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Plus500 Cryptocurrency Review 2021

Explore the crypto broker’s safety features, regulation, and reputation. This guide also looks at the fees and other charges applied by Plus500 to Bitcoin and other cryptocurrency traders as well as supported payment methods.

Author: Edith Reads Last updated: 26/09/2021

Summary

Plus500 is a leading broker offering online trade services in Forex, CFDs, and Cryptocurrencies for last twelve years. Founded in 2008, The Company is headquartered in London. With a portfolio of more than 1000 financial instruments and more than one million clients, Plus500 became the source of inspiration for its competitors. The broker offers multiple tradable assets across different asset classes, including forex, indices, cryptocurrencies, shares, options, and ETFS. The main focus of the company is to provide an innovative trading model with a user-friendly environment to make the trading experience more enjoyable. In this piece, we present a complete review of the broker.

Pros & Cons

Like every other broker, Plus500 also has some pros and cons which are listed below;

Advantages of Plus500

  • Plus500 offers an easy to use trading interface
  • It offers advanced mobile trading app
  • It has low trading fees
  • It is listed on the London Stock Exchange (LSE).
  • It offers excellent customer support

Disadvantages of Plus500

  • It offers limited crypto assets
  • It has sub-standard research tools
  • It educational sections have fewer resources available
  • It does not have a price alert feature for web trader.

Pros

Easy Trading Platform – The customer-built simple and easy-to-use trading platform enables its clients to trade seamlessly.

Advanced Mobile Trading App – Plus500 offers an industry-standard mobile trading app to facilitate traders while traveling around. The mobile platform offered by Plus500 is compatible with all versions of android and IOS. Clients can access a full range of available tradable instruments and multiple trading tools right from the comfort of their mobile.

 Low Fee Structure – Setting aside other factors, the Plus500 trading fee structure is quite impressive. It charges lower trading fees making it one of the preferred choices for crypto traders.

 LSE Listing – Unlike most brokers dealing in crypto trading, Plus500 is listed on the London Stock Exchange (LSE).

Customer Support – Plus500 does not only offer round-the-clock customer support but its customer service standard is exceptionally well maintained. Clients can expect to receive answers to their queries on a run-time basis.

Cons

Limited Portfolio of Crypto Assets –   It has limited products especially with regards to cryptocurrencies. At present, clients can only access six cryptocurrencies in addition to the crypto 10 index, including Bitcoin, Ethereum, Litecoin, Stellar, Cardano, and Bitcoin Cash.

Fewer Research Tools – Unlike its competitors, Plus500 has limited research tools available which might cause inconvenience to pro traders.

Less Educational Resources – At present, Plus500 falls well behind its competitors in offering much to learn under its education section. The educational library lacks modern resources to help clients learn and add value to their trading exposure.

No Price Alerts on Web Trading Platform – The broker does not offer price alerts on its web trading platform that might worry high volume traders.

Regulations, Offices & Supported Countries:

Regulations

Pluss500 is fully regulated and authorized by the Financial Conduct Authority (FCA) of the United Kingdom. It also holds regulation from multiple regulatory bodies including CySEC in Cyprus, ASIC in Australia, FMA in New Zealand, FCA in South Africa, MAS in Singapore, and the ISA in Israel.

Offices

Plus500UK Ltd is a UK-based company having its main offices located in the city of London on the following address. The company is rapidly growing and plans to have regional offices in Europe and Asia.

The UK Financial Ombudsman,
South Quay Plaza183,
Marsh Wall,
London E14 9SR.

Supported Countries

Plus500 supports more than 50 countries across the globe, including but not limited to UK, Australia, New Zealand, Singapore, Israel, South Africa, and some European Countries. The website of the broker is accessible in nearly 30 languages of the world.

Available Coins

In addition to a wide range of financial instruments, Plus500 offers generous leverage for trading cryptocurrencies. Plus500 supports six cryptocurrencies and allow investors to diversify their stake in crypto10 index. Clients can get started with as low as $100 to avail the leverage of 1:5 which means you can trade up to $5 worth of digital currency for every $1 invested. Listed below are supported coins at Plus500.

  1. Bitcoin (BTC)
  2. Ethereum (ETH)
  3. Litecoin (LTC)
  4. Stellar (XLM)
  5. Cardano (ADA)
  6. Bitcoin Cash (BCH)
Asset Name Asset Code Spread Charging PERC Leverage
Bitcoin BTC 0.30% 1:2
Ethereum ETH 1.45% 1:2
Crypto 10 Index Crypto 10 0.60% 1:5
Litecoin LTC 0.45% 1:2
Stellar XLM 1.00% 1:2
Bitcoin Cash ABC BAB 1.93% 1:2
Cardano ADA 0.50% 1:2

Let’s understand the leverage using a simple example.

