I don't think Plus500 is a very good option for trading in Australia. If you've been thinking about joining Plus500 make sure you read this post. There are better alternatives available for trading stocks, buying crypto or whatever else you're using Plus500 for.
Here are my top Plus500 alternatives:
The Best Plus500 Alternatives for Trading U.S Stocks
If you're looking to trade or invest in U.S stocks then here are two alternatives that are better than Plus500. Why? Because on these two platforms you're actually buying the underlying assets. On plus500 you are just trading a contract that will expire.
On eToro you can trade U.S stocks with no commissions. This means you can buy stocks like Apple, Netflix, Tesla and more without having to pay any commissions. eToro also has fractional shares. This means you can invest any dollar amount above $50 in a stock to open part of a share. This is great for those stocks like Alphabet which are priced over $1000 each!
Stake is similar to eToro. It lets Australians buy U.S stocks without commissions. They make money when you exchange money from USD to AUD in the form of a conversion fee. It's not at all noticeable though. Stake has a huge range of stocks that you can invest in (thousands) and like eToro you can also buy fractional shares. You could get started with just $10!
The Best Alternatives for Buying Crypto
Plus500 isn't a good place to buy crypto. If you've heard about Bitcoin and are looking to buy and hold it, then you shouldn't do it on Plus500. That's because you're not actually buying Bitcoin. Instead you are trading a contract known as a CFD. CFD's can be powerful trading tools, but they aren't for beginner investors. When you trade Bitcoin on Plus500 you are trading using leverage and the contract you trade will expire. So it's not for holding a long term position.
If you just want to buy Bitcoin then may top recommendation would be CoinSpot. They make the entire process super easy and simple to understand. So if you've never bought Bitcoin before, you'll have no troubles – even if you have no experience with Exchanges.
BTCMarkets is similar to CoinSpot. They too are based in Australia but in opinion they are a bit more difficult to use. The platform is targeted more towards traders rather than individuals looking to buy Bitcoin.
The Best Plus500 Alternative for CFD Trading
Plus500 is a CFD trading platform. While CFD trading isn't for everyone, if you are a trader then it could be an option. I recommend eToro vs Plus500 when it comes to CFD trading. I think eToro has a better interface and it also gives you the option to trade without leverage. Something you can't do on Plus500. Furthermore, positions on eToro don't expire. If you're a day trader, this won't be of concern to you, but if you trade using a longer term strategy then eToro is a better option.
Why I like eToro over Plus500
- Better Designed Platform – it's easier to use and just looks more professional.
- Isolated Margin – if you are trading with leverage, each trade uses isolated margin. This means you can't lose more than what the position is worth!
- Trade without leverage – you can open both leverage and non-leveraged positions. Long stock positions without leverage have no ongoing daily or weekly fees! So you can hold stock trades for longer terms strategies.
- Copy Trading – Has copy trading features where you can automatically copy the trades of more experienced traders.
- Real Stocks – don't just trade CFDs. You can trade real U.S stocks where you own the underlying asset.