Plus 500 - CFD Broker Review
If you’re looking for the Plus 500 CFD provider to trade with, then have a look at this review here.
There are many new CFD providers coming out, and Plus500 is a CFD broker that has the following features.
In fact, the following points is what you should evaluate in any CF provider to see if they will suit your needs.
1. Commission rate
In the case of Plus 500, they offer zero commission.
So have a look at their spreads on the CFDs, as there is no commission.
Zero commission can be helpful obviously as it can reduce your costs of trading.
2. Instruments you can trade
You can trade CFDs on a variety of instruments, including CFDs on stocks (shares), forex, indices and commodities.
A variety of instruments can be important especially if you want to take advantage of market movements in more than just 1 type of CFD, and to be able to do it from one platform. If you’re watching say, CFDs on a variety of stocks, as well as indices and some commodities, then check that you can see the specific stocks of indices that you’re interested in.
Trading more than one instrument on the same platform can be very helpful as it cna be easier to do in terms of watching positions, placing trades, and monitoring your margins etc.
3. Margin
Plus 500 has up to 1:200 leverage, in other words, up to 0.5% margin.
With margin you can trade a large trade size for any given amount of cash.
Note that with most CFDs, to check the actual amount of margin required for any particular CFD as they may differ between each CFD, eg some may be 0.5% while others are 1% etc.
4. Order types
Plus500 has a variety of order types, including:
Market prices - buy or sell at market prices
Stop Limit orders - a take profit order, eg to sell if the CFD reaches a certain price
Stop Loss orders - to protect from losses (cut losses short), eg to sell if a CFD falls below a certain price, ie to exit the position if the CFD price goes against you to a certain extent.
Trailing Stop Loss orders - to protect from losses, but the stop loss is automatically moved as the price moves. For example, you can enter a stop loss price, or enter a percentage from the current price, amongst other options.
Entry orders - stop entry, and limit entries (both long and short)
5. Demo account
A demo account is helpful as it allows you to:
a. Get used to the trading platform to place trades
b. Check the instruments to trade
c. Ensure that the platform works smoothly and reliably
So look for the above features, and more, to help with your CFD trading.
And Plus 500 has an free unlimited demo account - you download the trading software and install it and you can be up and running.
The other thing is that you get a $20 and up to 30% bonus on your first deposit when you open an account.
Also, the provider has other instruments to trade such as Shares, Forex, Indices, Commodities, and has eg spread of 2 pips for EUR/USD.
So have a look, and when you are evaluating any CFD provider, check for each of the above to help check that they have everything you will need.
For Plus500, go to:
Tags: CFD, commodities, forex, indices, Plus500, shares, trading
. 10 Nov 09 | CFD brokers and providers