Bitcoin, the peer-to-peer digital currency that was launched in 2009 by Satoshi Nakomoto, is now being used by major retailers (both online and offline) as a payment method. So much so, some forex brokers now offer trading with Bitcoins.
Top Recommended Forex Brokers Offering Bitcoin Trades
|Broker||Min Deposit||Spread||Leverage||Regulation||Open Account|
|$300||floating, from 0 pips||500:1||FCA UK reference number 579202||Visit Broker|
|$5||From 0.2 Pips||500:1||FSA (Saint Vincent and the Grenadines), FCA UK (#679306)||Visit Broker|
|€100||The Spread can be as low as 0.01%” (0.01% = spread for EUR/USD)||1:294||ASIC, CySEC, FCA (UK)||Visit Broker|
|$100||Starting From 0.9 pips||400:1||MIFID, FSB & ASIC||Visit Broker|
|$200||From 3 Pips||400:1||NFA, CySec||Visit Broker|
Bitcoin – What is it
Bitcoin is a completely digital form of currency and uses cryptography which controls the creation and transfer of this currency. There is no centralized exchange for any transaction to occur with this currency. Any number of Bitcoins can be sent to anyone living anywhere in the world without the intervention of any traditional financial institutions such as banks. Any user that wants to use Bitcoins needs to have only a Bitcoin address and a reliable Internet connection. The user has to remain online for as long as the transaction needs to be processed. Every transaction that takes place is recorded in a public ledger called the blockchain. However, any user can receive Bitcoins even when they are offline to their Bitcoin address.
A user can get a Bitcoin address by downloading a Bitcoin client. The popular ones are Bitcoin-qt and Multibit. The difference that exists between the two of them is in the size of the blockchain that needs to be downloaded. A user that wants to download Bitcoin-qt needs about 10 GB Hard disk space. Multibit is a lighter version.
One can get a Bitcoin address also by getting an online wallet. These are specialized websites that offer Bitcoin services. They store the coins in a ‘cold storage’ which are offline safe deposits to prevent them from any misappropriation or pilferage. Only a small percentage is maintained online for immediate redemption.
Bitcoins can also be purchased through online exchanges such as Coinbase.com, Bitstamp.net, etc. If you are a forex trader, the best option would be BTC-E.com which has its own MetaTrader platform.
If you are a forex trader that wants to trade in Bitcoins, read on to find out the criteria you need to keep in mind to choose the best forex brokers that offer Bitcoin trading.
Best Forex Broker That Offers Bitcoin Trading – How to Choose One
Given below are 10 factors that you need to consider to choose the best forex broker. It is a good idea to identify three or four brokers that offer Bitcoin trading and then choose the best that satisfies all the belowsaid criteria.
It is important to choose a forex broker that complies with all regulations set up by local and international regulatory authorities. This ensures that the forex broker has a clear perception of the business, is sufficiently capitalized and maintains the clients’ funds in segregated accounts.
#2: Security of Data
#3: Execution of Trades
Depending on your trading appetite, you can choose a market maker that has dealing desks or choose an STP/ECN broker that passes your order to an Interbank market.
#4: Trading Portfolio
Choose a forex broker that offer not only currencies but also precious metals, Bitcoins, stocks, bonds, commodities, index options, etc.
#5: Commissions, Fees and Spreads
The best forex broker would offer the most competitive commission rates and reasonable fees. The spreads offered by the broker should be in tune with your specific requirements.
#6: Trading Platforms
It is particularly important to choose a broker that offers a demo account. The trader can practice a few dry runs before trading in the real markets. The trading platform offered by the user should be easy-to-use, navigable and rich with features.
#7: Style of Trading
Ensure that your style of trading is compatible with that of the broker that offers Bitcoin trading.
#8: Account Options
Choose a forex broker that offers a reasonable amount as minimum deposit, fair withdrawal and payment terms, acceptable leverage ratio, terms of trading and other features.
#9: Customer Service
Choose a forex broker that offer good and reliable customer service options.
#10: Education and Trading Tools
The best forex broker has on offer a number of trading tools, tutorials and guides that would help the trader in his endeavor.
Best Forex Brokers That Offer Bitcoin Trading
Etoro is the latest among Forex brokers to make a foray into offering trading with Bitcoins. They offer CFDs. However, this site is not recommended for day traders as traders can enter and exit trades only up to four times in a day. This broker uses Bitstamp as data feed for price references. It is to be noted that they do not accept US clients.
Bitcoin trading from Ava Trade website is available through CFDs: Bitcoin Mini and Bitcoin Weekly. The leverages offered are 2:1 and 20:1, respectively. Whereas Bitcoin Mini CFD does not expire, Bitcoin Weekly CFD expires at 21.00 hours every Friday. For both the contracts, data feed used is from BTC-E. Ava Trade also provides an additional amount of $10 in addition to the spread. Ava Trade does not allow weekend trading. This is a drawback for traders as they cannot take advantage of the fact that Bitcoins can be traded on all 7 days of the week unlike currencies. Ava Trade does not accept US clients.
Instaforex has recently introduced the facility of trading in Bitcoins to its clients. The leverage offered by the broker is 25:1. There is no actual delivery of the cryptocurrency during trading. The gains are accrued from the rate fluctuations of Bitcoins. The cryptocurrency can be traded on the InstaForex platform with a leverage of up to 1:25.
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