Investing in cryptocurrency is very similar to speculating on the stock market. In both cases you invest money hoping that the value of the crypto or the stock will rise. Therefore we see that many platforms which offer stocks also offer the possibility to speculate with cryptocurrency. A well-known broker where you can trade CFDs of Forex, Indices and Shares is Plus500. The availability of Plus500 is subjected to regulation.
You may have heard of this broker because they do a lot of promotions and spend a lot on advertising. This broker is specialized in CFDs and also offer the possibility to speculate with cryptocurrency. In this Plus500 review we look at the platform, examine its reliability and give a final verdict. On this page you also have the opportunity to leave your own experience through our review system.
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| Trade CFDs of cryptocurrency, stocks, forex and more
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Offer of 7 cryptocurrencies
Regulated by the FCA
You don’t actually buy cryptocurrency
All brokers that only focuses on cryptocurrency actually delivers you the crypto to your specified wallet. This will end up in your wallet and you can decide to send it to another wallet. When you sell the crypto you bought, you sell it back to the broker and this company will sell it on an international crypto exchange.
A big difference between a cryptocurrency broker and Plus500 is that with Plus500 you never actually own cryptocurrency. Plus500 is a CFD broker where CFD stands for Contract For Difference. When you buy cryptocurrency or a stock you open a contract and when you sell your cryptocurrency close the contract. So you are only betting on the price of a currency, stock or commodity. If you only want to to speculate then Plus500 can be a platform for you. If you want to use your cryptocurrency for a payment or to manage it, you should check out a different broker
How can you really own cryptocurrency?
If you really want to own cryptocurrency and store it in a wallet we advise you not to use Plus500. The platform is really focused on CFD trading and that is, in our opinion, for experienced users.
If you want to invest in cryptocurrency you can use the Binance exchange. They support most of the popular crypto’s and offer easy payment methods. We offer our visitors a 20% cashback on all fees for a lifetime.
The cheapest way to buy, sell and actually own cryptocurrency is to register at the Bitvavo Exchange (Europe only). Here you can choose from 58+ different cryptocurrencies, which you can buy and manage at low cost (a maximum 0.25% fee) in your personal wallet. If you want to know more about Bitvavo you can read our Bitvavo review.
Trade € 1.000 for free at the Bitvavo Exchange
Plus500 review: More about the platform
Plus500 is a platform for stocks with complex charts and many tables. However, the platform is also interesting beginners who want to start trading, because you have the possibility to invest with a demo account (open a demo account for free). You can experience how the platform works by speculating with paper money. This is really a big plus, because this way you can’t lose any money when you make a mistake or make wrong decisions.
Plus500 also has an app and special web-based platform so you can always follow the price on each device you own. We understand that Plus500 may be a bit of a deterrent because besides cryptocurrency it is also a platform for stocks. Plus500 offers a simple to understand platform which you will quickly master (especially when you use the demo account). If you do run into problems you have the option of contacting Plus500 24/7 via the chat on the site in English.
For a non cryptocurrency specialized broker Plus500 still has a nice selection to choose from. You can choose from more than 10 cryptocurrencies including the better known coins such as Bitcoin, Ripple and Ethereum. You can also invest in the Crypto 10 Index. This is an index created by BITA which allows you to invest in the top 10 cryptocurrencies on the market.
How does Plus500 work?
When you click on sign up on the site you will be directed to a login screen. How Plus500 works is not so different from any other broker. After creating an account you will be taken straight to the trading platform and you will be able to trade CFDs for cryptocurrency or shares. Your account is still a demo account until you decide for yourself to make it a real money account.
Just try different strategies and see how the platform works. When you are ready to start trading with real money, you can indicate this within your demo account. Our advice is not to switch too quickly to a real money account. Trade for at least two months regularly with a demo account, before switching to a real account.
When you’re going to trade with real money you’ll need to deposit credit into your account. You can deposit funds to your account with a lot of different payment methods:
- Credit card
- And many more
You need to deposit a minimum of € 100 to your account and the maximum depends on several factors, such as the payment method. Withdrawing money is done via the same page where you can deposit money. Plus500 will ask for your bank details if it is your first deposit. A cash-out request will be processed within 1 to 3 business days.
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Plus500 allows you to trade using a leverage
With Plus500 you can trade with leverage. With leverage you can make big profits with a relatively small investment. You borrow money from Plus500 to leverage your trade. This is an easy way to make more profits, but can also result in bigger losses. It is not possible to lose more money than your initial investment. It is good to understand how leverage works before you use this. On the site of Plus500 and in our knowledge base you can read more about margin trading.
Most beginning traders lose money by using too high leverages.
Plus500 fees and costs
Plus500 charges fees because the platform has to make money. Maybe you are used to cryptocurrency brokers charging a fixed fee per transaction, Plus500 does not use this model. Plus500 works with a market spread. It is the same as a fee, but differs per product you invest in. The market spread is always clearly stated and varies between 0.02% and 2.00%. The costs of Plus500 are generally quite high.
Another cost you should take into account is the overnight premium. If you hold a share for more than 1 day, you will have to pay a premium as an interest rate. Fortunately the crypto coins within Plus500 are not affected by this premium.
If you have an account with Plus500 that you don’t use and if there is enough credit in your account, Plus500 will charge you € 10 every 3 months. To avoid this, just log into your account. Furthermore Plus500 has no trading fees you have to deal with. Depositing and withdrawing credit is free of charge.
Where do the negative Plus500 reviews come from?
If you search for Plus500 reviews then you will come across a lot of reviews. Many of them are negative experiences. If you read these experiences then it is mainly about the fact that people have lost money because of ignorance. They do not do enough research about the platform before trading. Plus500 offers risky tools, and you really need to know what you are doing.
For example, by using a high leverage you are gambling instead of trading wisely. We recommend that you first use the demo account in combination with the various instruments. In this case you learn how the platform works and what kind of risks you can take. Only when you have mastered everything, we advise you to switch to real money.
Unfortunately investors are impatient and take too much risk. This usually results in losses and that turns into negative reviews. It is not the fault of the platform that a trader loses money.
Is Plus500 safe?
This is a question we often get and this is mainly due to the various Plus500 reviews that can be found on the internet. When people lose money with a broker, they are more likely to write a negative review. So do not let these reviews scare you away. Negative reviews around Plus500 often arise because people are not used to trade with a leverage and don’t understand the platform. So master this first with your demo account and try to understand how this works, so you won’t be confronted with any surprises.
Plus500 is a reliable broker and is the market leader in online trading. They have millions of customers and they also make millions of trades every year. It is nice to see that the helpdesk is available 24 hours a day. Plus500 is controlled by the UK FCA and is one of the strictest financial regulators in the world.
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What are the costs?
You pay a market spread between 0.02% and 2.00% for every transaction you do. Also, there is a overnight premium on some products. When your account is inactive, you have to pay € 10 every 3 months (if you have enough credits).
Which payment methods are accepted?
Plus500 accepts creditcard (VISA and Mastercard). PayPal, Bank Transfer, Skrill, iDEAL, BPAY, Klarna, GiroPay, Trusly, Przelewy and MyBank. Deposits and withdrawals are free.
Is this platform regulated?
Yes, they are regulated by the FCA (Financial Conduct Authority) with regulation number: FRN 509909
How can I contact the Plus500 support?
The support is 24/7 available via the live chat and contact form. In most cases they speak your language.