Reported about their intentions earlier this month, online FX broker, FXOpen has officially launched crypto currency trading for retail clients. Under the new offering, customers will be able to trade bitcoin, litecoin, namecoin, and peercoin. The launch occurs after the broker added the ability for customers to fund accounts using the bitcoins, litecoin, and namecoins earlier this month. The company also recently launched a liquidity provider (LP) offering which offered digital currency trading for brokers. As forex brokers who offer bitcoin trading to their customers in the form of synthetic contracts that mimic the price of bitcoins, the LP unit provides firms the ability to access liquidity to hedge their risk.
In terms of the current retail offering, FXOpen’s is different than existing digital currency products from forex and CFD brokers, as they will be providing trading in actual crypto-currencies. Trading will be provided via their MetaTrader 4 (MT4) platform with available leverage up to 3:1. According to FXOpen, trades will be charged a 0.25% commission.
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Speaking about the product, Denis Peganov, Director at FXOpen has explained to DC Magnates that they believe their product to be superior to existing digital currency offerings from other online brokers, as customers will be trading actual crypto currencies as opposed to a CFD, which my increase counterparty risks.