Plus500 vs Interactive Brokers: Who Is the Better Broker?

Navigating the complex world of online brokerage platforms can often feel overwhelming, especially with countless options promising the best trading experience. For retail investors based in the United States or those interested in entering the brokerage space, understanding the nuances between different providers is crucial. Today, we’ll explore an in-depth comparison between Plus500 and Interactive Brokers (IBKR)—two giants that have carved out distinctive niches in the online trading universe. Whether you’re a seasoned trader or a newcomer trying to decide where to place your bets, this comprehensive review aims to shed light on which platform aligns best with your investment needs.

Introduction: Why Comparing Brokers Matters

Choosing the right brokerage platform isn’t just about access to the markets—it’s about the overall trading experience, costs, tools, and the level of support you receive. As the landscape of online trading evolves, so do the features and services offered by brokers. Plus500 and Interactive Brokers exemplify two distinct approaches:

One focusing on simplified, user-friendly trading with a focus on contracts for difference (CFDs).
The other delivering a professional-grade trading platform with access to a broad array of asset classes.

Understanding their core differences will help you determine which platform will serve your financial goals best.

The Backgrounds of Plus500 and Interactive Brokers

Plus500: A Simplified, CFD-Focused Platform

Founded in 2008 in Israel, Plus500 has grown rapidly, establishing itself as a leading provider of CFD trading. Its platform is particularly popular among retail traders due to its straightforward interface, competitive spreads, and a broad range of available markets including forex, commodities, indices, cryptocurrencies, and more.

Plus500’s business model centers around CFDs, which are derivative instruments allowing traders to speculate on price movements without owning the underlying assets. This focus makes it appealing for traders seeking quick, straightforward exposure to markets.

Interactive Brokers: A Legacy of Professional Trading

Established in 1978, Interactive Brokers is a veteran in the industry—grounded in professional-grade trading technology and serving a clientele that spans individual traders, institutions, and professional investors. IBKR provides access to over 135 global markets, covering stocks, options, futures, forex, bonds, and even cryptocurrencies.

Known for its sophisticated trading tools, competitive commission structure, and extensive research offerings, Interactive Brokers is often regarded as the go-to platform for serious traders and investors looking for in-depth market access and advanced execution capabilities.

Platform Overview and User Interface

Plus500 Interface: Simplicity and Intuitiveness

One of Plus500’s biggest strengths is its user-friendly interface. Designed with simplicity in mind, it features:

A clean, uncluttered layout suitable for beginners.
Quick access to a wide variety of markets.
A straightforward order placement system.
Mobile-centric design with dedicated apps on Android and iOS.

While this makes Plus500 an excellent choice for traders just starting out, experienced traders might find its offerings somewhat limited in terms of customization and advanced features.

Interactive Brokers Interface: Power and Flexibility

By contrast, Interactive Brokers offers multiple trading platforms, including:

Trader Workstation (TWS): A highly customizable, professional-grade platform packed with features like advanced charting, risk management tools, and algorithmic trading.
Client Portal: A more simplified, web-based interface suitable for casual investors.
IBKR Mobile: A robust mobile app that maintains much of the TWS’s functionality.

The TWS platform is renowned for its depth and versatility—perfect for traders who need comprehensive tools, complex order types, and detailed analytics.

Asset Coverage and Market Access

Plus500 Asset Range: Focused but Limited

Plus500 specializes mainly in CFDs across:

Forex and cryptocurrencies
Commodities
Indices
Shares (via CFDs)

It does not allow direct ownership or trading of real stocks, ETFs, options, or futures. This platform appeals to traders interested in speculative trading and quick market moves but lacks access to some asset classes that require direct ownership.

Interactive Brokers Asset Coverage: Extensive and Global

IBKR is renowned for its extensive access:

Over 135 global markets
Stocks, ETFs, options, futures, forex, bonds, funds, and cryptocurrencies
Fractional shares trading in the US market
Access to global emerging markets

This broad market access appeals to traders and investors seeking diversification or who want to execute complex strategies involving multiple asset classes.

Costs and Fees: How Much Do They Cost?

Plus500: Transparent Spreads and No Commissions

Plus500 makes money primarily through spreads—a fixed or variable markup between the bid and ask prices. Key points include:

Spreads are competitive; often tighter than traditional markets.
No commissions on trades.
No deposit or withdrawal fees (though currency conversion fees may apply).
Overnight financing charges for positions held overnight, similar to other CFD providers.

While transparent, traders should be aware that CFD trading can involve higher costs through spreads and financing fees, especially for long-term positions.

Interactive Brokers: Low Commissions and Fee Structure

IBKR is known for its low-cost trading model:

Commission rates as low as a few cents per share for stocks and ETFs.
Tiered and fixed pricing structures depending on trading volume.
No inactivity fees for most account types.
Options and futures trading have highly competitive commissions.
Margin rates vary but are among the lowest in the industry.
Data and research subscriptions are optional and can incur costs.

This cost structure is advantageous for active traders and those executing large-volume strategies, making IBKR a cost-efficient platform over the long term.

Trading Tools and Research Capabilities

Plus500: Basic, User-Friendly Trading Tools

While suitable for casual traders, Plus500’s trading tools are relatively limited:

Basic charting with standard indicators.
Price alerts and notifications.
Limited in-depth research and analytical tools.
The focus remains on simplicity, which may be a downside for traders seeking sophisticated analytics.

