Plus500 vs Interactive Brokers
If you are reading this article, you are likely having trouble deciding whether Plus500 or Interactive Brokers 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 vs Interactive Brokers review, 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 Interactive Brokers - Verdict
|Feature||Plus500 (visit site)||Interactive Brokers (visit site)|
|CySEC, FCA, ASIC, FMA, FSB, MAS||SIPC, SEC, FINRA|
Type of Broker:
|Market Maker||Market Maker|
U.S. Clients Allowed:
|$100||$10,000; $5,000 for an IRA|
Commissions / Spreads:
|Variable Spreads||Fixed; Volume Tiered|
86% of retail CFD accounts lose money
Features and Platforms
While Plus500 competes exclusively in the retail trading sector, Interactive Brokers caters to the entire spectrum of traders and investors. Where the former delivers an uncompetitive webtrader, the latter offers a state-of-the-art trading experience with full support for manual traders and automated trading solutions alike. Interactive Brokers has lowered its minimum deposit requirements to $0, after maintaining one of the highest at $10,000, but margin trading accounts still require an acceptable minimum of $2,000. Founded in 1978, Interactive Brokers has more experience than the 2008-founded Plus500. The trading tools at Interactive Brokers add to the overall competitive trading environment, where Plus500 neither offers any nor can it compete on the core level.
|Type of Platform:||Proprietary platform, Web-based||Web-based, Other|
Guaranteed Stop Loss:
Guaranteed Limit Orders:
Interest on Margin:
Retail traders have plenty of choices at Plus500, where over 2,000 assets remain listed. With 70 currency pairs, Forex traders have above-average coverage, while equity traders have access to many of the most popular instruments in 23 markets. Adding diversification are fourteen cryptocurrencies and 22 commodities. A wide range of options contracts provides the ability to execute more complex strategies. Interactive Brokers cover 135 markets across 33 countries, and traders and investors seeking the most comprehensive market coverage from an online broker will find it here. A total of eleven sectors are available, including mutual and hedge funds, as well as Robo portfolios.
Typical Spreads and Fees
From a cost perspective, Plus500 mixes commission-free CFD trading with higher markups on equities, while Forex traders have a moderately competitive offer consisting of dynamic, market-dependent spreads. While Interactive Brokers does not offer commission-free trading, the costs are highly competitive, and traders enjoy price improvements due to the exceptional technology at this broker. Overnight leveraged positions face swap rates, where Interactive Brokers also retains an edge. Given the broad reach of Interactive Brokers, there are more costs than at Plus500, but long-term traders with frequent trading habits will achieve an overall better cost structure at Interactive Brokers.
Security and Trust
The regulatory framework of Plus500 consists of seven jurisdictions versus nine for Interactive Brokers. Clients can rest assured that their deposits, profits, and personal information remain secure at both brokers, where client capital and corporate funds remain segregated. Plus500 maintains publicly listed on the London Stock Exchange and Interactive Brokers on the NASDAQ Stock Market. Therefore, both have sufficient capital requirements, but Interactive Brokers maintains $6.0 billion above what regulators demand. Plus500 ranks behind Interactive Brokers when it comes to trust amid a series of fines and missteps, while Interactive Brokers has a spotless record and remains under an excellent management team. 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 Interactive Brokers – Verdict
Most new retail traders will have sufficient assets and an affordable pricing structure at Plus500, at the cost of a below-average trading platform, no support for automated trading solutions, no research, and limited low-quality research. The trading environment is secure, and while Plus500 focuses on core services, it does not deliver a competitive portfolio. Interactive Brokers continues to increase its global market share with a combination of cutting-edge technology, superior asset selection, and a trader-friendly fee and commission structure. The majority of employees at Interactive Brokers hold company stock, in a sign of confidence in the management team and the products and services offered to clients. After lowering its minimum deposit requirements to $0, Interactive Brokers nears 1,000,000 client accounts. While Plus500 tries to mask its below-average trading environment with sponsorships of soccer teams around Europe, Interactive Brokers invests in its business to deliver a competitive edge to clients and does not focus on marketing. Plus500 is unable to match what Interactive Brokers offers, where most traders will receive superior service.
Plus500 provides Forex traders with 71 Forex pairs and four cryptocurrencies. While Interactive Brokers does not maintain a complete list of currency pairs, it offers trading in 23 currency pairs with multiple crosses on each, taking the total number well above 71. While most retail Forex traders will determine the 1,737 equity CFDs and a total of over2,400 more than sufficient, Interactive Brokers covers 135 markets in 33 countries. It represents one of the most comprehensive selections among all brokers.
Does Interactive Brokers or Plus500 offer lower pricing?
The 0.8 pips minimum spread at Plus500 remains more costly than the 0.1 pips plus a minimum commission of $2.00 at Interactive Brokers. While commission-free trading may sound appealing to most traders, the commission-based cost structure at Interactive Brokers, in conjunction with price improvements related to the technology infrastructure, make Interactive Brokers a superior choice for active traders.
Is Interactive Brokers or Plus500 safer for Forex and CFDs trading?
Plus500 listed on the London Stock Exchange and Interactive Brokers on the NASDAQ Stock Markets in the US, placing both on par from a regulatory perspective. Per the requirements of regulators, client deposits remain fully segregated from corporate funds. While both brokers adhere to strict capital requirements and best business practices, in-line with listing requirements, Interactive Brokers enjoys a higher degree of trust due to a series of missteps by Plus500 in 2012 and 2017.
Which trading platform is better: Interactive Brokers or Plus500?
The trading platform at Interactive Brokers is far more advanced versus Plus500, supports automated trading solutions and third-party developers, and allows investors and traders to manage their portfolios with cutting-edge technology. The manual-only webtrader at Plus500 lacks core functionalities and falls notable behind competitors.
Which is better, Interactive Brokers or Plus500?
While Plus500 delivers an acceptable solution for new retail traders who prefer manual trading, Interactive Brokers delivers on all aspects of trading. It caters to the entire spectrum and continues to invest heavily in its product and services portfolio. Plus500 remains focused on marketing its below-average offering via expensive sponsorships of professional sports teams. Therefore, Interactive Brokers represents a better choice.
How many Forex pairs and CFDs are available to trade?
Plus500 provides traders with 71 Forex pairs and four cryptocurrencies. While Interactive Brokers does not maintain a complete list of currency pairs, it offers trading in 23 currency pairs with multiple crosses on each, taking the total number well above 71. While most retail Forex traders will determine the 1,737 equity CFDs and a total of over2,400 more than sufficient, Interactive Brokers covers 135 markets in 33 countries. It represents one of the most comprehensive selections among all brokers.
Which is the more reliable broker?
Plus500 is a publicly listed company in the UK and Interactive Brokers in the US. Therefore, both present traders with reliability. Plus500 and Interactive Brokers adhere to strict capital requirements and best business practices, aside from compliance with regulators, to satisfy their status on their respective equity exchanges. Interactive Brokers carries significantly larger regulatory excess capital than Plus500.