Plus500 Review: Beginner-friendly CFDs Trading Platform

Alevin Chan

Alevin Chan

Last updated 14 April, 2022

Not sure how Plus500 works? Here's an honest review about it and how it may help you reach your financial goals.

 

The potential to amplify gains and the ability to trade voluminously with low capital are among the top reasons why some investors like leveraged trading.

Yet, leveraged trades can also accelerate your losses; inexperienced traders may find it difficult to jump in. Or, they may struggle to grasp the basics and build their skills.

Aiming to solve this problem is London-based Plus500, an online brokerage specialising in CFDs for stocks, ETFs, options, crypto, Forex and more. 

Here’s what you’ll learn about Plus500 in this article.  

Overview of Plus500 

Product summary:

  • What you can invest in: CFDs (Shares, ETFs, options, Forex, crypto, indices)
  • Deposit fees: $0
  • Withdrawal fees: $0 
  • Withdrawal limits: None
  • Commission: According to market spreads
  • Inactivity fee: US$10 per month after 3 consecutive months of inactivity 
  • Licence: Authorised by Monetary Authority of Singapore (MAS), Financial Conduct Authority (FCA), Australian Securities & Investment Commission (ASIC) plus four more.
Pros Cons
Highly-rated for user-friendliness, with clear and easy-to-understand trading platforms Offers only basic education and lacklustre news updates
Listed on the London stock exchange, and licensed in several cities Inactivity fee that kicks in after only 3 months
Unlimited use of free demo account Only VISA and Mastercard accepted for account funding
Offers bonuses and rebates to help offset trading costs  

Pros of trading with Plus500

#1: Designed for user-friendliness

What sets Plus500 apart is their emphasis on making trading easy to understand even for beginners. This is highly important considering that the brokerage deals in CFDs, which are leveraged products that can rack up profits and losses at an accelerated rate.

But this emphasis on newbie traders comes with a corresponding lack of advanced capabilities, which may turn off more experienced investors.

#2: Competitive spreads, few fees

Like any CFDs brokerage, Plus500 mainly derives its revenues from margin spreads, which are, for the most part, on par with average market rates. 

This marks Plus500 as a competitively priced brokerage, a reputation further bolstered by the relatively few fees you’ll encounter as long as you keep your account active.

#3: Offers bonuses and rebates  

Plus500 traders can take advantage of bonuses and rebates to offset trading costs and amplify their results. Bonuses are subject to qualifying criteria (such as reaching trading thresholds), while rebates are automatically earned as trades are performed. 

#4: Well-trusted brokerage listed on the London Stock Exchange

Plus500 is a well-trusted brokerage, licensed in seven jurisdictions around the world, including Singapore (MAS), UK (FCA) and Australia (ASIC). It is also listed on the London Stock Exchange, and reported record active customers in the first three months of the year.

For whom is Plus500 best suited?

Plus500 is a user-friendly and easy-to-understand platform that offers a wide range of financial tools. It also provides unlimited opportunity to practise with a free demo account. 

Its beginner-friendliness is further increased by its relative lack of service charges and fees, such that cost of trading is mostly concentrated on actual trades. 

What charges or fees should you look out for?

When trading with Plus500, you will encounter relatively few fees and charges. This is because Plus500’s revenue model is mostly based on the margin spreads it charges on certain trades. Still, there’s little cause for concern, as Plus500 spreads are competitively priced.

Having said that, you should watch out for currency conversion fees if you’re trading in a different currency than the Singapore Dollar.

If your account remains inactive for three consecutive months, you will incur an inactivity fee of up to US$10 per month on your account.   

How do you open and fund your Plus500 account?

Opening your Plus500 account

  1. Go to plus500.com.sg and click on the Start Trading button in the upper right corner
  2. Choose the account type you want (real money, or demo)
  3. Follow the on-screen prompts to complete your account registration

Note that the demo account is freely available for an unlimited time period. The system will also automatically reinstate your practice funds once it falls below a certain threshold.

Funding your Plus500 account

You may fund your Plus500 account using any of the following methods. 

Funding method Crediting lead time Fees
Bank transfer  1 to 2 working days Bank charges may apply
PayPal or Skrill Same day Service fees may apply
Credit cards (VISA or Mastercard only) Same day Bank charges may apply

At-a-glance comparison: Plus500 vs other popular brokers

  Commission fee Minimum deposit Maintenance fee
Plus500 Margin spreads US$100 (varies according to deposit method) Inactivity fee of up to US$10 per month after three consecutive months without valid trades.
Saxo Markets Mutual funds and SGX stocks: S$0 

US ETFs, CFDs and Stocks: min. S$3

US bonds: min. 0.05% 

Bonds, commodities, futures and options: min. $1.25
S$2,000 for regular savings plan

S$3,000 for SaxoTraderGo platform
N/A
UOB Kay Hian SG stocks & stocks CFDs: min. S$10 - S$25 

US stocks & stock CFDs: min. US$20, 
SG corporate bonds: min. S$2.14
S$3,000 for CFDs, $5,000 for FX N/A
Maybank Kim Eng SG stocks: min. S$10 - S$25 

US stocks: min. US$20
N/A N/A
Oanda Daily rates and charges according to market conditions N/A Inactivity fee of $10 per month applies after 12 months without trading activity
IG S$10 minimum for equity CFDs per open/close N/A N/A
City Index 0.08% or S$10 minimum for Singapore CFDs $150 N/A
Tiger Brokers SGX stocks: 0.08%, min. S$2.88 per order (currently waived) 

US stocks: US$0.01, min. US$1.99 per trade
N/A N/A
Interactive Brokers (IBKR) SGX stocks: 0.08% of trade value, min. S$2.50 per order 

US stocks: US$0.005 per share, min. US$1 per order
N/A Up to US$10 per month (less commission paid that month)
TD Ameritrade US$0 (for US exchange-listed stocks, ETFs and option trades) N/A N/A

Read these next:
Best Brokerage Accounts To Start Your Investment Journey In Singapore
Best CFD Brokers In Singapore For Every Investor Type
Tiger Brokers Review: New Kid On The Block With Low Commissions
moomoo Review: Low Cost Trades And A Free AAPL Share
Interactive Brokers (IBKR) Review: Pros, Cons and Why They’re So Popular

 

An ex-Financial Planner with a curiosity about what makes people tick, Alevin’s mission is to help readers understand the psychology of money. He’s also on an ongoing quest to optimise happiness and enjoyment in his life.