Trading 212 vs Plus500: Features and fees compared

5 min Read Published: 03 Mar 2022

Trading 212 vs Plus500If you are interested in contracts for difference (CFD), you may be considering whether to open an account with Trading 212 or Plus500 trading app. In this article, we help you weigh up the advantages and disadvantages of both platforms, considering the products and services they offer, as well as the costs involved.

Trading 212 vs Plus500: Which is better?

Trading 212  Plus500
Services Investing in shares, ETFs, CFDs, gold and cryptocurrencies

Fractional shares

Video guides

Community forum

 

Trading in indices, forex, commodities, shares, options and ETF CFDs

Trading alerts

Risk management tools

Traders' Guide

Demo account

24/7 customer support

Products Trading 212 CFD

Trading 212 Invest

Trading 212 ISA

Trading 212 Pro Account

Standard account

Plus500 Premium Service (invitation only)

Minimum investment £1 (£10 for CFDs) $100 (card payment), $500 (bank transfer)
Fees No platform charge for ISA

No fees for buying and selling shares in same currency as account

0.15% fee for trades in other currencies

No commission of transaction fees

Up to 0.70% currency conversion fee

Overnight funding fee

Guaranteed stop order

$10 inactivity fee per month after inactivity period of 3 months

Customer reviews (Trustpilot) 4.5/5.0 4.1/5.0

 

Trading 212 vs Plus500 - services

While Plus500 solely offers CFDs, Trading 212 has a range of options, including shares (and fractional shares), ETFs, gold and cryptocurrencies. Both platforms have resources to help beginners, including video guides, which is proportionate with the level of risk for the types of investment they offer. Indeed, both platforms state that around 70% of users lose money when trading CFDs, so it is worth carefully considering if it is the right investment for you and how much you can afford to lose if you aren't successful.

Trading 212 vs Plus500 - products

Plus500 currently offers its standard account with the option to invest in different types of CFDs, including indices, forex and commodities CFDs. It also has a premium service, which is free but operates on an invitation-only basis. For Trading 212, its CFD account is complemented by the broader "Invest" account, as well as an ISA and a "Pro" account. Interestingly, there isn't a platform charge for Trading 212's ISA, which is unusual for investment platforms and could be appealing to investors looking to minimise cost.

Trading 212 vs Plus500 - minimum investment

Trading 212 has a much smaller minimum investment requirement than Plus500, with users able to open an account with as little as £1, or £10 for CFDs. With Plus500, the minimum initial deposit is $100 if you make the payment with a card, or $500 if you pay via a bank transfer.

Trading 212 vs Plus500 - fees

Neither Trading 212 or Plus500 charges commission for buying or selling and instead earns money on the "spread" between the buy and sell price of the instrument that's being traded. They also both charge a fee for currency conversion, with Trading 212 charging 0.15% and Plus500 0.70% for trades in a different currency from the one the account is in. In addition, Plus500 charges overnight funding fees and guaranteed stop orders, as well as a $10 per month inactivity fee.

Trading 212 doesn't charge a platform fee for its ISA, which means it stacks up well against other platforms, although, as with all investments, you need to factor in the costs associated with the underlying holdings.

Trading 212 vs Plus500 - customer reviews

Plus500 is rated as "great", with 4.1 out of 5.0 stars, according to around 6,000 respondents on customer review site Trustpilot. Trading 212 is even more highly rated, with 4.5 out of 5.0 stars, based on almost 18,000 reviews. Of those, 73% think the company is "excellent". Both platforms are rated highly for their ease of use, customer service and the support they give to beginners.

Summary: Trading 212 vs Plus500

If you are looking specifically for CFDs, Plus500 has a broader choice as it is its central focus. However, Trading 212 has CFDs, as well as other investment options and, what is more, it also has an ISA, which allows you to invest in a tax-efficient way. It's also worth noting the disparity between the minimum investment needed to open an account with each platform, with Plus500 requiring a much larger initial deposit.

For more detailed analysis of each, read our Trading 212 review and Plus500 review.