Can you make living trading on Plus500?
There are traders who are really successful on trading online with CFDs. Some of them are earning literally fortune each month. But to be honest, it is extremely difficult to be one of this really superb traders earning a fortune month after month. Usually each broker has less than 1% of super successful traders who cash out each and every month more than 7 figures profits.
But, you don’t have to be one of those super successful traders who are able to make really crazy profits to be financially successful. If you are happy with lets say 5-20% monthly return from your investment, you have really good chance of success if you are disciplined enough. It means, if you deposit let’s say £10.000 you can be earning around £500 to £2000 each month in average. Maybe you were expecting more, but we are not here to tell you you can earn 200% every month. That would be nonsense. But up to 20% each month is attainable for disciplined traders who are willing to sacrifice some time to study trading.
Can I have negative balance on my account?
Plus500 recently started to offer opportunity for traders so they can go into a negative balance if they are holding a losing position. However, you can send an email to firstname.lastname@example.org and tell them you want this feature to be turned off. But even if you have this feature turned on (which is by default), you can still sink into negative balance on your account if there are some huge movements on the market. This can happen to you when trading with any broker, not just on Plus500. But Plus500 has feature “guaranteed stop loss” which will guarantee you you can never fell into negative balance even if there are some extreme price movements. Anyway – you don’t have to be concerned about negative balance on Plus500 either way because Plus500 will never want you to pay any debts out of negative balance. What often happens is that client deposits just a few pounds and starts losing. His balance goes from £100 to £50 to £0 and eventually into £-50 and £-100 but Plus500 still keeps this position opened and gives him opportunity to withstand market movement against him and wait until that position becomes profitable. Sometime it helps, sometime it doesn’t. And if it doesn’t Plus500 closes the position automatically. But here comes the best part: Your losing “minus whatever” position gets cleared and becomes just zero. Sweet zero. So you can deposit again and start over with full amount you deposited.
How do I deal with taxes from trading?
You really have to visit your tax advisor as taxes is quite important part of life. Basically – if you are in the profit – you have to pay the tax. If you did not make any profit during the year, you dont have to. But there is too many variables and lot of tax rates to give the exact answer. Never try to save money on your tax advices. Basically – paying tax is good problem to have – because it means – you made the money!
Can I trust Plus500 and send them my personal documents?
Sure you can. Plus500 is institution regulated and overviewed as any other financial institution in Great Britain such as banks, insurance companies or other CFD brokers. That means Plus500 are really top notch when dealing with your personal documents. And yes, your documents are really in safe.
Why is Plus500 asking for my personal documents?
Plus500 is regulated by FCA so they have to verify your identity by checking your personal documents. Process is very easy and you only have to scan or photograph those and send them either via upload feature in trading software or directly to email@example.com. Verification process usually takes no longer than 8 hours during the business day. After verification, your account is fully verified and you can deposit bigger amounts and withdraw easily.
Is demo version same as live version?
There are no differences between demo and live account in terms of speed, execution, prices, number of instruments, price history etc. So results you are able to achieve on demo account you would be able to achieve on a live account as well and vice versa. Often there are myths about how easy it is to profit on demo account and how difficult it is to earn money on live account but those are only myths. Behavior of platform is same on the demo as it is on the live account. The reason, why it is actually more difficult to profit on the live account is because of psychology that takes a important part in traders decision making. Your emotions are much more escalated on live account than on demo account and this often causes mistakes to be made from traders side.
How fast are withdrawals from Plus500?
Usually, 90% of withdrawals are issued within 24 hours during the work week. More time is spent during the traveling of money. So it really depends if your money is sent over to your bank account or if you use some online financial service as Skrill or so. If you are using your regular bank account and you reside within the Single european payment area – SEPA – then you can expect your money to appear on your bank account usually within 3 business days. If you are using Skrill, you can expect money to land on your account within 24 hours actually.
Do I have to sign any forms and send it via post?
Do I have to pay tax from Plus500 earnings?
If your balance at the end of the year is positive, it means you made profit from trading (cool). Then you are usually obligated to pay income tax out of this (not so cool). As we dont know you exact jurisdiction, we can tell you exact tax rate you should apply but usually this rate is somewhere between 10%-20%. But for exact information it is always recommended to seek for tax advisor to be sure all formalities are filled up correctly. If you lose your money, you dont pay any tax usually but you can be entitled to inform your financial authority about your trading activities anyway. But it depends on the country of your residence.
Why have my trading limits been raised?
This happens because of achieving “Gold status” on your trading account. It usually means your minimal amount for opening position raises 10x and you get 5% discount for holding opened overnight positions. If you are trading with a few thousands pounds you usually don’t even notice this “upgrade” as you are already opening bigger than minimal positions. But if you are used to open minimum positions for whatever reason, being forced to open 10x bigger positions can harm you and make your trading less comfortable for you. So what to do if you achieve this “Gold status” on your account and you don’t want this? You just write to firstname.lastname@example.org and tell them you don’t want this Gold account and that is it. Usually within 30 minutes your request is processed and your account gets back standard trading features.
Is closing position the same as opening the counter position?
No, it is not. If you open counter position you basically hedge your position. By hedging, your profit or loss is “locked” so if markets moves you still sit on the same amount of money and market movements don’t influence your balance. So it is the same as you would closed your position only with difference you have blocked 2x the margin amount. It is always better to close your position normal way because that way you also cash in your profits / loses but release all your money so you can use this for opening another positions.
What is overnight swap?
Overnight swap is the amount of money you either receive or pay when holding an opened position during the night. Whether you receive or pay money depends on the position you are in. It all depends on the official interest rate of the base currency. For example New Zaeland Dollar is usually paying relatively high interest rate so if you are long in NZD you usually receive around 0.001% for each NZD you hold. But if you were short on NZD, you would usually pay something like 0.001% per day per each NZD you hold in short position. It is really not much money to be earned or lost here, as charges are really in 0.00X% area but it is good to know this.
Can I trade just with bonus £20?
Sure you can, but it is going to be quite difficult. Usually minimal position you can open is going to be around £10-£20 or so. So you are usually able only to open one or two positions and you have to be very picky what you open so you end up in profit. Because one bad decision when market goes against you will clear your account. And it doesn’t have to mean you can’t trade it is just nature of markets. You can have 4 losing trades and 6 profitable ones and you are still extremely profitable forex trader. Problem when trading with just sign up bonus is you don’t really have any space for market movements. So it is always recommended to deposit at least another £200 so you can start trading with £285 (£200 deposit + £25 no deposit bonus £60 our special bonus – enter REV200 to gain extra £60 on to of your £200 deposit)
Can I withdraw my profits out of bonus £20?
Yes, you can withdraw profits and even whole bonus if you achieve 50 trading points. It usually means you have to make around 50 trades on EUR/USD or much less on stocks like 10 trades or around 20 on oil etc. You can check your bonus points on your account settings.