🔥 Plus500 test 2021: our experiences & evaluation

Plus500 offers Bitcoin and Altcoin CFD trading with spreads, which makes the platform very attractive for every crypto daily trader. The system is pretty simple and self explanatory. However, we will give you a quick overview of the various options, functions, advantages and disadvantages.

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What is Plus500?

Plus500 was founded in 2008, is headquartered in Israel and operates through subsidiaries in the UK, Cyprus and Australia. Plus500UK Ltd. is authorized and regulated by the FCA (Financial Conduct Authority). For those who watch Spanish or continental football, you might recognize Plus500 by its sponsorship deal with Athletico Madrid.

As one of the largest CFD brokers in the world, Plus500 is listed on the London Stock Exchange. Bitcoin News.one rates this as positive, as the company meets higher standards than unlisted brokers. For those who want to trade cryptocurrency on mobile, Plus500 offers you one of the best CFD trading apps on the Apple and Google Play stores. Millions of happy traders around the world call Plus500 their home and make the platform one of our top addresses for trading cryptocurrency.

CFD: Stands for 'Contract For Difference'. This means that you cannot buy different cryptocurrencies directly at Plus500. Instead, you buy and sell contracts that are backed by cryptocurrency. This gives traders an opportunity to familiarize themselves with the ups and downs of the cryptocurrency market while ensuring that they don't have to worry about setting up additional cryptocurrency wallets.

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(76.4% of retail investor accounts lose money trading CFDs with this provider. You should consider whether you can afford the high risk of losing your money. Plus500UK Ltd. is authorized and regulated by the FCA (# 509909). You do not own or have any rights to the underlying assets. Please refer to the disclosure documents available on the Plus500 website.)

Advantages of Plus500

• Plus500 is fully regulated and allows you to easily get in touch with the most popular cryptocurrencies.
• Customer support is excellent and requests are usually dealt with within 24 hours.
• Since Plus500 is a CFD broker, you can easily deposit on the website and have a single account for all of your cryptocurrency trades. It also means you don't have to fool around and set up numerous cryptocurrency wallets to store your funds. Don't forget, however, that trading CFDs requires experience and skill.

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Important facts about Plus500

• Company headquarters: Plus500 Ltd. is listed on the main market of the London Stock Exchange
• Experience: Plus500 has been in business for 10 years
• Trade Type: CFD with cryptocurrencies, CFD with forex, etc ...
• Insurance: Plus500UK Ltd uses its own assets for hedging. Customers' money is not used for this purpose
• Deposit Methods: Supported deposit methods are
• Debit / credit card - Visa or master card
• Electronic wallet - PayPal / Skrill
• Minimum deposit limit: €100
• Tradable cryptocurrencies: Ripple, Ethereum, Bitcoin, Bitcoin Cash, IOTA & Litecoin
• Customer support: 24/7 live chat and Email using the online form

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Understand the dashboard

Before we show you how to place a trade, let's go over the different options that are possible on Plus500's platform. In the picture below you can see the dashboard.

Disclaimer: Fictitious prices

If you click on "Menu", you will be shown financing options, account details and assistance.

Here is the menu you will see:

Disclaimer: Fictitious prices

One special option you will find is "Account Snapshot" which will take you to a page where you can see a detailed breakdown of your assets. Check out what to see on the snapshot page below.

Disclaimer: Fictitious prices

The rest of the dashboard consists of "Open Positions", "Orders" and "Closed Positions". We will explain these sections to you shortly. First of all, it is important to find the cryptos that you can trade.

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(76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford the high risk of losing your money.)

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CFD trading with cryptos via Plus500

Plus500 currently offers trading for nine different cryptocurrencies. From the main Trade Dashboard menu, select Cryptocurrencies to view the various Coin CFDs that can be traded here.

At the moment you can use the platform of Plus500 Bitcoin, Bitcoin Cash, Ethereum, Ripple, monero, Litecoin, IOTA and NEO act.

A graph will be displayed for the coin you selected. The default is a 1 minute chart, but you can change it to 5, 15 or 30 minutes, 1, 2 or 4 hours, 1 day or 1 week. You can choose other types of charts if you know how to read them.

Now select the cryptocurrency that you want to trade. For more information, press the info icon. You will receive further data. You will also find fee details such as the spread, the overnight rate for purchases and sales, margin requirements and much more.

To start a trade, select the cryptocurrency you want long or short and press "Sell" or "Buy". An order tool will appear on the right.

Disclaimer: Fictitious prices

As you can see, a shortened information area also appears in the trading area. The other features you see here are also significant. Make yourself familiar with them before you start trading crypto on the Plus500 platform.

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Number of contracts

Put simply, the number of contracts is the number of coins you want to buy or sell. It is important to know that there is no possibility for a Plus500 demo account.

