Plus500 Vs CommSec

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

If you are looking for a broker to trade CFDs or shares in Australia, you may have come across Plus500 and CommSec. These are two of the most popular and reputable brokers in the country, but they have different features, fees, platforms and products that may suit different types of traders. In this article, we will compare Plus500 vs CommSec on various aspects, such as regulation, trading conditions, markets and instruments, trading platforms, research and education, customer service and more. By the end of this article, you should have a clear idea of which broker is better for your trading needs and preferences.

Overview of Plus500

Plus500

Plus500

Plus500 is a popular trading platform that offers a comprehensive range of features. With its streamlined design, Plus500 ensures a seamless trading experience. The platform provides a diverse selection of CFD instruments, allowing users to access multiple markets within a single platform.

Plus500 distinguishes itself through its innovative trading technology, featuring real-time market quotes, interactive charts, and customizable indicators, enabling traders to make informed decisions. The platform also offers risk management tools like stop-loss and take-profit orders, empowering users to manage their positions effectively. Additionally, Plus500 provides a free demo account for traders to practice and refine their strategies before investing real money. With its extensive range of features and commitment to user satisfaction, Plus500 remains a preferred choice for traders seeking a reliable and feature-rich trading platform.

Pros of Plus500

  • Diverse range of CFD instruments.
  • Innovative trading technology with real-time market quotes, interactive charts, and customizable indicators.
  • Risk management tools such as stop-loss and take-profit orders.
  • Free demo account for practice and strategy development.

Cons of Plus500

  • Limited educational resources compared to some other platforms.
  • Inactivity fee after a certain period of account inactivity.
  • Limited customer support options, primarily through email and online chat.
  • Availability restricted in some regions, limiting accessibility for international traders.
  • Limited advanced order types and trading features compared to more specialized platforms.
Plus500 Logo

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.

81% 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 Commsec

CommSec

CommSec

Commsec is a renowned trading platform that offers a comprehensive suite of investment services to empower traders in achieving their financial objectives. With its user-friendly interface and intuitive design, Commsec provides a seamless trading experience for both novice and experienced investors. The platform boasts a wide range of investment options, including shares, exchange-traded funds (ETFs), options, warrants, and managed funds, enabling users to diversify their portfolios according to their risk preferences.

Commsec stands out with its advanced research and analysis tools, providing real-time market data, charting capabilities, and customizable watchlists, equipping traders with the necessary insights to make informed investment decisions. Moreover, the platform offers a range of educational resources, including articles, videos, and webinars, to enhance traders’ knowledge and understanding of the financial markets.

Additionally, Commsec provides a dedicated customer support team, ensuring prompt assistance and guidance to its users. With its robust features and commitment to customer satisfaction, Commsec remains a preferred choice among traders seeking a reliable and feature-rich trading platform.

Pros of Commsec

  • User-friendly interface and intuitive design.
  • Diverse investment options, including shares, ETFs, options, warrants, and managed funds.
  • Advanced research and analysis tools, offering real-time market data and customizable watchlists.
  • Extensive educational resources, including articles, videos, and webinars.
  • Dedicated customer support team, providing prompt assistance and guidance.

Cons of Commsec

  • Higher brokerage fees compared to some other platforms.
  • Limited availability for international trading.
  • Some advanced trading features may require additional fees.
  • Mobile app can be sluggish at times.
  • Margin lending services may have higher interest rates compared to competitors.
CommSec Logo

CommSec is an established trading brokerage who offer industry leading service and experience for some of the best online and mobile trading solutions. Australians can trade a great selection of financial instruments on powerful platforms with access to some high-quality analytical tools and in-depth market research from the experts.

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.

Comparing Plus500 and Commsec

Here are the key factors to consider when choosing between Plus500 and Commsec:

Regulation

Plus500 is regulated by multiple reputable authorities, including the Financial Conduct Authority (FCA) in the UK, the Cyprus Securities and Exchange Commission (CySEC) in Cyprus, and the Australian Securities and Investments Commission (ASIC) in Australia. These regulatory bodies ensure that Plus500 operates with transparency, adheres to strict financial regulations, and provides a high level of investor protection. On the other hand, CommSec is regulated exclusively by ASIC, which oversees the Australian financial market and ensures that CommSec complies with the necessary regulations and standards to protect traders within the Australian market.

Trading Platforms

Plus500 offers a web-based trading platform called WebTrader, which is also available as a mobile app for iOS and Android devices. The platform is lacks customization and research tools. Plus500 also has a unique feature called +Insights, which shows the percentage of traders who are buying or selling a certain instrument on the platform.

