Forex brokers are usually behind the curve introducing new CFD products for investors until after the fad has quieted down. However with Bitcoin (CURRENCY:BTC) trading already a few years old, many brokers are now finally seeing heaving trading volume with the popular crypto currency.
Comparing the best broker for trading Bitcoin is still a little bit cumbersome and confusing, but at least investors have a few choices.
Forex Brokers for Bitcoin Trading
The best Forex Broker to use to trade Bitcoin is one that is locally licensed and regulated. Although there are no governments who recognize bitcoin as a real currency, when using a regulated CFD broker to trade, at least you know your account is protected.
Many Forex brokers in Europe offering Bitcoin trading are licensed and regulated by CySEC. The largest brokers in Europe that offer Bitcoin trading are currently 24Option.com.
The difference between brokers are the source of the bitcoin price, the spreads, and the leverage per contract.
- eToro.com which is a mega FCA regulated social trading brokers, give you the ability to manually trade Bitcoin or copy trade Bitcoin.
CFD Trading vs Bitcoin Investing
It is important for you to understand the difference between investing in Bitcoin, and trading Bitcoin for profits.
When you invest in Bitcoin, that means you are buying actual Bitcoins, and storing them in your Bitcoin Wallet. This takes place on various exchanges which you can research online.
Trading Bitcoin via a Forex Broker, means you are trading a “Contract For Difference”. You do not actually own the Bitcoin, rather you profit from the movement in price. It is a leveraged product with certain margin requirements.
Once you have chosen which online broker to use, you can speak with their customer service department, and one of the trading advisors will explain to you the risks, and how it works in greater detail.
Just remember, always verify that the broker you are going to trade with, is licensed and regulated in your country.