Plus500 vs IG Markets

In March 2019 we reviewed two leading online forex broker Plus500 vs IG Markets. Using our trusted review criterias, we have broken down the major features of each broker and given your our recommendations so you can make your own informed decision when choosing a broker.

Strengths

1. No Commissions
2. Guaranteed Stop Loss
3. Wide Range of CFDs offered
4. Excellent Client Money Protection
5. 24/7 Customer Support

1. Risk Management
2. Range Of CFDs
3. Choice of Trading Platforms

Weaknesses

1. Inactivity Fee
2. Overnight Funding Chargest
3. Relatively High Spreads
4. No Automated Trading Available
5. Limited Analysis Tools on Plus500 Platform

1. Range Of Trading Platforms Can Be Confusing
2. Limited Leverage
3. Limited Funding Options And Not All Are Free

Spreads + Commissions

Spread Value

9.2
Commission Value

9.9
Spread Value

8.6
Commission Value

9.9

Forex Trading Platform

Plus500 platform - iPhone/iPad, Android, Windows Phone App, Windows 10 Trader, Web Trader

MetaTrader 4
L2 Dealer
ProRealTime
Web Based
Android App
Tablet Apps

Execution Speeds

Trading Speed

10
Trading Speed

8

Leverage

1:300

0.5% Margin Rate (1:300 Leverage)

Risk Management

1. Guaranteed Stop Loss
2. Negative Balance Protection
3. Stop Limit /Stop Loss / Trailing Stop
4. Segregated Accounts
5. ASIC Regulated

Limited Risk Account
Guaranteed Stops
Stops and Limits
Balance Snapshots
Price Alerts and Push Notifications
Risk Education
Lower Leverage Levels

Other CFDs (eg Crypto)

1. Indices
2. Energy Commodities (Oil, Gasoline, Natural Gas, Heating Oil, Brent Oil)
3. Metals (Gold, Palladium, Copper, Platinum, Silver)
4. Soft Commodities (Wheat, Soybeans, Corn, Cocoa, Sugar, Coffee, Cotton, Lean Hogs, Live Cattle, Feeder Cattle)
5. Cryptocurrency (Bicoin, Ethereum, Bitcoin Cash, Litecoin, NEO, Ripple, IOTA, Monero, EOS)
6. Shares
7. Options
8. ETF

Shares
Indices
Hard Commodities
Soft Commodities
Cryptocurrencies
Bonds
Other Markets: AUD Denominated Currencies, ETF, IPO, Sectors, Interest Rates

Customer Support

1. 24/7 Chat Support
2. Email via Web Portal
3. No Phone Support
4. No Education Library

24/7 Customer Support (Saturday 1pm to Saturday 9am)
Phone
Email
Live Chat
IG Community Forum
FAQ Help and Support

Joining Bonus

1. Between $200 and $10,000 bonus will be added to you account depending on amount deposited provided minimum trade requirement is satisfied.

Refer a Friend
Receive Credit Towards Future Trading

Funding Methods

1. Bank Transfer
2. Debit/Credit card (Visa, Mastercard)
3. Electronic Wallets (Paypal, Skrill)

Debit Card
Credit Card (Visa 1% charge, Mastercard 0.5% charge)
Paypal (1% charge)
BPay

Reviews

Trust Pilot 7.1/10 (679 reviews)

Trust Pilot
3.8 out of 5

Recommended For

Beginner Traders

1. Risk Averse and Impulsive Traders
2. Traders Wanting Choice From Multiple Platforms
3. Traders Who Require an All-In-One Broker

  • MetaTrader
  • cTrader
  • ECN Trading Account
  • Deal Cancellation
  • Guaranteed Stops
  • Guaranteed No Minimum Balance
  • No Fees On Deposits + Withdrawals
  • Share Trading

Beginner Traders

1. Risk Averse and Impulsive Traders
2. Traders Wanting Choice From Multiple Platforms
3. Traders Who Require an All-In-One Broker

