In the current world where digital transactions have reached a fever pitch one would be interested to know what opportunities really exist. You see people making money with YouTube, blogging and such which is something exciting so lets focus on Plus 500 as yet another option you may explore and make success.
For your information, Plus500 was founded in 2008, is a company that offers online trading in contracts for difference, (CFDs). The company’s proprietary trading platform relies on the web and other electronic channels. Though based in Israel, it has many subsidiaries throughout Europe and the Asia-Pacific region.
Even though Plus500 is not accessible to U.S. traders, its new platform TradeSniper is and offers trading futures. With this exchange, traders get access to an impressive product line of CFDs. It relies on instruments such as forex, stock indices, individual shares, commodities, Exchange-traded funds (ETFs), options, and cryptocurrencies.
Initial insights into Plus 500
Plus500 gives its user’s access to a variety of contract for differences (CFD) trading options in many markets. As a result, traders can speculate on the future price of the basic reference instrument. One distinct feature about the company is that they are cash settled.
One upside to using this platform is that it is simple and functional thus favourable to even inexperienced traders. The lower costs of transactions makes it even more appealing to most traders. The wide variety of financial markets on the platform also gives them more opportunities for profits.
So, if you don’t fancy a platform with an advanced functionality to make your trades, Plus500 is the best platform for you. The functionality shouldn’t be an issue since the proprietary WebTrader platform is intuitively functional. It also gives you access to some of the most competitive broker’s spreads, so you can maintain the lower costs.
Furthermore, if you are using Plus500 U.K, you get to experience extra security through regulation by the Financial Conduct Authority. However, if you are focused on a more technical platform, you would be disappointed here. It lacks MT4 as an alternate platform, and has no auto-trading.
Advantages of Plus500
Plus500 is an effective trading platform for individuals who are looking for an exchange with low trading costs. On the platform, you are assured of access to a wide variety of financial markets where you can make significant profits. It is also available to over 50 countries giving it a large trading network.
Besides, the comprehensive product line of CDFs, ensures that traders have access to many trading options unlike other platforms. It also favours new users since its interface is simple and easy to use. With it you can create watch lists, analyse charts, as well as place and monitor trades.
However, Plus500 is not the most beginner friendly place if you don’t know much about CFD trading. CFD trading is not only complex but riskier than other trading options. On the bright side, the company is regulated by the FCA. FCA is among the major regulatory agencies in the U.K.
Popularity and Public Reputation of Plus 500
Plus 500 has a high reputation for focusing on market fairness for individuals and businesses thanks to its strictness. It also makes it more credible since other than being reputable, FCA is also an agency backed by the government.
Trading with the exchange is also advantageous since it has guaranteed stop loss orders. As a result, traders are protected from market gap risk. However, the stop loss orders are only available on a few instruments and depend on market conditions. It is not all bad news though because they have a potential for a wider spread.
Finally, Plus500 is an excellent trading exchange because it provides negative balance protection. ESMA rules came into effect in 2018 and mandates exchanges to have negative balance protection. So, you are assured of never losing more than you have put into your account while trading with Plus500.
Some Setbacks with Plus500
Despite all the advantages of Plus500, trading with the company also comes with a few limitations here and there.
Customer service options
It only has a few customer service options and they are limited to WhatsApp chat and email support. Most people prefer telephone conversations when it comes to customer service. However, Plus500 doesn’t have a telephone number for sales inquiries.
CFDs illegal in the United States
Besides, CFD trading isn’t available to U.S customers which then shuts out some traders. In the United States, CFD trading is illegal which is why CFD trading exchanges don’t accept U.S. traders. The new platform, TradeSniper, available to U.S customers does not offer similar features. So, these traders still miss out on CFD trading and the opportunities it has to offer. It allows traders to access a platform for trading futures.
Ineffectiveness to Advanced Traders
Finally, the platform is not effective for more advanced traders. Its interface does not allow one to incorporate third-party analytical and automation tools. So, if your trading process involves any of these then this might not be the exchange for you. The WebTrader interface used by the company does not allow direct integration of these tools. Besides, it could be disappointing to know that the interface also lacks back-testing functionality.
However, you should not let the interface functionality discourage you since the platform does not charge any ancillary fees. Most top trading companies subject client accounts to ancillary fees that might lower the value of their profits. Hence, you will not be charged for terminating your account or conducting normal withdrawals.
The exchange is more flexible than others because the minimum amount of money needed to trade depends on the underlying instrument. Plus500 also allows traders access to different funding options. Examples are Visa or MasterCard debit/credit cards, e-wallets (PayPal or Skrill), and bank funds transfers.