Forex is an ever-changing field, where the development happens very fast. Since the crypto-boom that has happened a few years ago, FX brokers started adopting these new currencies to their platforms. Over the years, FX trading with cryptocurrencies has become very popular and every day, more FX brokers are starting to adopt these currencies on their platforms.
Today, we are going to talk about the best Forex brokers that offer their clients the ability to trade cryptocurrencies. Crypto is a digital asset designed to work as a medium of exchange, and it has become exceptionally popular in the last few years.
Other than the fact that FX trading using crypto is very profitable, the lack of regulatory framework in this regard seems to be a huge appeal for many traders around the world. However, cryptocurrencies are very unstable and only those who know exactly what they are doing should trade using currencies like Bitcoin, Ethereum, ripple, dash, etc. In addition to the experience that you need, you should always be sure that you are trading with the most trustworthy Forex brokers on the market that offers the safest and most secure trading opportunities to their users.
What are the best Forex brokers on the market and how to find them?
Forex trading market is full of different Forex brokers, and it is very hard to find the best match for yourself. It is especially hard when you are a beginner and don’t even know where to look. The most important part of a successful FX trading is to choose the right Forex broker, which takes a lot of dedication, time, and research.
To make your job easier, we have decided to come up with a list of the best Forex brokers on the market. Below, you can see our list. While working on this list, we made sure to focus on things like regulations, payment methods, available trading platforms, and many other things that might be important for a Forex trader.
AvaTrade
Minimum deposit
100 USD
Licences
ASIC , FSC, FSCA, FSA, FFAJ, FSRA
Maximum leverage
400:1
Platforms
MT4, MT5
HotForex
Minimum deposit
5 USD
Licences
FCA, FSA, DFSA, FSCA
Maximum leverage
1:1000
Platforms
MT5, MT4, WebTrader
Plus500
Minimum deposit
$100
Licences
FCA, ASIC, CySEC, FSCA, FMA, MAS
Maximum leverage
1:30
Platforms
WebTrader
IQ Option
Minimum deposit
$10
Licences
CySEC, FSA
Maximum leverage
1:30
Platforms
Web
What is a cryptocurrency and why is it becoming popular?
The forex trading market represents the largest and most liquid market in the world. It is a global currency market, which is open for 24 hours a day, seven days a week, offering services to countries around the world.
Crypto has added a fascinating new dimension to the Forex market. Many FX brokers started to accept bitcoins for currency trading recently, and some of these brokers accept several different cryptocurrencies.
The thing about FX trading is that it is not decentralized, however, the currencies that you usually trade are controlled by central banks around the world. For crypto, there is no such support, which makes it a lot more rewarding but risky at the same time.
Because of the fact that it is very hard to predict crypto prices, many people find it more interesting. However, we believe that it is very important that you understand the risks behind trading with crypto. The FX market is already very risky, and you should be doing something that you are only 100 percent sure about. So, before you start trading Forex with crypto, make sure that you know exactly what you are doing.
Benefits of Crypto FX trading
Although it is very risky, trading with FX brokers accepting crypto has a lot of benefits that we are going to discuss. First of all, the biggest advantage of crypto FX trading would be the fact that most of the cryptocurrencies are not tied to a central bank. Digital currencies are free from central geopolitical influences and from macroeconomic issues like country-specific inflation or different types of interest rates.
In addition, Forex traders using crypto have the ability to trade with very high leverage. However, this is something that only the most experienced FX traders should do, while using high leverage you need to be very focused so that nothing goes wrong. Also, traders who use crypto can start with as little deposit as $25, there are many brokers who offer special bonuses and promotions to crypto traders which can be a huge advantage as well. There also are very low fees when it comes to trading with crypto, this is an amazing offering that makes a lot of traders try out FX brokers accepting crypto.
Security also plays a huge role in the popularity of Crypto FX brokers. While trading with crypto, you do not have to share your bank account or other details to the brokers. With this amazing advantage, many FX traders believe that Forex trading can be a lot safer with crypto.
Finally, there are no global boundaries when it comes to Forex trading using crypto. If you are an FX trader based at one end of the world, you can easily trade crypto at another end of the world. Although regulatory challenges may remain a concern, this can also be overcome if traders and brokers work hard enough.
Dangers of trading cryptocurrencies
Although there are a number of benefits, trading Forex with crypto comes with a number of challenges as well. First of all, the exchange rates are very different for FX traders using crypto. Also, while receiving bitcoin deposits, most of the brokers are selling it and hold the amount in US dollars. This means that even if traders do not take a Forex trade position immediately, they still are exposed to a bitcoin-US rate and this can be very risky.
Also, although high leverage might be something that many FX traders like, it can be very dangerous while using it for crypto trading. Once again, this should be done only by those who are experienced and know exactly what they are doing.
Should you start trading with crypto Forex brokers?
We believe that if you are willing to follow the development of the financial world, you should definitely go on and try trading with the best crypto Forex brokers on the market. However, it is also very important that you do it with as much security as possible. Before you start trading with crypto, you need to be 100 percent sure that you are doing it as safely as possible.
There are a lot of Forex brokers on the market, to make sure that you stay safe, try to go with the ones that own licenses from official regulatory bodies. In most cases, these Forex brokers keep funds of their clients on segregated bank accounts, which means that even if the broker goes bankrupt, you and your funds can still stay safe.
