The Forex industry is known to be open to new, creative and innovative ideas all the time. One of the innovations popularized by Forex recently is the system of bitcoins. More and more Forex brokers add bitcoins as a method of payment or as a trading instrument in a currency pair. Forex has come a long way, and new sophisticated features are being added on a daily basis. Forex is an online business with no physical location, and as such, welcomes clever virtual ideas, and brokers have been open- minded to new ideas.
What is Bitcoin?
Bitcoin, abbreviated BTC, is an online virtual currency with no centralized exchange. It is an electronic cryptocurrency for storage, transfer, and acquisition of money in a decentralized way. There is no central authority or intermediary between the broker and user. The bitcoin has been actively present since 2010/2011. It is controlled by all users, and all they have to do is to use software complying with the same rules. Users can run their bitcoin wallet over a mobile app or their desktop computer, over which they can receive and send bitcoins. A secure, safe and encrypted system lies behind bitcoin software so that transactions are protected, and users can safely deposit and withdraw.
Users are free to pay at any time they want. Traders can send and receive bitcoins in any part of the world. Users are the ones who control their money, and there is no third party. This is probably the biggest advantage of bitcoin. The transfer will not be affected by holidays, non-working days, or banks. Bitcoins do not necessarily have a fee unless users choose a fee on their own. Traders basically can decide how much of a fee they are going to pay when spending. Moreover, the higher the imposed fee, faster the transaction. We already stated that the bitcoin system is highly protected given that customers do not provide personal or private information. In that way, fraudulent chargebacks can be avoided. With bitcoins, some administrative fees can be avoided, and larger markets can be accessed. Bitcoin is completely neutral and transparent due to its encrypted protocols which are safe.
Bitcoin is relatively new, and still many people either restrain from or are unaware of bitcoins. Meanwhile, some businesses (like Forex) encourage bitcoin usage and maybe they will spread the word among the masses. The value of bitcoins in circulation is relatively small. Volatility can be affected even by the smallest events.
Bitcoin and Forex
As we already said, Forex encourages new business ideas which make things easier for traders and themselves. Therefore, one can see that the number of brokers using bitcoins increases. Many traders find the bitcoin payment method more than convenient. Moreover, many brokers allow the bitcoin as a currency of value. They allow traders to place trades on a for example BTC/USD, or BTC/EUR pair. When observing the brokers’ logic and their bitcoin tolerance, one can notice the following:
It is usually the case that brokers who allow deposits and withdrawals via bitcoin do not offer bitcoin as a part of a currency pair, and they cannot be traded. Other brokers, on the other hand, allow bitcoin trading, but refuse deposits via bitcoin. Still, this is not the rule and does not apply to all brokers, but just a general indication.
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Bitcoin Forex Brokers
As we said, some Forex brokers appreciate the convenience of bitcoins and directly include them into their service package, either as a trading currency or payment method. Now let us see which brokers offer bitcoin payment.
RoboForex is a popular Forex broker who is licensed with CySEC, FSCL and FSP in New Zealand, and with the Belize authority IFSC. We see that this broker offers decent security measures to its customers regarding the numerous regulatory agencies. The broker also offers an equal number of trading platforms like the MT4, MT5, cTrader, and Webtrader. All these platforms are already widely known, and traders are already familiar with their high-quality features. This broker offers a limited number of currency pairs, but if you trade only in major currencies, you will not feel the difference. The broker offers over ten major currency pairs. This broker is one of the pioneers in offering the Bitcoin payment method. Probably, in few years, bitcoin will be mainstream and widely in use. Perhaps, it will also rise in value.
EToro is also a famous broker name in the Forex industry. This broker is registered with UK FCA and CySEC and counts many customers. EToro relies on its own in-house developed platform the eToro platform which is also accompanied by a relevant mobile app. Multiple account types give traders the option to upgrade from one to the other according to their experience. The minimum deposit with eToro is $200. EToro is one of the brokers who offer bitcoin trading against another currency. It basically works like any other trade in currency pairs. Make a deposit to trade bitcoins and be one of the first to get to know the process. In a few years, the value of bitcoins is probably going to rise.
InstaForex is another broker who is known for good reputation and satisfied traders. This broker offers MT4 and MT5. The leverage offered by this broker is a little bit higher than average, i.e. 1:1000. This broker comes from Russia and has very good client reviews so far. This is one of the rare brokers who offers both variants; bitcoin as a payment method for depositing and withdrawing, and as a trading instrument against other currencies. The Russian pioneer seems to like new, creative ideas and is one of the companies which follow new trends. In this case, InstaForex can be even called a trendsetter.
Bitcoin is definitely an invention worth trying. The idea of being in control of your own transactions is indeed appealing. The bitcoin has great chances to evolve to revolutionary proportions, especially in the Forex business where they are even now well received.