Do you want to see reviews of the Plus500 broker? In this review we show you their commissions, if they are a scam or reliable, how their demo account works and other issues you need to know about. Plus500 is especially popular because it has no commisions. To this we must add that they look like a trustworthy broker and that the number of underlying assets is very high (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).
Plus500 became known initially because of the trading platform they developed. After that, they also gave people a lot to talk about because they have no commissions. To this we must add the sports sponsorships that have made their reputation grow even more. Among these sponsorships are Atlético de Madrid in Spain and the Brumbies Rugby Team in Australia. Now that we know a little more about Plus500 we’re going to examine their main features and terms and conditions.
Is Plus500 a scam or is it legit?
One of the main problems when choosing an online broker is to select one that is not a scam. The Internet has produced many good things, but also some bad ones. In the old days, brokers had physical offices on the street, which made it much more difficult to get scammed. Of course, this had an important disadvantage; the fees were very big. Nowadays, thanks to online brokers, the fees are much lower, but brokers have appeared who turn out to be scams. How can we protect ourselves to avoid these scams? We believe the best thing is regulation.
In our opinion, this is already a clear signal that we are dealing with a trustworthy broker. However, we have something that we consider even better news. Plus500 Ltd. is listed on the Main Market of the London Stock Exchange. This is not synonymous with the company being completely safe, but the truth is that, being a listed company, it is under the supervision of the regulator, there are thousands of investors who analyse their accounts, and their accounts have to be audited.
In view of all this, we think that Plus500 is not a scam but a reliable broker.
Commissions and spreads
Fees are one of the most important issues when it comes to choosing a broker. The reasons are obvious. The higher the fees and spreads, the lower the return for investors. Therefore, as long as the broker is safe, ideally the fees should be as low as possible.
As we explained at the beginning of the review, Plus500 is one of the first commission-free brokers. Of course, we are not dealing with a non-profit organization; Plus500 is compensated for its services mainly through the Buy / Sell spread. Therefore, ideally the spreads should be as small as possible. Obviously, the smaller the spreads, the better.
In the case of Plus500 the spreads are fixed and dynamic, depending on the instrument. When they are dynamic it means that they change over time. In addition, each asset has its own spread. In other words, each Forex currency pair has a different spread. And the same thing happens with each of the cryptocurrencies, stocks, stock market indices and commodities. For this reason, it is not possible to see an exact comparison of the spreads, but the truth is that they are quite competitive and low. If you want to see the Plus500 spreads in more detail click here (76,4% of retail CFD accounts lose money).
Free demo account
Trading is a high-risk activity. As you know, when trading with CFDs there is the possibility of losing money. Therefore, to improve trading skills brokers such as Plus500 offer free demo accounts. This demo is a trading simulator which exactly replicates trading with a real account.
Thanks to the demo you can trade in underlying assets such as cryptocurrencies (Bitcoin, Ripple, Ethereum …) (availability subject to regulation), stocks, indices, currencies, etc. In the demo the listing is the same as on the real trading platform. But that’s not all; it also has the same tools, the same types of orders (take-profit and stop-loss), and everything you need to be able to start trading in test mode in the same way as if it were real.
Among the advantages of starting with a demo is being able to develop a trading strategy without having to take risks or being able to see the behavior of the underlying assets when there is news about them. For example, when a company reports on the profits or losses it has accrued, you will see that the price usually has a strong and rapid reaction. If you trade with real money and you have no experience, you will possibly get very upset, but if you are trading with the demo you will have learned a very good lesson.
The procedure to get the demo is quite intuitive. You just need to click on the button below. Then you click where it says “free demo account”. Finally, you should fill in the form and after that you will have the account ready to begin (76,4% of retail CFD accounts lose money).
Reviews of Plus500
The purpose of the review is to find out what people that have used Plus500 services think. It is very important to know the views and experiences of clients in order to find out whether or not it is a high-quality broker. So, for this section of the review we have scanned the views that investors have left on different websites, social networks and trading forums. Obviously there are views of all kinds. In this section we have prepared a short summary of the most repeated and most relevant comments. We have divided it into two parts, positive and negative reviews.
Among the positive reviews are those that appreciate the wide variety of instruments, ranging from the most recent underlying such as cryptocurrencies, to stocks and currencies. There are also very good reviews of the demo account which works very well. Security is another issue on which there are good comments. Finally, the minimum deposit of 100 euros / dollars is also something that receives good reviews because it is considered quite low.
There are also bad reviews. If not, we would be concerned, because everything in life gets negative feedback. In the case of Plus500 one of the most common comments is that CFDs are high-risk products. There is also one person who says he’s had a bad experience with Plus500.
After checking the feedback from traders on Plus500 we have completed the review of the broker. As we have seen, it is one of the most famous in the world for trading CFDs on Forex, stocks, cryptocurrencies, and more. Your demo account is free and their spreads are variable, but low. And so much for the review. If you want to learn more about the no-commission broker Plus500 or you want to register, click here (76,4% of retail CFD accounts lose money).