Plus500 US Review 2024

Trust

In our trust category, we place the most importance on how a broker is regulated. Here I’ll cover how Plus500 US is regulated and how this impacts traders. In this review, we are covering Cunningham Commodities, LLC, a wholly-owned subsidiary of Plus500 US Inc.

• Cunningham Commodities, LLC d/b/a Plus500, is a Futures Commission Merchant registered with the US Commodity Futures Trading Commission (CFTC).
• Cunningham Commodities, LLC d/b/a Plus500 is a member of the National Futures Association (NFA ID number 0001398).

Why is it important to know where your broker subsidiary (entity) is regulated?

Regulators provide varying levels of client protection. We focus on three major areas:

• Segregated Funds. This ensures that client funds are held in a different account from the broker’s operating funds.
• Negative Balance Protection. This ensures that you cannot lose more than your initial deposit.
• Compensation Scheme or Account Insurance. This protects your funds in the event of broker insolvency.

The table below lists the protections and benefits of Plus500 US.

When you open an account with Plus500 US, Cunningham Commodities will hold your funds in a segregated bank account, which separates customer funds from the company’s funds.

There is no compensation scheme at Plus500 US. Commodities or commodity futures aren’t covered by the Securities Investor Protection Corporation (SIPC), which provides limited coverage to investors on their trading accounts if their broker becomes insolvent.

Plus500 US has an auto-liquidation mechanism that ensures that the customer meets the margin requirement in different cases (day margin, full margin, low equity, expiration date, and limit prices from the exchange), helping to protect them from a negative balance. However, there is also no negative balance protection guarantee, meaning that traders can lose more than their initial deposit.

Stability and Transparency

In our tests for the Trust category, we also cover factors relating to stability and financial strength. Here, we focus on how long the broker has been in business, the company’s size, and its transparency.

Founded in 2008, Plus500 has a substantial operating history. It is a publicly traded company listed on the London Stock Exchange and a constituent of the FTSE 250 Index. As a publicly traded company, Plus500 must disclose financial reports, allowing for greater insight into the company’s stability.

In my research, Plus500 showed high transparency in its regulatory status, fees, and general background information, as all materials are readily available on the website. Plus500 US lists its regulatory status at the footer of each page. The Fees and Charges page clearly outlines all costs. A User Agreement (Terms of Service) document is also available on the Terms & Agreements page.

In a nutshell, I rated Plus500 as having a high level of trust and stability due to the following factors:

• Being regulated by two top-tier agencies
• Having a lengthy operating history
• Being a publicly traded company valued at over a billion dollars
• Having a high level of transparency

Fees

Spreads

I tested the spreads across different forex futures contracts using the WebTrader platform. Spreads are identical across Plus500 US web and desktop platforms and Android/iOS mobile apps. The test was done at 8:00 a.m. GMT and at 4:00 p.m. GMT on 14 September 2023. I made the tests at two different times to allow greater perspective. 8:00 a.m. GMT is the London open when there is a great deal of liquidity in the forex market and tighter spreads in currency pairs. 4:00 p.m. GMT is during the New York trading session.

Currency futures are traded on a centralized exchange (the Chicago Mercantile Exchange) and the bid/offer spreads reflect the level of liquidity in the market at any given time.

Commissions

The table below lists the commissions charged by Plus500 US.

I rated the commissions at Plus500 US as competitive in relation to the futures industry as a whole.

Exchange and NFA Fees

The total commissions including fees from the exchange and NFA are substantially higher. The table below shows how commissions vary by contract, with mini and micro-contracts having proportionally lower commissions and fees.

Liquidation Fee

If your net equity falls below the intraday margin requirement or the full-day margin requirement, Plus500 may auto-liquidate some or all of your open positions and/or live orders.

In addition, positions and orders on expiring contracts will also be liquidated prior to the expiry date as Plus500 does not support delivery. Plus500 US charges a liquidation fee of $10.

Intraday Margin

Intraday margin is the initial amount of money you need to buy or sell one contract during the trading day. Using intraday margin, you can take on larger positions than you could by just using the cash in your account.

This mechanism is called leverage. Leverage is often described as a ‘double-edged sword’ because it can amplify your profits and losses. Leveraged trading comes with a high level of risk and can often result in significant losses.

Here are the intraday margin requirements for some of the most popular futures contracts:

The figures above were recorded on 13 June 2024. The data is a snapshot because the single contract values and leverage ratios are constantly fluctuating.

To put the margin requirements into perspective, the value of one full-sized CME Euro FX contract at the time of this writing is $‪134,881. This means that on an intraday basis, you can control a market position of $‪134,881 with just $300. To hold one contract overnight, the requirements are much higher at $‪2,310.