Spreads + Commissions

Spread Value

9.2
Commission Value

9.9
Spread Value

8.6
Commission Value

9.9

Execution Speeds

Trading Speed

10
Trading Speed

8

 

  • MetaTrader
  • cTrader
  • ECN Trading Account
  • Deal Cancellation
  • Guaranteed Stops
  • Guaranteed No Minimum Balance
  • No Fees On Deposits + Withdrawals
  • Share Trading
  • MetaTrader
  • cTrader
  • ECN Trading Account
  • Deal Cancellation
  • Guaranteed Stops
  • Guaranteed No Minimum Balance
  • No Fees On Deposits + Withdrawals
  • Share Trading

 

Trading Spreads and Fees Plus500 vs IG Markets

Plus500 vs IG Markets Trading
When trading there are 3 basic types of fees you will want to be aware of. These are

  1. Trading Fees – These are you expenses when you incur when you trade. These will be in the form of spreads or commissions.
  2. Holding Fees Rates – This occurs if you hold you trading position overnight and have leverage.
  3. Non Trading Fees – These include deposit and withdrawal fees, inactivity fees and risk management tools

Lets review each of these categories one by one.

Trading Fees

Both Plus500 and IG Markets spreads fees are quite low for a market maker however they are high when we compare with a broker that has no dealing desk(NDD). No dealing desk broker include those that use Straight through Processing (STP),  Electronic Communication Broker (ECN) Direct Market Maker (DMA). Plus500 and IG Markets charge higher because they do not charge commission, instead all expenses are included in the spread.

Average Spreads (pips)EUR/USDUSD/JPYAUD/USDGBP/USD
Plus5000.60 or 0.000060.70 or 0.070.080 or 0.0000080.90 or 0.000009
IG Markets (Standard)0.750.760.761.117
IG Markets (Forex Direct)0.2630.2930.5120.992

Looking at the spreads, we can see that Plus500 spreads are generally slightly lower than IG’s spreads for the standard accounts. Using the standard accounts is a like for like comparison between each broker. With the standard account, fees are incorporated into the spread.  IG Markets Forex Direct account has the lowest raw spreads as it uses ‘Direct Market Access’ for execution. The narrower spreads that DMA offer can mean greater saving however one does need to consider the commission charges once they are applied.  It is also worth noting that Forex Direct is only available to professional or professional traders.

Open a demo account >>Visit Plus500 >>

 

Holding Fees

Also known as overnight or swap fees,

With Plus500 you can calculate the swap fee using following formula ‘Trade size x Opening Rate x Daily Overnight Funding % ‘. The ‘overnight funding time’ and the ‘daily overnight funding percentage’ when you click on ‘detail’ for the trading instrument on your platform.

With IG Market charge an admin fee of 0.3% per annum as part of their holding costs. You can calculate the overnight fee with the formula ‘Trade Size x (tom-next rate + admin fee). The tom-next rate can be found on the platform for the instrument you are using.

Non Trading Fees

Plus500 charge the following:

Inactivity fee:

AccountInactivty PeriodAmount ChargeHow Often
Plus5003 Consecutive Months$10One off
IG Markets24 Consecutive Months$18Monthly

Funding Charges

Payment MethodPlus 500 ChargesIG Markets ChargesPlus500 Withdrawal TimeIG Markets Withdrawal Time
Debit Card (Visa and MasterCard)FreeFreeN/A2-5 days
Credit Card (Visa)Free1%Varies by Bank Processing Time2-5 days
Credit Card (MasterCard)Free0.5%Varies by Bank Processing Time2-5 days
PayPalFree1%3-7N/A
BPAYFreeFreeN/AN/A
SkrillFreeN/A3-7 daysN/A
Bank TransferFreeFree5-7 days24 hours

It is worth noting that there is a minimum $450 deposit when using debit, credit or PayPal for IG Markets.  There are no minimum amounts for other transactions methods.

