16 rows · Dec 03, · Bitcoin, the peer-to-peer digital currency that was launched in by . rows · Bitcoin Forex Brokers Here you can find the list of Forex brokers that accept payments . Oct 29, · As Bitcoin becomes an accepted form of currency within the forex market, more traders are beginning to ponder the advantages of the crypto within the world’s most liquid bitcoinlife24.de: Valerie Harrison.
Trade bitcoin or forexTrading Forex With Bitcoin: How Does It Work?
When trading on forex platforms Bitcoin is considered as an underlying asset. Therefore, you are not actually required to own the cryptocurrency.
Though Bitcoin exchanges present scores of options, they are unstable and are prone to scams. A majority of these exchanges that have come up following the launch of Bitcoin have closed down.
This has resulted in many investors losing their hard earned money. A few of these exchanges are of course reliable, but a vast majority of them are scams. You may argue that the same things can be said about the online forex brokers as well.
However, the fact is that the situation is much better as far as forex trading industry is concerned. This is because you can always choose to work only with regulated brokers. Such forex brokers are bound by the law to stick to certain stringent stipulations and meet capital adequacy norms. In the case of online forex brokerages, all the costs related to trading are often built into the spread. The spread varies depending on volatility. In the case of Bitcoin exchanges , the spreads are usually tighter, but in addition to the spread commissions are also charged based on volume.
In many situations, the cost of trading the Bitcoin may be more or less the same. Leverage, which offers a lot of flexibility, gives forex brokers an advantage over exchanges. You can get a leverage of up to or on an exchange. Forex brokers offer a leverage of Some brokers may offer even more on Bitcoin trades.
In this regard, the exchanges may be superior compared to online forex brokerages. However, the non-availability of coin variety is not really a cause for worry when you work with some of the best forex platform providers. MetaTrader 4 and MetaTrader 5 trading platforms are offered by many online forex brokers. In fact, MT4 and MT5 are considered as the forex market standard. This is not just a random decision. The MetaTrader platform is technologically advanced and offers enhanced security to enable trader open and close positions without worrying about platform stability.
There are several other features as well that make MetaTrader platform the best choice for forex and Bitcoin trading. Having said this, here are some of the best Metatrader 4 and MetaTrader 5 forex brokers that offer Bitcoin trading:. FBS, an international forex broker, has a presence in over countries. The online forex company boasts of 2,, traders clients and , partners. For Muslim traders, the broker provides swap-free or Islamic accounts.
It is also European Union-registered forex broker. EXPE and Overstock. In order to purchase bitcoins, users must create a bitcoin account and initiate a transfer of money into the account every time they want to purchase a bitcoin.
The growing popularity of bitcoin as an alternative investment has drawn the attention of forex brokers who are looking to expand their offerings. Some define bitcoin as a traditional currency, especially since the trading of bitcoins is not based on macroeconomics of a nation, but instead the underlying platform and broader reaction to shifts in global economics. Trading bitcoin shares many similarities, but doing so through a forex broker is not required, and could be more costly if they charge higher fees than traditional bitcoin platforms like Coinbase.
Investors should consider the risks associated with bitcoin and alternative currencies, and decide whether that form of speculation is right for their portfolios. The Law Library of Congress. Accessed May 25, Lord , CIA Factbook. Bank for International Settlements. Congressional Research Service.
Fordham Urban Law Journal. Commodity Futures Trading Commission. National Futures Association. Accessed May 26, Financial Industry Regulatory Authority. Financial Conduct Authority. Your Money. Personal Finance. Your Practice. Popular Courses. Bitcoin Guide to Bitcoin. Cryptocurrency Bitcoin.
Table of Contents Expand. Is Bitcoin a Currency? Bitcoin Trading Versus Forex. The Bottom Line. Key Takeaways Bitcoin remains the most valuable and talked about cryptocurrency, as well as the most actively traded on exchanges. Launched in , this digital asset's price has fluctuated wildly over the past years, making it attractive for day traders who have started applying forex trading strategies to it.
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