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Beginners who are interested in investing and trading certainly wonder how to invest on plus500, or other investment platforms. The choice of broker is very important in this case, since the platform provided by the broker largely determines the success of the investment.
How to invest on Plus500?
Many traders choose to open an investment account with a Plus500 broker. However, how to play on plus500? It is worth knowing that the investment platform is very intuitive to use.
First of all, you need to create an investment account, and then make a minimum deposit. He can choose one of several available ways – by traditional transfers, such as bank transfer or credit card, or online payments, such as PayPal. For accounts that are held with US dollars, the minimum deposit is $100.
To proceed to trading, the investor must open an investment platform. It is important that the broker gives users access not only to the desktop version, but also to the mobile version, designed for mobile devices. To make a trade, the trader must search for the chosen instrument, which he can do using a magnifying glass. Once the instrument is displayed in the platform’s window, the rates and last change will be displayed next to its name, as well as buy and sell commands.
If a trader wants to open a long position on a selected financial instrument, he must click on the command – buy, and if he wants to open a short position, he must click on the command – sell. Before he enters a trade, he should also set parameters such as the amount of leverage, as well as the size and type of order.
Trading on plus500 is very easy, as the platform is easy to use and intuitive. Each type of order has a name so that the trader knows what its essence is. For example, a stop loss order on this platform is called an order to close at a loss.
How to invest in other financial instruments with a Plus500 account? Trading in other markets is basically not much different. It is more difficult to decide what position and on what instrument to take than how to do it.
What is Plus500?
It is an online trading company that was founded in 208 in the UK. The company’s primary goal was to allow retail users to trade CFDs. The company created a platform that allows you to play on currency options. The broker allows trading on instruments such as forex, indices, commodities, stocks, cryptocurrencies (read also: Investing in cryptocurrencies), ETFs and options.
Before a trader learns how to invest on plus500, he should know the features that characterize this broker:
- The ability to invest funds in more than 2,000 CFDs and options on the most popular financial instruments,
- Dynamic and fixed spreads on instruments,
- The application for making investments is available in the App Store and Google Store,
- Support available 24 hours a day, 7 days a week,
How to invest on plus500 in other markets?
On this platform you can invest not only in the Forex CFD market. The broker allows access to many markets, which gives an easy opportunity for a trader to diversify his investment portfolio. How to invest on plus500 in stocks and stock indices?
With the help once again comes a magnifying glass, with the help of which you can find the desired financial instrument. It should be mentioned that you can also search for the instrument by reviewing all financial instruments from the selected market. This way, by the way, you can compare how the selected instrument shapes up against others.
The plus500 platform has a window that houses the so-called “snapshot of movement”. This is a tab under which you can see the balance of your account with a breakdown of the value of your positions in specific markets with leverage. This makes it easier for the trader to make decisions relative to closing specific positions.
As for how to play plus500, a tutorial can also be found on the broker’s website. As already mentioned, in order to see how the platform works, it is best to set up a free demo account, which indicates how everything looks in practice.
Creating a forex demo account is a great solution for people who have not yet invested in Forex CFDs and do not know exactly how everything works. Such an account allows you not only to see what the platform looks like, but also how the market itself works.
With a demo account, a trader can make trades and try out different investment strategies without losing his capital. The demo account gives access to all the functionalities of the investment platform, so the trader gains a complete picture of how to invest on plus500 and how to apply different types of orders.
What about in the case of stock market indices?
In this case, Plus500 has given traders plenty of room for improvement. The platform offers indexes on shares of companies from the Netherlands, Germany or the United States. The exchange gives traders a wide range of choices in futures. When you enter the index tab, a table pops up with the name of the index and the price to buy, as well as the price to sell. Then you can enter a specific index and also see the percentage of buyers and sellers of a specific index. The data is easy to read, so the trader has a lot of room to maneuver when it comes to choosing which elements he wants to invest in.
CFDs are high risk, but they allow you to make a high profit with a small initial deposit (read also: How to invest small amounts of money). You can start your adventure with the stock market with as little as USD 500. However, you need to take into account the fact that the rates change dynamically and are sensitive to market information. A trader should keep abreast of economic information, so he will be able to react quickly to changing trends. So is everyone created to become a trader? Any person interested in this occupation should have nerves of steel and take a cool approach to the investments made. It is worth remembering that you can gain a lot, but also lose.
