Trading forex market on margin comes with a high level of risk, and may not be a perfect choice for all investors. The high degree of leverage can serve as a two-way sword. It can work in your favor or against you. When you invest in the forex market or any form of trading, it is essential to cautiously estimate your investment goals, your technical know-how, experience level and your risk appetite. Another thing you need to consider is the platform of the forex broker you want to trade with. Plus 500software allows traders to trade CFD’s on Forex, stocks, indexes, EFT’s, or commodities. It also allows you to trade cryptocurrencies. Apart from being user friendly platform, a very god advantage of their platform that you can’t ignore is the screen.
Plus 500 Forex broker’s trading platform comparing to other FX brokers can be accessed in four versions. The first version is the downloadable version, which you can copy to your personal computer- whether a laptop or desktop. The second version is the web-based version, which permits the trader to access the platform from any other computer and the rest are the App versions which are compatible with iOs, Windows and Android smartphones and Apple Watch platform.
Review of Plus500: Types of account offered
As we can see in Plus500 review the company gives its users the opportunity to open two different types of account. The first is the demo account which allows you to trade without limit and the other is the other is a live account which you need to deposit the minimum deposit of 200AUD to open as opposed to the demo account which is free. The leverage for forex accounts with PLUS 500 is 1:300.
Trading forex on margin carries a huge risk and you need to consider it very well because it may not be the right choice for all traders. The high degree of leverage can benefit the trader enormously. It can also magnify his lost if the trade goes against him.
The trading commissions of EUR USD and other pairsoffered byPLUS 500platform
- They offer traders maximum leverage of 1:300
- They provide tight spreads
- The do not charge commissions
- Trades also enjoy fast and dependable execution of order
The compensation Plus500 mostly get for allowing traders to access the forex market through their platform is through the “market spread”. For instance, if a trader buys EUR/USD pair at the rate of 1.3128 and sells at the rate of 1.3126 respectively. It means a spread of 2 pips. As opposed to other forex brokers who charge both spread and commissions, PLUS 500 does not charge any trade execution commissions.
That having being said, Plus 500 may charge the following fees:
Overnight Funding fees
The overnight funding charges are incorporated into or taken out of your account when holding a position after a specific period referred to as the “Overnight Funding Time”.
An inactivity fee of roughly 10 dollars may be charged to a trader if he or she fails to make use of his or her account for three months consecutively. The charge is utilized to make up for the cost the site incurred while providing their service. This charge is still levied on a traders’ account whether he use it or not. Nevertheless, the fee is only charged on real money account. However, please note that the fee is only collected from the Real Money account if the trader has sufficient amount of money in his or her trading account. To avoid being charged this fee, the solution is to sign in to your account every now and then.
Guaranteed Stop Order
Another thing you may be charged for is the guaranteed stop order. If you select this feature it ensures that your trade position closes at a particular rate or price you ask for. Also note that the trade will be charged a wider spread.
In some market situations like during as period of high volatility, your Stop Loss Order may not be executed at the precise rate or price you have chosen. This feature will ensure that your trade position closes at the particular price you have chosen or set even when the market price exceeds it. As soon as your trade stop los rate is reached, the system automatically closes. The guaranteed stop loss order is not available for all trade instruments and the fee is charged through a wider spread.