Our Plus500 review recommended the CFDs Provider to intermediate forex traders based on their:
– Fees With No Commission Trading
– Forex Trading Platform
– Strong leverage of up to 300:1
– Plethora of financial products available for traders
– High level of client money protection
Is Plus500 Recommended For Low Fee Forex Trading?
Unlike most other forex brokers, our Plus500 review found they don’t charge dealing commissions. They are a spread only provider. There are only two other fees charged by Plus500:
Positions that remain open after a certain hour will receive a funding premium. These hours are shown within the forex platform. The premium charged can be up to three times higher then a regular overnight trade is a position is held over the weekend.
2) Inactivity Fee
Up to $10USD will be charged for a dormant account when no trades are made through the forex trading platform. This offsets costs incurred by the forex broker.
A comparison done in 2017 found that Plus 500 had some of the lowest spreads which is even more impressive based on their ‘no commission policies’ As the above table highlights, their AUD/USD spread started from 2 pips. While other forex brokers started from lower pips, the key is the long term spread performance which our plus500 review found they featured strongly within.
A wider spread may be placed on guaranteed stop loss trades, but this puts an absolute limit on ‘downside risk’. Even when forex trading in turbulent markets a position will be closed at the exact price specified. This means slippage can’t occur making it ideal for risk adverse or new forex traders.
Another key forex trading issue for those looking only for low fees is that the CFDs Provider charges a 1% rolling fee which is relatively high for the industry. This is a premium charge for holding a position after a certain hour. For medium/longer traders who like to hold positions this can create significant charges which should be compared to other forex traders prior to adopting this CFDs Provider.
What Platform Does Plus500 Offer Traders?
When the authors of Compare Forex Brokers went through each forex trading platform it found that Plus 500 had one of the most user friendly features of the major CFDs Provider. This includes their apps for all major phone platforms, a downloadable windows traders and webtrader for those on the go.
Key features of their windows and web trader include their advanced professional graphs, the variety of currency pairs available and the loss/profit limit options. In fact, for experienced forex traders the Plus 500 platform has the elements they will require when forex trading or other financial product trading such as EFTs.
What Leverage Does Plus 500 Offer?
Our Plus500 review found they offer one of the highest leverage rates of up to 300:1 with a low minimum deposit rate of just$100.
This maximum level of leverage means a $100 deposit could turn to the equivalent of $29,400 being traded on currency markets. Forex trading at just high levels means that a movement of just 0.3% of a currency pairing can lead a trader to almost lost the whole deposit or double their investment. This dramatically increases the risk profile when trading forex so it’s critical to understand the risks and consider risk management tools such as stop loss features built into the forex platform.
What Other Financial Products Are Offered?
Plus500 offers more than just forex trading with the ability to trade shares across 20 different markets. These includes the key USA, Japan & UK markets. The CFDs Provider also provides trading opportunities across commodities suck as oil, EFTs and the major indices.
The leverage offered on indices is up to 1:300 and for commodities like gold, silver and oil its up to 1:300. Trade Exchange-Traded-Funds (EFTs) have the lowest leverage of the CFDs at up to 1:100. A key advantage of CFDs trading is the ability to trade small amounts but through leverage have high volume. Profit/loss targets can be preset within the platform to close off the position when a price is reached.
Am I Safe Forex Trading With Plus500?
Our Plus500 review found they segregate their clients funds and don’t use them for hedging. Any deposits within an account are held in accordance with legal Australian requirements and quarantined in a separate bank account.
Australian traders trade through the Plus500 subsidiary ‘Plus500AU Pty. Ltd.’ which has an Australian Financial Services Licence 417727. They are located on Level 10, 45 Clarence Street, Sydney, NSW 2000. Their parent company is listed on the London Stock Exchange (AIM section). They trade over 2000 underlying financial instruments across 50 countries.
One of the best features of plus 500 is the deposit and withdrawal methods. These range from the industry standard credit and and wire transfer (direct deposit) but also offer Skrill and Paypal which many forex trading Australia broker’s prefer due to the speed and security these payment options provide.
Compare Forex Brokers’ Plus500 Review Conclusion
Our Plus500 review found that most customers are generally positive about the CFDs Provider compared to other forex trading Australia brokers. This includes 7.4/10 on FX empire which reviewers leaving positive comments on the forex trading platform itself, customer service although there were some negative reviews around leverage available for certain traders and information for traders.
Overall, Compare Forex Brokers found Plus 500 has a strong platform and is recommended for experienced traders looking for advanced features. For Australian’s though that are looking for a low fee forex broker the platform’s fees are too high to be considered with more superior low cost forex trading Australia alternatives such as Easy Forex existing in the marketplace.
About Compare Forex Brokers
This forex broker comparison and plus 500 review focused on low fee brokers and made in 2017 based on information collected from broker websites. This review was based on the information on our forex trading Australia comparison chart which found FXCM to be the best FX broker who offers variable spreads. If you’re looking for fixed pips then Easy Forex may be for you.