Australian regulated broker Vantage FX has joined the bandwagon of forex brokers offering Bitcoin trading on their platforms. Vantage FX clients can start trading bitcoin as a CFD on their MT4 platforms immediately. Trading the CFD means that traders will not be able to take delivery of the bitcoins, unlike in a Bitcoin exchange where they are delivered to the trader’s wallet.
In offering Bitcoin trading, Vantage FX joins , Avatrade and others. With companies like for Bitcoin trading, it has become easy for forex brokers to take this step.
Trading CFD Bitcoins with Brokers
Trading bitcoins in traditional Bitcoin exchanges requires a long and complicated signup process which is likely to put off a lot of traders and speculators. But these exchanges do provide actual delivery into the wallets of their clients. Brokers like Vantage FX offer Bitcoin CFDs on their platforms which means that the signup process is easier but there will be no actual delivery of the bitcoins.
Of course, the delivery mechanisms of exchanges are more exposed to hacks than CFD models such as that of Vantage FX, which means that the latter has an advantage in terms of security.
Vantage FX Director of Sales and Marketing, David Bily, added: “Our 1:1 leverage offering is also by design. As a risk averse forex broker with the safety of clients funds at the forefront of everything we do at Vantage FX, we wont be providing high leverage on Bitcoin in order to protect our clients (as well as the firm) from the risky nature of a market that has flash crashed in the past.”
Vantage FX also adds that traders need to do their due diligence and careful analysis before they begin Bitcoin trading, considering the huge swings in price that are a regular feature of the instrument.
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