Plus500 Vs Capital.com

Category: Broker Guides | Author: Trading Brokers | Date: July 24, 2023

The realm of online trading demands a careful selection of the right platform for success. In this article, we delve into a detailed analysis of two prominent trading platforms: Plus500 and Capital.com. With robust features, user-friendly interfaces, and competitive offerings, both platforms have garnered a strong reputation among traders. By exploring their individual strengths, weaknesses, and unique attributes, we aim to provide traders with the necessary insights to make informed decisions. Join us on this journey as we unravel the distinctive characteristics that set Plus500 and Capital.com apart in the world of online trading.

Overview of Plus500

Plus500

Plus500

Plus500 is a leading online trading platform known for its extensive range of financial instruments and user-friendly interface. With a global presence, Plus500 offers traders the opportunity to engage in diverse markets. Its intuitive and customizable trading platform empowers users to execute trades efficiently and effectively. Plus500 stands out for its advanced risk management tools, such as guaranteed stop-loss orders, providing traders with added peace of mind.

The platform also offers real-time market data, comprehensive charting tools, and a user-friendly mobile app, allowing traders to stay connected and make informed decisions on the go. Additionally, Plus500’s demo account feature enables new traders to practice and familiarize themselves with the platform before committing real funds. With its wide array of features and commitment to user experience, Plus500 continues to be a preferred choice for both novice and experienced traders alike.

Pros of Plus500

  • Extensive range of CFD instruments.
  • User-friendly and customizable trading platform.
  • Advanced risk management tools like guaranteed stop-loss orders.
  • Real-time market data and comprehensive charting tools.
  • Mobile app for convenient trading on the go.

Cons of Plus500

  • Limited customer service options (no phone support)
  • Not available for US clients
  • Limited product portfolio
  • Less number of research tools
  • Mid-range tutorial division
  • Outdated platform design and functions
  • Inactivity fee of $10 per month

Founded in 2008, Plus500 is a regulated and leading online trading broker providing a large range of 2,000+ CFD instruments for trading on their proprietary trading platforms with very competitive trading conditions.

80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Overview of Capital.com

Capital.Com

Capital.Com

Capital.com is a prominent online trading platform that offers a wide range of financial instruments and innovative features to traders worldwide. With a user-friendly interface and advanced technology, Capital.com provides seamless access to global markets, including stocks, commodities, indices, forex, and cryptocurrencies. One of its standout features is the AI-powered SmartFeed, which utilizes machine learning algorithms to provide personalized news and analysis tailored to individual trading preferences. This helps traders stay updated and make informed decisions. Capital.com also offers Negative Balance Protection, ensuring that traders never lose more than their initial investment.

The platform’s innovative trading tools include advanced charting capabilities, risk management features, and a user-friendly mobile app for on-the-go trading. Additionally, Capital.com provides a free educational section with informative articles and video tutorials, empowering traders with the knowledge to enhance their skills. With its extensive range of features and commitment to user experience, Capital.com continues to be a popular choice for traders seeking a technologically advanced and user-friendly trading platform.

Pros of Capital.com

  • Wide range of financial instruments including stocks, commodities, indices, forex, and cryptocurrencies.
  • AI-powered SmartFeed for personalized news and analysis.
  • Negative Balance Protection to safeguard against losses exceeding the initial investment.
  • Advanced charting capabilities and risk management features.
  • User-friendly mobile app for convenient trading on the go.

Cons of Capital.com

  • Only offers CFDs, spread betting (only available in the UK), and real instruments
  • Smaller account currencies not available

Comparing Plus500 and Capital.com

Here are some key factors  to consider when choosing between Plus500 and Capital.com:

Regulation

Plus500 holds an impressive portfolio of nine global Tier-1 licenses from highly reputable regulatory bodies. This extensive regulatory coverage ensures stringent guidelines and added security for traders. Capital.com, on the other hand, holds four global Tier-1 licenses, including FCA, CySEC, FSA SC, and FSCA, indicating a slightly narrower scope of regulatory oversight compared to Plus500.

Trading platforms

Both Plus500 and Capital.com offer their proprietary trading platforms, providing traders with a unique and tailored trading experience. Plus500’s proprietary platform boasts a user-friendly interface, intuitive navigation, and a wide range of built-in tools and features. It offers advanced charting capabilities, risk management tools, real-time market data, and a customizable trading layout. Capital.com, in addition to its proprietary platform, offers the widely acclaimed MetaTrader 4 (MT4) platform, renowned for its comprehensive charting tools, automated trading capabilities, and vast library of technical indicators. Capital.com further extends its platform options with WebTrader, a web-based trading platform that enables traders to access their accounts and trade directly from their web browsers.

