Plus500 (Your capital is at risk) Review

Overview

Plus500 is a leading provider of Contracts for Difference (CFD’s), delivering trading facilities on shares, forex, commodities and indices, alongside innovative trading technology. Remember that CFDs are a leveraged product… more

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Details

BrokerPlus500 (Your capital is at risk)
Website URLPlus500.com (Your capital is at risk)
Founded2008
HeadquartersIsrael
Support NumberFax Number: +35725353518
Support Types24/7 Email support
Languagesالعربية, български, 简体中文, 繁體中文, Hrvatski, Česky, Dansk, Nederlands, English, Eesti, Suomeksi, Français, Deutsch, Eλληνικά, עברית, Magyar, íslenska, Italiano, 한국어, Latviešu, Lietuviškai, Bahasa Melayu, Malti, Norsk, Polski, Português, Română, Pyccĸий, sr̩̂pski, Slovenčina, Slovenski, Español, Svenska, Türkçe
Trading PlatformSoftware, Web trader, iPhone app, iPad app, Android app, other mobile versions.
Minimum 1st Deposit100 € (Minimum trading required for withdrawal. T&Cs Apply)
Leverage1:294
Spread2 Pips min
Free Demo Account Open Demo
Regulated Yes
RegulationFinancial Conduct Authority (FRN 509909)
Commission InfoNo commissions
Account TypesForex, Stocks, Commodities, Indices, ETF's
Deposit MethodsCredit Card, PayPal, Wire, Skrill
Withdrawal MethodsCredit Card, PayPal, Wire, Skrill
US Traders Allowed No
Mobile Trading Yes
Tablet Trading Yes
Overall Score90/100

Full Review

Plus500 is a leading provider of Contracts for Difference (CFD’s), delivering trading facilities on shares, forex, commodities and indices, alongside innovative trading technology.

Remember that CFDs are a leveraged product and can result in the loss of your entire deposit. Trading CFDs may not be suitable for you. Please ensure you fully understand the risks involved.

About Plus500

Plus500 UK Ltd is authorised and regulated by the Financial Conduct Authority (FRN 509909). Plus500 CY LTD is authorised and regulated by the Cyprus Securities and Exchange Commission (License No. 250/14). Plus500AU Pty Ltd, AFSL #417727 issued by the Australian Securities and Investments Commission is authorized to issue these products to Australian residents. You do not own or have any right to the underlying assets. Please consider our Disclosure documents available on our website.

Trading at Plus500

Trading at Plus500 is straightforward and easy with no commissions or hidden fees. Plus500 is compensated for its services through the bid/ask spread.

The main lobby of the software contains the buy/sell prices of all the instruments available. When entering an order to buy an instrument, the advanced trading platform allows you to add a stop loss, profit limit or trailing stop to protect your position and profits.

The trading hours for each instrument can be found on the Trading Platform under the details link for that instrument.

Leverage

The term leverage is used when a small change in the price of the asset underlying the CFD is amplified into a bigger change so that the CFD offers an “accelerated” return. Leverage of “10%” (or 1:10) means that if the price of the underlying asset changes by 1% the price of the CFD will change by 10%. The Trading Platform shows the leverage on each instrument on the “details” link associated with each CFD. Leverage, sometimes also called “gearing”, is a technique to multiply gains, but it can also multiply losses.

Please note that as leverage increases, small price changes in the underlying asset are magnified and the amount of margin required is likely to be affected accordingly.

Margin Call

Customer’s margin is monitored in real time and an email message will be sent should maintenance margin become more than 40% of a customer’s equity. The maintenance margin level is the minimum amount of equity a customer needs to maintain an open position. Should your equity fall below the minimum amount, then, Plus500 will automatically execute a margin call trade and close any open positions until your account equity exceeds the maintenance margin level requirement.

Buying and Selling at Market Prices

Customers can use Plus500 to buy and sell CFD instruments at the current market price (within the price spread that is set for the specific instrument). The “market spread” for each CFD instrument is shown in the Buy/Sell pop-up box that appears when you click on “buy” or “sell” in the trader lobby. Plus500 has various “order types” available on the Trading Platform to help customers manage their risk. Limits are especially helpful should your internet connection be interrupted for any reason.

