How to start trading Crypto CFDs on FXCM?

Trade Cryptocurrencies with FXCM

With FXCM, you can trade Cryptocurrency CFDs in an under-regulated and safe environment.

The available Cryptocurrency pairs for trading on FXCM’s platforms are: BITCOIN (BTC / USD), ETHEREUM (ETH / USD), LITECOIN (LTC / USD), BITCOIN CASH (BCH / USD), EOS (EOS / USD), and STELLAR LUMEN (XLM / USD).

Trade some of the world’s most popular cryptocurrencies.

1. Competitive Spread on Bitcoin
   FXCM’s Bitcoin spreads are among the smallest in the market.
2. Leverage Available
   Up to 2: 1 effective leverage. Check the size of your position using only half of the necessary funds. Also use effective leverage to trade 1: 1, of your choice.
3. Trade freely
   Go long or short – no restrictions on market direction. Looking to automate your cryptocurrency trading? Our cryptocurrencies can manage your automated strategies.

With FXCM, you can open a Forex and CFD trading account.

Go to FXCM’s Official Website

Why you should trade CFDs on Crypto with FXCM?

FXCM resolves the debate for you. CFDs offer advantages to speculators that are not available to the underlying “physical” crypto market.

They are:

1. No Crypto wallet or hard wallet required

If you are buying and selling physical cryptocurrencies, you need to decide whether or not to leave your physical cryptocurrencies with your provider.

If you do, you risk getting attacked.

If you don’t, you need to learn how to use hardware wallets where one wrong key could result in the loss of all funds.

Cryptocurrencies are generally not accepted for payments for goods and services.

There is no need to physically hold them.

Invest in Crypto without owning Crypto

2. Regulated and Protected

CFDs are regulated financial products. Physical cryptocurrencies do not.

For the trader, this means that the firm he is dealing with is subject to scrutiny by both regulators and auditors and best execution committees.

With a CFD, you can rest assured that you are receiving the best price available as it is a regulatory requirement.

There is no such guarantee with physical crypto.

Invest in Crypto in a regulated and safe environment

3. Better Trading Platforms

FXCM’s platforms are battle-tested and have been continuously improved over FXCM’s 20-year history.

They are more feature-rich than the newly created trading platforms of physical crypto companies.

You can trade any crypto products you want regardless of what you currently have in your account.

For example, a GBP FXCM account can trade BTC/USD long without having to hold USD first.

This is not the case with the large crypto “exchanges”.

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Cryptocurrency markets available on FXCM

1. BITCOIN (BTC / USD)

Bitcoin is a global form of digital currency.

Unlike traditional currencies, which have often been backed by gold and silver, Bitcoin is based on distributed computing.

While traditional currencies are printed by central banks, bitcoins are created or “mined” by distributed computer networks.

2. ETHEREUM (ETH / USD)

Ether is the digital currency used by Etherum.

Ether is the fuel or “gas” used to pay for transactions made on the Ethereum platform.

Ether provides participants with a reason to contribute with the resources used by the platform, thus ensuring a solid network.

It also provides incentives for developers to write efficient code, as inefficient software programs are more expensive.

3. LITECOIN (LTC / USD)

Litecoin is a decentralized and open-source digital currency created in 2011 using the code of a Bitcoin client.

Due to the close relationship between the two, many have described Litecoin to silver as Bitcoin to gold.

4. BITCOIN CASH (BCH / USD)

Bitcoin Cash is a currency that broke away from Bitcoin in 2017.

Its main difference is that the blocks in the bitcoin cash blockchain offer much more space and therefore have the ability to carry out a significant number of transactions.

5. EOS (EOS / USD)

EOS is the cryptocurrency of the EOS network, a Blockchain platform created for the development of dApps (distributed apps).

The main goal of EOS is to create a much more scalable, faster, and more efficient version of Ethereum.

6. STELLAR LUMEN (XLM / USD)

Stellar is a platform designed to facilitate the transfer of funds instantly, anywhere in the world.

Lumen, often abbreviated XLM, is the protocol token of the Stellar network.

Invest in Crypto on FXCM

What should be careful when trading Crypto CFDs

Volatility, market gap, and slippage

Cryptocurrencies have higher volatility than any other product available to trade with FXCM and market liquidity will vary. As a result, price jumps are common and negative slippage can occur frequently on Stop and A Market orders.

Gap of the weekend

Cryptocurrency trading takes place 24 hours a day, 7 days a week, however, the FXCM platform is closed for weekend trading. There is a possibility of large market movements occurring over the weekend. During this period you will not be able to enter or close positions. If your Stop or Limit price is touched during the weekend, your trade will be processed when the FXCM market opens and executed at the best available price at that time. If you want to avoid the impact of any movement that may occur over the weekend, we recommend that you close your positions before closing for the weekend.

Trading costs

The cost of keeping a cryptocurrency position open beyond 5pm EST is high (as this is a% of notional volume). Financing costs are shown as “Rollover” in the Simple Price View window on the Trading Station platform. To avoid financing costs, positions can be closed before the end of the business day. Financing costs and spread should be considered before opening any Cryptocurrency trade.

Reference price

Cryptocurrency trading takes place all over the world on several unregulated exchanges and the price of some Cryptocurrencies may vary widely from exchange to exchange. FXCM derives pricing on cryptocurrencies from various liquidity providers. The best bid and ask prices are shown on the trading platform with a markup. This pricing method ensures a fair price for all FXCM clients. However, FXCM’s price will vary from the current price and the movements of any specific underlying market.

Variable spreads

Based on the above pricing method, the spread will therefore be variable and it will narrow or widen according to the pricing received from third parties, market liquidity, and volatility.

Price break and fork

In the event of suspensions, disruptions, forks and any other event that may result in the termination of trading for a certain cryptocurrency, CFD trading may likewise cease at FXCM. For those holding open positions, FXCM will determine in accordance with market practice the appropriate adjustments, if necessary, to be made to the current value or quantity of your positions in order to preserve the economic equivalent of your positions, prior to the event detected or to reflect the effect of the event on your position.

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