Plus500 CFD Service – Review: Is it a scam?
Plus500* is authorized and regulated by the Financial Conduct Authority, as you can read here. The company is also listed on the London Stock Exchange (AIM: PLUS). * Plus500 CFD SERVICE – Authorised and regulated by the Financial Conduct Authority – Your capital may be at risk. Trading CFD’s never was this easy! We’ve been trading on the Plus 500 platform for months now. This is really one of the best platforms if you want to start trading Forex and CFD’s. Sure, there are a lot of better brokers around, but they all have minimum deposit requirements you have to meet before you can start trading. At Plus 500, you can start trading with a small account, you even get a welcome bonus! The best way to get convinced about the Plus 500 platform is to check it out yourself. Plus500 offers an unlimited free demo with virtual money. No strings attached. It’s absolutely RISK FREE, so give it a try. You’ll get a small EUR 25 welcome bonus, should you decide to open a real account. You can easily fund your account with MoneyBookers / Skrill account or credit card.
Plus500 offers very tight spreads, for example a 2 pips spread for EUR/USD trading. You never pay commissions: the spread of the instrument that you are trading and the funding premium cover all the costs. You only pay the funding premium if you hold on to your position for longer than 1 day. It’s a specific percentage per day that varies from the instrument that you are trading. So trading EUR / USD with a 10 000 euro position only “costs” the spread, which is 2 euro. This is a huge advantage! Other brokers or regular banks mostly ask a fixed commission and you would pay more than 20 euros for opening and closing such a position.
Here are some examples from a very small account on the Plus 500 platform. This account has a few open positions: 2 long positions on the Netherlands 25 (AEX index), 2 long positions on the EUR / USD, a short position on USD/JPY and a long position on AUD/USD (click to enlarge image).
Plus500, not a scam?
A lot of people think that Plus 500 is a scam, because it sounds too good to be true. The fact that they don’t ask commissions is one reason of concern for some people. However, we know for a fact that the spread (the difference between bid and ask) and the funding premium should be enough to cover all their costs. In 2012 Plus500 made a net profit of $17.1m. Plus500 is authorized and regulated by the Financial Conduct Authority, as you can read here. They are also listed themselves on the London Stock Exchange, which underscores that it’s a reliable company. A real disadvantage is that they don’t have live support or that you can’t call them. Questions are answered by email and it might take some time before you get an answer. Our experience is that you usually get an answer within a few hours. A popular concern is withdrawing money from your account. Some people expect problems with that. We have withdrawn money to our MoneyBookers / Skrill account (a service like Paypal) and the money arrived there after two days. So we had absolutely no problems with that. That’s exactly what one would expect from a FCA approved and LSE listed company. The above mentioned disadvantages haven’t kept us from using their platform though. Overall, we are very satisfied with this broker. In our opinion, it’s one of the best brokers to get to know forex and CFD trading.
Start trading now!
Visit the Plus 500 website and try the free demo or open an account. You can start trading with the welcome bonus. Funding your account can be done with as little as €100. The platform is also supporting 24 different languages, so chances are high that Plus 500 is available in your native language. * Authorised and regulated by the Financial Conduct Authority – Your capital may be at risk