CommSec offers both a web-based trading platform and a mobile app for iOS and Android devices. The web platform is comprehensive and easy to navigate, and it provides access to market news, analysis, research reports, and educational resources. CommSec also offers a more advanced trading platform called CommSecIRESS, which is a dynamic, real-time data streaming software that allows users to trade Australian shares, warrants, and ETFs.

Pricing and Fees

Plus500 and CommSec are two brokers with different fee models and trading conditions. Plus500 charges a spread only, which ranges from 0.6 pips for EUR/USD to 0.08% for Australian shares. CommSec charges a brokerage fee of $10 for trades up to $1,000, or a spread of 1.0 pips for EUR/USD. Plus500 offers more global markets, while CommSec offers more advanced tools and research. Both brokers have their own pros and cons in terms of features, services, platforms, and customer support.

Broker Type

Plus500 is a market maker broker, while CommSec is a DMA broker. Plus500 acts as the counterparty to its clients’ trades, quoting its own prices and making money from spreads, potentially leading to a conflict of interest. On the other hand, CommSec offers direct access to the Australian Securities Exchange (ASX) for share trading, routing clients’ orders directly to the exchange without intermediaries or market makers. CommSec generates revenue from brokerage fees and provides transparent pricing and execution for its clients.

Leverage

Plus500 offers leverage of up to 1:30 for retail clients, enabling traders to amplify their positions and potentially increase their potential gains or losses. Leverage allows traders to control larger positions with a smaller capital investment, but it also carries higher risk. On the other hand, CommSec does not offer leverage to its traders. By not providing leverage, CommSec caters to traders who prefer a more conservative approach to trading without the risk associated with leveraged positions.

Asset Selection

Plus500 stands out with its extensive range of tradable assets. Traders have access to a wide selection of CFDs across various asset classes, including major and minor forex pairs, global shares, indices, commodities, options, and ETFs. This broad asset selection allows traders to diversify their portfolios and take advantage of different market opportunities within a single platform. In comparison, CommSec primarily focuses on trading Australian shares, limiting the asset selection to the Australian stock market. While this may be suitable for traders primarily interested in the Australian market, it may restrict the options for those looking to trade in other international markets.

Social Trading

Plus500 does not offer social trading features, such as copy trading or chat rooms. However, it does have a unique feature called +Insights, which shows the percentage of traders who are buying or selling a certain instrument on the platform. CommSec also does not offer social trading features, but it does provide access to market news, analysis, research reports, and educational resources.

Minimum Deposit

Plus500 has a low minimum deposit of $100 for most payment methods, but it may vary depending on the payment method and currency. CommSec has a lower minimum deposit of $50 for its standard account.

Withdrawal and Deposit Methods

Plus500 offers multiple withdrawal and deposit methods, including credit/debit cards, bank transfers, and e-wallets (Skrill and PayPal). They do not charge any fees for deposits or withdrawals, but fees may apply from payment providers or for currency conversion. Plus500 has a minimum withdrawal amount for each method, ranging from $50 to $100, and processes withdrawal requests within 1-3 business days. CommSec, on the other hand, only offers bank transfer as the withdrawal and deposit method and does not charge any fees for transactions. There is no minimum withdrawal amount, but there might be a minimum deposit amount depending on the account type. CommSec processes withdrawal requests within 2 business days, and the time frame for receiving funds depends on the bank and clearing process.

Plus500 or Commsec: Which is Best for You?

Determining which trading platform is best for you depends on your specific preferences, trading goals, and requirements. If you’re someone who values a wide range of tradable assets and the flexibility of leveraged trading, Plus500 may be the ideal choice. Their extensive selection of CFDs across various asset classes, coupled with leverage options, allows for diversification and potential amplified gains. On the other hand, if you prefer a full-service broker specializing in the Australian stock market, CommSec could be the better option. CommSec’s focus on Australian shares, along with its comprehensive support and advisory services, caters to traders seeking a specialized and in-depth experience within the Australian market. Moreover, if you prioritize competitive pricing, CommSec’s better conditions and low brokerage rates may be more appealing. However, if you prefer a seamless trading experience, Plus500’s intuitive interface and advanced trading tools could be the deciding factor. Ultimately, the best choice between Plus500 and CommSec lies in aligning the platform’s features, asset selection, pricing, and services with your individual trading preferences and goals.

Conclusion

In conclusion, the comparison between Plus500 and CommSec highlights the unique features and offerings of each trading platform. Plus500 stands out with its diverse asset selection and leverage options, making it suitable for traders seeking a broad range of tradable instruments and a seamless trading experience. On the other hand, CommSec caters to investors focused on the Australian stock market, providing comprehensive support and competitive pricing. Ultimately, the choice between the two platforms depends on individual preferences, such as asset variety, leverage usage, regulatory requirements, and specific trading goals. By carefully considering these factors, traders can make an informed decision and select the trading platform that best aligns with their needs and objectives.


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