The introduction of mini and micro-contracts has enabled traders with relatively small account balances to day trade futures.

For example, at Plus500 US the micro Ether futures contract has an intraday margin requirement of just $20. You can also trade the micro version of the popular E-mini S&P 500 with an intraday margin requirement of only $50 per contract.

Overnight Margins

Plus500 US does not charge any fees for holding a position overnight, but 15 minutes prior to the end of the trading day, the full margin requirement applies to positions. Margin requirements can be viewed under ‘instrument details’ in the WebTrader platform.

Non-Trading Fees

Plus500 US does not charge any inactivity fees. There are also no live market data or platform fees.

Are Fees at Plus500 US Competitive?

I rate fees at Plus500 US as competitive due to the following factors:

• Low commissions
• No inactivity fees
• No market data, platform, or routing fees

Platforms and Tools

Plus500 US Platform Walkthrough

Plus500 has invested heavily in its proprietary WebTrader platform, which has taken ease of use to a new level. WebTrader has a range of popular features, including watchlists, trading from the chart, and access to live chat support from within the platform.

WebTrader

Plus500`s WebTrader is accessible via web browsers, Windows 10 apps, tablets, and smartphones. Plus500 does not offer a desktop trading platform.

WebTrader allows users to easily create watchlists, analyze charts, enter trades, and monitor positions in the market.

Plus500 offers a free demo account, and the WebTrader platform makes it easy to flip between demo and live trading with a single click. A dark mode option helps make the screen easy on your eyes at night.

Traders often need to quickly pull up an instrument. Having a good search feature is a vital part of a trading platform. Plus500 has a great search tool at the top of the screen, making it super easy to find whatever asset you want.

All standard order types, such as market, limit, and stop loss, are available.

The order panel on the platform includes a handy feature that lets you set take profit and stop loss orders simultaneously with your initial order, enabling you to place all three orders at once. This allows you to adopt a ‘set and forget’ style of trading, freeing you from having to hover over your screen and babysit market positions. Advanced order types such as trailing stop-loss orders are not currently available.

Charting capabilities are robust within the WebTrader platform. Multiple chart types, such as Candles, Renko, and Range Bars, are available. Traders can apply over 100 technical indicators to their charts along with classic drawing tools such as Fibonacci retracement levels. There are eleven available time frames for charts, ranging from one minute to one week.

The platform is customizable, and a helpful feature called ‘multiple charts view’ allows you to see different charts laid out to your preference on the same screen.

This feature is essential for traders who track multiple markets and time frames simultaneously. In the image above, you can see that trading from the chart is also available.

The WebTrader platform is available in 30 different languages, which can easily be changed by going to the Display Settings.

Plus500 has been conscious of the importance of account security, with two-factor authentication available for both mobile and web platforms.

My Key Takeaways after Testing Plus500 WebTrader

The Plus500 WebTrader design and UX are outstanding and really place the platform in a class of its own. I especially liked the ease with which you can flip between demo and live trading. The ability to easily enter three orders at once (your initial, order, profit target and stop loss) is another great feature.

The platform lacks some advanced capabilities such as automated trading and backtesting. 1-click trading, a feature popular among scalpers, is also not available.

After testing WebTrader for several weeks and from my overall experience of reviewing dozens of trading platforms, I concluded that Plus500 has an excellent platform, especially suitable for beginners and casual traders.

Mobile Trading

Plus500 has created a powerful app with an intuitive interface and advanced functionality.

The Plus500 mobile app is available for iOS, Android, and Windows. Highly similar to the web platform, it has an intuitive interface and excellent design. Notable features include:

• Two-Factor Authentication. Security can be improved by having a verification code sent via SMS for every login from a new device.
• Demo Mode. Users can easily switch between a demo account and live trading within the app.

Charting on the mobile app is robust and provides:

• 12 Chart Types. A broader than average range, from Bar charts to Point and Figure charts.
• 11 Time Frames. These range from 1 Minute to 1 Week.
• 119 Indicators. An extensive range of indicators (more than MetaTrader) from Accumulation/Distribution to ZigZag.
• 21 Drawing Tools. These include classics such as Fibonacci, Gartley, and Pitchfork.

Standard order types, including market orders, limit orders, and stop loss orders, are all available.

My Key Takeaways after Testing Plus500 Mobile App

Overall, I concluded that this is an outstanding app that is easy to use and has the features to satisfy most traders. One minor drawback is that charts from the web platform do not sync with mobile.

