Overview of 500pips
500pips is a brokerage firm that has been operating since 2018 and is based in Luxembourg, although its regulatory status remains unverified. The minimum deposit required to open an account with 500pips is $250, making it relatively accessible to traders with varying levels of experience.
One notable feature of 500pips is its maximum leverage, offering traders the potential for significant exposure in the markets. For Forex trading, the maximum leverage is up to 1:400, while for cryptocurrencies, it is set at 1:5. However, it's crucial to keep in mind that higher leverage also comes with increased risk, and traders should use it judiciously.
In terms of tradable assets, 500pips offers a diverse range, including Forex currency pairs, commodities, indices, stocks, and cryptocurrencies. This breadth of assets allows traders to diversify their portfolios and explore various markets.
Is 500pips legit or a scam？
500pips is not regulated by any regulatory authority, which may raise concerns about the transparency and oversight of the exchange.
Unregulated exchanges lack the oversight and legal protections provided by regulatory authorities. This can lead to a higher risk of fraud, market manipulation, and security breaches. Without proper regulation, users may also face challenges in seeking recourse or resolving disputes. Additionally, the absence of regulatory oversight can contribute to a less transparent trading environment, making it difficult for users to assess the legitimacy and reliability of the exchange.
Pros and Cons
Pros:
High Leverage Options: 500pips offers substantial leverage, with up to 1:400 for Forex and 1:5 for cryptocurrencies. This can amplify potential profits, especially for experienced traders who manage risk effectively.
Diverse Range of Tradable Assets: Traders have access to a wide variety of tradable assets, including Forex currency pairs, commodities, indices, stocks, and cryptocurrencies. This diversification allows for portfolio flexibility.
Multiple Account Types: The availability of multiple account types, such as Basic, Bronze, Silver, Gold, Platinum, and Black, caters to traders with different experience levels and preferences. It provides flexibility in choosing an account that aligns with trading goals.
Cons:
Lack of Regulatory Oversight: 500pips operates without regulatory verification, raising concerns about transparency and the broker's adherence to industry standards. Traders may have limited recourse in the event of disputes or issues.
Limited Educational Resources: The platform appears to offer limited educational resources. This could potentially hinder the development of less-experienced traders who rely on comprehensive learning materials.
Limited Customer Support: The customer support offered by 500pips may be limited in scope or availability, which could pose challenges for traders who require timely assistance or have questions about their accounts.
Lack of Clarity on Trading Platforms: Information regarding the trading platforms used by 500pips is not clearly specified. Traders may find it challenging to assess the platform's features, usability, and compatibility.
Geographical Restrictions: 500pips may not be available in certain countries or regions. This can limit access for traders residing in areas where the broker does not operate.
Market Instruments
500pips offers a range of financial products for trading. These products include:
Forex Currency Pairs: Traders can engage in the foreign exchange (Forex) market, where they can trade various currency pairs. This allows them to speculate on the relative value movements of currencies like the Euro, US Dollar, British Pound, and more.
Commodities: 500pips provides access to trading commodities. This category typically includes assets like gold, silver, oil, and other raw materials. Commodities trading allows investors to take positions on the future prices of these valuable resources.
Indices: Traders have the opportunity to trade indices, which represent the performance of a group of stocks from a particular stock market or sector. Popular indices include the S&P 500, NASDAQ, and Dow Jones Industrial Average.
Stocks: 500pips offers trading in individual stocks. Traders can buy and sell shares in publicly traded companies, potentially profiting from changes in the stock prices of these companies.
Cryptocurrencies: While the leverage for cryptocurrencies is limited (1:5), 500pips also offers the opportunity to trade digital currencies like Bitcoin and Ethereum. Cryptocurrency trading allows traders to speculate on the price movements of these emerging digital assets.
These products collectively provide traders with a diverse range of assets to trade, allowing them to diversify their portfolios and engage in various financial markets. Each product category comes with its own risk and reward profile, and traders should carefully consider their investment strategies and risk tolerance before trading these products.
Account Types
Below is a description of five account types offered by 500 pips:
Basic Account: The Basic account type offers traders a starting point to enter the world of online trading. It provides leverage of up to 1:400 for Forex and 1:5 for cryptocurrencies, allowing traders to potentially magnify their positions. With a minimum deposit of $250, it offers accessibility to traders with varying levels of experience. This account type features variable spreads and does not charge any commissions.
