Trade cryptocurrency on Plus500 | August 2018 review

Plus500 is a global Contract for Difference (CFD) provider offering a range of financial products, including bitcoin and Ethereum.

Plus500 is a regulated financial services entity in the United Kingdom, Cyprus, Australia and Israel, now offering cryptocurrency alongside its other offerings.

Plus500 Ltd. is listed on the AIM section of the London Stock Exchange (PLUS.L).

With a large and growing client base around the world, Plus500 might suit savvy traders looking to diversify in cryptocurrency.

What is Plus500?

Plus500 is a full-service online CFD trading provider catering to retail traders. It provides trading in CFDs across a range of financial markets. The company was founded in 2008, right around the time that Satoshi Nakamoto first released the now famous paper, Bitcoin: A Peer-to-Peer Electronic Cash System. As its services expanded, Plus500 began offering contracts for bitcoin, Litecoin, Ethereum and other cryptocurrencies.

What cryptocurrencies can I buy/sell?

In addition to offering CFDs for a range of financial assets, including shares, forex, indices, commodities, ETFs and options, Plus500 offers CFD trading on the following cryptocurrencies:

These cryptocurrencies are not traded as assets but can be traded as CFDs “paired” against the US dollar. For example, bitcoin can be accessed as a BTC/USD (bitcoin-to-dollar) transaction.

Available countries

Plus500 is available in more than 50 countries, including Australia.

Which payment methods are accepted?

As an online CFD provider, you can rest assured that Plus500 has numerous payment options, including:

How much will it cost me to use Plus500?

Unlike CFD providers that also charge commissions, Plus500 only charges spreads. A spread is the difference between the bid price and the ask price of a financial instrument.

Traders are also charged a premium for positions held open after a certain hour. The “premium” time essentially refers to the market close.

Users are also charged a US$10 inactivity fee should an account remain unused for any prolonged period of time. Further details are provided in the User Agreement.

How quickly will my funds be available?

Withdrawals are normally processed within one to three business days. However, this depends on the withdrawal method you choose.

Withdrawals to electronic wallets, such as PayPal or Skrill, are usually cleared in three to seven business days. Bank transfers can take up to five business days. Credit cards are subject to your bank’s processing time.

Are there any transfer limits?

All withdrawals have a minimum amount threshold that can be found in the User Agreement. These minimums are outlined below:

• • • PayPal and Skrill: US$50 (or equivalent value of chosen currency)
    • Bank transfers and credit cards: US$100 (or equivalent value of chosen currency)

Processing a withdrawal of less than the minimum is subject to a US$10 fee.

The maximum number of monthly withdrawals is five. Additional withdrawals are subject to a US$10 fee. Withdrawals via bank transfer may also be subject to a charge of up to US$60.

Is it safe to use Plus500?

Plus500 is licensed by ASIC in Australia (AFSL #417727), however potential traders should do further research if they choose to start trading with Plus500. According to their website, client funds are held in accordance with client money rules such as those outlined by the Corporations Act. This essentially means that each client deposit is put in a segregated bank account.

The company has a detailed Statement on Privacy and a Cookie Policy on its website and those outline the protection and confidentiality of client information at all times.

Customer support

If you have completed your due diligence, and are ready to get started with Plus500, visit their website and click “Start Trading Now”. You will then be prompted to follow the sign-up procedure to complete your registration.

The great thing about this CFD provider is it allows you to go for a test drive before risking actual money. Click “FREE Demo Account” on the homepage to open a practice account, where you’ll be able to hone your skills before trading real funds.

Pros and cons

Frequently asked questions

• Will I see the status of the withdrawals I make using the Plus500 platform?

  If you initiate a withdrawal with Plus500, you can expect to see the following status updates as the request gets processed:

  • Requested: When you request the withdrawal.
  • Approved (in progress): Request has been authorised.
  • Approved Sent: Funds have been transferred to the relevant external payment processor.
  • Approved Settled: The withdrawal process has been completed.

• How are instrument prices obtained?

  All financial instruments, be it cryptocurrency or otherwise, are quoted with reference to their price and spread. This information is obtained from a range of third-party sources, such as independent financial market data providers.

• Does Plus500 offer margin trading?

  Plus500 accounts do offer margin trading with leverage of up to 1:300. Of course, you need to be extra careful when buying on margin.

Image sources: Plus500