Tradable Instruments

Futures are standardized contracts traded on a centralized exchange, such as the Chicago Mercantile Exchange (CME) or the New York Mercantile Exchange (NYMEX). They are an agreement between two parties to buy or sell an asset at a set future date. Tradable futures at Plus500 US include the following:

• 13 forex futures contracts. The forex market is a global marketplace for exchanging national currencies.
• 10 equity index futures contracts. Equity indices measure the performance of a stock market, or of a subset of a stock market.
• 23 commodity futures contracts. Commodities are raw products, such as gold, oil, or soybeans. Plus500 US offers 7 metals futures contracts, 7 energy futures contracts, and 9 agriculture futures contracts.
• 4 interest rate futures contracts. Interest rate futures are futures contracts with an underlying instrument that pays interest.
• 2 cryptocurrency futures contracts. Cryptocurrencies, such as Bitcoin, are digital currencies secured by cryptography.

In the tables below, you can see a selection highlighting the variety of futures contracts available at Plus500 US:

My Key Takeaways after Exploring Plus500 Tradable Instruments

The range of instruments available at Plus500 US gives traders access to the world’s markets and a broad range of assets with which to experiment. Clients can find instruments that suit their trading style, from highly volatile assets like natural gas to slow-moving instruments like the US T-Bond.

Customer Support

Conveniently situated within the WebTrader platform, Plus500 US offers 24/7 live chat support. There is also email support via a contact form. One significant drawback is that phone support is not available. Since this is an important medium, Plus500 did not receive a maximum score in this category. Nevertheless, I had a great experience via chat and email.

Over the period of a week, I tested support with dozens of questions, from easy to challenging. In my tests, customer service agents responded almost immediately via chat and were helpful and well-informed.

At Plus500 US, support is available only in English.

Deposits & Withdrawals

The broker supports popular payment providers, so clients can easily deposit and withdraw funds. Traders can transfer money via Visa, Mastercard, bank wire, or ACH bank transfer. Plus500 US does not charge a fee for making deposits and withdrawals.

In the tables below, we break down the fees and processing times for each deposit and withdrawal method.

Deposits

Plus500 does not charge customers for deposits. However, when making a bank transfer, your bank may apply extra charges.

Withdrawals

Plus500 does not charge any fees for withdrawals. Withdrawal requests are normally processed within 1–3 business days. Any additional processing time you may experience before receiving your funds may be due to your bank or financial institution.

Account Types and Terms

Plus500 US offers only one account type. The registration process is straightforward and can be completed within 15 minutes. Clients are eligible for a bonus of up to $200 worth of free commissions on their first deposit.

The account opening process at Plus500 is simple and fast. The minimum deposit is just $100.

Account Application

To open an individual account at Plus500 US, prospective clients must provide the following information:

• Name, date of birth
• Country of residence, residential address
• Social security number, phone number
• Employment status
• Financial details (annual income, net worth, source of funds)
• Level of trading experience

Demo Accounts

Plus500 US offers demo trading via the WebTrader platform and the Plus500 mobile app. Demo accounts are especially important for beginners as they allow them to practice their strategies and get comfortable with the trading platform without risking real money.

The demo account features live quotes and simulates live market conditions. Once users are up to speed on a demo account, they can easily switch to live trading.

Deposit Bonus

Plus500 US offers a deposit bonus of up to $200, which allows you to trade without paying commissions until the deposit amount is used up. The bonus only applies to your first deposit. When the deposit is completed, the respective bonus amount will be added to your trading account, and you will be able to see it at the top of the platform and on your Funds Management screen.

Supported Countries

Plus500 US only accepts clients from the United States.

Research

The international websites of Plus500 have a section with articles covering news and market insights. These are written by in-house analysts and explore mostly fundamental themes, such as earnings reports and central bank policy.

Reports are published three or four times a week. I rated the content as high quality, with helpful information and ideas. There are also some market analysis videos on the Plus500 YouTube channel.

Education

The video section of the Futures Trading Academy (available on the us.plus500.com website) covers the basics of futures, addressing topics like margin and contract expiration. A second series of videos highlights the benefits of the futures market, like the power of leverage and the ease of going short, which enables traders to profit in falling markets. These brief videos are great for beginners who are new to the futures market.

The trading strategies series of videos dives into crucial areas like risk management and caters to more advanced traders.

Article content clearly explains key themes like margin, differences between stocks and futures, and trading long and short. This section also takes a deep dive into explaining specific instruments, such as the popular e-mini and micro e-mini futures contracts. Going beyond the basics, topics like fundamental analysis vs. technical analysis help new traders build a foundation of knowledge.

The Bottom Line

The futures market has several important advantages in relation to stocks: access to greater leverage, ease of going short, and the ability to day trade with a relatively small account balance.

Plus500 US makes it simple for new traders to get started in futures trading with a low minimum deposit, a beginner-friendly platform, and helpful educational resources.

I noted that trading costs are minimal and that live chat support is among the best I have encountered. If you are a US trader looking to test out the futures markets, Plus500 US might be a good fit.

FAQ