Plus500 (CFD Service) is one of the best online brokers in Europe to trade using CFDs ( What are CFDs? ) And handles more than 2 million transactions per month.
This broker is duly licensed and regulated (Plus500 UK Ltd is licensed and regulated by the UK Financial Conduct Authority under license FRN 509909. Plus500 CY Ltd is licensed and regulated by the Cyprus Securities and Exchange Commission under license number 250/14. Plus500AU Pty Ltd is regulated by the Australian Securities and Investments Commission under license ACN 153 301 681, AFSL # 417727). It is also registered with other control bodies such as the National Securities Market Commission (CNMV) in Spain.
It offers one of the most intuitive and user-friendly trading platforms, ideal to start trading on the stock market .
What are Plus500 Fees & commissions?
In Plus500 (CFD Service), as in most CFD brokers, there are no brokerage fees , custody fees , currency exchanges, … or any other similar because it operates on the value of financial instruments in instead of physically acquiring them.
Plus500 (CFD Service) works with 2 types of transaction fees :
– The spreads (buy and sell spreads) .
– The night cousin.
The spreads Plus500 (CFD Service) are the difference between the purchase price and the selling price of a financial instrument.
By trading CFDs, the trader can open a buy position (called “go long”) if he believes that the financial instrument (stocks, currencies, stock indices, commodities,…) will increase in value, and will later close that position. through a sale. The trader can also open a sell position (it is called “going short”) if he believes that the financial instrument will decrease in value and will close that position later by buying. In both cases, when opening a position, Plus500 (CFD Service) will present a purchase price and a sale price that maintain a small difference between the two and that is precisely the commission applied by the broker .
In the following example we see that the purchase price of the EUR (euro) against the UDS (American dollar) is at the time of writing this article of 1.3772 and the sale price is 1.3770. If we decide to buy € 2000 to trade against the dollar, the price to pay is 2000 x 1.3772 = € 2754.40, on the other hand, the price at which we could sell it at that moment is 2000 x 1.3770 = € 2754. In this case the commission of Plus500 (CFD Service) is € 0.40
Keep in mind that opening a position will always entail an initial loss for that Plus500 commission (CFD Service) and we will have the opportunity to recover it and earn money if the price of the financial instrument advances in our favor. This commission (spread) varies depending on each financial instrument:
List of Plus500 financial instruments and commissions
Plus500 night premium commission:
If you hold a position open after the market closes , there is a Plus500 commission (just like in most CFD brokers) called an overnight premium for overnight maintenance with the market closed.
The night premium varies according to the financial instrument and whether we have a buy or sell position open . You will see that in sales positions there are instruments in which even Plus500 (CFD Service) pays you a small amount. To know what is the amount of Plus500 commissions for night premium you can go to the detail of each instrument and consult both the closing time of the market for that instrument and the “daily%” of night premium marked as ” Purchase with premium ” for buy positions or ” Premium sale ” for sale positions.
Keep in mind that the value that will be discounted / entered will be calculated in reference to the total amount of the open operation (not the necessary guarantees when working with leverage).
Also keep in mind that if you open a position on a Friday and want to keep it open until the following Monday, the amount of the Plus500 (CFD Service) commission for night premium is usually the daily amount multiplied by three because it is added Friday, Saturday and Sunday.
For these types of commissions, CFDs are usually not suitable for long-term trading. They are usually products to operate on the same day, before the end of the day, or in the short-medium term.
Discover our real experience on how to open a Plus500 account, deposit funds and withdraw money . We show you step by step , with screenshots and we explain all the details you should know:HOW DOES PLUS500 WORK?
Risk Warning: CFDs are complex instruments and have a high risk of losing money quickly due to leverage. 80.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can take the high risk of losing your money.
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