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The ability to manage your trades comes with several perks, especially if you are an expert trader. You can shape your strategy, optimize your profits, and reduce losses with real-time information.
Online brokers make it possible to trade different instruments, such as stocks, forex, indices, ETFs, etc. They combine these services into a single platform, allowing users to manage their trades without switching between them. Still, more brokers keep making their websites and apps easier to use and better for traders who are new to the market.
The functionalities continue to improve as the focus shifts from PCs to mobile devices. As a result, you can manage your trades from your smartphone without hiccups. Some online brokers go beyond providing financial instruments.
Before you make your pick, here are the types of online brokers you should consider:
- Brokers that provide additional investment, retirement, and tax advice to their trading services (full-service brokers).
- Robo-advisers that are highly automated using powerful algorithms and artificial intelligence
- Discount brokers that are highly affordable but miss out on advanced services like investment advice.
- 1 Overview of Plus 500 and Trading 212
- 2 Plus500 vs. Trading 212
- 3 Service, Fees, and Customer Support
- 4 Conclusion
Overview of Plus 500 and Trading 212
|💰 Account Minimum||$100||0 USD/EUR/GBP|
|💸 Commission Fees||Plus500 offers most services free of charge, earning compensation from tight Bid/Ask spreads. Possible additional fees include overnight funding, guaranteed stop orders, and inactivity fees. No deposit or withdrawal fees are charged, but third-party fees may apply.||Plus500 has no hidden fees and offers most services for free, earning money through narrow Bid/Ask spreads. Possible additional fees include overnight funding, guaranteed stop orders, and inactivity. No fees are imposed for deposits and withdrawals, but third-party charges may apply.|
|💼 Investment Options||Stocks, ETFs, Indices, Cryptocurrencies, Options, Commodities, Forex, and more||Stocks, ETFs, Indices, Cryptocurrencies, Options, Commodities, Forex, and more|
|🤖 Robo-Advisor||Not available||Not available|
|📊 Research and Analysis||Provides market news, economic calendar, earnings calendar, and basic charting tools||Offers real-time news, price alerts, economic calendar, earnings calendar, analyst recommendations, and advanced charting tools|
|📱 Mobile App||Available for iOS and Android devices with similar features to the web platform||Available for iOS and Android devices with similar features to the web platform|
|🏦 Retirement Accounts||Not available||Not available|
|🎓 IRA Accounts||Not available||Not available|
|📈 Trading Platform||Proprietary web-based platform with a user-friendly interface and basic charting tools||Proprietary web-based platform with advanced charting tools, customizable interface, and price alerts|
|📞 Customer Service||Offers 24/7 customer support via email, WhatsApp and live chat, but no phone support||Offers 24/7 customer support via email, phone, and live chat|
|📚 Educational Resources||Provides basic educational materials, including video tutorials, articles, and a demo account||Offers a wide range of educational materials, including video tutorials, articles, webinars, and a demo account|
|🌕 Fractional Shares||Available for some stocks and ETFs||Available for most stocks and ETFs|
|🌱 Socially Responsible||Offers a limited selection of socially responsible ETFs||Offers a limited selection of socially responsible ETFs|
|🌎 International Investing||Allows trading on global markets||Allows trading on global markets|
|💳 Cash Management||Offers a cash balance feature||Offers a cash balance feature|
|🔍 Margin Trading||Available for some instruments with leverage up to 1:30||Available for some instruments with leverage up to 1:30|
|⚙️ Options Trading||Offers options trading on select instruments||Offers options trading on select instruments|
|₿ Cryptocurrency Trading||Offers a wide range of cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and more (availability subject to regulation)||Offers a wide range of cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and more|
|🛡️ Account Security||Offers 2-factor authentication and negative balance protection||Offers 2-factor authentication and negative balance protection|
|💹 Leverage||Offers leverage up to 1:30 for retail clients and up to 1:300 for professional clients||Offers leverage up to 1:30 for retail clients and up to 1:200 for professional clients|
|⚖ Regulation||Plus500UK Ltd is authorized & regulated by the FCA (#509909); Plus500CY Ltd is authorized & regulated by CySEC (#250/14); Plus500AU Pty Ltd is regulated by ASIC (#417727).||Trading 212 UK Ltd. is authorised and regulated by the FCA (#609146); Trading 212 Ltd. is authorised and regulated by the FSC Bulgaria (RG-03-0237).|
Plus500 vs. Trading 212
Selecting the right online broker is a critical decision for individual investors looking to navigate the world of investment opportunities. In this comparison, we will examine two well-established online brokerage firms, Plus500 and Trading 212. Both companies offer a wide range of investment products and services, but they also have notable differences in terms of fees, platform usability, research tools, and additional services. By comparing the pros and cons of each broker, we aim to provide a comprehensive analysis that will help investors make an informed decision based on their unique needs and preferences.
