Is Plus 500 legit? Is safe or Scam?
Is Plus500 regulated? Are they safe, or is the platform a scam? This review will answer all these questions and more. We will go into details regarding the regulation and safety of the broker so that you can make an informed decision when choosing Plus500 as a broker.
How do Governments Regulate Plus500?
Since Plus500 is an international fintech firm, they are regulated by several different government entities. They are headquartered in Israel, but also have subsidiaries and branches around the globe. For example, they have a presence in Australia, Cyprus, Bulgaria, Singapore, and the UK.
Here is an overview of all the organizations and countries that Plus500 is regulated by:
Cyprus Securities and Exchange Commission: License No. 250/14
UK Financial Conduct Authority: FCA #509909
Australian ASIC: AFSL #417727
New Zealand FMA: FSP No. 486026
South Africa FSCA: #47546
Seychelles Financial Services Authority: License No. SD039
Israeli Securities Administration: 515233914
Singapore Monetary Authority: License No. CMS100648-1
As you can see, it is easy to determine if Plus500 is safe based on how many different governments oversee them. To maintain good standing with these authorities, Plus500 must follow all guidelines and meet stringent requirements.
How is Plus500 Protecting your Money?
Another way to ascertain the legitimacy of Plus500 is to review how they protect your money. The platform strives to keep its users and their funds secured. For instance, they have a segregated account, protection against negative balances, and a deposit insurance fund.
How to avoid scam? Learn more about itSegregated Account
The segregated account is just one of the ways that Plus500 protects your money. In line with the UK’s client money rules, all user funds are separated from the corporation’s money. That means even if the company goes bankrupt or becomes insolvent, the money that clients use to trade will be protected.
Negative Balance Protection
With most Forex trading platforms, users risk losing more money than what they deposited. In other words, your account could go into the negative - and you can end up owing more than you invested. However, Plus500 has negative balance protection to prevent this situation from happening.
This protection is a result of ESMA rules that became effective in 2018. The platform uses stop-loss orders on specific securities and CFDs based on various market conditions – just know that they can be subject to a bigger spread.
Deposit Insurance Fund
Another protection offered by Plus500 is the deposit insurance fund. They are registered with the Financial Services Compensation Scheme, so users will receive up to £85,000 per account should the platform default or go under.
Does Plus500 Accept Residents from My Country?
Before registering for Plus500, it is important to understand which countries they accept residents from. Residents of over 50 countries can create an account on the platform. Services are offered in more than 30 languages, too - optimizing the trading experience for users.
How to become a Trader? Read moreSome countries that can use Plus500 include most nations in Europe, Australia, Nigeria, UAE, Israel, and more. However, Plus500 does not accept traders from the U.S. or Canada.
Should I Trust Plus500 Account Verification?
Plus500 requires users to complete an account verification process. This process is needed to comply with know your customer laws that are put in place by many of the financial authorities that oversee them. As such, they will need to obtain proof of residence and an ID before they can authorize your account.
You may be wondering whether you should trust the Plus500 account verification – will it keep your data safe? Since so many central financial agencies monitor the platform, you can rest assured that your data is secured.
It is necessary to complete the process to confirm your identity and ensure that you reside in a country that supports Plus500.
Similarly, the platform provides additional security features like biometric authentication for mobile applications. There is also a timer that will automatically log you out of your account if you are inactive for some time.
Plus500 Pros and Cons
As you decide which forex trading platform to use, it is essential to weigh the pros and cons of each. Let’s review some of the positive and negative aspects of the broker so that you can make a more informed decision:
👍 Plus500 Pros
There are many benefits to trading on the Plus500 platform. They have many trading assets available, offer services in many different languages, provide mobile compatibility, negative balance protection, and free notifications about relevant market news.
• Various Asset Classes
Plus500 allows you to engage in trading with various asset classes. There are over 2,000 CFDs, and you can trade options, forex, commodities, indices, options, ETFs, crypto, and more.
• Various Languages
Since Plus500 is available in so many different countries, the platform can be changed to the language that you are most comfortable with. With more than 30 languages available, you are sure to find one that is suitable for your needs.
• Mobile Compatibility
The markets are constantly changing – and being able to trade on the go is essential for success. Plus500 works on mobile devices so users can stay on top of changes in the trading environment.
• Negative Balance Protection
Plus500 is unique because it offers negative balance protection. This means that you can’t lose more than what you invest into the platform.
• Market Notifications
Another benefit of Plus500 is that the platform will send you notifications based on market changes and news. That means you can always stay up to date with changing trends and breaking news.
👎 Plus500 Cons
There are some drawbacks to trading on this platform, though. These include not working with traders in certain countries and limiting trading strategies.
•Some Countries are Limited
Plus500 does not offer trading services to users in the US, Canada, Ukraine, and more. This is a drawback as residents from these nations cannot engage with the platform.
• Limited Trading Strategies
The platform also has a ban on automated trading, scalping, and order hedging – which can limit your strategies.
Plus500 Background
The Plus500 platform was built in 2008, by several alumni of the Technion Israel Institute of Technology. With an initial investment of $400,000, they developed a Windows OS platform that would eventually become web-based.
In 2013, they became the first broker to offer Bitcoin CFDs. This propelled their growth, and in 2016 they were one of the few companies granted a trading license by the Israeli security authority. They also released several updates to their application at this point, introducing mobile and apple watch compatibility.
In 2017 they were granted a license by the Monetary Authority of Singapore. The following year was a major year for Plus500, too. They were listed on the London Stock Exchange as part of the FTSE 250 Index.
Summary: Is Plus500 Safe?
Plus500 is a safe broker registered with many countries and financial authorities. They have been active as a trading platform since 2008, and they have become one of the fastest-growing CFD platforms.
You can trust that the platform is trustworthy because of the high number of regulatory bodies that have authorized their operations.
Top 10 Reviews on Plus500
FAQs
Is Plus500 Legit?
Plus500 is a legitimate trading platform with a long history of complying with regulations and laws.
Are You Required to Verify Your Account on Plus500?
You must verify your account with an I.D. and address verification before proceeding – this is in line with regulatory KYC requirements.
How is Plus500 Regulated?
Plus500 is regulated by many different countries, including the UK, Israel, Australia, and more. The financial authorities in these nations oversee their operations and monitor their activities.
Should You Trust Plus500?
Plus500 has a safe and secure platform that you can trust for your forex and other trading needs.
Team that worked on the article
Dwight specializes in risk, corporate finance, alternatives, fintech, general business trends, and financial markets, and he has broad experience managing complex projects. Dwight is an author for the Traders Union website.
Dwight was a financial columnist for The Wall Street Journal and The New York Times during the Great Financial Crisis. He has served as Editor-in-Chief of Worth, a personal finance magazine for the wealthy, and as Editor of Risk, the premiere global publication about derivatives, risk management, and quantitative finance, based in London.
He has also served as Managing Editor at The Economist Group and ran the Americas operations of two British trade publications.
For the last 12 years, Dwight has worked as a freelance writer and editorial project manager, serving clients in the financial technology, banking, broker/dealer, consulting, asset management, and corporate sectors. This has given him considerable experience in idea generation and project management, working collaboratively to help clients meet their goals with little or no supervision.
Oleg Tkachenko is an economic analyst and risk manager having more than 14 years of experience in working with systemically important banks, investment companies, and analytical platforms. He has been a Traders Union analyst since 2018. His primary specialties are analysis and prediction of price tendencies in the Forex, stock, commodity, and cryptocurrency markets, as well as the development of trading strategies and individual risk management systems. He also analyzes nonstandard investing markets and studies trading psychology.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.