). The exact details of this fee varies depending on the trading instrument and how long the position has been held. When inside the Plus500 platform click on ‘details’ beside the instrument to find out more.
At the time of writing this article, their spread for the EUR/USD CFD was 6 pips, a very competitive rate. (07/12/2020 at 16:42)
Their inactivity fee is of $10 a month after 3 months of no logins.
All in all, they offer some great conditions for active CFD traders.
Minimum Initial Deposit:
$10.00 / month after 3 months of no logins
Variable: (depending on trading instrument)
Overnight Holding Fee:
Variable: (depending on trading instrument)
Platforms & Tools
Like most competitors in the space, plus500 offers a browser-based trading platform and a mobile app.
The platform comes with your standard customizable dashboard. Here you’ll find a price list for the major currency CFDs, as well as some simple yet highly useful candle price charts.
With sidebar tabs for Open Positions, Closed Positions, Orders, Funds, and Live Chat, we found this platform to be refreshingly simple.
One feature that caught our attention was the in-app live chat support tab. This allows you to talk with a support agent without leaving the trading web app, which is extremely useful for debugging any issues.
A notable absence is the lack of in-app research tools. Plus500 is lacking a news feed, although they do offer an economic calendar.
The only research tool we found in the app were the technical pattern indicators, as exemplified below by their Bollinger bands view.
The available indicators were quite extensive though, better than any app we’ve tested yet.
All in all, if you’re looking for a simple interface with loads of technical indicators, plus500 is your broker.
Fast, secure, simple and user-friendly trading platforms
> 24/7 customer support
> Regulation in four different countries including Australia, UK and Cyprus
Plus500 is a great starting place from which to make your first moves into the financial markets.
Founded in 2008, it is something of a newcomer to the industry and takes advantage of that by offering a service that is in many ways different and which now hosts over 1 million trading accounts. With a global outlook, it is available to traders in over 50 countries, provides trading services in over 30 languages and offers in excess of 2,000 CFD markets, covering asset classes that include stocks, forex, indices, ETFs, options, commodities and cryptocurrencies.
The service is very streamlined and during this Plus500 broker review, we found the trading platform easy to get to grips with and packed full of intuitive functionality. Navigating through the trading dashboard is particularly user-friendly and clients that get through to execution will see that one of Plus500’s major selling points is the tight bid-offer spreads.
The user-facing parts of the platform illustrate the willingness of the firm to invest in the latest technological tools to enhance the trading experience. Behind the scenes, the operation is supported by a regulatory structure that involves the firm holding licenses with a host of reputable global regulators, including ASIC (Australian Securities and Investments Commission).
There is everything needed to get started trading, and a few innovative features as well. Take a tour of the Demo account to learn about Plus500’s approach to trading the markets.
Products and Trade Offers
The Plus500 trading platform is very straightforward and well laid out. CFD trading is offered in a range of instruments and the platform facilitates access to over 2,000 financial markets. While some larger broker platforms offer more than 10,000 markets, it’s reassuring that Plus500, while offering a lower total number, do cover an extensive range of instruments. In particular, it is a positive feature of the site that single stock, commodity and index options are available. A demonstration of Plus500’s willingness to keep up to date with trader appetite is that there are 13 CFD crypto markets available to trade, including Bitcoin, Ethereum/Bitcoin, Ethereum, Litecoin, NEO, RippleXRP, IOTA, Monero, Stellar, EOS, Bitcoin Cash ABC, Cardano and Tron.
Even more on trend is the recent rollout of markets covering cannabis stocks and indices, there being eight markets in this sector to choose from.
Free Demo accounts can be opened in a matter of moments. A Live account takes a little longer to set up because that process requires the sharing of client information to ensure the broker complies with its regulatory duties. The demo account being a mirror of the Live account offers new users the chance to test the system while their registration to Live trading is processed. Many will take advantage of being able to keep the Demo environment open for future testing with virtual rather than real funds. As some other brokers restrict the amount of time Demo accounts can be open for, the fact that Plus500 let theirs remain active is a positive feature. In fact, Plus500 make switching between Demo and Live trading as easy as clicking a button.
