Bitcoin has seen its growth in popularity as an alternative investment, drawing attention from forex brokers looking to widen their offerings. In some cases, bitcoin is defined as a traditional currency. Similarly called BTC, bitcoin also has evolved into an investment for people seeking alternative assets.
Choosing bitcoin forex brokers entails considering various characteristics, including location, order book volume, transparency, trading fees, and deposit and withdrawal limits. Another essential thing to consider to start bitcoin trading via a broker is to inspect the payment methods.
In This Guide
Min $100 Deposit
Min $100 Deposit
FCA, ASIC, CIMA, SIBL
Min $200 Deposit
Up to 50% Bonus
Min $100 Deposit
$30 No Deposit Bonus
FCA, IIROC, JFSA, NFA, CIMA, FSA, ASIC, CFTC
Up to $5000 Welcome Bonus
The cryptocoins are a trend in the financial market. That isn’t exactly new thing but just getting a lot of attention right now.
These are digital currencies, or crypto currencies, that can be used to pay for goods and services on the one hand, but have primarily been used for speculation on the other. You can now use Bitcoin to pay in various online shops. Sometimes even in local shops, most alternative Bitcoins have so far been used almost exclusively for speculation.
Before getting an account to trade Bitcoin online, get to know some of the most reliable Bitcoin Forex brokers in the market today. We have reviewed some of the best bitcoin trading forex brokers below to help you get started.
Established in 2007, eToro is one of the biggest currency trading companies which operates on global financial markets. One of the distinct features eToro has is its ability to mimic a trader. This means that you can copy the trades of someone with whom you have confidence. It is also one of the excellent copy and cryptocurrency trading companies with a user-friendly website platform and mobile application that are ideal for casual investors.
Suppose you feel hesitant with using eToro as your Bitcoin Forex broker; it has demo accounts where you can take advantage to check experience how the platform works and ensure it offers all the trading requirements you need. With eToro, you can withdraw and deposit using Skrill, PayPal, WebMoney, Neteller, bank transfers, and credit cards, among others.
SimpleFX also has a user-friendly platform that guarantees secure and fast transfers. It features an accommodating API manager and does not require any minimum withdrawals or deposits. SimpleFX offers bitcoin trading and is one of the forex brokers that allows Bitcoin CFDs as the user’s option, giving more effective trading tools.
The company was established in 2014, offering its clients the opportunity to use Bitcoins in investing in the Forex Market. One of the main advantages of SimpleFX is its capability to allow traders with a small amount to trade through high volumes. It’s called leverage, where traders do not need to trade their whole capital since a small portion of the entire amount is already sufficient to use in trading.
This Forex broker allows traders access to daily training signals, uncapped deposit bonuses, a wide range of educational and research materials, and trading tools for all clients to boost their edge over other traders. It’s a regulated CFD and Forex broker that provides access to a vast range of the most famous Forex pairs, Crypto CFDs, Share CFDs, and Commodities of several of the largest companies in the world, everything at the lowest possible cost.
Moneta Markets have some of the lowest spreads in the trading industry. This allows its clients to open account minutes and deposit using more than 20 various cryptocurrencies. Traders can choose to trade from over 300 CFD markets through Moneta Markets’ WebTrader, MetaTrader 4, and MetaTrader 5 platforms.
Plus500 is one of the more known bitcoin forex brokers in the industry. The company headquarter is in Israel but has subsidiaries in Australia, Cyprus, and the UK. The company offers a robust and powerful Bitcoin CFD trading platform. Those who use Plus500 can take advantage of several risk management tools, which can be convenient for traders in the long run.
With several subsidiaries around the world and having global traders, Plus500 is translated into 32 various languages. It also allows withdrawals and deposits using several payment options, including Skrill, PayPal, bank transfers, and credit cards.
AvaTrade is one of those that receive regulatory approval from six various jurisdictions. This is another trading platform that allows virtual currency trading. Established in 2006, AvaTrade provides its clients with short and long positions. Like most forex brokers, you have the luxury to have a demo account to test out the platform and its features before entirely using it.
Besides the virtual currency trading that AvaTrade offers, traders can also benefit from a wide range of various learning materials and several forex reviews. It also allows different payment methods for traders to use.
Before we get into more detail about how and where you can trade cryptocurrencies, as well as which coins are currently in demand and well-known, we’d like to provide some background information. What exactly are cryptocurrencies? Cryptocoins are digital currencies that operate on the basis of cryptography and use a specific encryption technology. The top feature of cryptocoins is that they operate completely independently of banks. This is a striking feature and a significant distinction from central bank money. The transfer of cryptocoinsworks similarly to a bank account transfer.
