Forex Bitcoin Trading Brokers
A number of forex brokers that offer online platforms for trading are available in the market today. However, all of them are not equal and it is up to you as a forex trader to identify the right one for you. Therefore, you must work only with a reliable forex broker that offers currencies that you are interested in trading and terms and conditions that best fit your trading needs. If your goal is to trade Bitcoins, then you must have some background information about the cryptocurrency and identify a few forex brokers that offer Bitcoin trading. The next step is to evaluate the forex brokers that offer Bitcoin trading as discussed below in this article and then choose one that caters to your needs the best. At the end, features offered by some of the top-rated fx brokers that offer Bitcoin trading are also discussed to help you make an informed decision.
Recommended Best Forex Brokers That Accept Bitcoin Trade
What Is Bitcoin ?
Bitcoin, a cryptocurrency, exists completely in the electronic or digital form. The new payment phenomenon offers great opportunities to traders and potential investors. As the virtual currency is a peer-to-peer currency, no middle men or a central authority is required to carry out transactions. Further, the cryptocurrency enables bypassing of capital as well as AML restrictions.
If you want to send or receive Bitcoins, you are required to have access to the Internet and a bitcoin address, which can be obtained either by getting an online wallet or downloading the Bitcoin client. Bitcoin-qt and Multibit are the most popular Bitcoin clients. Bitcoin exchanges are comparatively safer places for keeping your digital currency compared to online wallets.
Apart from elimination of the middlemen and bypassing of restrictions, Bitcoin offers several other advantages. One of them is low cost of sending and receiving funds. As far as the merchants are concerned, Bitcoin transactions are more secure and irreversible as it eliminates the fraud risk or fraudulent chargebacks.
Further, Bitcoin offers a great deal of transparency through the use of the blockchain technology. The popular belief that Bitcoin is anonymous is not correct. In fact, it is pseudo anonymous, meaning all Bitcoin transactions and addresses are public, but the holders’ addresses remain hidden.
Buying Bitcoins at an online exchange is the easiest way to acquire the digital currency. The three major Bitcoin exchanges are Bitstamp.net, Coinbase.com and BTC-E.com. Each of them has their own unique features and a different fee structure. As a forex trader, BTC-E is your best bet. The exchange offers its own MetaTrader platform.
How to Choose the Best Forex Brokers that Offer Bitcoin Trading
When it comes to choosing a forex broker, you need to consider 10 critical factors outlined below. The best way of selecting a forex broker is to identify a few, say 3 to 4, and evaluate them on the basis of these 10 factors. Now, if you are looking for forex brokers that offer Bitcoin trading, you must identify 3 to 4 such brokers and then evaluate them as mentioned above.
This is very important factor to be considered when selecting a forex broker. This is to ensure that the broker is sufficiently capitalized, keeps your hard earned money in segregated accounts and makes us of fair dealing practices.
#2: Data Security
The broker must ensure a high level of data security as you will have to share personal information, financial data, passport and utility bill details, credit card number and bank account information when opening an account.
You must ensure that the broker you are planning to work with is associated with a reputable firm that provides Internet security.
You must also make sure that your broker has installed Secure Sockets Layer (SSL) encryption to prevent interception by the wrong parties when transferring data.
This security feature if present makes hacking of your account difficult.
This is another aspect to be checked by you to ensure that the personal information collected by the broker would not be sold to others.
#3: Trade Execution
The two types of forex brokers are market makers (those with dealing desks) and STP/ECN brokers (those that pass off your orders to the Interbank market). Choose the type of broker depending on your trading appetite.
#4: Product Coverage
Nowadays, a forex broker allows you to trade more than just currencies. Innovative brokers allow you to trade commodities, precious metals, single stocks, bonds, stock indices, ETFs, Bitcoins and currency as well as index options.
#5: Spreads, Commissions and Fees
Choose a broker that offers the most competitive spreads, commissions and fees, which are in line with your specific needs.
#6: Trading Platforms
The trading platform offered by the broker must be intuitive, user-friendly and feature rich. Also, look for a broker that offers a demo account.
#7: Trading Style
Your trading style is an important factor to be considered when choosing the best forex broker that offers Bitcoin trading.
#8: Account Options
Forex brokers differ greatly in terms of minimum amount to be deposited to start trading, methods of deposit and withdrawal, payment options, trading terms and account features. Choose one that offers the best terms.
#9: Customer Service
Good customer service essential to succeed as a forex trader. Choose one that offers the best service.
#10: Trading Tools and Educational Material
The best forex brokers offer several trading tools and a lot of educational material with a view to help traders succeed in their endeavor.
Recommended Forex Brokers that Offer Bitcoin Trading
The forex broker AVA trade offers Bitcoin trading by way of two CFDs, Bitcoin Weekly and Bitcoin Mini with a leverage of 20 to 1 and 2 to 1, respectively. Bitcoin Weekly CFD expires at 21:00 GMT every Friday, while Bitcoin Mini does not expire. Data from BTC-E is used for both the contracts. Further, AVA Trade adds a premium of $10 over the exchange spread.
A major drawback as far as both the contracts are concerned is that they cannot be traded during weekends. This is because Bitcoin trades 24/7 unlike the currency market which operates 24/5. This forex broker does not accept U.S. clients.
Etoro, latest in the fray to offer Bitcoin trading, offers CFDs, but does not accept U.S. clients. They use data feed from BitStamp for price reference. Their product is not recommended for day trading because traders can enter and exit the market only four times in a day.
Btc.sx, incorporated in Singapore and England, offers an instrument with a leverage of 10 to 1 and uses data feed from BitStamp. Like Ava Trade, Btc.sx also adds approximately $10 to the spread. Minimum deposit required is 0.01033 Bitcoin. Only bitcoin deposits are accepted. Further, Btc.sx imposes several trading restrictions.