Say, you wish to invest $1000 in BTC. The available leverage for BTC at Plus500 is 1:2. That means you can open a position worth $2000 with your initial investment. Alternatively, you can open a position worth $1000 by investing $500 only.

Suppose the BTC/USD is being traded at $48105. You think that the BTC price will rise in the coming days. Therefore, you decide to stake $1000 for each unit change in the price of BTC and open a position at $48105. Now, if the price moves upward and changes by 10 points. Then the new price will be 48115. Since you had a stake of $1000 for each unit move, you may calculate your profit i-e (48115-48105) x 10 = $10,000.

Example for Crypto CFDs trading: Sell Ethereum/USD

Let us make you quickly understand how spread charging on crypto CFDs work.

Suppose you wish to trade a short position on Ethereum (ETH) by pairing it with U.S. Dollar (USD). Your underlying tradable asset will be (ETH/USD). For example; the market price of the underlying asset is quoted as Buy/SELL @ 430/450. 

Say you anticipate the price of Ethereum might decrease against the U.S. Dollar in the coming days. Therefore, you plan to sell 05 units of ETH to open position at 430. Suppose the lot size you have selected represents $5 worth for 1 unit change in the price of ETH. That means with every changing unit of Ethereum you will gain or lose $5. 

If the value of Ethereum slid down against the US dollar, and the new price quote is 400 / 420. You wish to take your profit and purchase 05 units to close your position at 420. 

Since the price of Ethereum has changed by 30 points in your favor. Therefore your profit is calculated as follows

​Units 30 X $5 = $150.

Similarly, if the price of the Ethereum moves against you by the same number of units, you will lose the same amount.

Trading Fees

Plus500 offers both floating and fixed spreads followed by some additional fees depending upon the trading activity. An overnight fee (swap fee) is either deducted from or added into your account for holding up long positions specifically when the date changes. Plus500 also charges a currency conversion fee, this applies to the trades of all such financial instruments which are denominated in a currency other than your account’s default currency. At Plus500, Guaranteed stops are also offered for a fee. If the client remains inactive for three months continuously, an inactivity fee of $10 is charged per month.

Trading Bitcoin at Plus500 involves two types of cost;

1) Spread Cost

2) Finance Cost 

Spread Cost: It is simply the difference between the ask and bid price of an underlying asset. The amount of spread charge changes with the market conditions. However, the percentage ratio stays the same. Plus500 charges around 0.30% spread on trading Bitcoin CFDs.

Finance Cost: Since trading Crypto CFDs involve leverage, therefore, Plus500 charges interest on the amount offered as leverage. This is known as swap or overnight fee.

For example: If the market price of buying BTC/USD is $48,899 then the BTC spread charged by Plus500 makes it $49046 at 0.30%. Therefore, if you wish to open a position for $1000 worth BTC, you can open a position of $997 with 0.30% ($3) amount being charged as spread.

To help you understand better how spread charging along with any overnight fee work at plus500, given below is a table for Bitcoin (BTC) as an example.

Spread Charging 0.30%
Overnight fees for holding long position -0.0507%
Overnight fees for holding short position. -0.028%
Minimum traded quantity 0.01
Deposit Margin Required 50% (1:2)
Coin Bitcoin (BTC)

Unlike other CFD brokers, Plus500 offers the most affordable rates when it comes to its fee structure for different trading transactions. Surprisingly, it even charges no fee at all on some of its trading activities. Let’s quickly review a few of them.

  1. No fee is charged for live CFDs quotes.
  2. No fee is charged for deposits.
  3. No fee is charged for real-time Forex quotations.
  4. Dynamic charts and graphs are offered for free.
  5. No fee is charged for opening and closing of positions.
  6. Rolling of positions is also free at Plus500

Trading Platforms, Account Opening, and How to Buy Crypto

Plus500 Desktop Trading Platform

Plus500 offers a multi-asset desktop trading platform compatible with all kinds of operating systems. It intends to serve customers who like to use the platform from the comfort of their desktop PCs. Clients only need to get it downloaded to their systems before they can start using it. Clients can also use the trading platform online. The in-house custom built trading platform is made accessible 24 hours a day. Clients just need to use the “sign-in” interface to access the innovative trading platform from any part of the world.

As soon as you arrive on your dashboard, you can see various buttons are available on the side navigation panel.

