Plus500 provides Bitcoin and altcoin CFD trading with tight spreads which makes it a top choice for any crypto day trader. Their system is pretty simple and self-explanatory. However, we’ll give you a quick rundown of the various account features, trading functions, and benefits.
Who Are Plus500?
Plus500 was founded in 2008 and is a UK registered company with offices in London. The company is fully licensed by the Financial Conduct Authority (FCA) to offer contracts for difference (CFD) trading. For those that watch Spanish or continental football, then you might recognize Plus500 from their sponsorship deal with Athletico Madrid.
As one of the largest CFD brokers in the world, Plus500 is listed on the London stock exchange. TotalCrypto views this as a positive as the company is held up to higher standards than non-stock market listed brokers. For those that want to trade cryptocurrency on mobile, Plus500 has you covered with one of the top-rated CFD trading Apps on the Apple App and Google Play stores. Millions of happy traders throughout the world call Plus500 their home, making the platform one of our top choices to trade cryptocurrency.
Benefits Of Plus500
- Plus500 is fully regulated and allows you to get exposure to the most popular cryptocurrencies in a fully compliant way.
- Customer support is excellent and queries are generally dealt with within 24 hours.
- As Plus500 is a CFD broker, you can just deposit on a single site and have a single account for all your cryptocurrency dealings. It also means that you do not have to mess around setting up numerous cryptocurrency wallets to store your funds. This makes Plus500 the perfect option for anyone wanting no-nonsense cryptocurrency exposure.
Plus500 Key Facts
- Big Company – Plus500 Ltd is listed on the Main Market of the London Stock Exchange.
- Established Track Record – Plus500 has been in business for 10 years.
- Insurance – Balances on Plus500 are covered by the Financial Services Compensation Scheme. This means that customer balances are insured for up to £50,000.
- Deposit Methods – Supported deposit methods and minimum deposit limit for each:
- Debit/Credit card – Visa or Master Card (min – 100 GBP)
- Electronic wallet – PayPal/Skrill (min – 100 GBP)
- Tradeable Cryptocurrencies – Ripple, Ethereum, Bitcoin, Bitcoin Cash, IOTA & Litecoin.
- Customer Support Methods – 24/7 live chat and email via online form.
Want To Start Trading Cryptocurrencies The Easy Way? Get On Plus500 Now!
80.6% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Plus500UK Ltd authorized & regulated by the FCA (#509909). You do not own or have any rights to the underlying assets. Please refer to the Disclosure documents available on the Plus500 website.
First Look – Understanding the Dashboard
Before illustrating how to place a trade, we want to go through the different options that are presented on Plus500’s platform. The image below is the dashboard you’ll see.
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Clicking ‘Menu’ will present you with funding options, account details and help resources.
Here is the menu you will see:
One particular option you will find is ‘Account Snapshot’ which brings you to a page where you can see a detailed breakdown of your investment allocation. Take a look below to see what the snapshot page shows.
The rest of the dashboard consists of “Open Positions”, “Orders” and “Closed Positions”. We’ll explain these sections to you shortly. First of all, it’s important to go over the cryptos you can trade and how to find them.
Trading Cryptos through Plus500
Plus500 currently provides trading for nine different cryptocurrencies. From the main ‘Trade’ dashboard section, select “Crypto Currencies” (under ‘Crypto’) to see the different coin CFDs that are traded here.
Right now, the cryptocurrencies tradeable on Plus500’s platform include:
A chart will show for the coin you select. The default is a 1-minute chart but you can change this to 5, 15 or 30 minutes, 1, 2 or 4 hours, 1 day or 1 week. You can also view a tick chart if you know how to read them.
Select a coin that you want to trade. If you’d like more information, press the info icon (“i” in blue circle, far right side). You will be presented with data points like trader sentiment, low and high prices by timeframe, minimum order size and allowable leverage. You will also find fee details, such as the fixed spread, overnight rate for both buys and sells, margin requirements and more.
To start a trade, choose which cryptocurrency you want to long or short and press “Sell” or “Buy”. An order tool will appear on the right side.
As you can see, a shortened info section also appears in the trade section. The other features you see there are very important as well. Get familiar with them before you start trading crypto on Plus500’s platform.
Amount of Contracts
Simply put, the amount of contracts is the number of coins you want to buy or sell. The example you see for trading XRP (Ripple) is for 250,000 contracts at 15x leverage. The calculations are provided; in this case, to open a $155,975 value position at least $10,398.33 in margin is required.