Is it possible to invest in stocks with Plus500?
Unfortunately, it is not possible to invest in stocks with Plus500, as the broker only allows you to invest in CFDs on stocks, which only allow you to invest either short-term or medium-term, due to the fees charged for holding positions. When buying CFD stocks, the trader does not become an owner of the stock, but plays for the rise or fall of the price of a specific stock, through the use of leverage.
Automatic closing of positions at a loss or profit
It is recommended to automatically close trading positions when they make a certain profit or a certain loss. This can be easily indicated on the order screen, it is enough for the trader to enter automatic closing for profit and loss.
The moment when a trader automatically accepts his loss is 100% not guaranteed. When drastic changes occur in the market, traders can lose a lot. How to invest on Plus500? By setting up automatic closing of positions to limit losses.
What are the commissions on plus500?
According to the information found on the official website, the Plus500 broker takes its remuneration in the form of bid/ask spreads, so when a trader opens a position, he pays the spread. It is included in the amounts quoted by Plus500 and is not an additional fee.
What else is charged for?
- Overnight funding, which is the amount of overnight funding added or subtracted from a trader’s account when a position is held after a certain period of time,
- Currency conversion for all positions to financial instruments in a currency other than that in the trader’s account. The fee is in real time in unrealized profit and loss of the position,
- Commission for stock trading. It is charged from the account when opening and closing positions on CFDs on stocks. It is a percentage of the position or the minimum value, according to the currency of the selected financial instrument. The percentage charged on different currencies ranges from 0.7 – 0.18 percent, depending on the currency,
- A trader inactivity cost of $10 is charged when a trader does not log into the account for three months. From then on, it will be charged once a month until the trader logs into the account once again,
- Guaranteed stop order.
Traders want to know how to invest on plus500, but also what is not charged:
- real-time forex quotes,
- deposits and withdrawals,
- dynamic charts and graphs,
- price announcements,
- live CFD stock price quotes,
- position scrolling.
How to invest on Plus500? Deposits and withdrawals
A trader will learn how to invest on plus500 if he knows how to make deposits and withdrawals from the account. The important thing is that with plus500, funds can be withdrawn in different currencies, but transactions are made in US dollars. Deposits are free of charge, however, it is worth bearing in mind that for those made in currencies other than the US dollar, the broker will apply a currency conversion. Therefore, it is necessary to verify whether it will be more profitable for the trader to purchase dollars at an online exchange office and transfer them to the investment account, or perhaps to deposit currency, which the broker will exchange for US dollars according to its rules.
Read also: Online stock market
How to invest on plus500? Application and platform features
This broker provides the WebTrader trading platform, which runs on a web browser, as well as an application for traders using Android and Apple devices. With these, the trader has access to all the key elements, namely technical analysis tools, charts and various types of orders.
The app and the plus500 platform also offer several additional useful features for traders. These include, for example, free notifications in the form of sms or e-mail, which can inform the trader when a position is opened or closed, or when a specific financial instrument reaches a price or percentage price change. What’s more, access to a real-time economic calendar is also noteworthy, as well as to the financial results of major companies.
After creating an investment account and logging in to the service, the trader turns out to switch the site’s functionality and access to its tools, which is possible primarily through the panel on the left side of the screen.
Menu – Plus500
In this tab, the trader can manage funds through deposits and withdrawals, as well as track his account history. The menu also allows the trader to manage account settings, such as security and notifications. From here you can also log out and switch to a demo account.
Also worth noting in this tab is the economic calendar, which allows you to track key economic data that has been or will be published. This type of information can be important for any investor.
This is the default tab, which opens after logging into the account. It allows the trader to access the main window of the platform. How to trade on plus500? In the default layout, the left side houses the asset classes that traders can invest in, such as indexes, commodities, cryptocurrencies, stocks, Forex, ETFs, options, etc.
After selecting an asset class, the trader gains access to a list of them, from which he can choose the right instrument. Selecting an instrument by clicking on it, opens its chart in the lower panel of the platform. Of course, it is possible to enlarge it. Trading on plus500 of a given instrument is possible by selecting sell or buy options.
