On DC Magnates we’ve reported about the growing interest among forex and CFD brokers to launch bitcoin trading. For 2014, we expected to see a wider selection of digital currency products being launched as well as additional brokers beginning to offer trading. However, despite the existence of at least three broker technology firms offering price feeds that can be integrated within trading platforms, liquidity to hedge trades was viewed as the missing ingredient. Although firms can open accounts and hedge their risk with bitcoin exchanges, brokers related to DC Magnates their hesitance to deposit large sizes of funds at unregulated venues domiciled outside of their jurisdictions.
Coming to the market with a broker based liquidity offering is a new digital currency exchange initiative from FXOpen. The launch is part of their new B2B liquidity provider offering and extends an existing relationship FXOpen has with BTC-e. With it, brokers will be able to open accounts directly with FXOpen to trade bitcoins to offer trading to their customers (More on the overall Liquidity Provider offering from Forex Magnates). According to Denis Peganov, Director at FXOpen, client orders will be executed on BTC-e’s order book as well as via the broker’s internal matching of order flow between customers.
Litecoin and Namecoin Trading
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In addition to just offering bitcoin trading, FXOpen will be also offering exchange transactions as well as deposits in litecoins and namecoins. Available trading pairs will include US dollar, euro, and Russian ruble denominations (see image for current list).
The launch of digital currencies as FXOpen will also not be limited to B2B customers, as Peganov explained to us that they plan on adding bitcoin, namecoin, and litecoin trading for retail clients on their multi-asset trading platform in the next one or two weeks.
The retail launch of trading at FXOpen will mark two firsts, as the broker will be the first regulated financial firm to offer namecoin trading, as well as the first to initiate ‘real’ trading that isn’t in the form of a CFD.