Do not invest more money than you can afford to lose.
Offshore forex broker AMarkets said on Tuesday it has launched trading in contracts for difference (CFDs) on Bitcoin. The instrument is available to all clients of the broker, five days a week and the size of each contract is always equal to one Bitcoin.
Bitcoin CFDs are traded with AMarkets on the MetaTrader 4 (MT4) trading platform with a leverage of a maximum 10:1. Traders pay a commission of $5 for each contract.
Bitcoins are a type of cryptocurrency and an open-source network for peer-to-peer transactions that uses no banks or central authority. Bitcoins was introduced in 2009, setting a new trend among cryptocurrencies. The network is accessible world-wide and supports international payments. The global turnover of the digital currency is about 21 million Bitcoins. Due to its high volatility, Bitcoin is an extremely attractive instrument for traders. Although there are hundreds of other cryptocurrencies, with new onces being introduced daily, Bitcoins is the most popular one and accounts for more than 90% of the virtual currency market.
The problem with Bitcoin is that users can make transactions without revealing their identity, allowing for misappropriation. The virtual currencies are the subject of huge dispute as most legislations are not certain how to refer to them. Recently, however, many countries, including Japan and Russia, and the EU, announced they are working on setting up a set of regulatory amendments regarding cryptocurrencies.
Many other brokers also offer trading in Bitcoin. Among them are FXOpen, eToro, FxChoice, AvaTrade, and Plus500.
Recently, AMarkets announced it has started accepting deposits in Bitcoin. The broker said at the time that deposits in Bitcoin will be converted into US dollars (USD) as per the current exchange rate of the most popular cryptocurrency. The minimum deposit remains $1.
AMarkets, incorporated in Saint Vincent and the Grenadines, offers trading in forex, metals, commodities, and CFDs. It is among the top 20 forex brokers in Russia in terms of trading volume. In 2015, it had an average monthly trading volume of $2.1 billion and 3,200 clients.
The broker is a member of the Center for Regulation in OTC Financial Instruments and Technologies (CRFIN), a Russian self-regulatory organization, and the Financial Commission (FinaCom), a Hong Kong-based external dispute resolution (EDR) organization. It offers accounts under its UK-regulated partner ATC Brokers.
