Upon observing Plus500 in the hours when the market was most active, we noted that the broker retains a floating spread of 0.8 pips on the EUR/USD pair.
That is an 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 forex trader, there are certain crucial factors to be aware of in selecting your broker.
- 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 how it would actually cost to trade with your broker. 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 broker to the next.
Features of Plus500
Plus500 is mainly a CFD broker and of a very high standard as well. It offers traders well over 2000 financial instruments which include 50 currency pairs, and also shares, ETFs, commodities, and indices spanning over 20 international markets.
To open an account, you would have to deposit a minimum of $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 brokers 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 broker.
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 broker 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 broker.
Going by your ‘Trading value Position’ and ‘Equity’, you can manage your own leverage as well as trade high, low, or with no leverage at all.
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 brokers. You can also set a price alert to notify you when the market reaches a certain buy or sale price.
The only difference is instead of closing the position, it is left open so you can decide whether it stays open or not.
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 brokers 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 brokers.
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 broker has a WebTrader platform and also the Plus500 proprietary forex 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 3 versions, there is the web-based version, mobile trading, and downloadable version. All 3 are consistent with each other so switching between them is absolutely seamless. This is another rare feature to find amongst other brokers. 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 brokers that do offer binary options trading.
Plus500 is one of those brokers that can be commended beyond the usual strong points of other top-rated brokers.
Its trading platform has unique qualities that make equally accessible to both novice traders and experienced traders. After more than a decade of activity, it is very definitely one of the best CFD brokers 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 and many sizeable profits coming your way.