Plus500 is a popular online broker offering a variety of investment products and services, including CFDs on stocks, indices, commodities, cryptocurrencies, and more. In this module, we will explore the pros and cons of Plus500 for individual investors looking to open an account and compare them with Trading 212, another well-known online broker.
The Benefits and Drawbacks of Plus500
- Wide range of CFD products
- Simple and intuitive platform
- No commission fees
- Limited research tools
- No direct stock trading
Plus500 is a suitable choice for investors interested in CFD trading and those who prioritize a user-friendly platform. However, for investors looking for more research tools or direct stock trading, Trading 212 may be a better fit.
Trading 212 is a leading online broker known for its extensive range of investment products and services, including stocks, ETFs, CFDs, and more. In this module, we will discuss the pros and cons of Trading 212 for individual investors and compare them to Plus500, another popular online brokerage firm.
The Benefits and Drawbacks of Trading 212
- Direct stock trading
- Comprehensive research tools
- No commission fees
- Complex platform
- Higher fees for CFD trading
Trading 212 is an excellent choice for investors who value direct stock trading options, comprehensive research tools, and no commission fees. However, for those prioritizing low CFD trading fees and a more user-friendly platform, Plus500 might be a better option. When deciding between the two brokers, individual investors should consider their specific needs and preferences to make the best choice.
Service, Fees, and Customer Support
Unlike other online brokers that offer their services on several platforms, Plus500 has only one trading platform. You can use the version on the web or download the app to your Android or iOS device. Either way, you will have the same functionality despite the difference in layout.
All instruments on Plus500 are available for trading with CFDs, and they include the following:
- Cryptocurrencies (Availability subject to regulations.)
The top cryptocurrencies you can trade include Bitcoin, Ethereum, the Crypto 10 Index, Cardano, Bitcoin Cash ABC, etc. When you click on any of them, you’ll get more information like spread, leverage, and one-week price movement.
Indices are grouped by country and sector. That helps you filter the options before you start any trade. It is a minor but clever move instead of packing everything into one section.
The forex section offers different currency pairs. You can pick one and trade, provided you have enough funds in your account.
Apart from the markets, Plus500 offers news and market insights to keep users informed. You can also sign up to get price, change, and trader sentiment updates via email, SMS, and push notifications.
Plus500 adds risk management tools to its services, which include the following:
- Close at a profit or close at a loss (stop limit or stop loss)
- Guaranteed stop
- Trailing stop
Before opening a trade, specify a stop limit or a stop loss. While it offers risk management, your trade may close at a different price than you provided. There may be a slight slippage if the market price dips or rises suddenly.
A guaranteed stop is what you need for absolute control. However, it is only available on a few instruments, and it costs extra to add it.
Plus500 has reasonable fees for beginners and experts who want to make the most money possible. It has zero charges for the following:
- Opening and closing trades
- Rolled positions
- Graphs and dynamic charts
- Forex quotes in real time
- Buy/Sell Spreads: Plus500 does not charge additional fees or commissions above the quoted rates. The Buy/Sell spread is incorporated into the quoted rates when you open a position.
- Overnight Funding: When holding a position after a certain time, referred to as the “Overnight Funding Time,” an overnight funding amount is either added to or subtracted from your account. More information can be found on their website.
- Currency Conversion Fee: For trades on instruments denominated in a currency different from your account’s currency, Plus500 charges a Currency Conversion Fee. This fee is reflected in real-time in the unrealized profit and loss of an open position.
- Guaranteed Stop Order: This unique order type helps manage risks by guaranteeing the stop loss level. If you choose to use this feature, be aware that it is subject to a wider spread due to the guaranteed position closure at a specific requested rate.
- Inactivity Fee: If you do not log in to your trading account for at least three months, an inactivity fee of up to $10 per month will be levied. This fee will be charged monthly as long as no login is made to the account.
