Using bitcoin for forex
It is even more efficient if you do more than bitcoin trading , because then you can do all your trading on one platform. For example, you can trade bitcoin while placing Forex trades simultaneously, which is a very efficient way to invest compared to the alternative.
When trading bitcoin through Forex brokers, though, you enjoy the same leverage offered when trading the Forex market. Therefore, you can trade more bitcoins through Forex brokers than through a bitcoin exchange. Certain Forex brokers like Plus even offer bitcoin CFDs, which only track the performance of bitcoin. As such, these CFDs require an even lesser deposit, allowing traders to trade even more bitcoin and higher leverage to increase their profits even further.
Despite all the advantages of trading bitcoin through Forex brokers , there are also downsides which would make direct trading through an exchange more favorable. The brokers who offer bitcoin trading, or bitcoin CFDs as it may be with Plus , will have to deduct some charges, either as a spread or commission.
In the case of Plus, they impose a spread on all tradable instruments without charging an extra commission. Spreads on Forex pairs, especially the major pairs, are usually very low, but bitcoin and other CFDs will be slightly higher. There are also other charges such as those for holding trades overnight. All these build up over time making trading bitcoin through Forex brokers costlier, although only by a small margin.
There are hundreds of bitcoin exchanges around the world, and their values of bitcoin will be slightly different from one another.
With a Forex broker offering bitcoin trading, you would have to accept the exchange they use. It would strip you of a choice, and you may have to settle for less than favorable quotes. Stay up to date with the financial markets everywhere you go. Unlike credit card payments, bitcoin transfers can be as small as a dollar, and they are not subject to the frequent credit card declines which affect forex traders paying from developing countries.
Many of these unique benefits of bitcoin are useful even for overbanked users — traders with sufficient access to credit card transfers or wire transfers. For the forex platform, bitcoin removes the cost of credit card fees and the risk of chargebacks on what are typically large payments. This greatly reduces the cost and effort of processing deposits from traders. And with its benefits to users in both underbanked and overbanked economies, bitcoin helps forex platforms reach further than ever before.
This means that a forex platform's withdrawal method should be the same as the payment method. When used as a payout method as well as a payment acceptance method, bitcoin solves this problem.
Compared to other withdrawal payout methods, BitPay's bitcoin payouts also shine in both expense and settlement times. We believe there's a strong case for bitcoin as a solution to the problems of moving money in and out of forex platforms. BitPay is allowing forex platforms to accept bitcoin payments and receive EUR, USD, or other local currency settlement to their bank accounts, without any risk of bitcoin price volatility.
BitPay's bitcoin mass payouts are also simplifying payouts — platforms can fund one batch payout in their local currency, and BitPay will send bitcoin to any number of recipients worldwide for a flat fee.
We're excited to continue to give our clients in this space the tools they need to take advantage of bitcoin's strengths in fast, secure, and affordable online and international payments. Interested in learning more about how your forex platform receive or send bitcoin payments with BitPay? Reach out to our team! PayPal cross-border payout fees: Wire transfer fees, average from top 10 US banks: Forex payment problems, bitcoin solutions Forex platforms allow users to trade between currencies, usually in large amounts.
Why forex platforms choose bitcoin As a first of its kind currency with its own trading potential, Bitcoin is a natural fit for forex platform users' currency trading.