The program uses the `CFD` (Contract for Difference). It was developed to allow clients to enjoy all the benefits of owning a stock, Forex, Index or Commodity position without having to physically own the underlying instrument itself. Thus a CFD can be any one of the instruments such as Shares, Forex, Indices and Commodities. For example a customer need not actually buy and own 1,000 Microsoft shares from a stockbroker. He can instead 10 CFDs of Microsoft on the Plus500 trading platform. A $5 per share rise in the price of Microsoft would give the client a $5,000 profit. Exactly as if he had bought the original shares. There are no exchange fees.Many of the inefficiencies of trading the underlying shares on the exchange are also eliminated.
Plus500 offers CFDs with zero commissions. Margin requirements are also very attractive.The other major benefit of trading a CFD is the fact that the client can trade on margin. CFD trading means clients can trade a full portfolio of shares, indices or commodities without having to tie up large amounts of capital. Thus no commissions for buying or selling. You contract for fixed spreads. You can get high leverage. The service will provide advance technical analysis as well as real time streaming quote.You are able to trade in stocks, forex, CFD, oil and many other instruments. Funding of the account can be through credit cards or wire transfer.