Bronze Account: The Bronze account maintains similar trading conditions to the Basic account, including leverage of up to 1:400 for Forex and 1:5 for cryptocurrencies. However, the minimum deposit for this account type is not disclosed in the provided information. Traders can still access variable spreads with no commissions.
Silver Account: The Silver account continues to provide leverage of up to 1:400 for Forex and 1:5 for cryptocurrencies, with the minimum deposit not disclosed. Traders can benefit from variable spreads and no commissions. A demo account is available for practicing trading strategies. Customer support remains accessible via 24/5 live chat and email.
Gold Account: The Gold account offers leverage of up to 1:400 for Forex and 1:5 for cryptocurrencies, with the minimum deposit not disclosed. Variable spreads and no commissions are part of this account type's features. Traders can utilize a demo account to hone their skills, and customer support is accessible through 24/5 live chat and email.
Platinum Account: Traders opting for the Platinum account can enjoy leverage of up to 1:400 for Forex and 1:5 for cryptocurrencies, with the minimum deposit not disclosed. Variable spreads and zero commissions are characteristics of this account.
Black Account: The Black account offers traders leverage of up to 1:400 for Forex and 1:5 for cryptocurrencies, with the minimum deposit not disclosed. Variable spreads and no commissions are part of this account's trading conditions.
How to Open an Account？
Opening an account with 500pips typically involves several straightforward steps. Here's a concrete guide separated into six steps:
Step 1: Visit the 500pips Website
Step 2: Registration
Look for the “Register” or “Sign Up” button on the website and click it.
You'll be prompted to fill out a registration form with your personal details, including your full name, email address, phone number, and a password for your account. Ensure that the information you provide is accurate and up-to-date.
Step 3: Account Verification
Step 4: Choose an Account Type
Once your account is verified, log in to the 500pips platform.
Choose the account type that suits your trading needs. You may have options such as Basic, Bronze, Silver, Gold, Platinum, or Black, depending on your preferences.
Step 5: Deposit Funds
To start trading, you'll need to fund your trading account. Go to the “Deposit” or “Fund Account” section on the platform.
Select your preferred payment method, which can include credit/debit cards, bank wire transfer, Skrill, Neteller, or other available options.
Enter the deposit amount and follow the prompts to complete the transaction. Be aware of any minimum deposit requirements associated with your chosen account type.
Step 6: Begin Trading
Once your account is funded, you can access the trading platform provided by 500pips.
Familiarize yourself with the platform's features, tools, and available assets.
Start trading by placing orders, managing positions, and using the resources provided by 500pips to make informed decisions.
Leverage
The maximum leverage offered by 500pips is 1:400 for Forex and 1:5 for Cryptocurrencies. This means that you can control a position worth up to $400 for every $1 you have in your account for Forex, and a position worth up to $5 for every $1 you have in your account for Cryptocurrencies.
Leverage can be a powerful tool, but it is important to use it carefully and responsibly. High leverage can amplify your profits, but it can also amplify your losses. If you are not careful, you can lose more money than you have in your account.
Spreads & Commissions
500pips operates with variable spreads, a pricing model commonly used by many forex brokers. Variable spreads imply that the cost of trading, represented by the spread, can fluctuate in response to market conditions. This can be advantageous during periods of high market volatility when spreads may naturally widen. However, it's important to note that variable spreads can also tighten during less volatile times, potentially offering more favorable trading costs.
Not charging commissions on trades can be an advantage for traders who prefer a straightforward fee structure. Instead of paying a separate commission for each trade, traders can focus solely on managing spreads. However, it's essential to carefully evaluate the overall trading cost, factoring in spreads and any other fees that might apply.
Trading Platform
500pips offers a web-based trading platform that supports multiple time frames, charts, and some of the most popular drawing tools and price indicators. The platform is also user-friendly and easy to navigate.
Here are some of the features of the 500pips trading platform:
Multiple time frames: The platform supports multiple time frames, from 1 minute to 1 month, so you can trade on the time frame that best suits your trading style.
Charts: The platform offers a variety of chart types, including line charts, candlestick charts, and bar charts. You can also customize the charts to suit your needs.