The platform doesn’t charge processing fees on deposits and these can be made using debit/credit cards, bank transfer and PayPal/Skrill. The firm’s policy is to not charge fees on withdrawals but they do reserve the right to charge if a client should exceed the maximum number of monthly withdrawals.
As with most brokers, there may be frictional costs incurred if users convert one currency to a new base account currency. This is a market-wide practise and new accounts should ensure they understand the process, particularly as doing so might help them reduce the costs.
There are two account options: Retail account and Professional account. Traders looking to qualify for the Professional version will need to complete further registration / application forms, mainly because the terms of that account include leverage of up to 1:300. The Retail account offers the market standard levels of leverage. On most instruments, leverage is available up to levels of 1:30 but some instruments, such as crypto (1:2), apply tighter terms.
The minimum opening balance for a Retail account is $100, depending on payment method, and account holders would do well to note there is an Inactivity fee of up to $10 that will be levied should you not log in to your trading platform for a period of only three months.
Plus500 prohibits its users from carrying out certain strategies. It does not allow trading activity that follows or looks like it is following strategies based around scalping, hedging and automated data entry. Triggering these conditions can result in the platform closing positions and even accounts. The testing that formed part of this Plus500 broker review did not include trading activity designed to purposefully contravene the terms and conditions of the site. What was established, however, is that there exists a degree of online comment from broker chat rooms suggesting the unwinding process can be protracted and frustrating. This would make it worth carrying out due diligence should you think your strategy may fall into any of those categories.
Negative balance protection is applied on client accounts.
- User-friendly platform
- Tight trading spreads
- Customer services are available 24/7
- Regulatory framework
- Limited research materials
- Certain trading strategies not supported
- No telephone help-desk support
Commissions and Fee Charges
Plus500’s pricing is very competitive, particularly in the forex markets. Refreshingly, not only are the trading spreads tight but the pricing schedules aid transparency by being clearly laid out and presented in an easy to follow format.
By bundling their own commissions into the bid-offer spread, the firm is able to offer traders one number to assess at time of trade. In terms of execution costs, the ‘cost’ associated with the bid-offer spread is what you pay – there are no additional charges for execution. On top of that, the spread can be as tight as 2 pips in some products. These rates compare very well with other brokers in the sector and are a major selling point for Plus500.
In line with standard market practice, there is a range of additional operational and financing fees that are related to the costs of holding positions. These are also laid out clearly in the Fees and Charges section of the site, at https://www.plus500.com/Help/FeesCharges. In terms of Overnight Funding charges, Plus500 is less of a market leader and doesn’t fare too well in comparison to some other brokers. The platforms need to make money somehow and super-tight trading spreads are definitely a good start but the overall cost of trading always needs to be considered. The total spend will be a function of investment time horizon, financing costs, some other frictional costs and trade execution but it’s to Plus500’s credit that they provide such a transparent pricing schedule to aid analysis of the subject.
When assessing a broker, it’s always pleasing that, as in this Plus500 broker review, it can be confirmed that guaranteed stop losses are available to those looking to manage their risk. As with other brokers, these types of stop losses do incur a charge if triggered but not all brokers offer them, so it’s good to have them made available. There is also an inactivity fee of $10, which kicks in after an account has been inactive for three months. A nice touch is that the inactivity fee can be avoided simply by logging in to the system. Actual trading is not required and this gives traders the chance to minimise administrative costs.
What Others Say
“Plus500 has been in the brokerage business for a decade. They boast of 317,000 clients from all over the world. They are properly regulated in four different countries including Australia, UK and Cyprus. The trading platforms are simple, user-friendly, fast and secure. Platforms that can be used across multiple devices and operating systems are available for trading in various situations.”
The Plus500 broker review by fxempire.com concisely sums up the best bits about the platform.
