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Do People Trade Forex with Bitcoin? Is it Profitable?

Trade Forex with Bitcoin

Forex trading has a reputation for being a quick and easy way to make money. As a result, many people dream of becoming full-time Forex traders, but few have what it takes to make a living.

Particularly for those who want to buy bitcoins online through the Forex market, there is no need to go through a lengthy verification process as you would on a bitcoin exchange. Provided that you have an internet connection and a computer or mobile phone, you can open an account at one of the many Forex brokerages.

However, there are some critical issues to consider before taking the plunge into trading bitcoins with forex brokers:

1. Does the Forex broker allow trading with Bitcoins?

Bitcoin trading is a popular topic amongst Forex brokers, and most of them have given the green light to Bitcoin. One of the primary reasons they are allowing Bitcoin trading is because 'they can' without investing in digital infrastructure themselves.

Whether a Forex broker allows Bitcoin trading, not all brokers do. Most regulated online retail Forex brokers only started to accept Bitcoin in 2017. If your broker does not allow Bitcoin trading, your options are limited, and you will have to look elsewhere on websites like Oil Gold Stock

2. Is the Forex broker trustworthy and reliable?

Before choosing a Bitcoin broker, it is essential to ensure that the company itself and its management are trustworthy and reliable. Trustworthy Forex brokers should:

  • Have been in business for several years (Forex market has been around since the 1990s)
  • Be regulated by a government agency (e.g., CySEC in Europe, FCA in the UK)
  • Have a good reputation throughout the Forex community (e.g., good reviews on forex forums)
  • Offer an account type that suits your trading goals and experience level. Most brokers offer micro accounts for beginners with a low minimum deposit. Then they offer Pro or Trader accounts for more experienced traders.

3. What are the spreads (i.e., commissions)?

Spreads are the difference between the 'buy' and 'sell' prices for a currency pair, and it is expressed in pips (e.g., if you buy 1 Bitcoin at $500 and sell it at $500.50, your spread is 50 pips). While spreads on most other currencies can be very low or even non-existent, Bitcoin spreads can be as high as 4% or above.

4. What are the minimum and maximum trade sizes?

Minimum and maximum trade sizes depend on a few factors: your account type, whether you use market orders, etc.

5. How many currency pairs does the broker offer for trading bitcoins online?

Most Forex brokers offer over 20 currency pairs for trading, which is more than enough to trade Bitcoin (most other currency pairs are 'exotics,' with very low liquidity). However, some of the most popular Forex brokerages do not offer anything but EURUSD and USDGBP.

6. What other unique features does the Forex broker offer?

The Forex market is competitive, so most brokers offer a few additional features that make their platform stand out from the competition. Some features include:

  • CopyTrading - successful copy traders automatically and for free. No need to have multiple accounts with different brokers.
  • Automated Trading - trade on autopilot with Expert Advisors. However, this requires a programming background.
  • TradeStream - real-time streaming quotes and charts.
  • WebTrader or TradingApp - trade from your mobile phone or browser, without downloading any software such as the ethereum-trader.app.

7. What are the account types and initial deposit requirements?

Most Forex brokers do not require a minimum deposit, and even though some offer micro accounts to beginners with just $5, you will usually need at least $200 in your account.

Once you've chosen one or several suitable Forex brokerages based on the above criteria, it is time to open an account!

8. What are the trading hours?

Trading Bitcoin with Forex brokers is not limited to specific periods. Except when the market is closed on weekends and holidays.

Conclusion

Several Forex brokers accept Bitcoin for currency trading. The process is straightforward. You can buy Bitcoins from a Bitcoin exchange and then exchange the BTC for any other currency using a Forex broker.

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