Drawing tools: The platform offers a variety of drawing tools, such as trend lines, Fibonacci retracements, and support and resistance levels. You can use these tools to analyze the markets and identify trading opportunities.
Price indicators: The platform offers a variety of price indicators, such as moving averages, MACD, and RSI. You can use these indicators to generate trading signals and confirm your trading decisions.
User-friendly interface: The platform has a user-friendly interface that is easy to navigate. You can quickly and easily place and manage your trades.
Overall, the 500pips trading platform is a well-designed and user-friendly platform that offers a variety of features and tools.
Deposit & Withdrawal
Deposit and Withdrawal Methods
500pips offers a variety of deposit and withdrawal methods, including:
Credit/debit cards
Bank wire transfer
Skrill
Neteller
Deposit and Withdrawal Fees
500pips does not charge any deposit fees. However, there may be fees associated with withdrawing funds from your account. The withdrawal fees vary depending on the withdrawal method you choose.
Minimum Deposit and Withdrawal Amount
The minimum deposit amount for a 500pips account is $250. The minimum withdrawal amount is also $250.
Customer Support
The customer support offered by 500pips is described as limited, which means it may have certain restrictions or limitations in terms of availability and support channels. Here's an overview of the customer support provided by 500pips:
Availability: Customer support at 500pips is available for traders on a limited basis. This typically means that support may not be accessible 24/7, and traders may need to adhere to specific operating hours. The provided information suggests support is available on a 24/5 basis, which means it's available around the clock from Monday to Friday. However, it may not be accessible on weekends or during market holidays.
Support Channels: 500pips offers customer support primarily through two main channels: live chat and email. Live chat provides real-time assistance, allowing traders to interact with support representatives online for immediate queries or issues. Email support offers an asynchronous means of communication, where traders can send detailed inquiries or requests, and support will respond via email.
Limited Customer Support Hours: The availability of customer support during specific hours of the day (24/5) means that traders may need to plan their interactions with support accordingly. This can be a limitation for traders who require assistance outside of the specified hours, particularly during weekends or outside standard business hours.
Educational Resources
500 pips lacks educational resources, which can make it difficult for new users to learn how to use the platform and trade cryptocurrencies.
Some of the educational resources that are missing from 500 pips include: a comprehensive user guide, video tutorials, live webinars, blogs and etc.
The lack of educational resources on 500 pips can make it difficult for new users to learn how to use the platform and trade cryptocurrencies. This can lead to mistakes and losses, which can discourage new users from trading.
Conclusion
In conclusion, 500pips presents traders with a range of account options and leverages its web-based platform to provide access to various tradable assets, including Forex, cryptocurrencies, and more. The availability of multiple account types offers flexibility to traders with different preferences.
However, the broker faces several disadvantages, such as the absence of regulatory oversight, limited educational resources, and customer support available during specific hours only. Traders should weigh these limitations against the advantages of diverse asset options, account choices, and the convenience of a web-based platform when considering 500pips as a potential broker for their trading needs.
FAQs
Q: How can I open an account with 500pips？
A: To open an account with 500pips, visit their official website, click on the “Register” or “Sign Up” button, fill out the registration form, verify your email, choose an account type, deposit funds, and start trading.
Q: What types of assets can I trade with 500pips？
A: 500pips offers a range of tradable assets, including Forex currency pairs, cryptocurrencies, commodities, indices, and potentially stocks, depending on your account type and platform.
Q: Is 500pips regulated by any financial authority？
A: As of the information provided, 500pips does not have regulatory oversight mentioned.
Q: What educational resources are available to traders on 500pips？
A: 500pips provides educational resources such as FAQs, video tutorials, webinars, e-books, glossaries, and market analysis materials to support traders in improving their trading knowledge and skills.
Q: What are the customer support hours at 500pips？
A: Customer support at 500pips is available 24 hours a day, five days a week (24/5). This means you can contact them for assistance during the trading week, from Monday to Friday.
Q: What is the minimum deposit requirement for opening an account with 500pips？
A: The minimum deposit requirement varies depending on the chosen account type.
Q: What payment methods are available for deposits and withdrawals？
A: 500pips offers various payment methods for deposits and withdrawals, including credit/debit cards, bank wire transfers, Skrill, Neteller, and potentially others depending on your location and account type.
