City Index, one of the leading spread betting and CFD brokers in the UK has launched Bitcoin trading with fixed spreads, low margins and competitive pricing. City Index also sources pricing from multiple Bitcoin exchanges to increase reliability.
This adds City Index to the growing list of Bitcoin brokers, following on from established cryptocurrency broker such as LSE listed heavy weights IG and Plus 500 who have been providing digital currency trading for some time.
Although IG, has recently raised concerns about the risk of holding too much Bitcoin on it’s book. The Treasury, as reported in The Telegraph, is planning a crackdown on money laundering through Bitcoin which led to a short term correction in the price. However, that more relates to physical Bitcoin and payments rather than speculating on the price of Bitcoin through a broker.
…the Treasury has now said it intends to begin regulating the virtual currency, which has a total value of £145 billion, to bring it in line with rules on anti-money laundering and counter-terrorism financial legislation.
This is good news for traders and brokers as positions and exposure can be hedged with potentially greater protection once a currency is regulated.
No sign of City Index customers being able to trade other cryptocurrencies like Ethereum, Ripple or NEM, for that you can see a list of FCA regulated Ethereum brokers here.
Current City Index Bitcoin market info is:
- Spread From $50 (obviously this is subject to market conditions)
- Margin Rates From 25% (relatively high, but Bitcoin is very volatile)
- Overnight Financing 0.08219% per night (that’s about 30% if you hold the position for a year)
- Hours 22:00 GMT Sunday – 22:00 GMT Friday
For more information on Bitcoin trading through City Index, read our City Index review.
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Richard founded the Good Money Guide (previously Good Broker Guide) in 2015 and has been a broker for 20 years most recently at Investors Intelligence and previously a multi-asset derivatives broker at MF Global (Man Financial). Richard started his career working as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson) after interning on the NYMEX oil trading floor in New York and London IPE in 2001 & 2000.