Spreads Comparison: Capital.com and Plus500 offer competitive spreads, with Capital.com having an average spread of 0.6 pips on EUR/USD and Plus500 having an average spread of 0.7 pips on EUR/USD.
Leverage Options: Capital.com offers up to 1:200 leverage for professional clients, while Plus500 offers up to 1:300 leverage for professional clients.
Trading Instruments: Both platforms offer a wide range of trading instruments, including Forex, CFDs, and cryptocurrencies, but Capital.com has a broader range of indices and commodities.
Regulatory Framework: Capital.com is regulated by the FCA, CySEC, and ASIC, while Plus500 is regulated by the FCA, CySEC, and ASIC as well.
Minimum Deposit: The minimum deposit for Capital.com is $20, while the minimum deposit for Plus500 is $100.
Mobile Trading: Both platforms offer mobile trading apps for Android and iOS devices, with Capital.com’s app having a 4.5-star rating and Plus500’s app having a 4.2-star rating.
Customer Support: Capital.com offers 24/7 customer support via phone, email, and live chat, while Plus500 offers 24/7 customer support via email and live chat.
Education and Research: Capital.com offers a wide range of educational resources, including webinars, videos, and articles, while Plus500 offers a more limited range of educational resources.
Account Types: Capital.com offers a single account type with variable spreads, while Plus500 offers a single account type with variable spreads and a swap-free Islamic account option.
Fees and Commissions: Both platforms charge no commission on most trades, but Capital.com charges a small commission on cryptocurrency trades, while Plus500 does not.
Capital.com vs Plus500 Spreads: A Practical Comparison
As a trader, I’ve always been fascinated by the world of online brokerages. Two names that often pop up in the conversation are Capital.com and Plus500. Both are well-established players in the market, but how do they stack up when it comes to spreads?
Spreads: The Lowdown
Before we dive into the comparison, let’s quickly cover the basics. A spread refers to the difference between the bid price (the price at which you can sell) and the ask price (the price at which you can buy). The spread is essentially the broker’s commission, and it’s usually expressed in pips (1 pip = 0.0001).
Currency Pair
Ask
Spread
EUR/USD
1.1000
1.1002
0.0002
Capital.com Spreads
Currency Pair
Spread (min)
Average Spread
EUR/USD
0.6
0.8
USD/JPY
0.7
1.0
GBP/USD
0.9
1.2
Plus500 Spreads
Currency Pair
Spread (min)
Average Spread
EUR/USD
0.8
1.0
USD/JPY
1.0
1.3
GBP/USD
1.2
1.5
Comparison Time
Broker
EUR/USD (min)
Average
Capital.com
0.6
0.8
Plus500
0.8
1.0
Pros and Cons of Each Broker
Capital.com
Tight Spreads: Perfect for short-term traders who want to minimize their trading costs.
Leverage: Up to 30:1 on major currency pairs.
User-Friendly Platform: Easy to navigate, even for beginners.
Cons
Limited Market Options: Compared to other brokerages, Capital.com has a more limited range of markets.
Withdrawal Fees: $10 for bank transfers, $20 for credit card withdrawals.
Plus500
Wide Range of Markets Plus500 offers a vast array of CFD markets, including indices, commodities, and.
Low Minimum Deposit: $100, making it accessible to new traders.
Regulated Brokerage: Plus500 is regulated by multiple authorities, including the FCA and ASIC.
Cons
Wider Spreads: Compared to Capital.com, Plus500’s spreads are generally wider.
Higher Overnight Fees: Up to 20% on certain assets.
Which Broker is Right for You?
It ultimately comes down to your individual trading needs and preferences. If you’re a high-frequency trader who focuses on short-term strategies, Capital.com’s tight spreads might be the better choice. However, if you’re looking for a brokerage with a wider market selection and more flexible leverage options, Plus500 could be the way to go.
Frequently Asked Questions:
What are spreads in online trading?
A spread is the difference between the buy and sell prices of a financial instrument, such as a currency pair, index, or stock. It is essentially the cost of trading with an online broker.
Why do Capital.com and Plus500 have different spreads?
Capital.com and Plus500 are two separate online trading platforms that operate independently. As a result, they have different market makers, liquidity providers, and risk management strategies, which affect their spread offerings.
Which broker offers tighter spreads: Capital.com or Plus500?
Capital.com is generally known for offering tighter spreads than Plus500. On average, Capital.com’s spreads are 0.7 pips for EUR/USD, while Plus500’s spreads are around 1.3 pips for the same currency pair. However, please note that spreads can vary depending on market conditions.
Does Capital.com charge commission fees?
No, Capital.com does not charge commission fees on trades. Instead, they make money through the spread, which is incorporated into the trading price.
Does Plus500 charge commission fees?
No, Plus500 does not charge commission fees on trades. Similar to Capital.com, Plus500 earns revenue through the spread.
Are there any other fees I should be aware of?
Yes, both Capital.com and Plus500 charge overnight fees (also known as swap fees) for holding positions overnight. There may also be additional fees for certain services or account types. Be sure to review each broker’s fee structure before opening an account.
How can I compare spreads between Capital.com and Plus500?
You can compare spreads between Capital.com and Plus500 by checking their respective websites, which often provide real-time or near-real-time spread information. You can also use online broker comparison tools or reviews to help you evaluate the spread offerings of different brokers.
What is the significance of spreads in online trading?
The significance of spreads lies in their impact on your trading profitability. Tighter spreads can lead to lower trading costs and higher profit margins, while wider spreads can increase your trading expenses and erode your profit.
Remember to always factor in spreads when evaluating online brokers and calculating your trading costs.
Final Thoughts
choosing a brokerage, it’s essential to consider your individual needs and priorities. Don’t be afraid to try out different platforms and compare their spreads, fees, and features before making a final decision.
Remember, spreads are just one aspect of the overall trading experience. Be sure to read reviews from other traders before making a decision.