“Plus500 appears to offer competitive spreads on most of its major forex pairs, while minor pairs are a mixed bag.”
No broker is ever going to offer the best prices in all markets. The Plus500 review by forexbrokers.com highlights this point. From our perspective, we would maintain that pricing is a positive feature of the Plus500 offering.
“One of our favorite aspects of Plus500 is that unlike many other companies that pass the trader’s information to an aggressive sales team, Plus500 has no sales team at all. Interested traders need only complete the application process and deposit their funds. This makes Plus500 an excellent option for motivated traders who don’t want to be hounded but who want to explore the world of financial trading on their own.”
This point taken from the Plus500 broker review by dailyforex.com is worth noting. This is an indirect but welcome consequence of Plus500 scaling back some of their services to keep spreads tight.
“At Plus500 scalping is defined as “A trading strategy where a significant portion of the customer’s positions are opened and closed by him/her within 2 minutes.” If Plus500 believes you were following this strategy, your account might be blocked and closed. Therefore, if you plan to execute trades within 2 minutes, Plus500 is not your broker”
Plus500 may not be for you because they just don’t want to support particular types of trading strategies. The Plus500 review by brokerchooser.com highlights scalping but there are other strategies that won’t be compatible.
“A real disadvantage is that you can’t call them. “
This comment by onlinebroker-reviews highlights why customer service is one area where Plus500 score lower than their peers.
Plus500 provides 24/7 customer support, which is a good starting place. Unfortunately, during our testing, we found the service scores less highly in terms of quality.
There is no telephone support function. Instead, ways of contacting the broker support team are limited to a Live Chat messaging system and email. Response times to email are considerable; in our testing, we found queries were usually turned around within 24 hours and while the response sorted out our issues, the time taken is noteworthy. The Live Chat function is obviously meant to satisfy requests that are more urgent in nature and while we found the system effective, would not rank it as having the shortest response times in the market.
Platform Features and Tools
This Plus500 review found that the trading platform is very straightforward, in a good way. Navigating through the different sections takes advantage of the intuitive layout, and the whole site, including the trading dashboard, feels uncluttered. The opening page takes new users to a default layout that gives a feel for the markets but doesn’t overwhelm.
Moving through to executing trades forms part of a natural progression into the markets. At time of trade, there is a range of more advanced order building tools to allow complex orders. These include Trailing Stop Losses, Close at Profit, Close at Loss and Guaranteed Stop Losses. There are also details of the financing charges, market hours and the margin levels applied to each trade/position and having these displayed as part of the execution interface definitely adds value. It is also worth noting that during testing, we did experience a few instances where our trading instruction was rejected. This ‘bouncing’ of orders came about due to market price moving before our order could be filled. While this is not reported to be a widely experienced problem, we would be remiss to not mention it.
Profile settings are easily adjusted. The Account Settings area, in fact, has a very nice feel to it and encourages traders to linger a while and take time to detail the type of service they want to have. For example, it is possible to adjust account privacy settings or set up accounts to receive (or not receive) a wide range of market news.
When navigating to other areas of the site, it is still possible to adjust some of the profile settings through the click of one button, taking away the need to work through a menu of settings options. One section of the site that helps Plus500 stand out is the Account Snapshot area. From here, users can gain a high-level view of their account and assess the cash balance, leverage levels and breakdown of their portfolio.
Some of the charting functionality is of quite a high standard but the more advanced traders may find some tools and indicators missing. The trade-off is that the platform as it stands is incredibly simple to use and may therefore provide more value to a new trader rather than a more experienced one.
Clients who step away from their trading desk for a while may discover another innovative risk management tool. There is an auto-logout function set by a timer and it is triggered quite soon after sessions have been left dormant. Of course, logging back in is easy to do and our testers found this simple but effective security feature gave an extra degree of comfort.
Plus500 cater to traders who want to keep in touch with the markets when not at their desktop. The main way of doing this is via the Plus500 mobile apps that are available for iOS, Android and Windows phones.