Pricing and fees

Both Plus500 and Capital.com offer competitive pricing and fees for CFD trading. Plus500 operates on a commission-free model, but it charges higher spreads for assets, while Capital.com also has a commission-free model but offers lower spreads, reducing trading costs for traders. However, Capital.com applies a conversion fee of 0.7% for deposits and withdrawals in different currencies.

Broker Type

Both Plus500 and Capital.com operate as market makers, acting as counterparties to their clients’ trades. As market makers, these brokers facilitate immediate order execution and provide market liquidity, ensuring that traders can enter and exit positions efficiently.

Leverage

Both Plus500 and Capital.com offer leverage ratios of up to 30:1 for retail clients. Leverage allows traders to magnify their trading positions with a relatively smaller initial investment. While leverage can amplify potential profits, it is important to note that it also increases the risk of potential losses. Traders should exercise caution and implement appropriate risk management strategies when utilizing leverage, as trading with high leverage involves higher market exposure.

Social Trading

Social trading is a feature that allows traders to follow, copy or interact with other traders on a platform. Neither Plus500 nor Capital.com offer social trading or copy trading features on their platforms. However, both brokers provide some educational and analytical resources that can help traders improve their skills and knowledge.

Asset selection

Capital.com outshines Plus500 in terms of asset selection, providing traders with access to over 3,000 markets. These markets encompass a diverse range of financial instruments, including forex, indices, commodities, cryptocurrencies, shares, ETFs, options, futures, bonds, and CFDs. Plus500, while still offering a wide range of opportunities, provides access to over 2,000 instruments across forex, indices, commodities, shares, ETFs, options, futures, and CFDs. Traders seeking a more extensive selection of markets may find Capital.com’s broader range appealing.

Minimum Deposit

Plus500 requires a minimum deposit of $100 to open an account, ensuring that traders have a certain level of capital to start trading. On the other hand, Capital.com offers a lower minimum deposit requirement of $20, making it more accessible for traders with limited initial capital. This lower minimum deposit allows traders to enter the market with a smaller investment, potentially appealing to those who are new to trading or have budget constraints.

Withdrawal and Deposit Methods

Both Plus500 and Capital.com offer a range of deposit and withdrawal methods with some differences in fees, processing time, and supported currencies. Plus500 supports 10 base currencies and allows fee-free deposits and withdrawals via bank transfer, credit/debit card, PayPal, Skrill, and Trustly. Processing times vary, with most methods being instant except for bank transfers, which may take up to 5 business days for both deposits and withdrawals. On the other hand, Capital.com supports 9 base currencies and also offers fee-free deposits and withdrawals via bank transfer, credit/debit card, Skrill, Neteller, and several other options. Bank transfers may take up to 7 business days, and Capital.com charges a 0.7% conversion fee for transactions involving different currencies.

Plus500 or Capital.com: Which is Best for You?

Determining the optimal trading platform, whether Plus500 or Capital.com, requires careful consideration of your individual preferences and trading style. If you value a robust regulatory framework and a higher number of licenses, Plus500’s 5 global Tier-1 licenses provide a strong sense of security and regulatory oversight. If you prefer a commission-free trading experience on most products and lower average spreads for forex trading, Plus500 emerges as the preferred choice. Alternatively, if you seek a broader selection of markets and a vast range of over 3,000 instruments spanning various categories, Capital.com excels in offering a comprehensive asset offering. If you appreciate the flexibility of utilizing the popular MetaTrader 4 (MT4) platform alongside a proprietary platform, or if a lower minimum deposit is important to you, Capital.com provides greater versatility. Ultimately, the decision hinges on your priorities, whether it’s regulatory reliability, cost-effectiveness, asset variety, or platform flexibility. Evaluate your preferences to select the platform that best aligns with your specific trading requirements and objectives.

Conclusion

In conclusion, the comparison between Plus500 and Capital.com highlights the distinct features and strengths of each trading platform. Plus500 stands out with its extensive regulatory licenses, commission-free trading, and lower average spreads for forex trading. On the other hand, Capital.com excels in offering a diverse selection of markets and a vast range of instruments, along with the flexibility of MetaTrader 4 (MT4) integration and a lower minimum deposit requirement. Ultimately, the choice between the two platforms depends on individual preferences, such as regulatory oversight, cost-effectiveness, asset variety, and platform flexibility. Traders should carefully assess their specific needs and priorities to make an informed decision that aligns with their trading goals.


Relevant Articles