The Full List of Plus500 Trading Products
In the world of online trading, few brokers are as well-known as Plus500, a British company that trades publicly on the London Stock Exchange. This company has reached its current level of success by offering flexible Forex and CFDs products to online traders. The following is a rundown of the Plus500 trading products you will be able to choose from when you open up an account with this broker.
Forex Currency Pairs
Since online trading became widely popular in the early 2000s, traders have developed a strong affinity for the Forex market. In large part, this is due to the availability of high leverage ratios and the ability to make money regardless of market conditions. Plus500 has recognised this and positioned itself as one of the major brokerages in the Forex trading space. Plus500 offers traders access to more than 50 Forex currency pairs, including:
The platform allows traders to leverage their investments by a ratio of 294:1. This is somewhat lower than some brokers, but still a very respectable leverage ratio. Among the available reviewed Plus500 trading products, Forex currency pairs are some of the most popular options for traders of all experience levels.
Practically everyone is familiar with stocks as investments, but many people aren’t aware of stock-based derivatives. On Plus500, stock CFDs are one of the commonly-traded products. These derivatives allow online traders to make money on the movement of individual stocks within the marketplace without the need to actually purchase shares.
Unlike some stock CFDs brokers, Plus500 offers robust risk management tools, including a zero-slippage guaranteed stop feature for limiting losses. These risk management tools are paired with a leverage ratio of 1:20. At this leverage ratio, traders can realise solid profits on small to medium-sized positions based on stock prices. As in the case of Forex pairs, however, this leverage ratio is lower than some competitive brokers offer. Plus500 trading products derived from stocks also offer both short and long-term holding options, giving traders greater flexibility when opening their trading positions.
Closely related to stock CFDs are index CFDs, which track the performance of a stock index, rather than that of shares in an individual company. Some of the indices that traders can choose from using these Plus500 trading products include:
- USA 30 (YM)
- US-TECH 100 (NQ)
- Japan 225 (NIY)
- Europe 50 (FESX)
- Swiss 20 (FSM)
Index CFDs on Plus500 have an interesting set of advantages and disadvantages. The major disadvantage is that the list of available indices that can be traded through the platform omits several of the world’s largest and most important indices, including the S&P 500, Dow Jones Industrial Average and the German DAX. As these indices are typically major reflectors of macroeconomic trends, not being able to trade them can hinder traders who rely heavily on economic analysis.
Despite this handicap, there are still some advantages to using Plus500 to trade index CFDs. At 300:1 the leverage ratio for indices on Plus500 is relatively high, making it an exception to the broker’s overall trend of lower than average leverage. Plus500 also offers real-time quotes for all of the indices that can be traded on its platform, making it easy for traders to read the market and make informed trading choices. Overall, these benefits outweigh the lack of availability of major signal indices and make index CFDs one of the better Plus500 trading products outside of the Forex market.
For those who don’t care for the volatility of the stock market, particularly when major national economic reports are pending, commodities are a great alternative. Commodities CFDs are also counted among the wide range of Plus500 trading products. Using these derivatives, traders can open positions on a wide range of different commodity resources, such as:
- Natural gas
At 1:152, the leverage ratio offered on commodities is reasonable, though lower than some brokers will offer. Commodities CFDs on Plus500 can be traded with negative balance protection, a feature which limits the collective risk on a position to only the amount a trader has in his or her account.
One of the most interesting developments in alternative investments over the past several years has been the rise of cryptocurrency trading. These currencies, of which the most notable is Bitcoin, are digitally-generated units that are not issued by any government or sanctioning body. While they have had trouble getting adopted at the retail level, cryptocurrencies have taken on a market value of their own, allowing them to be traded on as CFDs.
Cryptocurrency CFDs are quite specialised and require a good amount of research to trade successfully. If you are willing to learn the market, however, they can be very lucrative. On Plus500, cryptocurrency CFDs can be leveraged at a ratio of 30:1.
Though less talked about than Forex or some of the more prominent CFDs classes, the lineup of Plus500 trading products does include options. Using the options feature, traders can place simple Call and Put options trades on a handful of different indices and individual stocks. The list of options available for trading through Plus500 is somewhat underdeveloped, but options can still offer a good supplemental trading method to traders looking to diversify. Traders can leverage their options trades by only 5:1, giving options the lowest leverage ratio on Plus500.
Finally, Plus500 offers the ability to trade on ETFs, or exchange traded funds. These are investment funds, such as mutual funds, that are themselves traded publicly on a stock exchange. On Plus500, these funds are offered as a CFD derivative which can be traded on a leverage ratio of 100:1.
Plus500 Trading Products Review
Plus500 originally founded in the UK also offers Australian regulated trading products.
Reviewed by Noam Korbl