IG Vs Plus500
If you’re interested in venturing into the world of online trading, you’ll encounter a multitude of platforms to choose from. Among the popular options are IG and Plus500. In this article, we’ll compare these two trading platforms, exploring their features, advantages, and disadvantages. Whether you’re a seasoned trader or a beginner, our analysis will help you make an informed decision and find the platform that aligns with your trading style.
What is IG?
IG is an established online trading platform that offers a wide range of financial instruments, including forex, CFDs, ETFs, and real stocks. By using IG, traders can speculate on the price movements of these assets, aiming to profit from both upward and downward market trends. The platform provides user-friendly web, mobile, and MetaTrader 4 trading platforms, ensuring accessibility and convenience for traders on the go. IG equips traders with tools, charts, and indicators to analyze market trends, facilitating informed trading decisions.
Pros of IG
- Diversified range of financial instruments.
- User-friendly trading platforms with advanced features.
- Superior design, functionality, and order types.
- Access to a desktop trading platform for added convenience.
- Comprehensive customer support options and educational resources.
Cons of IG
- Requires a minimum deposit of £250.00 to open an account.
- Operates as a Market Maker broker, potentially leading to conflicts of interest.
- Availability of the desktop trading platform is limited.
- Advanced features may overwhelm beginners.
- Inactivity fee for dormant accounts.
What is Plus500?
Plus500 is another prominent online trading platform that focuses on forex and CFD trading. Established in 2008, Plus500 has gained a reputation for its user-friendly interface and intuitive design. The platform provides web and mobile trading platforms, ensuring traders can access the markets at their convenience. Plus500 operates as a CFD provider, enabling traders to speculate on the price movements of various financial instruments. Plus500 offers real-time market data, charts, and technical analysis tools to assist traders in making informed trading decisions.
Pros of Plus500
- No minimum deposit requirement, making it accessible to a wider range of traders.
- User-friendly interface with an intuitive design.
- Competitive spreads and fees.
- Access to a variety of financial instruments, including forex, stocks, and commodities.
- 24/7 customer support available.
Cons of Plus500
- Limited educational resources compared to IG.
- Availability of order types is limited.
- Relatively fewer advanced features.
- Lack of social trading features.
- Limited integration with third-party applications.
Comparison Between IG and Plus500
To determine which platform is more suitable for you, let’s compare IG and Plus500 across various factors:
IG and Plus500 are both regulated by top-tier authorities in multiple jurisdictions. IG is regulated by ASIC in Australia, FCA in the UK, MAS in Singapore, NFA or CFTC in the USA, FSCA in South Africa, FINMA in Switzerland, CySEC in Cyprus, FMA in New Zealand, DFSA in UAE, BaFin in Germany and CBI in Ireland. Plus500 is regulated by ASIC in Australia, FCA in the UK, MAS in Singapore, CySEC in Cyprus, FSCA in South Africa, FMA in New Zealand and ISA in Israel. Both brokers are considered highly trusted and safe for traders. IG’s regulation is more extensive and diverse than Plus500’s regulation, as it covers more countries and regions. Plus500’s regulation is more focused and streamlined than IG’s regulation, as it covers the most important markets and regions.
Both IG and Plus500 offer web-based trading platforms that are easy to use and customizable. IG also offers MetaTrader 4 and ProRealTime platforms for more advanced traders. Plus500 has a proprietary platform that is available on desktop, web and mobile devices. Both platforms have a wide range of technical indicators, charting tools and order types. IG’s platform also has more features such as social trading, signals, alerts and advanced charting. Plus500’s platform has a simpler design and a user-friendly interface. Both platforms are suitable for beginners and experienced traders alike.
Pricing and Fees
IG and Plus500 have different fee structures and pricing models. IG charges variable spreads and commissions for some instruments, while Plus500 charges fixed spreads and no commissions. IG requires a minimum deposit of £250.00 to open an account, while Plus500 requires a minimum deposit of €100. IG also charges an inactivity fee of £12 per month after two years of inactivity, while Plus500 charges an inactivity fee of $10 per quarter after three months of inactivity. IG’s fees are generally higher than Plus500’s fees, but they also depend on the instrument and market conditions. Plus500’s fees are more transparent and predictable, but they may not reflect the true market prices.