Risk Management

Guaranteed Stop Loss Order

Spreads are slightly wider when purchasing a ‘Guaranteed Stop Loss Order’. This wider spread however might be worthwhile if you lack trading experience or the forex markets is volatile. How wide the spread is will vary depending on liquidity, volatility and other factors for the forex.

Account Features

Plus500 Account Features

Only one type of account is on offer. This account is a personal account type,  Plus500 do not offer a corporate account. The main thing to note with Plus500 is they do not allow ‘expert advisors’ or ‘algorithmic trading’. This means if you are a day trader then Plus500 might not be the broker for you.

IG Markets Account Features

IG Markets offer two types of accounts. These are “Limited Risk” and “Plus/Trader” accounts for retail traders. They also offer an account for professional traders.

The ‘Limited Risk’ account requires that you purchase a “Guaranteed Stop Loss Order” when opening position. As you need to purchase a ‘Guaranteed Stop Loss Order’, you cannot use other types of stops such as trailing stops.

Plus/Trader or Standard account on the other hand differs from the “Limited Risk” account in that there is no requirement to purchase a ‘Guaranteed Stop Loss Order’ and use all available risk management tools.

Professional or institutional traders have access to the forex direct account. This means they can access forex trading using ‘Direct Market Access’. To use the professional account you must have nets assets of at least AUD$2.5 million.

 Plus500IG Markets (OTC)IG Markets (Direct Forex) 
CommissionNoNoAUD$1per $100 Million
Spreads From0.60.60.1
Minimum Balance to Open Account?$0$0
Expert AdvisersNoYesYes
Trade Execution SpeedFastFastFastest
Lot Size0.0050.10.1

Conclusion – Plus500 vs IG Markets

We recommend Plus500 as they offer narrower spreads when we compare with IG Markets. While IG Markets ‘Direct Forex account’ offers narrower spreads, this account is not available to most potential clients.

Open a demo account >>Visit Plus500 >>

Leverage

both brokers offer low leverage levels by industry standards. While most broker offer leverage of 500:1. Plus500 offer leverage of 300:1 and IG Markets only offer leverage of 200:1.  There is nothing wrong with the brokers offering low levels. Using low leverage is a safe way to trade as you are not taking on excessively high levels of debt. This is great if you are new to trading or don’t want to take risks but high leverage can quickly amplify your profits when used wisely.

Leverage Forex

Conclusion – Plus500 vs IG Markets

Plus500 offer higher leverage margins when we compare with IG Markets. There is no advantage to select IG Markets when it comes to leverage and margins as you can reduce your leverage with Plus500 if you wish to trade with lower margins.

Open a demo account >>Visit Plus500 >>

Platforms

Plus500 Trading Platform

Plus500 has its own custom trading platform called ‘Plus500 Trading Platform’. The platform is available as a download for Mac and Windows, apps on IOS and Android and via webbrowser. One unique feature is that you can access the platform via your Apple watch. Plus500 do not offer popular platforms like MetaTrader 4 and 5 or cTrader, instead have their own platform . Plus500 Trading Platform is unique as it works across different desktops, laptops, mobiles and tablets seamlessly. This means you can easily use the Plus500 trading platform with Windows, Android, IOS, Mac seamlessly.

The ‘Plus500 Trading Platform’ is known for being very user friendly and easy to use.  The main windows allows you to see prices from a wide range of derivatives including forex, commodities and indices all at one time. Other features such useful information such as open positions, pending orders and even trading history can also be viewed.  The Plus500 platform is able to display so much information because it is split into 4 sections. One section shows prices of currency pairs and is used to make trade orders. Another section shows movements of currency pairs in a chart and indications of likely future price directions. The third section shows shows account information such as the funds you have in your account and profit and loss information.

One really useful feature is the ability to easily switch between the live account and the demo account. This means you can test trading strategies ‘on the go’ before putting them to practice.

