Not long ago, Plus500 was a no-go for US traders. The company only offered contracts-for-difference (CFD) trading, and as we know, CFDs are illegal under US Securities Laws.
Soon, Plus500 will be bringing options and futures derivatives to the market for US traders.
Unlike the standard Plus500 platform traders may be used to, we’ll see Plus500 develop and adapt CTS T4. CTS T4 is a futures and options trading platform developed by Cunningham Commodities LLC — the company which Plus500 purchased.
In this guide, we explain how Plus500 will soon be able to operate in the United States, and what products the US branch is set to offer.
Plus500 Products In The US
Unlike in European and other international markets, Plus500 continues to restrict CFD trading in the US, since it’s illegal nationwide.
Plus500 is soon to offer two distinct products for US traders. These are:
- Options (also referred to as ‘options on futures’)
Remember, if you see ‘Option CFDs’ on the Plus500 website, it’s not what we are referring to, and should you be based in the US, you can’t legally trade such products.
How Does Plus500 Legally Operate In The US?
In early 2021, Plus500 announced the acquisition of Cunningham Commodities LLC.
As of July 2021, this acquisition is now reportedly complete.
Cunningham Commodities LLC is actually a trading platform provider offering software that allows traders to speculate on futures and options. Plus500’s acquisition of cunningham means that the company now owns the rights to the Cunningham futures and options trading platform.
So, how does Plus500 gain the legal right to trade in the US?
Cunningham Commodities LLC, now owned by Plus500, is registered as a Futures Commodity Merchant (FCM) with the US Commodity Futures Trading Commission (CFTC).
The newly acquired entity is also a member of the:
- National Futures Association (NFA)
- Chicago Board of Trade (CBOT)
To put this into perspective, CBOT is one of several market-makers for the giant Chicago Mercantile Exchange (CME), while the NFA is one of the largest derivatives regulatory bodies in the country.
CFDs Are Still Illegal In The US
Just because Plus500 is now bringing options and futures derivatives to US traders, it doesn’t change the fact that CFDs are illegal under US Securities Laws.
Note: Options offered to US customers by Plus500 are entirely different from options CFDs. Options CFDs are, in fact, CFD products, while the soon-to-come standard options are not.
Plus500 continues to ban US traders from accessing CFD products. This will not change unless US laws do.
Can Americans use Plus500?
Americans can use Plus500 once Plus500 officially launches its options and futures platform. Following the completed acquisition of Cunningham Commodities LLC in 2021, traders can expect Plus500 to hopefully launch in the US market in the coming year. There is no exact date for such official launch just yet.
What countries is Plus500 available in?
Plus500 is currently available in more than 60 countries. Some of these include Australia, where Plus500 is licensed by the Australian Securities & Investments Commission (ASIC). Other countries include Germany, Austria, Hungary, France, and Greece in Europe, as well as countries from other parts of the world like South Africa, Taiwan, Uruguay, and New Zealand.
Where is Plus500 based?
Plus500’s head office is based in Israel. although the company has offices worldwide. Plus500 also has subsidiary companies in UK, Cyprus, Australia, Israel, Seychelles, Singapore, and Bulgaria. Most recently the United States is also part of the list, as Cunningham Commodities LLC is a US-based company, now owned by Plus500.
Is Plus500 good for options?
Plus500 currently only offers option CFDs. This derivatives product is different from what you may call ‘vanilla options’, ‘standard options’, ‘European options’, or ‘American options’. That said, Plus500 is expected to launch in the US market soon with futures, and options-on-futures derivatives. Only then, US traders can try the service for themselves.
When will Plus500 Be Available to US Citizens?
Plus500 is set to launch in their futures and options trading platform by the end of 2021. To stay informed of the latest news, please bookmark this page or sign up for our newsletter.