Financial Conduct Authority authorized and regulated CFD brokerage Plus500 is well known for offering a £20 no deposit bonus (one of few regulated brokers to offer no deposit bonuses for CFD & forex). While there are a number of brokerages that offer no deposit bonuses the majority of these bonuses require that traders deposit real funds in order to be able withdraw any funds they have earned. Thankfully this is not the case with the no deposit bonus from Plus500 which can be withdrawn providing that traders rack up enough trader points in the three months from receiving the funds in their account.
To get the free bonus traders have to simply open a real money account and validate their phone number, after they have done this they will find the £20 deposited in their account. As said before this money can’t be withdrawn until a trader accrues at least 60 trader points. Traders receive trader points for achieving a certain amount of trading volume, so by placing trades with the free money a trader is able gain the vital trading points needed to withdraw their free deposit bonus.
Does this sound too good to be true? While gaining 60 trading points doesn’t sound particularly difficult, traders will have to place a huge volume of trades if they are going to be able to withdraw their funds. For instance you will only get 0.18 trader points for opening a £750 position in the EUR/USD. With an initial balance of £20 and max leverage of 1:100, a trader could theoretically trade a £2,000 position straight away and earn a total 0.47 trader points. If trader was able to make a 125 such trades they would be able to withdraw whatever was left of their no deposit bonus. This may prove terribly difficult as using leverage of 1:100 means that a 1% move against the trader would result in their account being totally wiped out.
To be fair to Plus500, they reward greater trading points on Stocks and other instruments. For instance traders can earn 17.71 trading points per £750 of Petropavlovsk traded. Leverage is limited to 20:1 on stocks meaning that traders can only trade a total of £400 of Petropavlosk stock at a time, which would be worth 9.38 trading points. 7 successful trades of this amount could see a trader being able to withdraw whatever was left of his no deposit trading bonus.
In summary it is certainly possible for traders to fulfill the withdrawal terms of the Plus500 no deposit bonus, but it is likely that the majority of traders will be unable to accrue the 60 Trader points in the three months given. As the no deposit bonus is completely obligation free it may be worth traders having a go and seeing whether they can get enough trader points to be able to withdraw the bonus. It should also be noted that there are some countries were the bonus isn’t offered.
A full Plus500 review can be found here.
Plus500, is a CFD Service. Contracts-For-Difference, are a financial derivative that allow individuals to speculate on financial instruments without owning the underlying asset. When depositing with Plus500, it is important to be aware that that your capital is at risk.