Note: You must buy or sell at least 0,1 contracts at a time, which means you can exchange at least 0,1 BTC per trade executed.

Note that the minimum and maximum order size and contract value can vary depending on which cryptocurrency you are trading.

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Leverage

This part will confuse some newbies. It is important that you have a basic understanding of what leverage is and how it works. Plus500 allows you to trade cryptos with dynamic leverage on your trade value. This platform also has a variable span. Your position will be forced into liquidation if your account balance drops below the maintenance value.

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Close at profit

This feature allows you to close your trade when you reach a certain profit level. You can adjust the price point at which the trade will close and see the amount (and percentage) of profit calculated below.

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Close if lost

This feature allows you to close your trade when your potential losses reach a certain level. You can adjust the price point at which the trade will close and see the amount (and percentage) of profit calculated below.

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Guaranteed hold

This feature gives you more control in the event the stop is reached. The guaranteed stop makes it so that your trade will be executed when the price (taking into account slippage) reaches your target level. If the order list is empty, a standard stop can be executed at a worse price than expected, so using the guaranteed option will minimize your potential losses if you liquidate.

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Back stop: pips

This feature can be used to maximize your control over when your stop order will be executed. The trailing stop function can be used on both the short and the long side. When shorting, you use trailing stops to secure your winnings when the coin depreciates and reduce losses when the price rises.

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How exactly does it work?

To illustrate, your position opens at a value of 1,5 and each pip (Price Interest Point) is 0,1 in this example. The trailing stop order could be placed for 5 pips, which would mean that at a value of 1,0 the position would be forced to close. However, if the market moves in your favor, the stop price will also increase. If it peaked at 2,5 and fell, a 5 pip drop to 2,0 would cause the trade to close. This example is only an illustration and the numbers used are fictitious.

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Buy / sell only

This option is next to the Trailing Stops: Pips feature. This feature does not need to be used in combination with a trailing stop for it to work. You can set a price at which your position will be opened when the market hits it. So when the market hits price X, your short position will be triggered automatically. In the meantime, when the market hits X, your long position will be opened for you.

This feature allows you to play swings based on technical analysis and makes it easier for you to eliminate emotion from your trading decisions. 

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Trading fees at Plus500

The best way to look at trading fees is to isolate the information that applies to cryptocurrencies (and look at the rate for each cryptocurrency). Simply put, the fees that Plus500 charges and the applicable trading restrictions will vary from currency to currency.

If you want numbers as an answer, we recommend that you read through the current data from Plus500 yourself. Please refer to the Plus500 website for the fees for trading on the platform.

Well, let's go into a little bit of detail.

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Overnight trading

You use the trading via Plus500 with borrowed capital. Your margin (the security) is an insignificant part of your total trade value and is not actually used in your trades. Due to the market lending costs and the risk of loss for the platform, users are obliged to support each other with financing.

It does this by making either Longers or Shorters pay an overnight fee if they let their margin run until the next day. In the example above, a person who buys / renews pays out 0,049% of their total funds if they hold them overnight. In the meantime, a person who sells, lends, and holds overnight actually gets 0 ... 038% of their money as account balance.

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Initial margin

As mentioned earlier, the initial margin is the amount you need to raise to even open your trade. With a maximum leverage of 1:30, you will need an initial margin of, say, € 50 on a € 1000 trade to get funding and open your position.

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Maintenance margin

Again, the maintenance margin is the minimum security that needs to remain within the business to prevent it from being forced into liquidation.

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Conclusion on CFD trading on Plus500

Plus500 is not the prettiest or most glamorous crypto CFD trading platform out there. The learning curve is simple, however, and you can quickly jump in and take advantage of trading different cryptocurrency pairs. Their rates are also better than what most similar exchanges offer.

Anyone with that Day trading crypto want to start with be very satisfied with the offer from Plus500. The only major potential problem with this is that other automated trading programs are incompatible. For a new, standard leverage crypto trader, however, Plus500 offers more than enough to put you in control of your trades.

<<< OPEN AN ACCOUNT ON PLUS500 NOW >>>

(76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford the high risk of losing your money.)

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Image sources:

• Plus500 logo: https://upload.wikimedia.org/wikipedia/commons/b/b7/Plus500.png
• Plus500 in the office: https://upload.wikimedia.org/wikipedia/commons/3/34/Plus500_Offices.jpg
• Cryptocurrency coins: https://www.maxpixel.net/Xrp-Cryptocurrencies-Ripple-Virtual-Digital-Coins-3786693
• Stop: https://unsplash.com/photos/1k3vsv7iIIc
• Man with Macbook: https://unsplash.com/photos/mfB1B1s4sMc
• Trade candles on laptop: https://unsplash.com/photos/ZzOa5G8hSPI
• Plus500 website: Screenshots of the website