A useful feature is the information tab that applies to a particular instrument, which appears when a trader selects the button with the letter “i”. Then he can use a great tool that gives a lot of events and information that are related to a specific instrument.
If a trader has made trades, he can check the open positions just in this tab. In turn, the “orders” tab allows the trader to track executed and pending sell or buy orders.
In closed positions, on the other hand, it is possible to track how the closed positions looked like and, among other things, what their opening and closing price, value and, in particular, what profit or loss they made.
This tab allows easy access to the same options that are available in the “Funds” tab in the Menu option. Here you can check your deposit balance, capital, as well as make deposits and withdrawals. “Account snapshot” will allow the trader to trace the chart of the account history, while “reports” will make statements of the account.
How to invest on plus500? Two options for pleasant investing
It is also worth mentioning 2 useful features that give more comfort to those using the platform.
Successful trading sometimes requires prolonged and intensive analysis, and this involves spending time staring at the screen. To save your eyesight, it is advisable to use the “dark mode” function, which is available in the lower left corner of the screen. When you click the switch, the trader will change the mode to night or day again.
For instant access to a favorite financial instrument, all a trader has to do is enter the name of the instrument in the top panel – Search for Instruments. The plus500 platform is designed to bring together multiple asset classes in one simple system that is fun and convenient for any trader.
Risk management on the plus500 platform
When opening a position, a trader can use the automatic closing function to limit losses, as well as the profit realization, or take profit. The stop loss function defines the moment at which the trader automatically takes a loss, while take profit is the moment when the trader automatically takes a profit. Stop loss is worth using in every investment undertaken, so that the trader will always be aware of what maximum loss is associated with a particular action.
If a trader wants his investments to be successful, he must set the take profit value 2 times higher than the stop loss. For example, when a trader wants to lose a maximum of $10 on an open position and potentially wants to earn $20, he will have to make the right decision 50 percent of the time.
How does the stock market work?
Before a trader starts trading on plus500, he should learn the rules and details that govern the stock market. This is very important in order to understand the whole philosophy behind stock trading, as well as how prices are determined. With such knowledge, it is possible to understand how to best use the potential of the plus500 platform.
Demand and supply
The price of any CFD is the result of a clash between demand and supply. If there is an increasing number of people who are willing to buy specific shares, the price also rises. On the other hand, if everyone wants to get rid of specific shares, the price is likely to go down.
Thus, one can conclude that to be a good trader, one does not have to try to outperform other players, but only adjust one’s actions and behavior to the situation that prevails in the market.
Relationship on the news
Investing is nothing but a psychological game. Usually it is difficult to predict the behavior of a specific individual, but with the whole group the matter is much easier. When investing, it is advisable to reason like an average person.
It is necessary to analyze and memorize the movements of certain traders, as well as avoid behavior that seemingly seems rational. The value of a share does not always reflect the real value behind a particular company. It is worth trying to function as part of a group. When bad news is published, the stock prices usually go down immediately.
On the other hand, positive news also has a huge impact on the market. When the economy is booming, the stock market also experiences good times. A company that publishes great statistics will most likely trigger an increase in its shares. However, the drop in value that will be caused by bad news is much steeper than its increase after the announcement of positive news.
Investing in the plus500 has quite a few advantages, and certainly one of them is the opportunity to make money from market volatility, or fluctuations in prices. It is important to keep in mind that during the course of an investment, a trader can make a lot of money, but also lose a lot. There is always a risk that comes with trading, so it is worth bearing in mind that you can lose your money, especially at the beginning of your journey with investing. Negative news is not always bad for investors who actively speculate on financial markets.
The plus500 platform allows you to open so-called short positions, and this gives you the opportunity to place orders when prices fall. Markets that are on the verge of a crash can prove to be a great environment for traders who use the plus500 platform.
Therefore, the question arises – how do you know the right time to open an investment? The following will discuss how to plan your investments.
The market and horizontal levels
In order to properly approach making investments and start trading on the plus500, you need to know the answers to such questions as how to identify the current trend, how to invest according to the prevailing trend, how to identify horizontal levels and what to do in case of consolidation?
