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Bitcoin Forex Brokers

Bitcoin is the first decentralized peer-to-peer payment network.  No bank carries Bitcoins and there is no central authority or centralized exchange for Bitcoin.

Why Bitcoin?

Nowadays, the general interest in cryptocurrencies is peaking, and that is especially true as concerns Bitcoin (BTC) and Etherium (ETH). Bitcoin is a very volatile digital currency, much more volatile than the most volatile exotic currency pair. The bitcoin price often makes extreme swings of more than 50% in just a few days. That explains why brokers provide not more than 25:1 trading leverage when trading Bitcoin. Forex/CFD brokers support Bitcoin as a currency for deposits/withdrawals but also as a trading currency. Mainly, they offer Bitcoin against USD (BTC/USD).

More about Bitcoin at the official website: https://bitcoin.org/

 

► Compare Cryptocurrency Markets (Bitcoin)

 

What is the difference between Bitcoin and other Cryptocurrencies?

There are more than 1,000 cryptocurrencies and each one of them offers different features such as anonymity, platforms, digital applications, etc. Found in 2008, Bitcoin is the first digital currency and that means it has gained enormous popularity and availability over the years. Many merchants, real and online shops around the world accept Bitcoins as a payment method. There are even many ATMs exchanging bitcoins for cash.

Trading Bitcoins

Bitcoin trading refers to the process of buying or selling Bitcoins in order to speculate on future price movements. Demand and supply move Bitcoin markets and Bitcoin trading is based on the major aspects of technical and fundamental analysis. Bitcoin traders can use Bitcoin exchanges to build their positions but also they can trade Bitcoin via Forex/CFD brokers. As Bitcoins trade on multiple exchanges, the rates may vary significantly. Traders must ensure they understand which Bitcoin exchange is used by their Forex broker.

Risks of Trading Bitcoin

(1) Bitcoin price has shown extremely-high volatility over the years. Therefore, trading using high trading leverage is very risky, especially as concerns beginners.

(2) Bitcoin is offered in very wide spreads. The spread diminishes the profit potential of every trade. In the following table, you may compare the trading spreads of all Forex brokers

(3) Trading Bitcoin via Forex/CFD brokers is the subject of overnight rates. In the following table, you may compare the overnight rates of all Forex brokers

 

Compare Bitcoin Forex/CFD Brokers

This is a basic comparison of all the above Bitcoin Forex Brokers.

FOREX BROKER	MIN. ACCOUNT	MIN. TRADING SPREAD	OVERNIGHT RATES	CRYPTO LEVERAGE	PROMOTION	LINKS
► Capital (UK) Regulation: FCA UK License Number: No 793714	100 USD	BTCUSD $34 spread In total, 70 cryptocurrency pairs	LONG -0.06% SHORT +0.01%	1:2	(N/A)	► Capital
► FBS (Russia) Regulation: IFSC Belize License Number: 60/230/TS/12	10 USD	BTCUSD 1,000 points spread	LONG -$10 SHORT -$10	1:3	123 USD Free Bonus 100% Credit Bonus	► The FBS
► IC MARKETS (Australia) Regulation: ASIC Australia License Number: 335692	200 USD	BTCUSD 1,000 TICKS Fixed Spread 10.00 USD per 1 lot	LONG -$50 SHORT -$89.9 Per Standard lot	1:20	No Bonus Promotions	► IC Markets

 

Table Explanation:

• MIN DEPOSIT:

Refers to the minimum amount of money required to open a new account with the broker

• BTC/USD MINIMUM SPREAD:

The spread is the difference in points between the best buying and the best-selling price. The table refers to the minimum spread. Note that the higher the spread the higher the trading cost.

• BTC/USD OVERNIGHT RATE (LONG/SHORT):

It refers to the cost of maintaining your Bitcoin position overnight. Bitcoin overnight rates are always negative as Bitcoin and other digital currencies offer no interest rate. Note that the higher the overnight rate (when negative) the higher the trading cost.

• MAX LEVERAGE (BTC):

It refers to how many times a trader can leverage its Bitcoin positions. If the trading leverage is 10:1 means that by depositing $100 a trader can buy bitcoins worth $1,000. Note that using high leverage is very risky and it is better to avoid it.

• WELCOME BONUS:

Refers to the welcome bonus policy of the Forex broker when opening a new account. There are three types of bonuses:

□ No-Deposit (Free) Bonus: Some Forex brokers offer this type of promotional bonus without requiring an initial deposit. You can withdraw a No-Deposit Bonus after traded it several times.

□ Cash Bonus: You can trade with a cash bonus as capital and even withdraw it after traded it several times.

□ Credit Bonus: You can trade with a credit bonus only as margin and you can’t withdraw it

As a general conclusion, a No-Deposit Bonus and a Cash Bonus are good deals while a Credit Bonus is a bad deal.

 

 

■ Bitcoin Forex Brokers

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