The Plus500 is amongst the highly regulated brokers within the world. It is a huge benefit for the traders who are wishing to trade along with a reliable broker which is based locally. The primary regulator of this is the financial conduct authority in the UK which is amongst the strictest as well as reliable Forex within the world. The traders are protected under the financial services compensation scheme as per the regulatory necessities.
How plus500 does derive revenues?
This platform derives the majority of its revenues from the direct trading costs which consists of the spreads which are charged on over 2000 assets. The trading is free of commission and there are varied indirect fees to consider. Overall this platform offers a combination of the competitive spreads on the select asses with varied assets having the higher costs which creates an acceptable balance. Some asset classes are higher priced than other brokers and so it is a good idea to check before the trades are placed and if you maintain the multiple brokerage accounts.
The advantage of this platform is that it remains completely transparent about all the involved costs and can enable quicker comparisons as well as calculations. A low overall trading fee structure can ensure the increased profitability of the trading strategies. This is the reason why traders can carefully consider this aspect.
Knowing the withdrawal fees of the platform-
The Plus500 have no internal deposits or the withdrawal fees until the traders exceed the maximum amount of the listed free monthly withdrawals. So at least one is available every month with any additional costs from the platform. But the third party fees are dependent on the payment processor exist and are out of the broker control.
It needs knowing that the withdrawals in the currency other than the account base currency would face the currency conversion fees. Also, more than withdrawal each month must be avoided for avoiding the additional costs.
Moving to the currency conversion fees-
This fee applies each time the traders request for a withdrawal in the currency different from the account base currency. This also applies to every trade made in an asset priced in another currency. For instance, if the account base currency is within Euros and an order is placed on FaceBook CFD that is denominated in US dollars then the plus 500 platforms would charge a 0.505 currency conversion fee upon the trade execution on top of the exchange rate. Some brokers do not charge the additional fees for this service and exchange. Also, the platform adds a small cost which adds up over time and represents an extra income stream.
Spread fees and what does it mean?
The bulk of the trading fees come from the spreads which is the difference between buying and the selling price of the quoted instrument. Depending on trading strategy and the preference, traders might create a list of the low-cost assets thereby avoiding the pricier ones and lowering the final free structure.
Also are there the overnight fees-
The overnight fees or the swap rates apply to the leveraged overnight positions. Some reports suggest that the overnight costs at this broker are more excessive than at the competitors which could not be verified. The plus500 remains transparent about applicable overnight fees which are accessible by clicking on details next to asset name in the trading platform.
Apart from this, there are the inactivity fees. This inactivity applies if no login occurs for the 3 months. This could be avoided by periodically accessing the account but most traders are unlikely to become inactive as long as the portfolio has the cash balance. If we compare this then we find this platform to be cost-efficient.
Above are the plus500 fees details you must know. So get these fees and acquire the advantages.
