If you are reading this article, you are likely having trouble deciding whether Plus500 or Markets.com is the better trading platform for you. While both platforms generally provide positive user experiences, there are some essential differences to note.
In this Plus500 or Markets.com broker comparison, we outline the highlights of each trading platform to help you make a more informed decision. We evaluate:
- Features and Platforms
- Available Markets
- Typical Spreads and Fees
- Security and Trust
- Plus500 vs Markets.com - Verdict
Israel United States ASIC, CySEC, FCA, FMA, FSCA, MAS ASIC, BVIFSC, CySEC, FCA, FSCA 2008 2008 Market Maker Market Maker $100 $100 N/A Proprietary platform, Web-based Proprietary platform 1.3 pips 0.7 pips 1.7 pips 1.1 pips - $0.05 - $0.30 82.00% 79.90% Not applicable Not applicable Not applicable 0.6 pips Commission-free Commission-free Visit Website 82% of retail CFD accounts lose money Visit Website
Features and Platforms
N/A N/A Visit Website 82% of retail CFD accounts lose money Visit Website
Plus500 and Markets.com, owned by Playtech PLC, are both publicly-listed multi-asset brokers located in the UK; each is also a constituent of the FTSE 250 index. While both brokers have catered to clients since 2008, Markets.com has matured into a significantly more competitive broker. Plus500 only provides its own sub-standard proprietary trading platform, without support for automated or social trading. It does not offer research but publishes brief market commentary. Seven articles, which include short videos, add limited educational content. Markets.com offers traders two versions of its proprietary trading platform, together with the MT4/MT5 trading platforms. It enhances the trading experience via fourteen tools, news, analytics, and its XRay personalized financial live-stream service. Simply put, Plus500 is unable to compete with the product and services portfolio of Markets.com.
Available Markets
N/A N/A Visit Website 82% of retail CFD accounts lose money Visit Website
Both brokers maintain over 2,000 assets, with Markets.com taking a minor lead. Plus500 grants more exposure with 71 currency pairs versus 67 at Markets.com. That reverses with commodities and indices, where Markets.com offers 27 and 41, respectively, against Plus500 which features 22 and 26. ETF traders do have a superior choice at Plus500, where 95 trumps the 60 offered at Markets.com. While Plus500 has 585 options contracts, Markets.com adds four bond CFDs and 23 blends, in-house created themed stock baskets. Markets.com shines with its equity CFD selection, where 2,031 eclipses the 1,737 offered at Plus500. The overall asset selection is excellent at both brokers and either allows for dynamic cross-asset diversification.
Typical Spreads and Fees
1.3 pips 0.7 pips 1.7 pips 1.1 pips - $0.05 - $0.30 - $51.50 Not applicable Not applicable Not applicable 0.6 pips Commission-free Commission-free $10 monthly after 3 months N/A Visit Website 82% of retail CFD accounts lose money Visit Website
Plus500 offers commission-free, dynamic, market-dependent Forex spreads, while Markets.com features a minimum markup of 0.6 pips. The former displays higher markups on equity CFDs, while the latter implements a more cost-effective pricing structure. Traders at both brokers receive the effects of corporate actions. Traders pay swap rates on leveraged overnight positions at Plus500 and Markets.com. Neither broker charges internal deposit nor withdrawal fees, but third party-costs may apply. A monthly $10 inactivity exists at both, but Plus500 levies an up to 0.70% currency conversion cost versus 0.30% at Markets.com, which maintains a more competitive pricing environment.
Security and Trust
United Arab Emirates, Australia, Cyprus, Estonia, Israel, New Zealand, Seychelles, Singapore, United Kingdom, South Africa Australia, Cyprus, United Kingdom, British Virgin Islands, South Africa ASIC, CySEC, FCA, FMA, FSCA, MAS ASIC, BVIFSC, CySEC, FCA, FSCA 509909, 250/14, 417727, 486026, 47546, SD039, 100648-1, NOT AVAILABLE, 4.1-1/18, F005651 607305, 092/08, 424008, SIBA/L/14/1067, 46860 Visit Website 82% of retail CFD accounts lose money Visit Website
While Plus500 remains compliant in seven regulatory jurisdictions consisting of the UK, Cyprus, Australia, New Zealand, South Africa, Seychelles, and Singapore, it does show a 2012 UK FCA fine for inaccurate transaction reporting.Markets.com maintains regulatory oversight in the UK, Cyprus, Australia, South Africa, and the British Virgin Islands, where it enjoys a clean track record. Both brokers are publicly-listed entities and adhere to strict capital requirements. Segregation of client deposits and negative balance protection exists at both brokers. While the security of the trading environment is relatively equal at Plus500 and Markets.com, the latter has a notable edge when it comes to trust, amid several missteps by the former within the past eight years. All client funds deposited with Plus500’s Cyprus subsidiary are held in segregated client bank accounts in accordance with the Cyprus Security and Exchange Commission’s (CySEC) client funds rules. Plus500AU Pty Ltd holds client money in a segregated trust account, in accordance with the Australian legal requirements.
Plus500 vs Markets.com – Verdict
While Plus500 and Markets.com provide a secure trading environment to clients with more than 2,000 assets, Plus500 maintains a significantly less competitive trading environment and lacks value-added services. The proprietary trading platform lacks core functionality and ignores automated trading solutions and those who prefer social trading. The seven educational articles do not suffice for new traders, and research is missing, increasing the gap in quality. 82% of retail CFD accounts lose money. Markets.com offers clients a dedicated CFD trading platform and one for investors. It also maintains the MT4 and MT5 trading platforms, which fully supports automated trading solutions, and deliver fourteen trading tools, which combine for a very competitive trading environment. Markets.com also generates high-quality research, sources market news, and the XRay personalized financial live-stream service further sets it apart from Plus500. 75.6% of retail clients operate their portfolio at a loss at Markets.com. With the excellent core trading conditions at Markets.com plus the value-added services, Plus500 is unable to compete.
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