Plus500 vs IG Markets Trading Platform

IG Markets Trading Platforms

This broker has one has one of the largest range of trading platform among all online brokers. Below is a charge showing the range of platforms IG Markets offer and their features

When selecting a platform with IG Markets, the most important thing to be aware of is that you select a platform that will work with your chosen method of trading execution. For example if you intend to trade forex and use DMA then you will need to use L2 Dealer.  If you want to use ‘expert advisors’ or automatic trading then you will to use either MetaTrader 4 or ‘RealLivePro’. We tend to recommend MetaTrader 4. MT4 is a proven platform used by more brokers and traders than any other platform in the world. MetaTrader 4 offers great execution speeds, expert advisers and a customisable interface. As a bonus, IG also include 18 additional bespoke tools with MetaTrader 4. These bespoke tools give you access to more information, charts and management tools than is available on MetaTrader 4.

Plus500 vs IG Markets Platforms

Conclusion –  Plus500 vs IG Markets

IG Markets offer a greater choice of platforms when we compare with Plus500. Most people will only need one platform to trade with so it really comes down to personal requirements and preference when selecting a platform. While Plus500 only offer one platform – MetaTrader 4, this platform is the most popular forex trading platform which will easily satisfy all your trading requirements.

Open a demo account >>Visit Plus500 >>

Risk Management

Both Plus500 and IG Markets are some of the better brokers when it comes to risk management tools. IG Markets in particular are strong in this consideration.

Here is a list of tools each broker offer

Risk Management Features
Plus500IG Markets
Stop Loss OrdersYesYes
Guaranteed Stop Loss OrderYesYes
Negative/ Minimum Balance Protection (Margin Call)YesYes
Guaranteed Negative Balance ProtectionNoNo
Trailing StopsYesYes
Take Profit / Limit OrderYesYes
Limited Risk AccountNoYes
Low LeverageYesYes
Risk EducationNoYes
Price AlertsYesYes
Price Push NotificationsYesYes
Forward Options (Hedging)NoYes

In addition to basic risk management tools such as price alerts and stop losses, both brokers offer “Guaranteed Stop Loss Orders” (GSLO). A GSLO which can help protect you against risk of major loss. For a small fee (that is part of the spread) the brokers guarantee they will sell your investment at your set limit.

Both brokers allow users to set their own leverage however the leverage you set with Plus500 will depend on your ‘Total Position Value’ and ‘Equity’. These values which will depend on how much you have funding you have in your account.

IG Markets also offer really good risk management education. This not only teaches you how to trade responsibility but also how to protect all your investments.

Conclusion – Plus500 vs IG Markets

Both brokers offer ‘guaranteed negative balance protection’ which many brokers do not offer and it is for this reason both brokers are worth considering when choosing a broker. IG Markets however do offer  greater range of risk management features and you may consider some of these features useful of you are a risk averse trader.

Open a demo account >>Visit Plus500 >>

Contracts for Difference (CFDs)

Plus500 CFDs

A trading with a wide range of instruments or derivatives is available for trading with Plus 500 via its trading platform. These include:

  1. Index – 8 indices include ASX 200, German 30, Japan 225, UK 100, USA 30, USA 500.
  2. Commodities – all the main popular commodities include oil, Gold. Gas and Copper.
  3. Cryptocurrencies – including BitCoin, Ethereum, LiteCoin.
  4. Shares – Australian and International.
  5. Options – include major indices such as Hong Kong 50 and UK 100 and known brands such as Apple, Facebook, Alphabet (Google).
  6. ETF – Over 80 exchange traded funds and products.

Plus500 offer one of the widest range of cryptocurrencies on the market. Not only do they offer the common cryptocurrencies like BitCoin, they also offer rare ones like Tron, Cardana, EOS and Monero.

IG Markets CFDSPlus500 vs IG Markets Cryptocurrency

If you have an IG account then you not only get exposure to forex markets but also a wide range of other markets and asset classes. IG are one of the best brokers when it comes to choices for trading.

