Established Forex and CFD brokerage firms are moving in to cash in on the cryptocurrency boom. There are a few notable brokerages in this space and we will be giving an unbiased Trading 212 and Avatrade review on the services and offerings of each brokerage firm so you can decide which is best for you.
Cryptocurrencies are digital currencies which use encryption techniques to control the generation of new currency and currency transfer. Cryptocurrencies have become increasingly popular globally because they operate independently. They are very hard to manipulate, unlike Fiat currency which are under the control of central banks. Cryptocurrency trading has become very lucrative.
Trading 212 has been around for 14 years. The brokerage has been trading currencies and commodities in Europe for over a decade now under trade name Avus Capital, a company founded by Bulgarians; Boris Nedialkov and Ivan Ashminov. Although Trading 212 is a relatively old company, its bitcoin trading platform is new and successful.
The company’s bitcoin trading app happens to be the most downloaded trading app in the UK currently. Through the app, Trading 212 is offering access to over 2,500 trading instruments from shares and commodities to cryptocurrencies like bitcoins.
Trading 212 added cryptocurrencies to its mix of trading instruments in June 2017 to attract millennials who brokers are having a hard time attracting. Millennials are individuals born between 1981 and early 2000s. This group of individuals has a vivid background of the 2008 global recession. This makes them inclined to view financial service companies negatively. Trading 212 has started offering crypto trading as a means of enhancing its appeal.
According to Nick Saunders, Trading 212 Chief executive for UK operations, crypto trading has contributed significantly to the company’s overall business. Although Saunders doesn’t give hard figures in his most recent interview with CoinDesk, he states that crypto trading accounts for a percentage of the total volume generated by all exchanges which is a significant number for a single retail broker. According to Saunders, Trading 212 has benefited immensely from the attention cryptocurrencies have been getting lately. In 2017 alone, the cryptocurrency market has risen from less than $10 billion in January to over $170 billion in value currently. This statistic is an indication of a ”hot” market generating great returns for its players.
Trading 212 crypto app doesn’t simply stand out for allowing crypto trades. The app has been honed to cater for mainstream tastes. For instance, it features a real-time chat facility. The app’s social network features have helped to attract millennial traders.
Trading 212 also offers commission-free dealing for 10 or fewer trades every month for individual trades not exceeding £10,000 in value. According to Trading 212’s estimates, this incentive allows approximately 90% of all equity customers to pay nothing in commissions.
Trading 212 has also added asset class options. Customers can deal the two largest cryptocurrencies; Bitcoin and Ether as well as many others. Trading 212 is planning to add 14 currencies by the end of November 2017 to its crypto trading platform.
Saunders has also pledged to remove all the risk and complexity associated with owing cryptocurrencies. Storing and managing/securing cryptographic keys is a great challenge today.
Trading 212 also has a Mini-market for Bitcoin which quotes the value of bitcoin as a fraction (one-tenth of the actual value) to make it less scary for traders who would like to open and manage positions. According to Saunders, the average bitcoin deal size is £10,000 currently. Trade 212’s Mini-market allows traders to buy/sell bitcoins in smaller deal sizes.
The app also has other notable features such as a stop loss feature for bitcoin trading which allow you to control gains and losses when the bitcoin market fluctuates beyond preferred levels. Last but not least, you can profit from selling and buying coins. This killer feature offers all users (experienced and novice), a chance to make money when the price rises or falls.
Follow related financial news: http://analystoffinance.com/2017/11/bitcoin-surges-past-11000/
Other Forex, CFD and spread betting brokers cashing in on Bitcoin trading
Avatrade.com was one of the first Forex and CFD brokers to offer bitcoin trading services in the UK. AvaTrade has been around since 2006. The brokerage is licensed by the MiFID in the EU and regulated by several internationally recognized bodies such as; the British Virgin Islands Services Commission, Financial Services Commission in Japan, Australian Securities & Investment Commission in Australia as well as the Central Bank of Ireland. AvaTrade offers over 250 financial instruments in its trading platforms.
AvaTrade announced they were going to start offering Bitcoin trading services back in 2013. The services are offered on the broker’s AvaTrader and MetaTrader 4 (MT4) platforms.
AvaTrade Review: Trading Bitcoins with AvaTrade
Anyone can trade bitcoins with AvaTrade provided you meet the criteria for opening a live trading account. Simply signup, download AvaTrader or MetaTrader 4 and start trading. AvaTrade offers web-based bitcoin trading services if you don’t want to download any software. AvaTrade allows its customers to trade bitcoins with CFDs. Traders can buy or sell bitcoins to profit when the value of bitcoin rises or falls.
There are many benefits of bitcoin trading with AvaTrade according to AvaTrade reviews online. First and foremost, AvaTrade offers numerous bonuses and promotions (up to $10,000 in some cases). AvaTrade offers some of the biggest deposit bonuses. AvaTrade also offers many free resources to help you learn how to trade all financial instruments including bitcoins. The company has also invested heavily in support services. AvaTrade customer support teams are spread out in 34 countries globally and available 24/7 when markets are open.
There are other ”new kids” on the block. InterTrader for instance which offers Bitcoin and Ether trading is giving away one Ether to new live account holders who trade €500 or more. According to InterTrader Managing Director, Shai Heffetz, there’s absolutely no doubt that virtual currencies are going to play an important economic role in the future. Start-up Bux also has a trading app that positions the company as a millennial financial services brand. The app which presents trading as a game has most of its users using bitcoin as the most popular currency. Only 85,000 out of its 200,000 UK customers are using real money to trade.
Buying, selling and managing/securing cryptocurrencies is bound to become standard issue for many ordinary people in the future thanks to the efforts of the brokers discussed above. As people become more interested in cryptocurrencies, trading apps from AvaTrade, Trading 212 and others show there is a large untapped market for similar ways of gaining exposure.