I am coming up with very contradicting results in my research of the Plus500 broker. The deeper I dig the more surprising concerns and complaints I find, but they definitely have a good way of smoothing things over when they are made public, yet it seems that until that does happen, their overall customer service is less than satisfactory. Don’t get me started on their platform and the numerous problems people are having with it. A broker with quite a history and a relatively good standing, yet, from the looks of it, the goal is to only seem this way in the public’s eye where they reply to complaints when the issues could have easily and quickly been resolved through their customer service. There are people making money with this broker, but from the looks of it, the majority seem to be having problems.
Regulated: CySEC, FSA, ASIC
Minimum Deposit: $100
Trading Instruments: Forex, CFDs, Indices, Metals
US Traders: No
Web Based Trading: Yes
Free Demo Account: Yes
Plus500 was founded in 2008 and is an online brokerage service that specializes mainly in the forex market. You have access to a wide variety of financial instruments including options, ETF’s, indices, forex, and shares and spreads start as low as 0.01%.
Their platform is considered to be very easy to use and clutter free, though I have read in many forums and discussions that it does have some problems from time to time which I will discuss further on. They also offer a variety of risk management features such as trailing stops, price alerts, guaranteed limit order, and stop loss.
Although Plus500 is a regulated broker with CySEC, FSA, and ASIC they have not been without issues. In October 2012 the FSA fined Plus500 over £200,000. You can see the penalty details for more information. A more current problem they are facing is from February 2016 when the FPA Traders Court voted against them and recommend a very high level of caution when trading with this broker. From the looks of it, their marketing team is very active in the forums and many of the review sites and join the discussions regularly arguing their side and trying to resolve many issues. Perhaps if they put in that kind of energy in their customer service issues would not get out of hand and reach the public eye. This, of course, is all from personal observation, though you can see for yourself in any review or discussion where complaints are made on this broker.
Today many of the brokers offer apps for your mobile phone or tablet so you can take your trading wherever you go. In the case of Plus500, this really has been made very effective and clean. The app can be downloaded from the Google Play or App Store and has been raved about as being a great mobile app, making all the features easily accessible and easy to use. Though it is considered a fantastic option by many, I have read numerous complaints about issues with the app and problems with buttons not working when you want to close a trade, resulting in major losses. Of course, this happens when you are about to make a major profit, or have made a major profit, and the button does not begin working again until you have lost a substantial amount. This is a reoccurring problem I am reading about. When complaints and inquiries are directed at the customer support, the most common answer I am seeing by their customer service (as per complaints) is “closing your trades is your responsibility” and completely ignoring the fact that this issue ever occurred. As I mentioned above, their marketing team replies in many forums and reviews, and for such issues they just say that they can’t find the customer account or that someone will email them. All responses following their comment never reach the actual feed and it is never clear if the issue is resolved.
The Plus500 Demo Account
Now, I always love it when a broker offers a demo account. This gives you the opportunity to get a feel for their system and get an idea of how it really works. It also offers the trader a chance to see if there are any issues or delays. One thing that I have noticed with many broker demo accounts is that they are tweaked in a way to give you far more successful trades than you would get using a real account. I have even seen many demo accounts that continue trading even when the markets are closed, with further proves that you really are not using the same system.
In the case of the Plus500 demo account I have not spotted any trading being allowed when the markets are closed, though I have seen a number of issues with vast differences between profits. It’s interesting how many profit using the demo account and get excited, yet the moment they feel comfortable and decide to invest and try trading in the real world using the exact same software, the results are beyond disappointing. From the looks of it, their demo account gives traders the false confidence that either they know what they are doing, or that the platform has no issues and the broker does not trade against them.
What Others are Saying About Plus500
I know I did not go into detail about the many functions of the platform or the many options that the broker offers. All of this you can easily find in their website and it will be accurate. What I wanted to do is give you a glimpse into a collection of information I have gathered from various traders from both private forums as well as open reviews.
Although I did find many comments praising this broker and claiming they are the greatest thing since sliced bread, I have reason to believe that many of these comments are nothing more than that same marketing team putting in their bit of push when a feed gets overwhelmed with negative chatter.
The information that I gathered from my numerous sources leads me to believe that there are some serious issues that the platform and their customer service are experiencing. For one, the platform has the nasty habit of blocking out completely or certain buttons or features disappearing at key moments during trading, resulting in big losses. Though I have read about traders getting their withdrawals within up to about 8 days, I have noticed that they have a hard time getting their identification documents getting approved and communication with customer service seems to get very edgy the moment they push a bit too hard for their money. All in all, issues with withdrawals tend to be resolved, but the constant problems with the platform seem to be ever-present, causing major losses for many traders.
From the looks of it Plus500 seems to be a great broker, they are regulated, have a clean and easy to use platform, and offer numerous features that many other brokers lack. The problem is, that they don’t seem to want to resolve the issues that their platform has and they have a habit of making withdrawals a very difficult process. With many complaints and warnings from traders, for now I think it’s best to stay away from Plus500 and see whether the FPA Traders Court will lift their warning.