You can change the leverage level in your trading account. However, a Plus500 demo account does not come with this option.
The amount that all of your contracts are worth. This number is shown both in American ($) and European (£) currencies. The value will change according to the number of contracts. Every single contract is equivalent to 0.1 BTC, which means every 10 contracts equals one bitcoin. Note: You must buy or sell at least 0.1 contracts at a time, which means the minimum you can exchange is 0.1 BTC per executed trade.
Keep in mind that the minimum and maximum order size and the contract value will vary depending on which pair you trade.
This part will confuse some newcomers. It’s important you have a basic understanding of what margin is and how it works for you to interpret this figure. Plus500 lets you trade crypto with a dynamic initial margin requirement of your trade value. This platform also features a variable maintenance margin. Your position will be forced into liquidation if your balance goes below the maintenance level.
Close at profit
This function allows you to close your trade when you reach a certain level of profit. You can adjust the price point where the trade will close and see the amount (and percent) of profit calculated below.
Close at loss
This function allows you to close your trade when your potential losses reaches a certain level. You can adjust the price point where the trade will close and see the amount (and percent) of profit calculated below.
This function gives you greater control in case your stop does get hit. The guaranteed stop makes it so that your trade executes when the price (with slippage accounted for) reaches your target level. If the order books are thin, a standard stop might execute at a worse price than expected, so using the guaranteed option will reduce your potential losses if you liquidate.
Trailing stop: Pips
This function can be used to maximize your control over when your stop order executes. The trailing stop feature is usable both on the short and long side. When shorting, use trailing stops to secure your gains as the coin falls in value and reduce losses as the price goes up. When longing, use trailing stops to protect profits when the price goes up and reduce losses when it goes down.
How does it work exactly?
For illustrative purposes, say your position opens at a value of 1.5 and every pip is equivalent to 0.1 for this example. The trailing stop order could be placed for 5 pips which would mean if the value reaches 1.0 the position will be forced into closure. However, if the market moves in your favor the stop price will also increase — if it peaked at 2.5 and came down, a 5 pip drop to 2.0 would trigger the trade to close. This example is only an illustration and the figures used are fictional.
Only buy/sell when rate is
This option is found next to the trailing stops: pips feature. This function does not need to be used in combination with a trailing stop for it to work. You can set a price where your position will open if the market reaches it. So, if the market comes up to X price your short position will automatically be triggered. Meanwhile, if the market comes down to X price your long position will be opened for you.
This function allows you to play swings based on technical analysis and makes it easier to eliminate emotion from your trading decisions.
Understanding the Trading Fees at Plus500
The best way to look at trading fees is to isolate the information that applies to cryptocurrencies (and to look at the rate for each coin). Simply put, the fees that Plus500 charges and the trading restrictions that apply are varied on an instrument-to-instrument basis.
Below is a glimpse of what the fees are at this moment when attempting to open a long or short position on Bitcoin through Plus500’s WebTrader platform.
Now, let’s get into a little detail on these various expenses.
You are leverage trading via Plus500 with borrowed funds. Your margin (the collateral) is an insignificant portion of your total trade value and isn’t actually used in your trades. Due to market lending costs and loss risks for the platform, users are required to contribute toward funding each other.
This happens by requiring either longers or shorters to pay an overnight fee if they keep their margin running to the next day. In the example above, a person buying/longing will pay out 0.049% of their total funding if they hold it overnight. Meanwhile, a person who sells/shorts and holds overnight will actually receive 0..038% of their funds as an account credit.
As mentioned earlier, the initial margin is the amount you must put up to open your trade in the first place. With a maximum leverage of 1:30 you will need a 5% initial margin to get funded and open your position.
Again, the maintenance margin is the minimum collateral that must remain within the trade to keep it from being forced into liquidation.
Plus500 is not the prettiest or most-glamorous crypto CFD trading platform around. However, the learning curve is easy and you can quickly hop in and start leverage trading various cryptocurrency pairs. Their rates are also better than what most similar exchanges offer, such as when compared to IQ Option.
Anyone looking to start day trading crypto will be highly satisfied with what Plus500 offers. The only major potential issue here is that MT4 and other automated trading programs are not compatible. However, for a standard new leverage-powered crypto trader, Plus500 offers more than enough to keep you in control of your trades.