Identifying the trend
The plus500 platform allows you to zoom in and out on the charts. In addition, the owners of the portal have also provided for a chart adjustment function. When it comes to setting every one minute, each period is 60 seconds, and if set every 1 week, it extends the period to one week. Longer periods are usually not helpful when it comes to predicting future price structures.
With any timeline, there is always a preview of the prevailing market situation. To determine the overall trend, you need to analyze the rates over a long-term time frame. There are 3 basic downward trends:
- Rising trend – in general the price goes up, the trader is waiting for the right moment to buy,
- Declining trend – generally the price goes down, the trader waits for the right moment to sell,
- Consolidation – then the price floats between two specific points and at such a moment no trend exists.
Trading on the basis of trends
If there is a clear trend l in the market, you need to follow it. If a trader uses the plus500 platform to trade and notices that the price is going up, he should make a buy. Otherwise, the share will have to sell.
When opening a position, the trader should be guided by technical reasons. When a trend appears, the price starts to follow it. This type of phenomenon is called an impulse. It is followed by a slight drop in price, which is called a correction.
The chance of success is greatest when a trader opens a position immediately after the correction. During an uptrend, you need to buy immediately after a momentary rise. You can confidently stick to this strategy until a trend reversal occurs, i.e. a change in the direction of the trend.
Recognizing horizontal levels
Probably many people who are interested in trading on the plus500 are wondering how to sense the right moment to make a trade? The key is horizontal levels. And what is a horizontal level? It is a level that is repeatedly reached by the price, but at the same time not exceeded by it. A low horizontal level during an uptrend is called support, while a higher horizontal level during a downtrend is called resistance.
The plus500 platform allows you to outline horizontal levels. To activate this feature, you need to use the 3 icon at the top of the chart.
Price maneuvering and proper timing
From this section you can learn how to use price charts to improve performance.
Using candlestick charts
A line on a chart doesn’t really reveal much. That’s why efficient traders opt for candlestick charts. These types of charts help in recognizing, for example, a price maneuver, and this in turn makes it much easier to predict future changes. The plus500 platform allows you to switch to candlestick chart mode by clicking on the appropriate button.
A candlestick chart always relates to a specific period of time, for example, it can depict price changes during a single stock market session. A candle is composed of a body, which is filled with color, and a shadow protruding from it. The color of the body depends on whether the market trend is downward or upward. Red is the price closed lower, and green is the price closed higher. The shadow, on the other hand, indicates what price was reached in a certain period of time, that is, how high or how low it went.
Plus500 account – real and demo
The best way to see if an account with this broker will be the right choice is to open a free account with it. Registration takes several minutes and involves providing personal and contact information, as well as attaching a scan of an ID card and a document that confirms your address. What’s more, in order to start trading on plus500, you have to answer a few questions that relate to the trader’s investment knowledge, as well as on how CFDs work. This is a standard procedure that brokers are always required to do.
After setting up an account, one can log on to the investment platform, through an established login and password. It should be noted that traders who stand out for high account activity can use the actual account in the professional version. In this case, they get access to a much higher leverage, but no protection against negative balance.
To learn how to play plus500, instead of immediately setting up a real account, it is advisable to start by playing with a demo account. In this case, all you need to do to register with the system and check and test the offer by trading with virtual money is to provide an email address and a password to log in. You can also log in using Facebook.
Cancellation and deletion of an account in Plus500
If for some reason the platform does not suit the trader or he simply wants to stop using the services of this broker, he can delete his investment account. He should keep in mind that otherwise he may be charged for inactivity. To do this, he should send an email to the broker with a request to close the investment account. Then the trader will receive a return message with a link and information on further procedures and proceedings.
Why choose plus500?
Plus509 one of the most popular and largest CFD brokers around the world. It is also one of the sponsors of Legia Warsaw football club, which has influenced its popularity. Why do traders decide to choose this broker?
They are certainly encouraged by Plus500’s broad offering. The broker gives its users access to more than 2,000 financial instruments. Among them are CFDs on cryptocurrencies, stocks, currency pairs, commodities, indices and ETFs. The broker’s offer also includes popular instruments, such as CFDs on gold, but also less popular ones, such as CFDs on coffee.
