Founded in Israel in 2008 by former Technion – Israel Institute of Technology classmates
Omer Elazari, Shlomi Weizmann, Alon Gonen, Gal Haber, Elad Ben-Izhak, and Shimon Sofer, Plus500 Bitcoin specializes in online trading of contracts for difference (CFD). Notably, in 2013, the company became the first broker to introduce a bitcoin CFD.
Before getting started with Plus500, it’s important to note that Plus500 is not a cryptocurrency exchange or a traditional brokerage. Instead, you bet on cryptocurrency prices. You cannot purchase cryptocurrencies on the Plus 500 platform. To do that, you’d need to use a cryptocurrency exchange.
When you trade bitcoin CFDs, you bet on whether their price will go up or down over a specific period. Plus500 is registered on the London Stock Exchange, and the platform is secured using SSL.
The company is highly regulated with its regulating bodies based on jurisdiction. The company does not charge a commission on trades; however, there are other fees that you should keep in mind, including:
- Buy/Sell Spreads
- Overnight funding
- Currency conversion fee
- Share trade commission
- Guaranteed stop fee
- Inactivity fee
If you’re ready to enter the world of bitcoin CFD trading, Plus 500 Bitcoin provides a reliable platform to get started.
How Does It Work?
Opening an account on Plus500 is a relatively straightforward process. Plus500 offers three account levels: a demo account, a real-money account, and a professional account. The only difference between the demo and real money account is that you’ll be trading with fictitious money with the demo account, allowing you to learn the ropes of CFD trading.
Signing up with Plus500 is similar to most brokers. Once you’ve registered, the site redirects you to the trading platform, where you can get started trading CFDs for cryptocurrency or shares. Until you decide to add real money, you’ll use the demo platform interface. It’s a good idea to spend some time practicing with the demo account before trading with real money.
You can switch to a real money account from the demo account screen. Once you’ve deposited money using a credit card, Skrill, PayPal, or another payment method, you can start trading. Professional accounts are for high volume traders who meet specific criteria.
What Does It Offer? – Key Features
Plus500 offers a plethora of features to enable you to trade CFDs using their platform effectively. In this section, we’ll explain the key features you’ll find on Plus500.
1. Regulated Framework
Plus500 boasts a robust and global regulatory framework. Based on where its subsidiaries are located, the company is regulated by various authorities, including:
- UK’s Financial Conduct Authority (FCA)
- The Cyprus Securities and Exchange Commission
- The Australian Securities and Investments Commission
- The Monetary Authority of Singapore
- Israel Securities Authority
When trading Bitcoin CDs, you always want to work with a regulated firm to ensure you are trading on a trustworthy and dependable platform within a regulated environment. Plus500 is subject to strict rules and regulations that ensure their client’s interests are protected.
2. Different Account Types for Different Traders
Plus500 offers three account levels, demo, retail, and professional, for traders of varying experience levels. If you’re new to cryptocurrency trading, you’ll want to start with a demo account before trading with real money. There’s a relatively steep learning curve when getting started trading bitcoin CFDs.
With a demo account, you can learn the terminology, get used to the interface, and get comfortable trading using fake money with no risk involved. Once you’re confident you know what you’re doing, you can move onto the retail account, which will allow you to deposit money and trade the most popular cryptocurrencies.
3. Up to 10 Cryptocurrency
With Plus500, you use their unique Crypto 10 Index, which tracks the markets’ performance to track and measure the top ten cryptocurrencies’ performance, including bitcoin, Ethereum, etc.
Another option is trading cryptocurrency pairs. Plus500 supports the market’s leading cryptocurrencies, where the cryptocurrency is trading against the US dollar. The most popular cryptocurrency trading pairs include:
- BTC/USD- Bitcoin
- ETH/USD- Ethereum
- LTC/USD- Litecoin
- XRP/USD- Ripple
4. Trade using Leverage 1:3000
If you want to increase your exposure to a financial instrument without spending the entire amount needed to own the physical instrument, leverage allows you to do so. When you trade with leverage, you only need to pay a fraction of your position’s total value.
Since profits and losses are based on the total size of the position, you could accrue significant profits or losses. With a Plus500 retail account, you can trade using leverage 1:30. With a professional account, you can trade using leverage at 1:300.
5. No Commission / No Withdrawal Fees
Unlike most brokers, Plus500 doesn’t take a commission on each trade. You don’t have to worry about hidden fees because Plus500 uses the spread to compensate for its services. Plus500’s allows you to make five withdrawals from your account per month. After that, they charge $10 per withdrawal.
