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⚠️ WARNING: While Plus500 is a regulated and publicly listed broker, it has attracted a significant volume of user complaints over the years. This review is not an accusation of fraud — Plus500 holds multiple regulatory licenses and operates legally. However, prospective traders should be aware of the recurring issues and complaints reported by users before opening an account. An informed decision is always better than a surprised one.
About Plus500
Plus500 is a well-known online trading platform that offers Contracts for Difference (CFDs) on a wide range of financial instruments including forex, stocks, commodities, ETFs, options, and cryptocurrencies. Founded in 2008, the company is headquartered in Israel and is listed on the London Stock Exchange (LON: PLUS).
The broker holds regulatory licenses from several major authorities including the FCA (UK), CySEC (Cyprus), ASIC (Australia), FMA (New Zealand), FSCA (South Africa), and MAS (Singapore). This multi-jurisdictional regulation provides a level of investor protection that many smaller brokers cannot offer.
Plus500 is primarily known for its proprietary trading platform, which is designed for simplicity and accessibility. The broker does not offer MetaTrader 4 or MetaTrader 5, which is a point of contention for many experienced traders who prefer these industry-standard platforms.
Despite its regulatory credentials and market presence, Plus500 has accumulated a notable number of complaints from users across various review platforms. Understanding these complaints is essential for anyone considering this broker.
Red Flags and Concerns
While Plus500 is not an unregulated scam broker, there are legitimate concerns that traders should consider:
1. Wide Spreads
One of the most frequent complaints about Plus500 involves its spreads. Many traders report that spreads are significantly wider than competitors, particularly during volatile market conditions. Since Plus500 earns revenue primarily through spreads rather than commissions, this cost can substantially eat into trading profits, especially for active traders and scalpers.
2. Account Closures and Restrictions
Numerous users have reported having their accounts closed or restricted without adequate explanation. While brokers have the right to close accounts that violate their terms of service, the lack of clear communication frustrates traders, particularly when it involves accounts with positive balances. Some traders report difficulty accessing remaining funds after account closure.
3. Limited Platform Features
Plus500’s proprietary platform, while clean and easy to use, lacks many features that experienced traders expect. There is no support for automated trading, no MetaTrader integration, limited charting tools compared to competitors, and no social or copy trading features. Traders looking for advanced analysis tools may find the platform restrictive.
4. Customer Service Concerns
Customer service is a recurring pain point in Plus500 reviews. The broker primarily offers support through email and live chat, with no phone support in most regions. Response times are frequently criticized as slow, and many users report receiving generic, unhelpful responses that fail to address their specific issues. For a broker of this size, the quality of customer support is a notable weakness.
5. Verification Delays
Multiple users report experiencing lengthy delays during the account verification process. While KYC (Know Your Customer) requirements are standard across the industry, some traders report verification taking days or even weeks, during which time their trading ability and access to funds may be restricted.
User Complaints We Found
After reviewing hundreds of user reports across Trustpilot, forums, and financial review sites, the following complaint categories emerge most frequently:
- Withdrawal delays: While most users eventually receive their withdrawals, many report delays ranging from several days to several weeks. Some users report being asked for additional verification documents mid-withdrawal, resetting the timeline. These delays are particularly frustrating during volatile markets when traders want quick access to their profits.
- Unexpected account closures: Traders report having their accounts closed abruptly with only a generic email citing “terms of service violations.” When contacted for clarification, support often fails to specify which terms were violated, leaving traders confused and unable to appeal effectively.
- Spread manipulation allegations: Some traders allege that spreads widen dramatically during high-impact news events, far beyond what other brokers charge during the same periods. While spread widening during volatility is normal, the degree reported by some Plus500 users raises questions about pricing fairness.
- Inactivity fees: Plus500 charges an inactivity fee of $10 per month after three months of no trading activity. Several users report being caught off guard by this charge, which can gradually deplete account balances. While this fee is disclosed in the terms, it is not always prominently communicated during sign-up.
- Leverage changes without notice: Users have reported sudden changes to leverage limits on their accounts without prior notification. While regulatory requirements sometimes mandate leverage adjustments, the lack of advance communication creates frustration, particularly for traders with open positions.
- Stop-loss issues: Some traders report that stop-loss orders are not always executed at the specified price, resulting in larger losses than expected. This phenomenon, known as slippage, can occur with any broker during volatile markets, but the frequency of these complaints for Plus500 is noteworthy.
Regulatory Status of Plus500
Unlike many brokers we review, Plus500 is genuinely well-regulated. The company holds the following active licenses:
- FCA (UK): Plus500UK Ltd is authorized and regulated by the Financial Conduct Authority (FRN 509909)
- CySEC (Cyprus): Plus500CY Ltd is licensed by the Cyprus Securities and Exchange Commission (License No. 250/14)
- ASIC (Australia): Plus500AU Pty Ltd holds an Australian Financial Services License (AFSL #417727)
- FMA (New Zealand): Plus500NZ Ltd is a registered Financial Service Provider
- FSCA (South Africa): Plus500 is authorized as a Financial Service Provider (FSP 47546)
- MAS (Singapore): Plus500SG Pte Ltd holds a Capital Markets Services License
Additionally, Plus500 Ltd is publicly traded on the London Stock Exchange, which imposes additional transparency and reporting requirements. This level of regulatory oversight provides meaningful protection for traders, including segregated client funds and negative balance protection in applicable jurisdictions.
Our Verdict on Plus500
Plus500 is not a scam, but it is not without significant drawbacks. The broker’s regulatory credentials and public listing provide a level of security and accountability that many competitors lack. However, the volume of user complaints regarding spreads, customer service, account closures, and withdrawal processing times cannot be ignored.
Plus500 may be suitable for casual, beginner traders who value a simple platform and do not require advanced trading tools. However, active traders, scalpers, and professionals may find the wide spreads, limited platform features, and customer service issues to be deal-breakers.
Our recommendation: if you choose to trade with Plus500, start with a small deposit, test the withdrawal process before committing larger sums, and familiarize yourself thoroughly with the terms and conditions — particularly regarding account closures, fees, and leverage policies.
For general guidance on choosing a safe broker and protecting your investments, visit Investor.gov.
Frequently Asked Questions
Is Plus500 a scam?
No, Plus500 is not a scam. It is a regulated broker with licenses from multiple tier-1 regulators including the FCA and ASIC, and it is publicly listed on the London Stock Exchange. However, it has attracted numerous user complaints about spreads, customer service, and account management practices.
Why are there so many complaints about Plus500?
The high volume of complaints is partly due to Plus500’s large user base — more users naturally means more complaints. However, recurring themes around wide spreads, account closures, and slow customer service suggest genuine areas where the broker could improve.
Can I withdraw my money from Plus500?
Yes, Plus500 does process withdrawals. However, some users report delays and additional verification requirements. It is advisable to complete all account verification steps early and test with a small withdrawal before depositing larger amounts.
Is Plus500 good for beginners?
Plus500’s simple platform interface can be appealing for beginners. However, the wide spreads and CFD-only model (which involves significant risk) mean that beginners should approach with caution and understand that CFD trading carries a high risk of losing money.
What are the alternatives to Plus500?
Regulated alternatives include brokers such as IG, eToro, CMC Markets, and Saxo Bank, all of which offer more advanced trading platforms and features. Always verify a broker’s regulatory status before opening an account.
If you have experienced issues with Plus500, report your concerns to your local financial regulator immediately.
