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Is Plus500 Safe? A Beginner’s Guide [2024]

is plus500 safe
Marko Marjanovic

Summary: In this guide, we’re assessing the safety of the online CFD trading platform Plus500. We will evaluate the safety and reliability of the platform, examine its security measures, and explore its track record in regard to security breaches and data protection. Moreover, we’ll say a few words regarding its reputation and use among investors.

Recommended Multi-asset Broker for Online CFD Trading

  • Reliable & Regulated by CySEC (#250/14) - Plus500 Ltd is a FTSE 250 company listed on the London Stock Exchange

  • Wide range of instruments - CFDs on stocks, crypto, forex, commodities, ETFs, and more

  • Low cost investing - No commissions and tight spreads.

  • Transparent pricing on overnight funding, currency conversion fees, guaranteed stop orders, and inactivity fees.

  • Advanced platform - Top notch analytical tools, real-time quotes, fast order execution, secure withdrawals

Over 24 million users since the inception of Plus500 Group
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% 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.

What is Plus500?

Is plus500 safe
Plus500 trading platform. Source: Plus500.com

What is Plus500?

Plus500 is a leading global online trading platform. It was established in 2008 in Israel and has since grown in popularity, expanding its operations to over 50 countries. However, it remains most popular in the UK and some parts of the Commonwealth, such as Australia and New Zealand and is popular in the EU.

Plus500 offers a user-friendly and intuitive trading platform that enables clients to engage in Contract for Difference (CFD) trading. By trading CFDs, traders essentially speculate on the price movements of various financial instruments and assets (e.g., stocks, Forex, commodities, etc.) without owning them. That is, they make a profit based on the accuracy of their predictions. 

However, CFDs carry many risks, and the market is highly volatile. While returns are possible, they’re proportionate to the risk of loss, and both should be presented in equal measure.

As of December 2023, Plus500 has a market cap of over $1.30 billion and employs over 500 individuals.

For similar platforms, check out our guides on the best CFD brokers and best CFD brokers in Australia.

Plus500 core products

Plus500 offers an extensive range of over 2,000 CFD products, including: 

Note, however, that cryptocurrencies, ETFs, and options are subject to individual operators. Thus, they are not available to all traders around the world. In addition, US users can trade futures on the company’s new trading platform, TradeSniper. As an aid for trading, the platform features some research and charting tools to help clients make informed decisions on their trades. 

One of the key features of the Plus500 platform is the use of demo accounts. By registering a demo account, both beginners and experienced traders can check out the platform and familiarize themselves with its features for free before committing to a live account. Plus500 also has a mobile app. 

To learn more about the best CFD stocks, check out our dedicated guide.

Trustability

As a regulated broker operating through various subsidiaries in Europe and Asia-Pacific regions, Plus500 operates under strict regulatory oversight in various jurisdictions. This ensures a transparent and secure trading environment for traders, investors, and partners alike. The company is authorized by financial bodies such as:

  • The Financial Conduct Authority (FCA) in the UK;
  • The Australian Securities and Investments Commission (ASIC)
  • The Cyprus Securities and Exchange Commission (CySEC);
  • Monetary Authority of Singapore (MAS).

Recommended Multi-asset Broker for Online CFD Trading

  • Reliable & Regulated by CySEC (#250/14) - Plus500 Ltd is a FTSE 250 company listed on the London Stock Exchange

  • Wide range of instruments - CFDs on stocks, crypto, forex, commodities, ETFs, and more

  • Low cost investing - No commissions and tight spreads.

  • Transparent pricing on overnight funding, currency conversion fees, guaranteed stop orders, and inactivity fees.

  • Advanced platform - Top notch analytical tools, real-time quotes, fast order execution, secure withdrawals

Over 24 million users since the inception of Plus500 Group
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% 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.

Further, Plus500 adheres to strict Anti-Money Laundering (AML) policies to keep client funds separate from operational funds. This helps provide an additional layer of protection for customer assets. 

Moreover, it is worth noting that clients can rely on negative balance protection. This ensures their losses won’t exceed the amount of funds they have deposited into their accounts. Should the broker go out of business, all client funds are held in a segregated client bank account in accordance with the Cyprus Securities and Exchange Commission’s (CySEC) client funds rules. For more information, you can refer to the Affiliate on this website.

Key security measures

While no platform can assure its customers against cyber attacks or data breaches, Plus500 has managed to demonstrate a strong commitment to user safety. In fact, the platform has never been hacked in its 15 years in the market.

