Plus500 Demo Trading Accounts
All newbie investors at the broker Plus500 begin with a free demo account, so that they can familiarize themselves with their unique CFD trading platform. This is a very important step at the beginning of your investing journey. You need to properly understand the way that their software works, so that you will not be stuck when you are ready to invest or make a trade.
It is a good thing that Plus500 gives all their new customers a free demo account. You will be able to see order types, margin requirements, stop loss and take profit settings.
Demo Accounts vs. Real Accounts.
A Demo Trading Account is the perfect way to test out your newest trading strategy. If you are building an algorithm, you would have to be crazy to not first test it on a demo account.
There are a few differences in a demo account, as opposed to a real account.
- The money in your account is paper money, therefore, if you lose $10,000, you can start again.
- Psychologically investors are not as cautious when using a demo account. This causes them to place riskier trades, and sometimes gain huge profits, which are fake.
- All trades will execute on a demo account, but in a real account there are sometimes liquidity issues which will prevent an execution.
- The market price on a demo account many times is not 100% accurate. Spreads may be show as being tighter than in real market conditions.
- Some brokers do not show all available underlying assets in the demo account.
How to Open a Plus500 Demo Account?
In order to open a demo trading account at Plus500, you will need only need a valid email address, and your chosen password.
Go to: https://plus500.com/
Once there, enter your Full Name and Email Address. After you click on Create Account, they will take you to the next screen which asks for your mailing address, along with a couple of questions to ensure your are qualified to invest.
This broker is unique in their trading platform. They have a web based platform, along with mobile apps, and a Windows app.
Comparing Forex Brokers
Many Forex brokers are international companies, offering their investing services to investors all over the world. Some have restrictions on the accepting clients from sanctioned countries, and others do not accept from leading countries. For instance, American brokers do not accept clients from the United Kingdom and vice versus. So, it is always important to find a broker that is licensed by your government’s monetary authority.
Local brokers are better because of a few reasons.
- They are licensed in your country, and your money is secure.
- Spreads on Forex pairs with your local currency are tighter. For example; Australian Forex brokers have tighter spreads on AUD/USD than an Estonian or St Vincent based Forex broker.
- Latency, which is the amount of time it takes to confirm an order, happens faster. Although the internet is very fast, you may find latency issues when connecting from CapeTown to a broker in London.
Plus500 Summary Review
Plus500 is a popular Forex CFD broker with offices worldwide, offering CFD investors and day traders alike, the ability to invest in a regulated trading environment.
They have a wide range of products to trade CFD’s. You will find Forex Currency Pairs, Crypto Currencies (Bitcoin, Ethereum, Ripple), Commodities (Oil, Natural Gas), Metals (Gold, Silver, Platinum etc.) and Market Indexes (S&P 500, Nikkei, Nasdaq).
Disclaimer: 80.6% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.