Trading Crypto with Plus500 vs Crypto Exchanges: Review

This article positions Plus500 directly against the spot crypto exchange model that most BNC

readers will already be familiar with.

What Is a Spot Crypto Exchange?

A spot crypto exchange is a marketplace where buyers and sellers trade actual cryptocurrency.

When you buy Bitcoin on a spot exchange, you own that Bitcoin. It sits in your exchange wallet or, if

you transfer it out, in a private wallet you control. You can send it to other wallets, use it in DeFi

protocols, or hold it long-term.

Large spot exchanges are regulated in many jurisdictions, but the regulatory framework differs

significantly from the oversight regime that governs CFD brokers and Futures Commission

Merchants. The exchange’s primary function is to match buyers and sellers of real digital assets.

What Is Plus500?

Plus500 is a multi-asset fintech group that operates proprietary trading platforms for Contracts for

Difference (outside the US) and Futures and Prediction Markets (in the US). It does not operate a

cryptocurrency exchange and does not hold, custody, or transfer digital assets on behalf of clients.

Plus500 is listed on the London Stock Exchange’s Main Market and is a constituent of the FTSE

250 index. It holds regulatory licences across multiple jurisdictions — including the Financial

Conduct Authority (FCA) in the UK, the Australian Securities and Investments Commission (ASIC),

the Cyprus Securities and Exchange Commission (CySEC (#250/14)), and the Canadian Investment

Regulatory Organisation (CIRO). In the US, Plus500US Financial Services LLC is a registered

Futures Commission Merchant and a full member of the CME Group and the National Futures

Association (NFA).

Disclaimer: Plus500 does not offer trading CFDs on cryptocurrencies for traders

from the UK.

How Does Trading Crypto on Plus500 Differ from a Crypto Exchange?

1. Asset ownership: On a crypto exchange, you own the underlying cryptocurrency. On Plus500’s

CFD platform, you hold a price contract — not the asset itself. On Plus500’s US Futures platform,

you hold an exchange-cleared contract. In neither case do digital coins transfer to you.

2. Wallets and custody: Crypto exchanges require KYC verification and either an on-platform

wallet or a linked external wallet. Plus500 operates entirely in fiat currency. You deposit and

withdraw standard currency. No crypto wallets are involved at any stage.

3. Leverage: Most spot exchanges offer no leverage or very limited leverage for retail clients.

Plus500’s CFD platform and US Futures platform both allow leveraged trading — meaning you can

open a position larger than your initial deposit. This amplifies both potential gains and potential

losses.

Plus500US: Trading with leverage comes with a high risk and may not be suitable for everyone.

4. Short selling: On a spot exchange, you generally cannot profit from falling cryptocurrency

prices. On Plus500’s platform, you can take a buy (long)/sell (short) position on a crypto CFD or a

long/short Futures position, allowing you to express a bullish/bearish view on price direction.

5. Regulatory framework: Spot exchanges are typically regulated under money services or

digital asset licensing frameworks. Plus500’s CFD platform is regulated as a financial services

business under FCA, ASIC, CySEC, and other frameworks. Its US Futures platform is regulated by the CFTC and NFA. Client funds are held in segregated bank accounts in accordance with applicable

regulatory requirements.

6. Risk management tools: Plus500’s platform includes stop-loss orders, trailing stops, and

Guaranteed Stop orders (the latter carrying a small spread fee). Standard spot exchange accounts

do not typically offer these tools natively.

7. Access to other markets: A crypto exchange is limited to crypto assets. On Plus500’s

platform, you can trade CFDs or Futures across cryptocurrencies, commodities, indices, forex, and

shares from a single account. The commodity side of that offering was covered in our first article, Trading Commodities: CFDs, Futures, Oil & Gold.

Important for UK readers: Crypto CFD products are not available to retail clients based in the

United Kingdom. UK retail clients can access other instruments — commodity, forex, and index

CFDs — on Plus500’s UK platform. Other fees may apply.

Important for US readers: Plus500 does not offer CFD products to US residents. US-based traders

access crypto exposure through Bitcoin Futures and Prediction Markets at us.plus500.com.

When Might a Crypto Exchange Be More Appropriate?

A spot exchange is likely a better fit when:

• You want to actually own and hold cryptocurrency as a long-term investment
• You want to use cryptocurrency on blockchain networks or in DeFi applications
• You want to receive, send, or custody coins independently of any broker
• You are not comfortable with leveraged instruments or derivative structures

When Might Plus500 Be More Appropriate?

Plus500 may be a more practical fit when:

• You want regulated, fiat-denominated access to crypto price movements
• You are interested in trading both rising and falling price moves in a single account
• You want access to crypto alongside commodities, indices, and shares on one CFD platform
• (for non-US retail traders)
• You want built-in risk management tools and a regulated counterparty
• You are a US retail trader seeking CFTC-regulated access to Bitcoin Futures

What About Fees?

On Plus500’s CFD platform, the primary cost is the spread, the difference between the buy and sell

price on a given instrument. An overnight funding charge applies when positions are held past the

daily cutoff. Other fees may apply

On Plus500’s US Futures platform, there is no platform fee and no market data fee. Commissions

are charged per contract at a low rate.

Spot exchange fee structures vary widely but typically include a per-transaction percentage

commission, deposit and withdrawal fees, and — where applicable — fees for transferring crypto to

a private wallet.

Does Plus500 Offer a Demo Account?

Yes. Both Plus500’s CFD platform and its US Futures platform offer a free demo account with live

market quotes, allowing you to explore the platform and practise order types before committing

real money.

Frequently Asked Questions

Can I transfer crypto from an exchange into my Plus500 account?

No. Plus500 is not a crypto wallet or custody provider. Your Plus500 account is funded with fiat

currency only.

Is Plus500 available in my country?

Plus500 operates across a wide range of markets. The specific product available to you depends on

your country of residence. Visit plus500.com to check availability.

What is the difference between Plus500’s CFD platform and its US Futures platform?

These are two separate platforms for two different audiences. The CFD platform serves non-US

retail traders under FCA, ASIC, CySEC, and other regulators. The US Futures platform serves US

retail traders under CFTC and NFA oversight. They are not interchangeable.

Does Plus500 provide price charts and analysis tools? Yes. Plus500’s platform includes real-time charts, technical analysis tools, an Economic Calendar,

and the +Insights feature, which provides data on real-time trading trends across the platform.

Can I hold a CFD position indefinitely?

There is no fixed expiry on CFD positions, but overnight funding charges accumulate daily. On the

US Futures platform, contracts have fixed expiry dates.

Explore how Plus500’s regulated trading platform works alongside — or instead of — a crypto exchange.

80% of retail investor accounts lose money when trading CFDs with this provider. You should

consider whether you can afford to take the high risk of losing your money.

US traders can access CFTC-regulated Bitcoin Futures and Prediction Markets at us.plus500.com.

Trading in futures involves the risk of loss and is not suitable for every investor.

This is a sponsored article. Opinions expressed are solely those of the sponsor, and readers should conduct their own due diligence before taking any action based on information presented in this article.