Trade: Starting from the trade tab, you can access all tradable financial instruments under this tab.

Open Positions: This tab enables you to see your open positions for all of your assets along with available balances.

Order: The order tab enables clients to preselect the price for opening up a position. As soon as the target price is reached, the system automatically opens up a position.

Closed Positions: Traders can see a detailed overview of their trading history under this tab.

How to open an account and trade cryptos with Plus500 on a desktop?

Compared to other brokers who offer clients to trade cryptocurrencies, Plus500 offers leverage and the possibility to open short positions in multiple crypto assets, thus enabling clients to make profits from market declines. Buying cryptos CFDs with plus500 on a desktop is simple. You just need to follow the listed steps to get started.

Step 1: Go to the broker website and click start trading now.

Step 2: Choose the Real Money option on the next page. For the demo account, you can select the demo mode option.

Step 3: Enter your details on the registration form i-e email ID, password, etc., and click create an account button.

Step 4: Complete the registration process by submitting verification documents to the broker. You can use your national ID card, passport, or driving license for the same. Please note that account verification is a must to continue trading cryptos with Plus500.

Step 5: After approval of your account, select the payment option you wish to use to fund your account. Plus500 offers you multiple payment methods, such as debit cards, credit cards, bank transfers, Paypal, Skrill, Neteller, etc.

Step 6: Click the trade button to access the complete list of available crypto assets that you can trade at Plus500.

Step 7: Select your favorite crypto assets, fill in your trading preferences and click buy or sell button to execute trades.

Plus500 Mobile Trading Platform

Most of the time, clients do not find enough time to sit in front of PCs to use the aforementioned types of platforms. Considering this limitation, Plus500 offers a user-friendly trading app that is compatible with both iOS and Android-based mobile and tablet devices. On the go clients of Plus500 enjoy the hassle-free trading platform with just a few clicks.

Plus500 Mobile trading app comes with some top-notch features enabling traders to open positions with full confidence. Embedding control of the trading platform to the power of your palm, Plus500 offers multiple trading and risk management tools, such as stop limit, trailing stop, and stop-loss along with negative balance protection. Clients can also rest assured of guaranteed stops. The broker also facilitates clients via free push notifications sent on traders’ registered email id and mobile phone numbers. Price alerts, percentage change, and Trader’s sentiment are yet some other useful features that come along with the Plus500 mobile trading app.

How to open an account and trade cryptos with Plus500 on a mobile?

Opening an account and start trading cryptos with Plus500 on mobile trading app is quite simple. Clients only need to follow the given below steps.

Step 01: Open the mobile app and click the new user button available on the bottom left corner of your mobile phone screen.

Step 02: Enter your detail on the signup page, such as your email if and password. Click continue to proceed to the next step.

Step 03: Complete the KYC process, verify your details and upload supporting documents.

Step 04: Once your account hand been verified. Fund your account. You can use multiple deposit options available with Plus500 including but not limited to credit/debit cards, fast transfers, web money, electronic wallets (PayPal, Skrill, Neteller), etc.

Step 05: Select your favorite crypto after searching it under the crypto assets tab. Fill in your trading preferences and start selling or buying crypto CFDs.

Payment Methods – Deposit and Withdrawals

Plus500 accepts only fiat currency for deposit and withdrawals. Therefore, it allows multiple methods for deposits and withdrawals including credit card, debit card, Skrill, Neteller, Webmoney, Paypal, etc. It is to be noted that the source from where funds are being transferred for purchase must be on the user’s name. Anonymous funds transfer activities are not allowed due to compliance with anti-money laundering regulations. There is a limit set for each type of payment mode, however, bank transfers are allowed to call up the bigger transactional volume.

Education

Unlike other brokers, Plus500 doesn’t seem to pay much heed to offer educational content to its clients. Traders can access only a limited range of video tutorials on the plus500 website under the Traders’ Guide tab. The broker could have added some other features such as glossary section, articles on technical and fundamental analysis, etc. Also, there is no option to sign up for a webinar. The broker does not offer one-to-one trading sessions with the industry’s expert traders as well.

Customer Support

Plus500 offers multilingual customer support round the clock. Clients may contact the company through its designated communication channels which include telephonic support, email, and web chat service.

Reviews

What do people say about Plus500 on Quora?

Just like Reddit, people on Quora also seemed to have been burnt by Plus500. A user on Quora warned customers to stay away from the broker. Surprisingly, he also raised his concern about sudden account closure activity done by the broker. According to him, Plus500 is a scam broker, it doesn’t allow you to close your positions at your preferred rates. Because the button to close down the position gets suspiciously dysfunctioning. He also said that the broker doesn’t process your withdrawals in time.