Investing on plus500 is attractive to traders because the broker operates on a Market Maker model. This means that it does not charge commissions for running and closing positions. It is also worth noting that, as one of the few brokers, it also does not charge commissions for accessing real-time quotes, making deposits or holding positions.
Many traders choose to open a trading account on plus500 also because of its low transaction fees. There are also those who take advantage of the broker’s offer because of access to a variety of useful tools, including a trader’s guide and an economic calendar.
Plus500 – advantages and disadvantages
Plus500 broker is a good choice especially for beginners (read also: Forex for beginners). It features a simple interface that does not on complicated functions and offers a limited number of financial instruments. This broker is sure to satisfy a person who is just beginning his advantage with investments. Its advantages are primarily:
- Easy-to-use investment platform,
- A wide selection of CFDs,
- Regulated, global broker,
- Quick as well as intuitive registration procedure.
Disadvantages, on the other hand, include:
- Lack of actual stocks and ETFs,
- Lack of advanced technical analysis tools.
How to invest at XTB?
An investment account with XTB is one of the cheapest accounts that allow you to trade stocks, which are listed on the Warsaw Stock Exchange. The account has many advantages, including free professional investing courses, while disadvantages include lack of access to the Catalyst bond market or derivatives trading. However, the broker does give you the option to fill out a W-8BEN form, so you can reduce the dividend tax on US stocks from 30 to 15 percent.
How to invest on XTB? You need to set up an investment account, the maintenance of which can easily be obtained for free. It is enough for the trader to make at least one transaction or purchase any stocks in a certain year, and the broker will not charge a fee. XTB also does not charge a fee for stock trading in case of a monthly turnover of 100,000 euros.
Among the financial instruments made available, you can find shares of all major domestic companies, including PKO BP and KGHM. With the accounts you can also invest in stocks listed on the NewConnect, but in this case its offer is limited to more liquid companies.
How to invest on eToro?
After registering, which is quick and easy, the investor must pay an initial deposit and then can proceed to make investments. eToro’s most popular feature is CopyTrader, which allows users to observe each other and copy each other’s movements.
A free forex demo account with $100,000 is available to users first. How to invest on eToro? In a real account on eToro, you can invest in stocks with a 0% commission, open short positions or leveraged positions based on contracts for difference. You can use ProCharts to perform technical analysis.
The eToro broker offers many useful tools, such as stop loss orders, trailing stop loss orders, One Click Trading, and you can create a personalized watch list.
How to invest at Admiral Markets?
Admiral Markets is a broker that offers the possibility to trade on both a browser platform and a mobile application. It offers advanced analytical tools for effective analysis, optimization and risk management.
More than 4,500 instruments from various US exchanges are available at this broker. Moreover, interactive courses and webinars are available. You can invest from as low as $0.02 per share on U.S. stocks, making 1 transaction per day without commission.
How to invest on Meta Trader 4?
The Meta Trader 4 investment platform is one of the most popular tools for conducting investments. How to invest on Meta Trader 4? All you need to do is download the smartphone application, which is completely free. The buying and selling process is very simple. All you have to do is enter the size of the position in the field – volume, and then choose either sell or buy and set – type to market execution. Establishing a short position involves selling a financial instrument that you do not own.
Read also: Making money on forex
CFD trading on MT4, on the other hand, is basically no different from Forex trading. On this trading platform you can trade on several accounts at the same time. Meta Trader 4 has a newer version, Meta Trader 5, but the former has a much larger user base.
How to invest on Plus500? Summary
It is worth remembering that trading in the stock market does not require superhuman strength. It all boils down to the ability to deal with emotions and manage risk. When making an investment decision, it is worth making sure that the profit will be higher than the trader can pay back.
If a trader sees a decent price maneuver at a clear horizontal level, he should take the position. It is worth mentally setting yourself up for setbacks, as it is not always possible to win. No one can predict prices with 100% efficiency. That is why you should use the automatic loss limitation feature.
How to invest on plus500? Of course, a theoretical guide can help with this, but practice is also important. To test the investment platform and learn how to trade on it, it is best to set up a demo account, which is free and traded with virtual money.