Details about Plum’s fee system and spreads to help you refine your trading approaches.
Effective expense management on Plum is essential. Understand various fee elements and spreads to enhance your trading approach and increase profits.
Register with Plum NowFamiliarize yourself with Plum's fee and cost structure to better control your trading costs and maximize your net returns.
Spreads
The spread signifies the gap between the ask price (buy) and the bid price (sell) of an asset. Plum profits from the spread without imposing direct trading fees.
Example:For example, if Bitcoin’s bid price is $30,500 and the ask price is $30,600, the spread amounts to $100.
Overnight (Swap) Charges
These fees apply to trades held overnight with leverage. The charges depend on the leverage ratio and the duration of the position.
Fees vary based on asset class and trading volume. Holding positions overnight can trigger additional costs, though some assets may offer advantageous rates.
Withdrawal Fees
Plum applies a flat withdrawal fee of $5 regardless of the amount withdrawn.
New users can enjoy a promotion where withdrawal fees are waived during the first month. The processing duration depends on the chosen payment method.
Inactivity Fees
An inactivity fee of $10 per month is charged at Plum if there are no trading activities for over a year.
To prevent inactivity fees, keep your account active through routine trades or deposits within a 12-month period.
Deposit Fees
While Plum does not charge for deposits, your payment provider may have its own additional fees.
Consult your payment service provider beforehand to understand any fees associated with your transactions.
A Comprehensive Cost Overview
Spreads are essential in trading with Plum. They represent the cost of opening a position and are a primary revenue for Plum. Understanding spreads can improve your trading decisions and expense management.
Components
- Sell Quote:This refers to the Bid Price, which indicates the highest price a buyer is willing to pay.
- Selling Price (Bid):Time required to withdraw an investment.
Elements Influencing Spreads
- Trading Volume: Higher activity usually results in tighter spreads.
- Market Fluctuations: Increased volatility often causes spreads to expand.
- Spread patterns differ among various assets.
Example:
For example, a EUR/USD bid of 1.1800 and an ask of 1.1803 results in a 0.0003 (3 pips) spread.
Options for Selling Assets and Associated Costs
Keep your profile updated by revising your personal and financial information in the Plum profile settings.
Access Your Account Dashboard to Deposit or Withdraw Funds
Securely withdraw your funds
Select the 'Cash Withdrawal' option
Pick your preferred withdrawal method
Payment options include bank transfers, credit/debit cards, e-wallets, or prepaid cards.
Start your withdrawal process at Plum
Enter the amount you wish to withdraw.
Confirm Withdrawal
Proceed to Plum to finalize your transaction.
Processing Details
- Withdrawal fee: $5 per request.
- Processing time is typically between 1 and 5 business days.
Important Tips
- Check withdrawal limits specific to your account.
- Review fee structures for services
Strategies for Managing Your Investment Portfolio Effectively
Plum imposes inactivity fees to encourage regular trading and account activity. Being aware of these fees and taking proactive steps to avoid them can help optimize your investment performance and minimize expenses.
Fee Details
- Amount:An inactivity fee of $10 is applicable after 12 months of no account activity
- Period:Your account can be inactive for up to a year without incurring charges.
Methods to Prevent Inactivity Fees
-
Trade Now:Opt for a yearly membership plan.
-
Deposit Funds:Deposit funds to your account to reset the inactivity period.
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Keep a close watch on your investments:Focus on strategic planning to optimize your financial growth.
Important Note:
Regular engagement helps safeguard your investments from ongoing charges. Active management ensures your account stays fee-free and promotes asset development.
Available deposit methods and their associated fees
Adding funds to your Plum account is free; however, your selected payment method may have transaction fees. Understanding your funding options can help reduce costs.
Bank Transfer
Suitable for large transfers and reliable service
Bank Card
Enables fast and smooth transactions for immediate trading needs
PayPal
Quick and widely used for digital payments
Skrill/Neteller
Advanced security through encryption protocols
Tips
- • Choose Wisely: Select a payment method that offers a good balance of speed and cost-effectiveness.
- • Check Fee Details: Always verify the fee policies with your service provider ahead of transactions to avoid surprises.
Summary of Plum Transaction Costs
An analysis of trading fees for various assets and payment methods on Plum, tailored to inform smarter trading decisions.
| Fee Type | Stocks | Crypto | Forex | Commodities | Indices | CFDs |
|---|---|---|---|---|---|---|
| Spreads | 0.09% | Variable | Variable | Variable | Variable | Variable |
| Overnight Fees | Not Applicable | Applicable | Applicable | Applicable | Applicable | Applicable |
| Withdrawal Fees | $5 | $5 | $5 | $5 | $5 | $5 |
| Inactivity Fees | $10/month | $10/month | $10/month | $10/month | $10/month | $10/month |
| Deposit Fees | Free | Free | Free | Free | Free | Free |
| Other Fees | No commission | No commission | No commission | No commission | No commission | No commission |
Fees may fluctuate with market conditions and your trading activity. Always consult the latest fee information available on Plum’s official site before initiating trades.
Reducing Trading Expenses
Plum provides transparent fee structures and strategies to lower costs, increasing overall gains.
Identify Promising Trading Opportunities
Opt for trading platforms with tight spreads to reduce transaction costs effectively.
Use Leverage Judiciously to Maintain Financial Stability
Utilize leverage carefully to prevent excessive overnight fees and safeguard against large losses.
Stay Active
Participate Actively to Minimize Account Fees
Pick cost-effective payment options with low or zero transaction fees.
Enhance Your Trading Strategies for Better Results.
Optimize Your Financial Approach
Optimize your trading approach by minimizing unnecessary transactions and associated costs.
Take advantage of Plum's exclusive offers tailored for traders seeking unique opportunities.
Discover special promotions or customized plans available for new traders or specific investment strategies at Plum.
Common Questions Regarding Fees
Are there hidden fees with Plum?
Absolutely, Plum maintains a clear and transparent fee structure with no hidden charges. All applicable fees are clearly detailed in the pricing section based on your trading activities.
What causes spread fluctuations on Plum?
The spread reflects the gap between the bid and ask prices of an asset. It fluctuates depending on market activity, volatility, and liquidity.
Can trading fees for holding positions overnight be waived?
To avoid overnight fees, close leveraged trades before the market closes or avoid using leverage altogether.
What are the consequences of exceeding my deposit limit?
If your deposit exceeds the limit, Plum may restrict additional deposits until your account balance falls within the permissible range. Maintaining deposit amounts within recommended limits facilitates smooth account management.
Compared to other brokers, Plum provides competitive trading fees, making overall trading costs more accessible. Refer to the detailed fee schedule for precise comparisons.
While Plum allows free transfers between your bank account and trading platform, certain banks may impose transaction fees.
How do Plum's fees compare to those of other trading platforms?
Plum delivers a transparent pricing model with zero commissions on stock trading and clear spreads across multiple asset types. Its fees tend to be more competitive and straightforward than traditional brokers, especially in social and CFD trading.
Are you ready to start trading with Plum?
Get familiar with Plum's fee structures and profit schemes to enhance your trading tactics and increase your capital efficiency. Clear pricing and sophisticated tools support traders at all levels in managing costs effectively.
Create an account with Plum today.