Stop Limit

A Stop Limit Order is a way to protect your profits, should the instrument price (Forex, Stock, Commodity or Index) move favourably. The stop limit order instructs Plus500 to close a position when, and if, the instrument reaches a certain price.

Stop Loss – (Maximum Loss)

A Stop Loss Order is a way to protect yourself from a loss, should the instrument price (Forex, Stock, Commodity or Index) move unfavourably. The Stop Loss Order instructs Plus500 to close the position when, and if, the instrument reaches a certain price.

When the stock reaches this price, the Stop Loss Order becomes a Market Order. A Market Order instructs Plus500 to immediately close the position at the best price. In a volatile market, you may not get exactly the price you wanted, but it should be close to the price set.

The Stop Loss Order can be used to protect profits on a stock that is moving favourably. You decide the price to close a position at and the Stop Loss Order instructs Plus500 to close the position if this price is reached.

Guaranteed Stop

Attaching a Guaranteed Stop puts an absolute limit on the “downside risk” and the potential loss of a position.
Even if the market gaps suddenly, the position will be closed out at exactly the price specified, with no risk of slippage.
“Guaranteed Stop” is available for specified instruments only. If an instrument supports “Guaranteed Stop” you will see a check box for it.

“Guaranteed Stop” details:

  • Can only be placed on a new trade and cannot be added to an existing position.
  • Can be activated/edited only when the instrument is available and traded. Once the Guaranteed Stop is active, it cannot be removed or cancelled, only the price or value can be changed.
  • The wider spread for “Guaranteed Stop” is non refundable once activated and will be shown before approving a “Guaranteed Stop”.
  • Has to be in a certain distance from the current rate the instrument is trading at.

Trailing Stop

The Trailing Stop feature allows a Stop Loss Order to automatically update the price favourably to lock in profits if the market moves unfavourably for the trader. Trailing Stops can be placed by clicking the ‘Advanced’ button when creating a ‘Market Order’.

There are four ways to enter a Stop Loss Order:

  1. You enter a Trailing Stop Price. For example, if your stock is selling at $40 per share, you might enter a Trailing Stop Loss Order at $37.50 per share.
  2. You enter a Maximum Loss Amount. Plus500 will then calculate the relevant Trailing Stop.
  3. You enter the distance in Pips from the current price. Plus500 will then calculate the relevant Stop Loss price.
  4. You enter a percentage from the current price. Plus500 will then calculate the relevant Stop Loss price.

Entry Orders

Entry Orders are executed the moment the market price reaches your specified price and opens a new position. The price can be above or below the current trading price.

There are four types of Entry Orders:

  1. Entry-Limit-Buy: wait until the price goes lower than the current price (used in buying).
  2. Entry-Stop-Buy: wait until the price goes higher than the current price (used in buying).
  3. Entry-Limit-Sell (going short): wait until the price goes higher than the current price (used in selling).
  4. Entry-Stop-Sell (going short): wait until the price goes lower than the current price (used in selling).

For example, if you want to buy Google shares, but not until the price drops to $450, you would place an Entry-limit Buy Order at $450. If the price never drops to that level, then the order will remain unexecuted, but it will remain a pending order until you cancel it.

To create a new Entry Order with Plus500 simply:
→ Go to the main trading lobby
→ Click on ‘Buy’ or ‘Sell’
→ Click on ‘Advanced’
→ Complete the relevant entry order
→ Click on ‘Buy’

 Complaints Process

Plus500 are obliged to put in place internal procedures for handling complaints fairly and promptly. You may submit a complaint to Plus500 by letter or by email. Plus500 will send you a written acknowledgement of your complaint promptly following receipt, enclosing details of our complaints procedures, including when and how you may be able to refer your complaint to the Cyprus Securities Exchange Commission (“CySEC”) which is the relevant regulatory body.

Communication with customers and unsolicited approaches

Plus500’s policy is to communicate with customers by email only. Plus500 only responds to customers email communications sent from the email address supplied by a customer at the time of account opening. Only emails received from support@plus500.com are valid communications from Plus500.
Should you receive an unsolicited telephone call purporting to come from Plus500, it wasn’t made by Plus500 or its staff.

Remember that CFDs are a leveraged product and can result in the loss of your entire deposit. Trading CFDs may not be suitable for you. Please ensure you fully understand the risks involved.

“Your capital is at risk”

‘CFDs are leveraged products and can result in the loss of your capital’

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