Plus500 does not charge fees for deposits, withdrawals, live share CFD prices, real-time forex quotes, opening or closing trades, dynamic charts and graphs, or rolling your position. However, third-party fees may apply for international credit/debit card transactions, incoming/outgoing bank transfers, and transactions using a currency that is not supported. These fees are determined and levied by your payment issuer or bank, not Plus500.
You can perform the above functions without paying a dime. Nevertheless, the standard spreads apply. Plus500 incorporates this fee into your rates.
Apart from the regular spreads, the online broker has other charges as follows:
- Overnight funding: This charge can come as a deduction or addition if you hold a position beyond the fixed time.
- Currency conversion: This fee is applicable if you participate in a trade dominated by another currency other than your own.
- Guaranteed stop order: Adding this risk management tool to your order results in a wider spread.
- Inactivity fee: Staying inactive (without logging into your account) for three months attracts $10 per month. The platform will stop charging once you log into your account.
Plus500 offers 24/7 customer support in multiple languages. Even though the support is available in more than one language, there is no phone number or live chat. Users can only use the FAQ section or email the customer service team.
The “Frequently Asked Questions” section is very detailed. It can take care of most needs, but you can always forward an email for more pressing challenges.
CFDs are a leveraged product and can result in the loss of your entire balance. Trading CFDs may not be suitable for you. Please consider whether you fall within Plus500’s Target Market Determination available in their Terms and Agreements. Please ensure you fully understand the risks involved.
Trading 212 offers commission-free trading, no hidden fees, and competitive spreads. It offers them via its desktop platform or mobile applications. Also, there is negative-balance protection across all its channels.
Using this platform, you can trade stocks, indices, commodities, and forex. It does not support cryptocurrencies as you would have them on Plus500. However, it offers automated trading with its Pie and AutoInvest platform.
This service allows users to diversify their portfolios among thousands of stocks and ETFs. Once everything is set up, you can set your investment plan to run automatically and put your dividends back into the pie. In addition, you can adjust how much allocation you give to each section of your pie (assets).
The broker adds a social dimension to its Pie and AutoInvest platform. You can view other pies from the library, comment on them, and add them to your portfolio. That functionality is the online broker’s way of providing copy trading to its users.
Popular instruments on the platform include the following:
- Elf Beauty
- Vanguard S&P 500
- Meta Platforms
The online broker has instant trading capabilities. That means you only need to select the company, set how much you want to invest, and you will get the shares immediately after ordering.
Trading 212 has a modest fee structure. Most of its charges come from transactions, not features. Still, you will be satisfied with most of them.
With this online broker, you can begin trading with as little as $/€1. However, the least you can deposit using a bank wire transfer is $/€10. Bank transfers have no deposit charges, regardless of the amount.
If you opt for credit and debit cards, Google Pay, or Apple Pay, a standard fee of 0.7% will apply to deposits above $/€2,000. Still, there are no fees for any withdrawal method, and you can take out as little as $/€1.
While there are no commission charges, you will pay 0.15% for any currency conversion. Trades are available for as little as $/€1.
The customer service team can take care of your problems in an average of 20 seconds. If you use the mobile app, go to your menu and scroll until you see the “Contact Us” button. Click it and pick which channel you want to use.
You can send your complaints via email or the platform’s request form. Either way, the support team will reply as soon as possible.
The help center is another way to sort out your challenges. You can search by key phrases or type your question in full. Some featured articles help you get started on the most recent topics.
In conclusion, both Plus500 and Trading 212 are reputable online brokers with distinct offerings that cater to different investor needs. Plus500 stands out for its comprehensive selection of CFD trading opportunities, simple and intuitive platform, and no commission fees. On the other hand, Trading 212 shines with its direct stock trading options, comprehensive research tools, and no commission fees.
Ultimately, the decision between Plus500 and Trading 212 will depend on each individual investor’s priorities and preferences. It is essential to carefully consider factors such as trading fees, investment options, research tools, and platform usability when making this important choice. By taking the time to compare these two brokers, investors can ensure they select the platform that best aligns with their financial goals and investment strategies.
Recommendations to Get the Right Broker
Plus500 features more financial instruments than Trading 212 and supports cryptocurrency trading as CFDs. It is the better platform if you want a broader market for your trades. However, Trading 212 introduces automation and portfolio copying with its Pie and AutoInvest section. It will be the better choice if you care about copy-trading.
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