Plus500 implements state-of-the-art security features to protect user data. These security measures include:

  1. Two-Factor Authentication (2FA): Two-Factor Authentication (2FA) is a method for verifying your identity by using two separate authentication factors. For example, the first can include a password, and the second can be a biometric login, such as a fingerprint scan. The primary objective of 2FA is to bolster the overall security of the authentication process and protect your account data and transaction details. By implementing 2FA, you can trade on the Plus500 platform with more confidence in the safety of your funds;
  2. Secure socket layer (SSL) encryption: Plus500 uses 256-bit SSL encryption and makes use of various safety protocols to safeguard sensitive user data. SSL encryption is used during all and data transfers;
  3. Account verification/Know Your Customer (KYC): Before trading, customers must undergo an account verification/KYC process to ensure identification and security compliance. The process includes verifying your name, date of birth, residential address, phone number, payment method, etc.;
  4. Logout timer: The platform has a timer that will log you out of both the web-based and mobile apps when idle, ensuring no one can tamper with your data while you are away.

Plus500 is a publicly traded company

Plus500 has been a public company since 2013. It trades under the ticker symbol PLUS on the London Stock Exchange (LSE), and it is a FTSE 250 component. During its initial public offering (IPO), Plus500 raised $75 million. 

Plus500’s listing on the LSE has several advantages to the platform. For one, companies aspiring to be listed on prominent stock exchanges must meet rigorous criteria related to financial reporting and regulatory compliance. Consequently, Plus500’s public status strengthens its position as a dependable platform committed to conducting legitimate transactions. Moreover, being listed on a stock exchange, Plus500 can benefit from heightened visibility.

Plus500 sponsorships

Plus500 is committed to improving brand visibility and credibility through sponsorships. For example, by partnering up with well-known sports clubs and organizations, Plus500 has managed to position itself as a trusted and reliable broker for both retail and professional investors.

One of Plus500’s most notable sponsorships was its five-year partnership with Atlético Madrid, the well-known Spanish football club, which was worth €45 million and lasted between 2015 and 2023. The company also sponsored the Brumbies, an Australian rugby union team, and during the 2022/2023 season, it signed a four-year deal with Chicago Bulls, the renowned NBA team, aiming to expand its operations in the United States. The platform now is also a a primary member of the Futures Industry Association (FIA), which allows it to strengthen its operations in the US..

Moreover, the company is currently the main sponsor of BSC Young Boys, the Swiss Super League’s champion and 2022/2023 cup winner.

Conclusion

Upon thoroughly researching Plus500, we can conclude that the broker is generally considered a safe and trusted platform

Plus500 is regulated by reputable financial authorities in all regions it operates in, such as FCA and ASIC. It is also publicly traded on the London Stock Exchange, and it’s had several high-profile partnerships in the last few years. Moreover, the platform employs security measures such as 2FA, KYC, and SSL encryption. 

In addition to the security measures mentioned above, the platform features a user-friendly trading interface, a mobile app, and efficient customer support, all of which contribute to a positive user experience.

However, it is worth pointing out that no platform can offer its users a guarantee that their funds and personal information will be 100% safe. While Plus500 has never been hacked or seen a major data breach, the past is never a sure indicator that a potential problem will not occur in the future.

Overall, Plus500 has established itself as a reliable and reputable broker in the trading industry. Its comprehensive regulatory compliance, extensive range of trading instruments, and solid security measures make it a secure and trustworthy choice for traders worldwide.

To stay up-to-date with Plus500 developments, you can follow the platform on various social channels: X (Formerly Twitter), Instagram, Facebook, and Linkedin

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

FAQs

Is Plus500 safe for trading crypto?

Yes, Plus500 is generally considered a safe platform for crypto trading. As it operates as a CFD broker and does not give traders access to actual digital currencies, it is less susceptible to hacking attacks. Moreover, Plus500 users can benefit from fund protection provided by the CySEC, negative balance protection, and Secure Sockets Layer (SSL) encryption to ensure the stability and security of user connections. 

Does Plus500 feature institutional or corporate accounts?

No, Plus500 does not allow corporate or institutional accounts. Only individual trading accounts are allowed.

Has Plus500 ever been hacked?

No, Plus500 has never been hacked.

Recommended Multi-asset Broker for Online CFD Trading

  • Reliable & Regulated by CySEC (#250/14) - Plus500 Ltd is a FTSE 250 company listed on the London Stock Exchange

  • Wide range of instruments - CFDs on stocks, crypto, forex, commodities, ETFs, and more

  • Low cost investing - No commissions and tight spreads.

  • Transparent pricing on overnight funding, currency conversion fees, guaranteed stop orders, and inactivity fees.

  • Advanced platform - Top notch analytical tools, real-time quotes, fast order execution, secure withdrawals

Over 24 million users since the inception of Plus500 Group
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% 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.

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