Plus500 Scam?, ForexTrend

Plus500 Scam?

In Trading by any arons0 Comments

CFD and Forex trading is no walk in the park. Such trading endeavors have high-risks, thus losing money because of leverage is canon in the industry. However, trading CFDs with Plus500 is a different affair altogether. 

A deeper understanding of CFD trading is imperative should one choose to trade with Plus500. The internet is rife with protestations and notions that aim to “prove” the Plus500 scam. Those who simply trade without proper information, those not discriminating in their associations and transactions can easily fall into their own traps and potentially blame their chosen broker. However, data speak that 76.4% of retail investors’ accounts that had incurred losses have, in fact, traded with Plus500. Does this automatically prove that the broker is a fraudulent entity? Hardly.

This Plus500 review is directed at explaining why Plus500 trading offers expansive venues for profit and why the success of all financial activities are well within the traders’ and investors’ agency.

This Plus500 trader is trusted by traders from all walks of life. This is owed to the fact that its trading platform is highly intuitive and is, therefore, can be easily navigated through. While this stands, it must be noted that the research for it proves lacking, and it’s trading and educational tools leaves a lot to be desired.

Despite the areas for improvement, one would still find a handsome number of positive reviews across the internet community. 

Tenure-wise, Plus500 can be thought of as an institution with its existence for over 12 years. The London Stock Exchange (LSE Plus) publicly trades it as a part of the FTSE 250 Index. 

Plus500 Scam?, ForexTrend

The online polls agree that the Plus500 trader is a broker that one can easily trade safely with. Licensed and receiving due regulation, Plus500 is low-risk. And while being publicly traded, it doesn’t operate a bank. It goes by the rules of the following regulators:

  • Financial Conduct Authority (FRN 509909)
  • Cyprus Securities and Exchange Commission (Licence No. 250/14)
  • ASIC (AFSL #417727), FMA in New Zealand (FSP No. 486026)
  • FSCA in South Africa (Provider #47546)
  • Monetary Authority of Singapore (License No. CMS100648-1)

Plus500 trades a total of 2033 CFDs. In addition, the firm also trades over 50 currency pairs and allows cryptocurrency trading as a CFD. While this is the case, Plus500 is not considered as a genuine asset that comes with an electronic wallet.

The Plus500 minimum deposit is pegged cheaply at €100. Worthy of note, surprising even, Plus500’s regular traders and the VIP clients are not provided with discounts. Another apparent advantage is that Plus500 offers highly competitive spreads for its currency pairs as it places minor ones in a mixed bag. What this strongly implies is that the other pairs cost more. 

Plus500 Scam?, ForexTrend

The Platform

Both novice and casual traders and investors would find it inviting to trade with Plus500. The firm had ascertained its platform to be conducive to all electronic devices. Despite the wide preference for MetaTrader4, Plus500 doesn’t make use of this software and only employs Webtrader as a browser-based platform. 

Plus500 also comes as a Chrome browser app, thus bringing the platform to the masses. The platform possesses advanced features like Trailing Stops and Guaranteed Stop Loss Orders (GSLO).

The withdrawal conditions of a broker also factor in with users’ decisions on which platform to choose. Plus500 sweetens the pot through promising withdrawal fee conditions: 

  • With Plus500 withdraw 5 times, Free-of-Charge, monthly
  •  $10 is deducted from your account after
  • The broker also charges $10 once a client withdraws less than $100, the platform’s minimum withdrawal amount. 
  • Bank transfer withdrawals are fixed at $6

Standout Offers From the Plus500 Trading Platform:

Plus500 also offers its clients an economic calendar, web platform charts, WebTrader sentiment data, and educational video content. Indicative prices are also given to users for a better idea of market movements. 

The Plus500 mobile application also offers basic trading alerts that the users can easily set themselves. 

Plus500 Review

As mentioned earlier, Plus500 has garnered plenty of positive reviews. One such comes from a highly-trusted source, Investopedia. The site  has this to say:

Plus500 Scam?, ForexTrend

Another comes from Commodity.com  who says:

Plus500 Scam?, ForexTrend

Completing the triumvirate of reviews, DayTrading.com  says:

Plus500 Scam?, ForexTrend

The Verdict

All the features of the broker alongside the sampled reviews (to pick from the many that are out there) place Plus500 in a good position. But being tagged as a company that is licensed and regulated is already a win for the brokerage firm in itself. The negative reviews it gets are results of misinformation, lack of wisdom, and, unfortunately, mere assumptions. 

But as stated earlier, it must be noted that trading CFDs is not necessarily easy. Because of its complexities, incurring losses is more than commonplace in the CFD trading business. 

Playing safe is always a wise move. As such, it is recommended for a trader to keep reading reviews before resigning oneself to a broker to trade in the long-term with.

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