Plus500 CFD Platform
Plus 500 is one of the best known CFD Index Trading Providers in the world, also having a startling reputation within Australia. The rise of CFDs on relatively new financial trading products such as Bitcoin though have grown non-currency product popularity. To clarify, a CFD (Contract for Difference) mirrors an asset that is tradable, but importantly the asset is not owned by the trader or broker.
The below Plus 500 review goes through the five key components of CFD trading with this provider.
1) What CFD Products Are Available?
There are eight indices and available for index trading with Plus 500, these are:
- ASX 200
- Germany 30
- Japan 225
- France 40
- UK 100
- US-TECH 100
- USA 30
- USA 500
Live indices quotes come through their forex trading platform at no charge.
The most popular commodities worldwide can be traded through commodity CFDs including:
- Natural Gas
Other commodities that can also be traded through a commodity CFD include silver, petrol and palladium.
The fastest growing CFD area is Cryptocurrencies, which Plus 500 offers across:
With the rise of Bitcoin in popular cultured, CFDs have become extremely popular, with many clients attempting to make money off the bubble. It has also paved the way for other crypto’s, which offered above. Plus500 offer a significant amount of crypto’s, higher than the industry standard.
Other Cryptocurrencies that can be traded include Dash, NEM Monero and Ripple. Unlike forex markets, these can be traded 24/7 (Excluding Sundays at 12:00-14:00 UTC) providing added convenience for traders.
Plus 500 allows CFD trading across the Australian Securities Exchange (ASX) on popular shares such as Telstra and Rio Tinto. A key positive noted in this Plus 500 review is the ability to also trader the most popular shares around the world including Samsung.
The spreads (difference between the bid and ask price) is the main way the CFDs Provider makes a commission from these share CFD trading.
Traders can call and put options on the most popular markets including the:
- Italy 40
- Germany 30
- France 40
Volatility can be traded with leverage when it comes to option CFD trading.
The most popular EFTs (Exchange Traded Funds) can be traded through Plus 500 including the:
- USO-Oil Fund
- UNG-Gas Fund
- GLD Gold
- Commodity Index Fund
- VXX Volatility
Profits and losses can be preset by stop loss features available when trading EFT CFDs.
2) What Leverage Does Plus 500 Offers For CFDs?
Leverage for trading CFDs are not at the high levels available for Forex of 500:1
View the leverage offered for each of Pus500’s CFD’s on the table below:
With a minimum trading size of $100 AUD, Plus 500 offers leverage of 300:1. This means that a trade of $200 will result in $60,000 capital been traded on index markets amplifying movements on the markets.
Like index CFD trading, Commodities offers 300:1 trading. It should be noted that this results in an increased level of risk when trading so it’s important to understand these risks and features to control potential losses.
A low level of of leverage is available by Plus 500 across all Cryptocurrencies. This is due to the volatility across each one such as Bitcoin and is restricted to protect traders.
An even lower leverage level allows by Plus 500 is across shares. This is due to extreme volatility that can occur after key announcements such a profit guidance. An example of 20:1 is when a trader trades $1,000 resulting in $20,000 on the share CFD.
The lowest leverage available by plus 500 is on option CFDs. Options already have extreme volatility so this is only amplified by five times with 5:1 leverage available.
Leverage On EFTs
EFTs have a higher leverage level of 100:1 due to reduced volatility. $100 will result in $10,000 been traded which is often required due to the relatively small movements of these on most days. Of course, some periods see large EFTs movements.
3) Can CFD Trading Be Made Through The Forex Trading Platform?
The simple answer is yes. Many consider the Plus 500 the best forex trading platform as it offers the following apps:
- Apple App (For the iPhone, iPad and even Apple Watch)
- Android App
- Windows Phone App
There is also their web trader which doesn’t require a download (ideal for trading at a workplace) and the most popular windows trader which offers the most advanced features and charting of the options available.
4) What Other Features Does Plus 500 Offer For CFD Trading?
A key positive found in this Plus 500 CFD review was the stop features available through the forex trading platform including stop loss orders.
A stop loss order means you can choose when you want to close off a trade based on pre-determined profit and or loss. The advantage of this order feature is you don’t need to constantly monitor markets and you don’t need to calculate the point that a set profit/loss will be achieved.
There is also a guaranteed stop loss order feature. This protects a trader from slippage which is when a highly turbulent period means the forex broker can’t exit the broker at the set amount which can lead to higher profits or losses. Guaranteed stops have additional costs so it’s important to weight up these costs with the risk reduction on each individual trade.
Traders can receive notifications and alerts at no cost. When a position is opened or closed the instrument can be set of a specific price (prior to any margin call). This notification will come through when the forex trading platform isn’t open.
Notifications can be sent through by either e-mail or SMS. Notifications are made solely for monitoring traders and you can’t open or close a position with these (you need to open the forex trading platform to do that). Notifications are also not guarantees as third parties are involved so it’s important to factor this in when positions are open.
Negative Balance Protection
Plus 500 traders cant lose more than their deposit in an account. This is due to ‘margin call’ functionality closing off trades before this occurs. Only a temporary situation may exist where a balance goes negative to maintain an open position. This will though be shortly closed if extra funds are not inserted into the account.
What Support Is Offered?
Support with Plus 500 is 24/7 with an email address and 24/7 Chatbot on the website. There has been concern raised for the fact that Plus500 do not offer any sort of phone line contact, limiting the personal connection and creating a lack of trust between the broker and the client.