There is a seamless crossover from the desktop version of the platform as the mobile platform includes all the same functionality and tools. Our testing during this Plus500 review established that the mobile service comes with a range of alerts that can be set to keep traders up to date with positions and market events; news services, account administration, charting tools and the rest of the Web Trader functionality are all available on the app. Charts can be expanded out to full screen size and the charting indicators available to desktop are also available in the mobile format.
As with the desktop version, the dashboard layout is crisp and clear, which is additionally relevant when using a smaller screen. Considering the presence of an innovative auto-logout function on the desktop version, it was surprising to find this not carried over to the mobile platform but this would have been only an added extra.
Plus500 do not support automated trading; the platform is a closed system. In fact, breaching or trying to breach this condition by introducing third-party automation tools can result in accounts being closed. The prohibition of advanced customized trade automation might not be too much of a negative factor for the new and intermediate traders that the site will likely appeal to. That group of trader, though, may notice that there is no social or copy trading element either.
Research and Learning Section
Plus500 offer very little in terms of research or learning.
Some Economic calendars are provided and these can be filtered to meet individual needs. There are also some pop-up notification windows that highlight market events in real time but these tools are simple databases rather than thought-provoking analytical reports.
The lack of any real value in this area is a reminder that Plus500 does in some ways offer no-frills trading. The other side of the argument is that cutting some corners helps keep spreads tight and allows for investment in dashboard technology.
As the platform is so straightforward to use, it’s easy to be more lenient towards Plus500 for being lightweight in terms of the ‘how to use the platform’ style of materials. Those who want to explore any feature of the sites will likely find even the FAQs to be fairly limited in nature. Those who are curious would do well to hook up with the online trading community and ask questions there.
Plus500 is a global broker that takes a global approach to regulation.
The company Plus500 Ltd is incorporated in Israel and listed on the LSE’s (London Stock Exchange) Main Market for Listed Companies. A range of subsidiary companies operate in other domiciles, including:
Plus500UK Ltd, based in London, authorised and regulated by the Financial Conduct Authority in the UK (FRN 509909).
Plus500AU Pty Ltd holds AFSL #417727 issued by ASIC (Australian Securities and Investments Commission), and FSP No. 486026 issued by the FMA (Financial Markets Authority) in New Zealand.
Plus500 has offices in Australia, UK, Singapore, Israel and Cyprus and subsidiaries in those countries are regulated by or hold licenses from regulators that include Monetary Authority of Singapore (MAS – License No. CMS100648-1) and Cyprus Securities and Exchange Commission (CySec – Licence No. 250/14).
There are many risks associated with trading the markets. While it is impossible to offer any guarantees, this Plus500 review can confirm that the firm has set out to gain authorisation from a range of top-tier regulators. This means they are obliged to carry out regulatory reporting, comply with regulatory guidelines and according to domicile, hold client funds in segregated accounts.
Fast, secure, simple and user-friendly trading platforms
Plus500 is a reputable broker that will attract traders looking for competitive pricing and an easy to use platform.
The functionality of the trading dashboard makes it easy for new traders to enter into the markets. It is full of user-friendly features, some of which are unique to Plus500 and it is available as a mobile app and in a desktop-based Web Trader version.
Customer support is available 24/7 but reading past that headline statement, it’s actually the case that customer support is something Plus500 could improve upon. In a similar fashion, the research and learning tools are almost non-existent.
However, no broker can be everything to all traders. Plus500 does very well in terms of keeping the route to the markets clear and to make trading them cost-effective. Despite the basic appearance of charts, there is a range of useful indicators available and the execution interface is particularly impressive as it is packed with a host of interesting and risk-managing features.
While not covering as many markets as the bigger brokers, this fact does not immediately jump out as being an issue. During testing, rather than missing things that were not there, we found we appreciated having a lighter touch and a more agile platform to work with. The Plus500 platform could be too simplistic for some advanced traders and is certainly limited in some ways, but tight spreads never go out of fashion.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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