Should You Trade with Plus500? Read This Broker Review First
Plus500 is an online CFD broker that has a proprietary platform. It was founded in Israel in 2008, but it currently has many subsidiaries in Europe and the Asia-Pacific. Traders from most regions are accepted, but not from the U.S., because of regulations in the United States against some types of trading.
It should be noted that there are many negative complaints against Plus500, and it may face issues with litigation. This is surprising since Plus 500 is regulated by the FCA, a top-tier broker. However, this fact demonstrates that even high-caliber brokers can have issues that could justify customer complaints.
Should you open an account with Plus500? Broker Complaint Registry has investigated Plus500 thoroughly and has produced this review to guide consumers in choosing a safe broker that suits their financial goals. BCR provides guidance and can refer clients to experts who can assist them with broker complaints and fund recovery.
Plus500 was established in Israel in 2008, and it has since spread out to open offices in Europe and the Asia Pacific. One of its major offices in the UK and Plus500 holds a license from the highly regarded FCA, or Financial Conduct Authority.
Plus500 offers many trading products through CFD, forex, and options. There is a concerning number of complaints and potential legal action taken against Plus500. This doesn’t mean that Plus500 is a bad broker, and it is unusual for an FCA-regulated broker to have this problem, but it is worth noting.
Plus500 has a license from the FCA, which is one of the most highly regarded regulatory bodies in the world. It is a tier 1 regulator which has demanding requirements of its licensees, including extensive paperwork, capitalization requirements, and regular inspections. It would seem that Plus500 is a legitimate, safe broker
However, it has come to light that there are many complaints against Plus500 in addition to potential litigation. This only emphasizes the point Broker Complaint Registry makes often that even a well-regulated broker may have issues, complaints, and disputes with clients.
Not all brokers retain their licenses for the long-term and that is why it is essential to research brokers on an ongoing basis. It could mean the difference between passing up a broker that seems risky and losing a bundle.
Accounts, Fees, Commissions and Spreads
Plus500 does not charge commissions but makes money through spreads and fees. Its spreads are reasonable for the industry. Some brokers lower the spread amount for larger trades. Plus500 doesn’t do this, but offers high volume traders bonuses.
Plus500 offers numerous forex currency pairs along with CFDs and vanilla options. It allows clients to trade stocks, indices, cryptocurrencies, commodities, and ETFs. In total, this broker provides 2000 trading products.
Although spreads are low, Plus500 charges several fees, such as overnight fees, inactivity fees, fees for stop-loss orders, and conversion fees. However, it does not charge fees for withdrawals or for closing an account.
Technology and Platforms
Traders who expect state-of-the-art automated trading, social copying trading or advanced features such as those offered on MetaTrader 4 or 5 should perhaps look for another broker because Plus500 does not offer MetaTrader 4 or 5 or automated trading.
It is unusual for a high-caliber broker not to offer MetaTrader 4 or 5, but Plus500 provides its own web-based WebTrader platform which seems to work pretty well, but doesn’t include many new and exciting features.
Education and Research
Plus500 offers very few research tools and no educational resources. Some features provide market news, earnings calendars, customer charts, and consumer sentiment reports. However, for the first-time trader, there is nothing that can provide instruction, and traders who need this will have to go elsewhere.
Customer service was not what one would expect from a top-tier broker. Chat seemed to be a bot rather than a real person, which isn’t always a problem, but there was no phone number provided. The only way to contact support was through automated chat and email. Although we found emails and chats were responded to quickly, the quality of responses varied widely.
Plus500 Pros and Cons
To sum up, here are the Plus500 pros and cons
- FCA regulated
- Stop Loss and Negative Balance protection
- Options trading available
- Low spreads
- No Metatrader
- No educational resources
- Mediocre customer service–no phone support
- Several complaints and litigation threat
Should You Trade With Plus500?
After reading this review you may be wondering if you should trade with Plus500. Our experts at Broker Complaint Registry have to admit the jury is out on this one. Although Plus500 is regulated by the FCA which would ordinarily indicate it is a safe and legitimate broker, the numerous complaints and threat of litigation have caused us to conclude that further investigation needs to be done on Plus500 before we can provide an opinion that it is legitimate or fraudulent.
The authenticity of the complaints and the nature of the litigation threat should be established before opining on this broker. However, our experts wonder if it signing up with this broker is worth the risk.
Plus500 may seem fine for someone who doesn’t need advanced MetaTrader features or much in the way of customer support or trader education. They may be looking for a simple CFD broker with a top-tier license and perks such as high volume trading bonuses and stop-loss trading.
However, the trader who is willing to take a chance on Plus500 should consider carefully the red flags such as the numerous complaint and legal issues and investigate them before signing up with this broker. At this phase, Broker Complaint Registry cannot recommend Plus500, even though it is highly regulated. However, we cannot be certain it is a fraudulent broker until additional information comes to light.
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