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Plus500 fees explained

Dec 2018
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76.4% of retail CFD accounts lose money
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Overview of Plus500 fees and charges

Plus500 logo

It's safe to say that Plus500's fees are low in general. They either don't charge a brokerage fee for things other brokers do charge for, or they only charge a small amount. This means that you can use Plus500 even in case you trade frequently like multiple times a week or daily.

Here's a high level overview of Plus500's fees

Plus500 Fees snapshot
Assets Fee level Fee terms
US stock fee Low The fees are built into spread. 0.51 spread is the spread cost
EURUSD fee Low The fees are built into spread, 0.6 pips is the spread cost
US tech fund fee - Not available
Inactivity fee Average $10 per quarter after 3 months of inactivity

Plus500 fees
Plus500 fees explained

Online brokerages in general charge much lower brokerage fees than traditional brokerages do - this is largely due to the fact that online brokerages' businesses can be much better scaled: From a purely technical standpoint it doesn't make that much of a difference for them if they have 100 or 5000 clients.

This is not to say however that they don't have any fees at all. They make money by charging you at various events for various rates. Usually you need to keep an eye on these 3 types of fees:

  • Trading fees - these are brokerage fees that you pay when you actually do a trade, i.e. buying an Apple stock or an ETF. What you pay is either a commission, a spread or financing rate. Some brokers apply all of these.
    • A commission is either based on the traded volume or it is fixed.
    • A spread is the difference between the buy price and the sell price
    • Financing rate or overnight rate is charged when you hold your leveraged positions for more than one day.
  • Non-trading fees. These occur related to some operations you make in your account, i.e. depositing money to your account, withdrawing money from it or not trading for an extended amount of time.

We compare Plus500 fees with its closest competitors, eToro and XTB.

Plus500 fees
Plus500 trading fees

Plus500's trading fees are low which makes it suitable for you even if you trade often (i.e. multiple times a week).

Let's break down the trading fees into the different asset classes available at Plus500.

Trading fees

Plus500's trading fees are low.

It is super hard to compare trading fees for CFD brokers. What we did at Brokerchooser? Instead of quoting long fee tables, we compare brokers by calculating all fees of a typical trade for three assets.

For the assets we chose cleverly and arbitrarily:

  • Apple, a large US stock
  • Vodafone, a large European stock
  • EURUSD, a popular currency pair

The typical trade means buying a position, holding for one week, and selling it. For the volume we chose a $2,000 position for the stocks and $20,000 for the EURUSD.

This super catch-all benchmark includes spreads, commissions and financing costs for all brokers.

Here is the verdict.

Plus500 fees benchmarked
Plus500 eToro XTB
Apple benchmark fee $8.9 $0.0 $18.1
Vodafone benchmark fee $7.6 $0.0 $24.4
EURUSD benchmark fee $17.6 $19.1 $17.1

Financing rates

Plus500 financing rates are high.

If you want to trade on margin and prefer to hold your positions long, financing costs can be significant.

Plus500 yearly financing rates
Plus500 eToro XTB
Apple financing rate 13.9% 8.9% 6.0%
Vodafone financing rate 12.1% 8.9% 3.1%
EURUSD financing rate 4.5% 3.7% 4.1%
EURGBP financing rate 3.0% 2.5% 1.7%

Plus500 fees
Plus500 non-trading fees

When it comes to looking at all the non-trading fees Plus500 is an average broker. This means that some of the non-trading fees are high, but the others are low or not charged at all.

Non-trading fees include various brokerage fees and charges at Plus500 that you pay not related to buying and selling assets. Among some others, typical non trading fees are withdrawal fee, deposit fee, inactivity fee and account fee.

A high level overview of how Plus500 stacks up in non-trading fees
Plus500 eToro XTB
Withdrawal fee $0 $25 $0
Deposit fee 0 0 0
Inactivity fee Yes Yes No
Account fee No No No

Plus500 fees
Plus500 deposit fee

Deposit fees are applied when you send money to your trading account from your bank account. Usually brokers don't charge money for that and Plus500 is not different: you will see the exact same amount on your brokerage account that you sent by any of the deposit methods Plus500 offers.

Plus500 deposit methods
Plus500 eToro XTB
Bank transfer Yes Yes Yes
Credit/Debit card Yes Yes Yes
Electronic wallets Yes Yes Yes
Deposit fee 0 0 0

Plus500 fees
Plus500 withdrawal fee

Unlike the majority of the online brokers we have reviewed Plus500 does not charge a withdrawal fee. This means that you'll see the same amount of money on your bank account that you transferred from your brokerage account.

Plus500 withdrawal fees and options compared
Plus500 eToro XTB
Bank transfer Yes Yes Yes
Credit/Debit card Yes Yes Yes
Electronic wallets Yes Yes Yes
Withdrawal fee with bank transfer $0 $25 $0

Plus500 fees
Plus500 inactivity fee

Plus500 does apply an inactivity fee and it is $10 per quarter after 3 months of inactivity. This means that you need to be strategic about your trading activity to avoid getting charged after a longer time of no trade. The fact that Plus500 charges an inactivity fee makes it less ideal for you if you are a buy and hold investor.

Plus500 has average inactivity fee.

Plus500 eToro XTB
Inactivity fee Yes Yes No
Inactivity fee $10 per quarter after 3 months of inactivity $10 per month after one year inactivity No inactivity fee

Read more about Plus500 inactivity fee on their own site.

AUTHOR

Gergely Korpos
Gergely Korpos
Co-founder, CPO
Gergely's aim is to bring more clarity into personal investing. He has 10 years of experience in financial markets with GE Money, KPMG and MOL. He concluded thousands of trades as a commodity trader and financial portfolio manager
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