The following are available

  1. Shares – both Australian and international shares.
  2. Indices – over 31 global indices.
  3. Commodities – At least 26 primary hard and soft commodity markets.
  4. Options – available with indices, shares, forex.
  5. Interest Rates – you can trade on global interest rate movements.
  6. Bonds – You can hedge against government bonds
  7. ETPs, ETF and IPOs – you can access exchange traded products/funds and initial public offerings.
  8. Cryptocurrency – a range of cryptocurrencies are available for investment.

Some trading platforms work better with certain CFDs so make sure you select the right platform for your needs.

Conclusion – Plus500 vs IG Markets

Both Plus500 and IG Markets offer an extensive range of derivatives or contracts for difference. IG Markets is slightly more extensive but Plus500 are likely to also offer any derivatives you may wish to trade with.

Open a demo account >>Visit Plus500 >>

Bonus Offers

Plus500 will reward you with bonus for signing on with them. The more you deposit when you sign up, the larger your sign on bonus will be.

Plus500 Bonus

IG Markets dont have a sign on bonus however they do have a refer a friend program. With this program you and your friend will receive trading credits for each friend that you introduce to IG.

IG Refer a Friend

 

Conclusion – Plus500 vs IG Markets.

We like the sign on program that Plus500 offer. Receiving a bonus simply for signing up and making a deposit is a sweetener that no one complain about.

Open a demo account >>Visit Plus500 >>

Customer Service

Plus500 Customer Service

You can contact Plus500 customer service 24/7 via live chat and email. Plus500 do not provide phone support. We have no real issues with the customer support they provide. We put their customer service to the test and found their were able to answer all our questions quickly and reliably.  On the other hand we found their customer services features lacking.

Plus500 don’t offer any dedicated education features. This was a surprise to us as offering a complementary suite of education features is a standard feature of most online brokers nowadays.  Given there is a wealth of trading information freely available on the web, it is understandable why Plus500 Markets don’t provide these features. That said, it would have been great if Plus500 did provide these education tools.

Plus500 offer one of the better demo account among all forex online broker. This is becuase Plus500 do not provide time or fund limits with their demo account. It is common for demo accounts to have a limit of 30 days and restriction of available virtual funds. With Plus500, when you account drops to $200, then it will automatically return to the initial demo amount.

Open a demo account >>Visit Plus500 >>

IG Customer Service

Unlike Plus500 which provide 24/7 customer support, IG only provide customer support from Saturday 1pm to Saturday 9am. IG however do a greater range of contact methods including Email, live chat, phone and even twitter support.

IG also provide an excellent range of self services tools which should allow you find answers to your questions without need for customer support. Tools include forums, FAQ, glossary and user guides.

Lastly, IG provide solid education features. IG education suite is part of their ‘IG Academy’. It is quite comprehensive and consists of nine trading courses for both forex and CFDs. You have a choice of different learning tools including webinars and mobile apps.

Open a demo account >>Visit Plus500 >>

Deposits and Withdrawals

Plus500 have a policy of no fees when making deposits or withdrawals. The broker advises that users may sometime incur a fee from the payment issuer or merchant. Payment can be made using Debit Card, Credit Card (Visa and MasterCard), MoneyBookers/Skrill, PayPal or through wire transfer.  Funding must come from accounts in your name which means you cannot use company or friends accounts. Plus500 have a minimum deposit of $100.

Withdrawals with traditional methods like bank transfer and cards will take one to three business days to complete, this however will vary depending on the type of withdrawal. PayPal, Withdrawals and Skrill will take three to seven business day. When making a withdrawal there is a withdrawal minimum of $100

IG Markets unlike Plus500 do have some charges when its comes to funding. Use of credit cards will incurs a 1% charge for visa and a 0.5% charge for MasterCard. PayPal will also have a 1% charge. Debit Cards (Visa and MasterCard) , Bank Transfer and BPay are free. If you are making using debit or credit card or PayPal then there is a minimum of $500 when making a deposit.

Open a demo account >>Visit Plus500 >>