London-based broker Valutrades is working on launching its own cryptocurrency CFDs, according to a LinkedIn post published by its CEO, Graeme Watkins.
Valutrades is an ECN broker offering forex, CFDs, and commodities trading through the MT4 platform.
The announcement follows similar ones from a plethora of brokers. Since the launch of Bitcoin futures trading on the CBOE and CME Group exchanges in the US, foreign exchange companies have been eager to cash in on the popular asset. Other brokers that have recently begun to offer such contracts include ThinkMarkets, Libertex, ICM Capital, ADS Securities, and easyMarkets.
The current popularity of cryptocurrencies means that this is a lucrative area for companies to operate in, but at the same time the volatility of cryptocurrency prices means that it can be a dangerous one too. Specifically, ever-rising prices mean that brokers may not be able to profit. This has led many to offer the products with extra safeguards – Plus500 charges a 175 percent interest rate to hold crypto CFDs overnight, and IG Group will stop taking orders when it is exposed to too much risk.
Some brokers now pay much less for leads who are only interested in cryptocurrency trading, and others have actually begun to close down their cryptocurrency CFD offers entirely.
The Valutrades announcement mentions Bitcoin, Ethereum and Litecoin, three of the most popular coins. We have reached out to the firm for details regarding the new CFDs and what measures, if any, the company is going to take to protect itself from volatile prices. We will update the article when a response is received.
Formerly known as Monex Capital, Valutrades is the UK subsidiary of Indonesian Forex broker Monex Investindo Futures, which is licensed by Indonesia’s regulatory agency, BAPPEBTI. In the UK, Valutrades is registered by the FCA. We most recently wrote about the firm when it partnered with Hummingbird to offer trading via mobile phone.
Watkins held a seminar at the 2017 Finance Magnates London Summit on the subject of trader activity and ROI.
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