It’s a type of electronic account that is solely for keeping track of cryptocoin inventory. The entire system works with a private and public key. In theory, you can compare the public key to a known account number, such as one from your current account. The public key is essentially the address to which other people can send cryptocoins, as well as the address from which you can send cryptocoins to other people. The private key, on the other hand, is similar to an online banking PIN, so it should be kept private. In the field of cryptocoins, the private key is required to confirm a transaction.
The wallet is the foundation for sending and receiving cryptocoins. It is, however, only used for coin storage and accounting, not for speculation. So, similar to speculating on raw materials or other financial products, if you want to speculate on the performance of individual cryptocoins, you’ll need a different kind of access. You can buy cryptocoins or speculate on their price development in one of two ways:
We would like to explain these two ways and methods by which you can buy and sell cryptocurrencies and speculate with the cryptocoins in more detail below.
Some CFD and Forex brokers may provide the simplest way to speculate on the price development of cryptocoins. This is especially true if you already have a trading account with a broker and are already speculating on currency pairs or using CFDs on stocks, commodities, or other financial products. Cryptocurrency CFDs are becoming increasingly popular among CFD brokers.
The following forex and CFD brokers, for example, are currently among the service providers that offer crypto currencies (Crypto CFDs):
Trading works in the same way as trading stocks or commodities CFDs if you choose this method of speculating on cryptocurrencies. This implies that you purchase cryptocoins using a Contract For Difference, in which case you can take advantage of the CFD broker’s leverage. Crypto CFDs, like all other CFD variants, allow you to speculate on both rising and falling prices of the underlying coins.
The most well-known cryptocurrencies, which also have a relatively high market capitalization in comparison to the majority of the now over 800 cryptocoins, are:
One option is to use CFDs with a forex or CFD broker to speculate on the price movement of individual cryptocoins. However, there is another way to trade cryptocoins, which is through so-called special exchanges. This refers to specialized cryptocoin exchanges where you can buy and sell coins in the same transaction.
On the market, there are an increasing number of these Bitcoin Brokers & Exchanges, such as:
The main difference between trading cryptocoins on these exchanges and the previously described CFD trading is that when buying or selling coins on these exchanges, there is no leverage to reduce your potential profit – and, of course, any loss.
You buy and sell the cryptocoins via the exchanges in a ratio of 1: 1. However, before you can trade bitcoins or one of the numerous alternative crypto currencies on these exchanges, you need the previously mentioned wallet. This is used to book incoming coins and you can also send cryptocurrencies to other recipients in return.
Cryptocurrencies are a hot topic in finance right now, with an increasing number of people interested. Speculation on the price movement of the coins is primarily possible through certain CFD and Forex brokers, who offer a variety of crypto currencies and are thus classified as crypto brokers.
With so many bitcoin forex brokers in the market today, the essentials you need to have in mind will always be the same. Remember to look for a trusted solution with enough reputation, transparency, and user reviews since, after all, you will be trusting that broker with your money. Traders may have varying experiences with the abovementioned brokers – good and bad; however, they are reliable and proven trading platforms having years of experience on the market. Alternatively, you can trade the cryptocoins on a specialized exchange like Kraken.com. Cryptocurrencies will undoubtedly be a topic in the months and years ahead, potentially allowing astute speculators to make huge profits, as Bitcoins have previously demonstrated.
As people saw the success of Bitcoin, developers tried improving current functionalities and providing new functionalities and features with new cryptocurrencies. Also, investors were indeed trying to make money out of the latest developments in cryptocurrency.
Anyone can indeed get profits from bitcoin trading. However, a trader’s ability to achieve profits from bitcoin will depend on the market analysis’ depth, market knowledge, and the participating market conditions.
When you plan to use Forex to trade bitcoin or other cryptocurrencies, it will involve selling and purchasing CFDs but not real and actual assets. Your profit will consist of the difference between sale and purchase, depending on the changes in cryptocurrencies rates. When you trade using Forex brokers, you will get ownership of bitcoin credited to your wallet. This allows traders to save a commission when trading. This is also one of the reasons why trading bitcoin with forex brokers has been getting much attention in recent years.
Besides bitcoin, various cryptocurrencies are added to Forex markets each year. A few of them include Tether, Ethereum, and EOS. Several traders are still using Bitcoin as their base currency; that is why the probability of gaining profits increases when Bitcoin is one of the cryptocurrencies making up a currency pair.
Bitcoin trading can also be risky because of the volatility in the trading market. If you are about to try trading bitcoin, it is essential to open an account using credible forex brokers that provide access to educational and risk management tools.