What do people say about Plus500 on Reddit?

People hold a different opinion on signing up with plus500 on Reddit.  Some people cast their votes in favor of opening an account with the broker. While a majority of users warned other traders to refrain from signing up with it. Attached below is a screenshot of a user who shared his bad experience with Plsu500.

According to him, trading cryptocurrency CFDs with plus500 is nothing but trash. He coupled his arguments with an explanation of how the broker manipulates price in times of high volatility. Another user claimed that Plus500 has been a source of dire inconvenience. He said that the broker purposefully closed his account without any clear reason. Resultantly he had to lose access to his 700 EUR deposited in his trading account.

Is Plus500 Safe?

Yes, it is. Plus500 is fully authorized and regulated by one of the world’s most trusted regulatory body Financial Conduct Authority – FCA. It’s been more than a decade that the company is offering world-class trading services to its clients all around the globe. Low deposit requirements and minimal withdrawal restrictions make it even more reliable. The company has a clientele base of over more than one million customers which itself is proof of its legitimacy. Given the fact that the broker has advanced security protocols in place and holds FCA regulation, Plus500 is definitively safe broker to sign up.  Please be informed that FCA has banned trading crypto CFDs in the UK.

Plus500 VS eToro

Because multiple factors contribute to your trading success, choosing the right broker to start crypto trading is essential. A good broker doesn’t only safe for your investment but tends to remain fair in all other aspects, such as charging a trading fee, avoiding any price manipulations, offering competitive spreads, and processing withdrawals in time. Given below is a quick comparison between Plus500 and eToro to help you understand which broker suits you more.

Plus500

Plus500 also holds regulation from the FCA. It is considered to be the best trading platform for those who wish to trade CFDs. The broker has a wide selection of CFD products and offers a competitive pricing structure. Besides holding regulation in the UK, the broker is also authorized in various jurisdictions of the world, including Australia, and Cyprus. However, it does not have a social trading platform. Other commendable features of the broker include multiple payment options, easy to use trading interface, round-the-clock customer support, and accessibility of the company’s website in thirty different languages of the world.

eToro

eToro is a CySEC regulated broker offering trading services in multiple financial instruments for over 15 years. The broker also has a social trading platform where traders can copy traders of other expert traders. The broker suits well for crypto traders since it offers a wide range of crypto CFDs as compared to its competitors. Also, eToro holds a reward and bounty program for traders exhibiting high volume trading. The fee structure at eToro appears competitive as compared to its rivals. eToro offers a dedicated FAQ section to help clients find answers to their queries instantly. The broker also offers efficient customer services through web chat, email, and phone.

Even though both brokers stand strong in terms of services offered, we still find eToro to be a better option. The broker doesn’t not only hold value for money but offers customized trading opportunities specifically for newbies.

Number of Coins: 20+
Margin Trading: YES
Minimum Deposit: $200

Invest In Cryptocurrency With $0 Commission

  • Supports Multiple Languages
  • Regulated by FCA, ASIC & CySEC
  • Paypal, Debit & Credit Card Accepted
BankCard CashGiro PayMastercardNetellerPayPalSkrillUnionPayVisaWire CardYandex

Visit eToro

Full Review

Capital At Risk

Other Products & Services

Plus500 offers above 2000 financial instruments for different asset classes, including Shares, Indices, Commodities, Forex, Cryptocurrencies, and ETF, etc. The broker offers leverage of up to 1:300 on different tradeable instruments. Traders can trade multiple stocks and equities on different exchanges such as London, New York, Hong Kong. The broker has capped crypto leverage as 1:2.

Economic Calendar

To help traders stay abreast of the market, the broker offers an economic calendar. Clients can use an economic calendar to keep a track of major upcoming economic news.

Risk Management Tools

Risk management tools help traders to cater to the volatility of the forex market and diversify the potential risk. These risk management tools offered at Plus500 include stop loss, trailing stops, and guaranteed stops.

News and Market Insights

Traders can read the latest news related to forex and crypto trading under this section. The broker keeps posting relevant information regularly to help clients stay well informed.

Alerts

This feature enables clients to subscribe to the price alert and push notifications. These notifications comprise price alerts, trader’s sentiment, and daily or hourly percentage alerts in the prices of different tradable assets.

Crypto 10 Index

The crypto index is a formation of a group of world’s largest cryptocurrencies categorized in the crypto 10 index as per their market capitalization. It is considered as the benchmark for the cryptocurrency market when it comes to the performance of top blockchain-based projects.

