Page Summary
Each trader wants to opt for a trustworthy and legitimate brokerage firm. Plus500 is one of the leading online brokers with an expansive portfolio. This broker is listed on a stock exchange and has licenses from the ASIC, DFSA, SEC, MAS, and FCA. It offers mobile two-step authentication and a transparent fee structure.
Broker Comparison
| Plus500 | ActivTrades | Spreadex | |
|---|---|---|---|
| Banking background | No | No | No |
| Broker listed on stock exchange | Yes | No | No |
| Annual financial statements on website | Yes | No | No |
| Mobile two-step authentication | Yes | No | No |
| Broker ownership transparency | Yes | No | Yes |
| Broker management transparency | Yes | No | No |
| Broker is audited by the Big Four | Yes | Yes | No |
All brokers have strengths and weaknesses. This article discusses the safety of online trading with Plus500.
Regulation & Investor Protection
A broker’s safety is revealed through its top-tier licenses and investor protection programs. Plus500 is regulated in the UK, Cyprus, Australia, Israel, UAE, and Seychelles. It has licenses from the ASIC, DFSA, SEC, MAS, and FCA.
Ragulation
| Plus500 | |
|---|---|
| Country of regulation: | UK, Cyprus, Australia, Israel, Seychelles, UAE |
| Investor protection amount: | £85,000 in the UK, €20,000 in other EU countries, no protection for residents of all other countries |
The FCA in the UK offers the Financial Services Compensation Scheme with the protection of £85,000 of each account’s deposits. The SEC offers the Securities Investor Protection Corporation, which covers up to $500,000, including a $250,000 limit for cash.
Banking Background
A banking background contributes to the safety of an online broker. Plus500 does not have a banking history.
Stock Exchange Presence
A broker listed on a stock exchange is trustworthy and versatile. This ensures the online broker follows strict reporting requirements. Plus500 is listed on the London Stock Exchange’s Main Market, a telltale sign of its safety.
Transparent Financial Statements
Even though most traders don’t read financial statements, these reveal insights about an online broker’s practices. Plus500 regularly publishes its annual financial statements on its website. This broker has a transparent fee policy.
Two-Step Authentication
An online trading account must be secured. Plus500 offers two-step authentication, which makes all its platforms safe to use.
Ownership & Management Transparency
Plus500 publicly shares its ownership structure, which contributes to its safety score. This broker is transparent about its management structure. All the necessary information is listed on their official website.
Big Four Auditors
A safe and trustworthy broker is audited by the “Big Four.” These auditors are KPMG, PWC, Deloitte, and EY. The Big Four audit Plus500.
Final Verdict
Plus500 is a leading online broker with a high level of safety. It has top-tier licenses and follows the industry’s highest standards. If you want to learn more about Plus500, you should check our in-depth broker reviews.
Plus500 compared to other brokers:
Plus500 Review
Plus500 Insights
Disclaimer
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Braden Chase is an investor, trading specialist, and former research specialist for Forex.com who helps aspiring investors develop the confidence and habits they need to make an income from the market. Braden has served as a registered commodity futures representative for domestic and internationally-regulated brokerages and has also spoken & moderated numerous forex and finance industry panels across the globe.