I was testing Plus500 in the hours when the market was most active. I saw that this CFD platform has a really a low floating spread on currency pairs.
It is a very attractive rate in the present market. On top of that, Plus500 does not charge commissions from traders so you only have to count their share of the spread when evaluating costs.
As a CFD trader, there are certain crucial factors to be aware of in selecting your trading platform:
- Is it licensed and regulated?
- Is it highly reputed among forex circles?
- Does it trade the sort of assets you are interested in?
- How is the usability of the platform?
The list goes on quite a bit.
But one particular concern we want to focus on, is what it would actually cost to trade with your CFD platform. That is usually a matter of spreads, commissions, and swap rates.
The latter refers to the fees charged for overnight trading and are irrelevant to day traders. These costs can vary from one platform to the next.
Features of Plus500 Australia
Plus500 is a CFD provider and of a very high standard as well. It offers traders CFDs over thousands of financial instruments which include all popular currency pairs (including AUD/USD).
You can also trade CFDs over shares, ETFs, commodities, and indices spanning over 20 international markets.
Australia is an important market for Plus500 and that’s why they added Australian ETFs and Shares to the platform. You can trade the ASX200 and individual Australian shares like Commonwealth Bank of Australia, Telstra Corp and many more.
To open an account, you would have to deposit a minimum of AU$200 on your first deposit.
One of the more unique and appreciable features of Plus500 is that it does not rely on an aggressive sales team, or any sales team for that matter.
To put that into context, most other service providers will forward a trader’s information to an aggressive sales team.
With Plus500, prospective traders are only needed to finish the application process and make their deposits. If you are one of those traders who cannot stand an aggressive sales pitch and would like to explore forex trading in your own time, Plus500 is a prime candidate to be your CFD provider.
Managing risk with Plus500
A risk factor is part and parcel of online trading and it tends to catch up with just about every trader who has been involved in the market long enough.
But the mark of a good platform, is in offering traders various managing devices to alleviate the level of risk as much as possible. This inevitable makes trading more lucrative for the traders as well as the platform.
When it comes to trade executions, you can set a price level for ‘Close at Profit’ or ‘Close at Loss’ for certain assets there for cutting back considerably on the level of risk involved in trading them. This security device is rare among most other platforms. You can also set a price alert to notify you when the market reaches a certain buy or sale price.
Furthermore, Plus500 offers traders the benefits of a trading stop which has been devised specifically to secure your profits. A trailing stop, once it has been placed on an open trade will seal the profits by closing the position at a different level from what you placed initially. It effectively limits ‘downside’ risk without requiring you to keep track of the position yourself and switch the stop price.
Plus500 was among the first CFD providers, to extend trading on leverage to bitcoin after it became accessible as a CFD in 2013. Mind you, you can trade bitcoin on a demo account here too.
You can access the Plus500 online platform in 32 separate languages so it does appeal to a greater variety of clients.
All traders using Plus500 are entitled to its free demo account where they can trade without risking any of their personal funds for an unlimited period. It is a staple feature of most reputed trading platforms.
Deposits & withdrawals
These transactions can be handled by credit cards, bank wire transfers, Skrill, and Paypal.
The minimum deposit on Plus500 for Australian traders is only $200.
Customer service from Plus500 is on hand 24 hours a day 7 days a week. There is no phone service, only email and a live online chat.
This platform has a WebTrader platform and also the Plus500 proprietary CFD trading platform that displays all the crucial details in information in just a single screen so it is very convenient for traders. You refer the four top tabs that are clearly labeled to access information about past trades as well as present positions without actively searching for them.
The platform is accessible in 2 versions:
- there is the web-based version
- and a mobile version for mobile trading
A downloadable version is not available.
All 2 are consistent with each other so switching between them is absolutely seamless. This is another rare feature to find among other platforms. Traders also have access to features like advanced technical analysis devices, guaranteed stop loss etc.
The trading platform is very reliable and offers very competitive spreads, leverage up to 1:300, and no trading commissions whatsoever.
It is important to note here, particularly for CFD traders, that the risks involving leverage are extremely high. If they are not estimated correctly, you could end up losing your whole capital.
So understanding the risks here is key to deciding which strategy to go with while trading.
Binary options is not offered on Plus500. You can take a look at the binary options Australia page for sites that do offer binary options trading.
Plus500 is one of those platforms that can be commended beyond the usual strong points of other top-rated sites.
The trading platform has unique qualities that make it very user-friendly.
After more than a decade of activity, it is very definitely one of the best CFD providers you can choose. Yet, it still offers trading assets that would appeal to traders of currency, shares, commodities etc. And being an approved by so many renowned financial institutions, you can be assured a fair trading experience.
Plus500AU Pty Ltd (ACN 153301681)is licensed by: ASIC in Australia, AFSL #417727, FMA in New Zealand, FSP #486026; Authorised Financial Services Provider in South Africa, FSP #47546.