The index was first introduced by a Fintech company based in Germany – BITA. The crypto 10 index is calculated daily between 00:00 and 23:59 Hrs. Its base currency is US Dollar (USD). The crypto 10 index was initially launched with a base value of 5000 points having no exception. Since the performance of all cryptocurrency market is mirrored by its value, therefore, it has become the benchmark for performance evaluation of any cryptocurrency project.

Conclusion

After a detailed review of Plus500, we hereby conclude that the company is a genuine reflection of legitimacy and fairness. With its low-cost deposits, generous leverages, tight spreads, fast withdrawals, excellent customer support, and round the clock availability makes it undoubtedly one of the best CFD and cryptocurrency brokers. Not to mention, trading crypto CFDs in the UK is not a permissible trading activity anymore. FCA has recently banned any such trades across the UK. However, conditions for clients residing in countries other than UK remains unaffected.

Frequently Asked Questions (FAQs)

No, there is no hidden fee at all. Plus500 income stream mainly comes from spread charging.

Plus500 covers up most of the payment processing fee itself to ensure the hassle-free trading experience for its clients. However, there may be some fee charged on transferring funds to and from your Plus500 account. This is charged by the bank and not by the Plus500.

Unlike other brokerages who also charge their clients a commission for each trade, Plus500 only intends to cover its costs through spread charging.

Yes, clients are charged an overnight fee on the positions which are left open after a certain time. Usually, the fee is charged when a position is not closed even after one calendar day.

There are certain differences between trading cryptos through a broker such as Plus500 instead of exchanges, listed below are some of them.

  1. Plus500 offers cryptos CFDs instead of actual cryptos. In a trading activity, no crypto assets are exchanged in actual.
  2. Traders don’t need to own a special wallet to trade cryptos through a broker.
  3. Cryptos are traded as per pre-defined terms of a crypto broker.
  4. There is a provision of leverage for trading cryptos through a crypto broker.
  5. Clients can combine the cryptocurrency with any fiat currency to make a combination, unlike exchanges where pair can only be formed of cryptos.
  6. For deposit and withdrawals, only fiat currency is accepted at Plus500.

The BITA index uses multiple resources for price calculation of the index, and for this purpose, it collects information from different trading platforms, token issuers, real-time data providers, and the regulatory authorities. The B10 index is evaluated in terms of basis points that in turn is a yardstick of major cryptocurrencies.

For any cryptocurrency to be included in the crypto10 index, given below conditions must be satisfied;

  • The token of the cryptocurrency must be traded on at least two exchanges around the world before it is accepted to be a part of the crypto10 index. This is in line with the view of global accreditation and acceptance.
  • The Token must have been traded for at least three months on any exchange.
  • At some point, the token must have secured a position in the top200 cryptocurrencies of the world depending upon its market share/capitalization.

Yes, cryptocurrencies are more volatile as compared to fiat currency. Traders usually make profits or overcome losses by opening short term trades. The advantage is taken on weekly, daily, or hourly price movements of cryptos. Fiat currency pairs may be subjected to a significant price change over a significant period. However, it is pretty normal for a crypto pair to exhibit large price fluctuation over a short time.

The majority of traditional assets barely witness a price movement of even 1% in a trading day and it happens once in a blue moon when something extraordinarily has occurred. Whereas this is not the case with cryptos, a single spark in economic activity is enough to cause a big change in the price movement of cryptocurrencies. It can sometimes be as high as 10%, exposing traders to countless trading opportunities over a small period. Similarly, the associated risk with cryptocurrency trading is also higher which can sometimes lead to significant losses. Therefore, traders ought to be careful while taking positions on Crypto CFDs.

Whether you are a seasoned trader or just have started learning how to trade, Plus500 has all that you need such as risk management module, trading alert mechanism, economic calendar portal, and traders guide. With its guaranteed stop feature, you can never be late in getting your trade close right on time. A trailing stop even adds a little more fun to your trading when you don’t wish to take risks.

Unlike traditional currency pairs, crypto CFDs are not exposed to the threat of being lost. This is because you don’t own the cryptos but speculate on their price change. Also, the platform is SSL encrypted, which means you are safe from intruders.

Buying cryptos at Plus500 is exchanging one cryptocurrency for another such as Bitcoin for Ethereum, or Litecoin for Dash, etc. You effectively look for a pair to undergo crypto to crypto or crypto to fiat and vice versa transaction. Profits are made by undergoing the transaction twice but in the opposite direction.