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 | » Account with 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 60% credit bonus plus $123 free (no-deposit) bonus. As concerns Bitcoin trading, it offers solely BTC/USD (max 3:1 trading leverage).
HYCM
Based in London UK, HYCM is an STP Forex Broker owned by the vast financial group Henyep. HYCM is regulated by FCA UK and offers segregated bank client accounts.
■ Trading Technology
HYCM offers a good variety of trading platforms including the HY WebTrader, two versions of MT4, MT4 Mobile Trader plus the CurreneX platform for professional traders. As concerns the Bitcoin CFDs, HYCM offers BTC/USD using up to 10:1 leverage. You can use also Stop-loss and Take-profit orders, plus 150+ indicators.
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 crypto currencies that Bitcoin, including Ethereum, Ripple, Dash, and Litecoin.
AvaTrade offers 20:1 maximum leverage for trading these crypto currencies 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).
Etoro
eToro is another large market maker (Dealing Desk). Trading Bitcoins with Etoro is the subject of many restrictions. For example, you can buy/sell bitcoins only four (4) times per day at fixed times. You can not trade on the weekend as with AvaTrade. Traders can only speculate on rising Bitcoin markets as short-positions are forbidden. Etoro offers other cryptocurrencies than Bitcoin, including Ethereum, Ethereum Classic, Ripple, Dash, and Litecoin.
InstaForex
InstaForex is another Asian-based Forex broker. The Bitcoin leverage offered by the broker is 25:1.
Compare Bitcoin Forex Brokers
This is a basic comparison of all the above Bitcoin Forex Brokers.
|
BROKER |
MIN. DEPOSIT |
MINIMUM SPREAD |
OVERNIGHT (LONG/SHORT) |
MAX LEVERAGE |
WELCOME BONUS |
WEBSITE |
|
$200 |
BTC/USD
|
-$50/-$89.9 per Standard lot |
20:1 |
|
|
|
$10 |
BTC/USD
|
-$10 / -$10 |
3:1 |
|
|
|
$100 |
BTC/USD
|
|
5:1 |
|
|
|
» AvaTrade
|
$100 |
BTC/USD
|
-0.0694% / -0.0694% |
20:1 |
|
|
|
» eToro
|
$100 |
BTC/USD
|
-$0.116 / -$0.116 |
|
|
|
|
$10 |
BTC/USD
|
-0.125% % for long position / -0.25% % for short position |
25:1 |
|
■ Compare Bitcoin Forex Brokers
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