Forex and Bitcoin Trading
Everything you need to know about combining forex and Bitcoin trading
So, you want to trade forex and Bitcoin?
First, a little history.
Forex CFD trading was originally made available to retail traders (that’s you and me, as opposed to the Wall Street players) way back in the 1990’s and experienced an explosion in popularity in the early 2000’s with the rise of the online forex broker.
In 2009, while forex trading was busy cementing itself as the world’s largest market (over $5 trillion traded per day now!) a new arrival on the scene was catching the attention of investors. Everybody, say ‘Hello’ to Bitcoin. Bitcoin, a totally new concept of digital currency had been born and was set to change the financial landscape as we know it, forever.
With huge corporate adoption of Bitcoin (think Microstrategy, Square Inc), and even the backing of the once sceptical J.P. Morgan Chase CEO, Bitcoin has now established itself as a secure investment option.
So, the old and the new. Always a great combination. At least we think so.
However, if you want to trade both these product on just one trading platform, you’re going to need a broker who is set up specifically to offer just that. Ta-da! CryptoAltum at your service.
Although the majority of online FX brokers do offer Bitcoin for trading, you need to observe the following:
Most of the FX brokers offer Bitcoin with enormous spreads, usually fluctuating between $30 and $40 per lot. The CryptoAltum spreads on the other hand are around 10 times smaller than this, around $3 - $4 per lot. That’s 900% less! Don’t just take our word for it, register for an account and you can see just how low our spreads are for yourself.
Don’t be caught out by commission. Some FX brokers claim low spreads on Bitcoin, while instead charging a commission of anywhere between $5 and $10 per lot. CryptoAltum charges zero commission on neither forex or crypto, and never will.
‘How do you have such low fees though?’ Good question! This is due to the high volumes we are sending through to our cryptocurrency liquidity providers. In return, we receive the best possible trading conditions, and we pass these on to our clients.
Most traders tentatively start their cryptocurrency journey by trading Bitcoin. However, we are so sure that once you step foot into the crypto market you’ll be hooked and you’ll want to trade much more than just Bitcoin. Most FX brokers have a limited portfolio of crypto products (maybe 5 to 10 pairs), however CryptoAltum offers all the major FX pairs along with over 60 crypto pairs for you to trade.
You will find that FX brokers offering Bitcoin and other cryptocurrencies do so with extremely limited leverage, usually 1:5 – 1:20 maximum. By contrast, CryptoAltum offers up to an enormous 1:500, making margin requirements much more manageable. It’s key to note that CryptoAltum also offers forex trading with 1:500 leverage.
The cryptocurrency markets are decentralised and are therefore open 24 hours a day 7 days a week. Most FX brokers are only open from Monday to Friday. While this isn’t a problem if you are only trading forex, if you are also trading Bitcoin this means any positions you leave open on a Friday are exposed to huge gaps when the broker reopens for trading on Monday. Just like the crypto market, CryptoAltum is open for trading 24/7, meaning you can access, adjust, and close your positions anytime you need to.
CryptoAltum accepts Bitcoin for both deposits and withdrawals, unlike other brokers who will handle only fiat transactions. This has some key advantages. Firstly, you are not required to submit your private and confidential (KYC) documents to open an account, and secondly, you do not have to disclose your bank and/or credit card information to your broker. This makes the depositing and withdrawing process much more secure and convenient to you, the trader. Cryptocurrency transactions are also much quicker (think minutes only) than methods such as wire transfers, which can take days for you to receive your withdrawals.
Introducing Broker Commission
It’s common for FX brokers to only pay Introducing Broker commission on forex and metals. CryptoAltum believes our IBs are entitled to receive commission on alltheir client’s trades, including Bitcoin and other crypto pairs. If you are an IB and want to start earing commissions on Bitcoin, just sign up here.
Right, that covers just about everything!
If you are:
A forex trader looking to expand your horizons into Bitcoin trading;
A crypto trader looking to test out more traditional markets;
Completely new to trading and want to keep your options open for both markets
CryptoAltum is absolutely the way to go!
Reach out to our dedicated support team, at your service 24 hours a day, 7 days a week!
Learning is Key!