IG and Plus500 have different broker types and pricing models. IG is a Market Maker broker, which means it creates its own market and sets its own prices. This can result in conflicts of interest and price manipulation. Plus500 is an STP broker, which means it does not act as a counterparty to the trades and passes the orders directly to the liquidity providers. This can result in better price transparency and execution speed. IG’s broker type may offer more liquidity and stability than Plus500’s broker type, but it may also involve higher fees and wider spreads. Plus500’s broker type may offer lower fees and tighter spreads than IG’s broker type, but it may also involve slippage and requotes.
IG and Plus500 have different leverage levels depending on the jurisdiction they operate in. In Australia, both brokers offer up to 30:1 leverage for retail clients. In the UK and Europe, both brokers offer up to 30:1 leverage for retail clients. In Singapore, both brokers offer up to 20:1 leverage for retail clients. In South Africa, both brokers offer up to 300:1 leverage for retail clients. In other offshore jurisdictions, both brokers offer up to 300:1 leverage for retail clients. IG’s leverage levels are more flexible and adjustable than Plus500’s leverage levels, as they allow traders to choose different leverage ratios for different instruments and markets. Plus500’s leverage levels are more fixed and uniform than IG’s leverage levels, as they apply the same leverage ratio for all instruments and markets.
IG has a wider range of products to trade than Plus500. IG offers forex, CFDs, spread betting, real stocks, ETFs, cryptocurrencies and options. Plus500 only offers forex, CFDs and cryptocurrencies. This means that IG has more opportunities for diversification and portfolio building than Plus500. IG also has more currency pairs to trade than Plus500. IG has 100 forex pairs, while Plus500 has 65. IG’s product range is more comprehensive and diverse than Plus500’s product range. Plus500’s product range is more focused and streamlined than IG’s product range.
Research and education
Both IG and Plus500 have great research and education tools for traders of any experience level. They both have market analysis, news, economic calendars and trading signals on their platforms and websites. They also have webinars, videos, articles and courses on various topics related to trading. They also have demo accounts where traders can practice their skills and strategies with virtual money. IG’s research and education tools are more extensive and in-depth than Plus500’s research and education tools. IG also offers third-party research from providers such as Autochartist and PIA-First. Plus500’s research and education tools are more basic and concise than IG’s research and education tools.
Security of funds
Both IG and Plus500 provide high levels of security for their clients’ funds. They both segregate client funds from their own funds in separate bank accounts at reputable banks. They also participate in investor compensation schemes that protect clients’ funds up to a certain amount in case of broker insolvency. For example, IG clients are covered up to £85,000 by the Financial Services Compensation Scheme (FSCS) in the UK, while Plus500 clients are covered up to €20,000 by the Investor Compensation Fund (ICF) in Cyprus. IG’s security of funds is more robust and reliable than Plus500’s security of funds, as it offers higher protection amounts and more schemes. Plus500’s security of funds is more standard and consistent than IG’s security of funds, as it offers similar protection amounts and schemes across different jurisdictions.
Which Should You Choose: IG or Plus500?
Should you choose IG or Plus500? It ultimately depends on your specific requirements. While both platforms offer user-friendly trading interfaces suitable for beginners and experienced traders, there are key distinctions to consider. IG provides a wider range of products for diversification, including forex, CFDs, spread betting, real stocks, ETFs, cryptocurrencies, and options, while Plus500 focuses primarily on forex, CFDs, and cryptocurrencies. IG’s fees are generally higher, with variable spreads and commissions, along with a minimum deposit requirement and inactivity fees, whereas Plus500 charges fixed spreads with no commissions and has lower minimum deposit and inactivity fee requirements. IG offers more extensive research and education tools, diverse regulation coverage, and higher security of funds, while Plus500 excels in customer satisfaction ratings and offers a simpler design. Assessing these factors will help you determine which platform aligns best with your trading goals and preferences.
After diving into the details of IG and Plus500, it’s clear that both platforms have their own strengths and weaknesses. IG offers a wide range of products, extensive research tools, and diverse regulation coverage. On the other hand, Plus500 boasts a simpler design, lower costs, and high customer satisfaction. Ultimately, the choice between the two depends on your specific needs and preferences. So take the time to assess your trading goals, consider the factors we’ve discussed, and choose the platform that aligns best with your requirements. Happy trading!
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