Business & Investments

Trading CFDs on Plus500: Key Features, Costs, and Risks Explained

Trading on Plus500 is primarily about CFDs, or contracts for difference. A CFD is a derivative that tracks the price of an underlying market without transferring ownership of that underlying asset.

CFDs can be based on a wide range of markets, including stocks, indices, forex, commodities, and cryptocurrencies, which might make them attractive to traders looking for flexibility and variety. CFD trading allows traders to take long positions if they expect prices to rise, or short positions if they anticipate a decline, potentially profiting from both market directions. However, short positions carry specific risks that traders must understand.

Because CFDs are typically traded on margin, they involve leverage. Leverage magnifies both gains and losses, which is why CFDs are widely described by regulators and providers as complex and high risk.

This article focuses on 3 practical questions for anyone evaluating Plus500 specifically for CFD trading: what the key platform features are, what the real costs look like, and what risks matter most before placing any trade.

What Plus500 Is in Practice: A CFD Trading Provider

Plus500 provides access to multiple markets through CFDs. This structure affects how pricing works, how holding positions can cost money, and how risk controls behave.

Key Features on Plus500 That Shape CFD Trading

Spread-Based Pricing

Plus500 is mainly compensated through the Buy/Sell (Bid/Ask) spread. In practical terms, the spread is the gap between the price you can buy at and the price you can sell at.

Risk Tools

Plus500 includes common position-management tools used in CFD trading, including stop loss (Close at Loss), take profit (Close at Profit), and trailing stops.

In fast markets, standard stop orders may not fill at the exact level you set. This is usually described as slippage.

Plus500 also offers a Guaranteed Stop feature on some instruments. A guaranteed stop is designed to close at the specified stop level even if the market gaps beyond it. This feature comes with a cost, typically implemented as a wider spread, and it is not available on all instruments.

Margin Trading Mechanics

CFDs on Plus500 are traded using margin. Margin is the amount set aside to support an open position. If the market moves against you, losses reduce your equity. If equity falls below the maintenance requirement, Plus500 can close positions automatically. This is why margin risk is not only about being “wrong.” It is also about timing and volatility.

Negative Balance Protection

Plus500 states that retail customers cannot lose more than the funds in their account and links this to its margin call close-out process.
However, negative balance protection is not guaranteed in all jurisdictions. It applies fully in regions where it is required by regulation—such as the UK and the EU— for retail clients, but may be limited or unavailable under certain non-EU/UK entities. For this reason, whether NBP applies depends on the specific Plus500 subsidiary you are onboarded with, and it should be confirmed in that entity’s terms and regulatory disclosures.

Provider and Jurisdiction Differences

Plus500 operates through multiple regulated subsidiaries, and the exact entity you trade with depends on your location. For example, Plus500UK Ltd is regulated by the UK Financial Conduct Authority (FCA), and Plus500CY Ltd is regulated by the Cyprus Securities and Exchange Commission (CySEC). Plus500 also lists regulated entities in other jurisdictions, including Australia.

Separately, Plus500 is publicly listed on the Main Market of the London Stock Exchange (ticker: PLUS) and is described as a constituent of the FTSE 250.

This is especially relevant for instrument availability and regulatory restrictions. Any evaluation of features, costs, and protections should be tied to the exact entity you onboard with, not only the brand name.

Plus500 Costs: What You Actually Pay When Trading CFDs

CFD costs are often a combination of trading costs, holding costs, and account-level fees. Plus500 highlights several key categories.

Buy/Sell Spread

The spread is the core trading cost described by Plus500. It applies when you open and close positions because the executable buy and sell prices differ. The spread you see is instrument-specific and can matter more than a headline statement like “no commission,” especially for short-horizon trading.

Overnight Funding

If you hold a CFD position open beyond the overnight funding cut-off time, an overnight funding amount may be added to or subtracted from your account. This is effectively a financing adjustment tied to holding leveraged exposure over time.

Guaranteed Stop Cost via Wider Spread

Plus500 states that if you use a Guaranteed Stop, it is subject to a wider spread. This is best understood as paying an additional execution premium for stop-level certainty on supported instruments.

Inactivity Fee

Plus500 states an inactivity fee of up to USD 10 per month can apply if you do not log in to your trading account for at least 3 months.

Deposits and Withdrawals

Plus500 does not charge deposit and withdrawal fees, and it covers most payment processing fees, while noting that in some cases third parties (your bank or payment provider) may still charge fees.

Core Risks of Trading CFDs on Plus500

Most serious risks here are not unique to Plus500. They are structural to leveraged CFDs.

Leverage and Rapid Losses

Leverage magnifies outcomes. A small adverse move in the underlying market can create disproportionately large losses.

Plus500 displays a standardized risk warning stating that a large majority of retail investor accounts lose money when trading CFDs with this provider. The exact percentage can vary by entity and region.

Margin Calls and Forced Liquidation

In leveraged CFD trading, losing trades are not the only concern. Margin mechanics can trigger forced position closures when equity falls below maintenance requirements.

Volatility, Gaps, and Slippage

CFD markets can move quickly around macro headlines, earnings, and geopolitical events. When liquidity is thin or price gaps occur, standard stop orders may execute at worse levels than expected. Guaranteed stops, where available, are designed to address stop-level slippage risk, but they introduce an additional cost via a wider spread.

Product Complexity and Behavioral Risk

CFDs are often marketed around flexibility, but flexibility can also increase decision load: leverage selection, stop placement, holding time, and exposure sizing can all amplify errors. Behavioral risks like revenge trading, overtrading, and increasing leverage after losses tend to be more damaging in leveraged products because losses can accelerate.

A Practical Pre-Trade Checklist for Plus500 CFDs

Before placing any CFD trade on Plus500, the most useful checks are simple and mechanical.

Confirm your Plus500 entity and jurisdiction, because product availability and protections can vary.
Check the spread for the specific instrument you plan to trade and assume it can widen in volatile conditions.
If you plan to hold overnight, estimate the likely funding impact and decide whether the holding period still makes sense after that cost.
Decide in advance the maximum loss you can tolerate on the deposited balance.
Treat stop losses as risk controls, not guarantees, and only consider guaranteed stops as a paid feature where they are available.

A Balanced Take on Plus500 for CFD Trading

If you are looking for a factual, non-marketing view, Plus500’s strongest reality-based positives are structural and verifiable:

It is a well-known CFD-focused provider with proprietary platforms designed around CFD workflows.
It offers a demo mode that helps users understand platform mechanics before using real funds.
It operates through regulated subsidiaries, and it is publicly listed in London, which increases corporate disclosure.

None of these points change the core reality that CFDs are leveraged and high risk. The most practical way to evaluate Plus500 is instrument-by-instrument: check spreads, understand overnight funding, factor currency conversion, and treat loss of the deposited balance as a realistic scenario.