Interactive Brokers: Advanced, Comprehensive Resources

IBKR shines when it comes to tools:

Extensive charting and technical analysis.
Real-time streaming data.
Advanced order types (e.g., stop-limit, trailing stops).
Risk management and portfolio analysis tools.
Access to IBKR’s Trader Workstation, which offers an unparalleled suite of research and trading features.

For serious traders, this depth of information and analytical capability offers a significant advantage.

Regulation, Security, and Customer Support

Plus500 Regulation and Security

Plus500 is regulated in several jurisdictions, including:

The UK’s Financial Conduct Authority (FCA)
Australian Securities and Investments Commission (ASIC)
CySEC (Cyprus Securities and Exchange Commission)

Customer support is generally available via live chat, email, and phone. The platform emphasizes security measures like encryption and segregated client funds.

Interactive Brokers Regulation and Security

IBKR is regulated across several major jurisdictions:

The U.S. Securities and Exchange Commission (SEC)
Financial Industry Regulatory Authority (FINRA)
FCA
Australian Securities and Investments Commission (ASIC)
Other global regulators

Customer service is available via phone, chat, and email, with dedicated account representatives for professional clients.

Suitability for Different Trader Profiles

Plus500: Ideal for Beginners and Casual Traders

Users seeking a simplified trading experience.
Those interested in CFDs for market speculation.
Traders focused on short-term trading opportunities.
Not suitable for investors wanting to own real assets or execute complex strategies.

Interactive Brokers: Geared Toward Professionals and Active Traders

Experienced traders needing advanced tools.
Investors seeking direct market access for a wide range of assets.
Those executing high-volume trades looking for low commissions.
Suitability for institutional and professional traders.

Pros and Cons of Each Platform

Plus500

Pros:

User-friendly interface; ideal for beginners.
No commissions; competitive spreads.
Large selection of CFDs across markets.
Strong regulation and security.

Cons:

Limited asset classes; no direct ownership of stocks or ETFs.
Less advanced trading tools.
Higher costs for long-term positions due to financing fees.
No support for options, futures, or bonds.

Interactive Brokers

Pros:

Extensive global market access.
Low commissions and tight spreads.
Advanced trading platforms and tools.
Broad asset coverage, including stocks, options, futures, bonds, and more.
Strong regulatory oversight.

Cons:

Steep learning curve, especially with TWS.
Minimums and account requirements can be a barrier for beginners.
Platform complexity may be intimidating.

Conclusion: Who Reigns Supreme? Plus500 or Interactive Brokers?

Deciding which platform is "better" hinges on your individual trading needs, experience, and investment goals.

If you’re a beginners or casual trader interested purely in CFDs, Plus500 stands out with its simplicity, ease of use, and focus on CFDs across diverse markets. It’s a solid choice for those who want quick access to speculative trading without the complexity and costs associated with actual asset ownership.
If, however, you are a more advanced investor or trader seeking comprehensive market access, lower costs at high volumes, and sophisticated tools for long-term investing or complex strategies, Interactive Brokers is undoubtedly the superior choice.

Ultimately, both platforms serve different niches within the trading universe, and the right choice depends on your current skill level, risk appetite, and financial ambitions.

Frequently Asked Questions (FAQs)

1. Which platform is more suitable for US traders?

Interactive Brokers is highly regarded in the United States, with extensive access to US markets, a wide range of assets, and a regulatory framework familiar to US investors. Plus500 operates in limited jurisdictions in the US and primarily focuses on CFDs, which are not available to US residents due to regulatory restrictions.

2. Are there any gender biases in broker features?

No, broker features are designed based on user requirements rather than gender. Both Plus500 and Interactive Brokers cater to diverse traders with varying experience levels, assets, and capital sizes.

3. Can I trade cryptocurrencies on both platforms?

Plus500 offers direct trading of cryptocurrencies via CFDs, while Interactive Brokers provides access to cryptocurrencies through a range of options, including futures and specific crypto offerings, depending on jurisdiction.

4. How safe are my funds with these brokers?

Both brokers are regulated by reputable authorities and implement strong security measures. Clients should always follow best practices for account security, such as two-factor authentication and strong passwords.

5. Which broker offers better customer support?

Interactive Brokers provides more comprehensive customer support options, including dedicated account managers for professional clients. Plus500 offers customer support primarily through live chat and email, generally rated good for straightforward inquiries but less extensive.

6. What are the minimum deposit amounts?

Minimum deposits vary:

Plus500: Often no minimum deposit, suitable for small traders.
Interactive Brokers: Typically requires a minimum initial deposit of $10,000 for individual accounts, though this can vary by account type and jurisdiction.

7. Can I trade on mobile devices?

Yes, both platforms have robust mobile apps—Plus500 has a user-friendly app, while IBKR’s mobile app is feature-rich, closely mirroring its desktop platform.

Choosing the right broker ultimately depends on your individual trading style, preferences, and long-term goals. While Plus500 caters to traders seeking simplicity and CFD trading, Interactive Brokers offers a powerhouse platform for serious, active investors. As always, conduct your own due diligence, consider demo accounts if available, and align your choice with your trading aspirations.

Plus500 vs Interactive Brokers Compared Who is Better Broker