6. Demo Trial
If you want to test the waters before getting started trading with real money, you can take advantage of Plus500’s demo trial. You can use the unlimited demo account to test all possible trading scenarios for free. Plus500 sets you up with fake money, which you can use to open and close positions. This will give you an idea of how you’ll do when trading with real money.
7. Research and Education Resources
If you’re new to bitcoin trading, Plus500 has a wealth of research and education sources to help you get up to speed. Plus500’s “Learn More About Trading” section covers the basics of trading cryptocurrencies, including:
- Where can I trade cryptocurrencies?
- Major cryptocurrency terms
- How to buy, sell, and trade cryptocurrencies
- What are the most traded cryptocurrencies?
- What is cryptocurrency trading?
- Can you trade cryptocurrencies using a Forex or CFD platform?
- Why trade cryptocurrency CFDs?
8. Plus500 Calculator
You won’t find a fee calculator on Plus500, but the company is transparent about all direct and indirect trading fees. By checking the various fees on the Plus500 website, you can use a spreadsheet to track your trading fees, if necessary.
9. Customer Support
Plus500’s customer support team is available 24/7 to respond to your needs. You can connect with customer support via online chat, their app, or email. They have excellent response times. The website also has a comprehensive FAQ section with answers to the most common questions.
10. Security and Privacy
Plus500 offers the security measures you’d expect, including biometric authentication if you’re using its mobile app. If you aren’t active on the app or the website, you’ll be automatically signed out of your account. Their privacy agreement protects user confidentiality.
What are the advantages and limitations of trading with Plus500 bitcoin?
There’s a lot to like about Plus500 bitcoin. One of the site’s most significant is its lifetime demo account, which allows you to get up to speed trading cryptocurrency CFDs before spending any money. The demo account is a true to life simulation of market trading, ensuring you learn how to trade using Plus500’s software.
The demo account makes Plus500 ideal for beginners. Another advantage of Plus500 is that you don’t have to download any software to get started. All you need is an internet connection. You can use Web Trader to open CFD positions on bitcoin using any computer. When you’re ready to trade using real money, the retail account only requires a $100 deposit.
You can also trade with leverage, which allows you to make a sizable profit for a small investment if the market goes in the right direction. Keep in mind you could also lose a significant amount of money trading with leverage. To trade with leverage, you borrow money from Plus500 to leverage your trade. Plus 500 is FCA regulated.
Plus500’s commissions and spreads are lower than their competitors. Although their fees do tend to be lower than their competitors, they have many fees to keep up with, including inactivity fees, fees for currency conversion, and overnight fees. Another downside is withdrawals are slow, taking up to 7 days to be processed.
What Is the Minimum Deposit Required to Use Plus500 Bitcoin?
The minimum to get started trading bitcoin CFDs on Plus500 is $100. If you’re not ready to spend money, you can use their Demo software to trade at no cost.
Is It a Scam or Is It Legit? How Is It Rated?
Plus500 is not a scam and is a perfectly legit company. Depending on the website, you’ll see a range of customer ratings from very high to very low. Negative reviews tend to come from people who’ve lost money trading with leverage. Keep in mind, people tend to rate a broker when they lose money, and many people don’t take the time to learn how to trade bitcoin CFDs.
People’s earnings vary on Plus500, making it impossible to give an average number. Your mileage will vary based on your experience trading bitcoin CFDs and the market’s performance at any given time. Plus500 is a highly regulated and low-risk broker.
Are There Any Alternatives?
Etoro is the top alternative to Plus500. Like Plus500, Etoro is regulated by the CFA and other regulatory bodies depending on its subsidiaries’ location. One advantage Etoro has over Plus500 is the ability to browse trader profiles and automatically copy trades made by profitable traders.
Etoro is a great learning platform. EasyMarkets is another alternative that stands out for its DealCancellation, which allows you to cancel a listing trade for free. If you consider yourself a professional trader, XM is an alternative with competitive spreads.
Conclusion – Is It Worth It?
If you’re ready to get started trading Bitcoin CFDs, Plus500 Bitcoin is an excellent place to start. Plus500 offers a great Demo account that allows new traders to learn how to trade CFDs effectively and has an extensive library of learning materials to ensure you know all related terminology. Plus500 is highly regulated, so you know you’re trusting your money to a legit company.