Trade cryptocurrency on Plus500 | July 2020 review
Plus500 is a global Contract for Difference (CFD) provider offering a range of financial products, including bitcoin and Ethereum.
|Cryptocurrencies Listed||BTC, ETH, XRP, BCH, LTC, NEO, XMR, EOS, ADA, XLM, TRX|
|Payment Methods||Credit/debit card, Bank transfer, PayPal, Skrill|
|Supported Fiat Currencies||AUD|
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 CFD contracts for bitcoin, Litecoin, Ethereum and other cryptocurrencies.
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:
- Bank transfer
- Credit cards (Visa, Mastercard)
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$100 (or equivalent value of chosen currency)
- Bank transfers and credit cards: US$100 (or equivalent value of chosen currency)
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.
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
- Useful trading tools, such as guaranteed stops, trailing stop, negative balance protection and free notifications
- Ability to trade CFDs for major cryptocurrencies
- Commission-free trading
- Trade on custom Plus500 software, as well as WebTrader
- Accounts are subject to an inactivity fee
- No cash deposits