Are you looking for a user friendly platform to trade CFDs in South Africa? One of the more popular ones is Plus500. Plus500 offers CFD trading in Shares, Forex, Indices, Commodities and ETFs”.
Plus500 is well regulated and includes licensing by the FSP in South Africa. Full disclosure below:
Plus500AU Pty Ltd (ACN 153301681), licensed by: ASIC in Australia, AFSL #417727, FMA in New Zealand, FSP #486026; Authorised Financial Services Provider in South Africa, FSP #47546. You do not own or have any rights to the underlying assets. Please refer to the Disclosure documents available on the website.
Please note: Your Capital is at Risk
Accounts Available
Plus500 only has two accounts, demo and standard. Just choose the one you want and follow the simple sign up process. The standard account (real money account) is great for traders who have experience trading. If you have never traded CFDs, open a demo account to try Plus500 before you deposit money.
It is very easy to switch from demo to standard account. Enter all the pertinent details and click the Create Account button. The demo account is traded with virtual money. When you are ready to use real money, just select the option from the menu.
Deposit and Withdrawals
You can deposit or withdraw money via wire transfer, MasterCard, VISA, Skrill and PayPal. The withdrawal option is in the Funds Management section, and it usually takes just a few days for the withdrawal process to begin. Assuming all your financial formation is up to date, it should take 1 to 3 days before you get your funds. The time frame for processing a withdrawal request is normally within one business day, in order to allow Plus500 to complete various security checks before initiating payment. Please note that withdrawal times are subject to standard bank processing times.
Spreads and Commissions
Most CFD brokers charge spread fees and commissions, but Plus500 does not impose any commissions so it does not eat into your profits.
Trading Platforms
The web based trading platform should suit most traders as that is where they do most of the trading. However, for those on the go and prefer mobile, you can always use their mobile app instead. The mobile app works on the iOS, Android and Windows mobile. The iOS app works on both the iPhone and iPad while Android version works on various systems.
If you are a trader who prefers to trade with platforms such as MT4 or CTrader then Plus500 is not for you. CFDs are complex financial instruments and therefore, are not appropriate for beginners.
User Interface and Features
The Plus500 trading platform is intuitive and it is separated into several parts for easy navigation. The main screen displays your trades, charts and assets, while on the left side are all the functions necessary to perform trades. Users can modify the chart and turn it into a candlestick or line chart as it suits their needs.
A well-designed forex broker service comes with technical indicators, and Plus500 has the essentials for both new and advanced trader. There are tools to help you analyze these charts while advanced traders can overlay it for a more comprehensive assessment of price action and movements. The chart time frame can be set from 1 minute to 1 week views.
Forex traders in South Africa will also appreciate its various risk management tools. CFDs, just like stocks, have risks associated with it that every trader needs to be aware of. Once you have opened an account, you can access all these risk management resources like price alerts, trailing stop, guaranteed stop, close at loss, close at profit and more. If you’re new to forex trading then you’ll need to learn what these are about.
- Close at profit means your trade closes automatically once you have attained the desired profit level.
- Close at a loss: this allows you to close a position once the price hits the target stop loss level.
- The guaranteed stop means Plus500 will set a limit on your losses even if there’s slippage. This is one of the broker’s most useful tools especially if it’s a volatile market.
- Price alerts: as you might expect, a price alert will notify you once the trade has reached a particular price. Unlike a stop order, a price alert will not close the trade but just notify you of the price.
These are just some of the risk management features you’ll come across when using Plus500. As these brief descriptions show, these functions are very important and it’s critical that you learn what they are. One of the reasons why some traders fail to profit is not taking the time to learn how risk management tools work. Armed with this knowledge you’ll be in a better position to execute trades.
Safety and Security
Plus500 is one of the top CFD brokers in South Africa, a position it has maintained by putting premium on the safety and security of their clients’ data. Plus 500 and its subsiduries also follow regulations in Australia, the UK and Cyprus. In addition, the company also offers other features for their clients:
- Segregated bank accounts are used for client deposits.
- Plus500 uses its own funds for hedging, so none of its clients’ funds are affected.
- Your funds do not get exposed to sovereign or corporate debt.
- Retail client money is not invested.
Customer Support
Plus500 customer support is available 7 days a week via live chat and email. Any method will do as the company’s tech support has proven itself time and again capable of delivering prompt answers.
The live chat option is particularly valuable for a lot of users especially the new ones. For instance, if you are having problems creating a new account, just click the live chat option and someone will help you.
Pros
- Well Regulated
- Free demo account
- Zero commission
- Trading Software is easy to use
Cons
- Doesn’t have the Meta Trader platform
Verdict
Trading in South Africa is made better with a CFD broker like Plus500 behind you. The service is reliable and their WebTrader platform is easy to use. With so many features Plus500 is sufficient to satisfy the needs of new and advanced traders.
SUMMARY
No reviews yet
