Bitcoin (BTC/USD) Forex Brokers

Bitcoin Forex Brokers

Launched in 2008, Bitcoin is the first cryptocurrency in the world. The Bitcoin market has no central bank intervention and there are no interbank dealers to control the order flows. Bitcoin is a very volatile digital currency and there are many ways to speculate on the extreme Bitcoin’s price swings which are driven mainly by the news and the prevailing investor’s sentiment.

Trading Bitcoins with CFDs

Since 2013, Bitcoin traders can take advantage of a contract for difference (CFD) to trade Bitcoin. A contract for difference (CFD) is a derivative product that offers easy speculation on the rising or falling prices of any financial market. Actually, a CFD contract ‘mirrors’ the price movements of any financial instrument without owning it.

Advantages of Trading Bitcoins with CFDs

• Traders who buy CFDs on Bitcoin do not actually own the cryptocurrency, avoiding the obligation of obtaining a Bitcoin wallet
• Traders who buy CFDs on Bitcoin avoid the risks associated with a Bitcoin exchange
• CFDs offer speculation on both rising and falling Bitcoin markets (Long and Short Positions are available)
• CFDs offer capital leverage and that means you don’t have to deposit the whole amount of the Bitcoin position you are about to open
• Forex/CFDs Brokers offer promotions for new clients, such as a welcome bonus

Disadvantages of Trading Bitcoins with CFDs

• Every single night that your position remains open (Long or Short) becomes the subject of overnight rates (SWAPS). More information in the following broker's comparison table
• As you don’t own the Bitcoins on a CFD position, you can’t use them for buying goods or services or withdraw them via an ATM

Review Bitcoin Forex Brokers

These are some popular choices for trading Bitcoin CFDs.

IC Markets

IC Markets is a competitive Australian-based broker regulated by ASIC. It offers real ECN execution and very tight spreads. The platforms available include MT4, MT5, and cTrader. Scalping and Hedging are fully allowed, and IC Markets offers also a FIX/API for professional traders. Trading the BTC/USD with IC Markets seems to enjoy privileges such as tight spreads, 1:20 leverage, and no minimum order distance.

Bitcoin Specifications

• Positions: Long & Short on the market
• Spread on BTC: Fixed at 10 USD per 1 lot (1,000 ticks)
• Stop Level: 0 (No minimum Order Distance)
• Minimum Lot Size: 0.01 (One Micro lot)
• Maximum Lot Size: 1 (One Standard lot)
• Hedging Allowed: Yes
• Scalping Allowed: Yes
• Margin: 5%
• Max Leverage: 1:20
• Margin Call:  100%
• Stop Out Limit: 50%
• GTC Pending orders:  Yes

» Visit the IC Markets

FBS

FBS is a large Asian ECN/STP Forex broker found in 2009. The broker maintains offices in Russia and in many Asian countries including Indonesia, Malaysia, and China. FBS asset index contains 28 Forex pairs, CFDs, Metals, Futures, and BTC/USD.

Trading Technology

As concerns trading technology, FBS offers the MT4/MT5 desktop platform and the MT4 mobile trader for all the popular mobile devices (Android, iOs, and Windows).

The minimum deposit to open an account with FBS is just $10, while many fund methods are available including Cards, Wire, Skrill, WebMoney, MoneyGram, PerfectMoney, EgoPay, DixiPay, OKPay, and Neteller. The customer service is 24/5 available via Chat, Phone, eMail, and Forum. The broker at the time of this review offers a 60% credit bonus plus a $123 free (no-deposit) bonus. As concerns Bitcoin trading, it offers solely BTC/USD (max 3:1 trading leverage).

» Visit the FBS

AvaTrade

Avatrade is a large market maker. Ava is a regulated financial firm offering a wide asset index but expensive spreads. The minimum deposit to open an account is $100 and you can use it to trade digital currencies or any other asset. Ava offers other cryptocurrencies that Bitcoin, including  Ethereum, Ripple, Dash, and Litecoin.

AvaTrade offers 20:1 maximum leverage for trading these cryptocurrencies and the opportunity to buy (go long) or sell (go short). AvaTrade services are available 24/7. The maximum accumulated Bitcoin position size is 100 BTC/USD (10 Lots).

» Visit AvaTrade

Compare Bitcoin Forex Brokers

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

■ Compare Bitcoin Forex Brokers

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