Global FX brokerage FXCM Group has expanded its range of cryptocurrency instruments and will now offer CFDs on the second most popular coin, Ethereum, for all of its trading accounts.
The FX broker introduced the new asset type earlier last year when it began testing the service with its already installed Bitcoin offering.
2017 and 2018 have largely been the years of crypto, with retail brokerages rapidly integrating digital currencies into their offerings. FXCM has recently joined the crowd, implementing a diverse crypto offering into its existing services suite. The introduction of CFD trading on Bitcoin marked the first stage of FXCM’s decisive move into the surging cryptocurrency arena, with the release of other cryptocurrencies could take place in the near future.
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Expanding Crypto Services
There has also been rapid growth among UK-based CFDs and spread betting providers looking to cash in on the meteoric rise of cryptocurrency – including Admiral Markets, Plus500, ICM Capital, and many others.
FXCM’s big rivals, including GAIN Capital’s FOREX.com and City Index brands, also offer an expanded Crypto suite to its customers in the U.K., Europe, Australia, and Singapore. Their clients can trade the cryptocurrency pairs either as an over-the-counter (OTC) derivative or as a future, with access to limited leverage and the ability to take both long and short positions. Other brokers offer their client base the crypto coins a spread bet, giving them the added advantage of tax-free profits when trading the digital asset.
FXCM likely turned to CFDs as a way of offering cryptocurrency trading due to the difficulty in hedging positions in the real markets which always makes this derivative type a prime alternative to many underlying assets.
Commenting on the news, Brendan Callan, CEO of FXCM Group said: “Following the successful launch of FXCM’s Bitcoin CFD and with client demand we added Ethereum to our CFD list with plans to continue to roll-out additional crypto CFDs. Cryptocurrencies have surged in popularity, with many seeing new trading opportunities. In particular, there has been huge demand from retail foreign exchange traders for crypto CFDs, particularly due to the ability to go both long and short. And while we may not have been the first to launch, we are looking to offer a competitive suite of cryptocurrencies.”