The majority of UK based and FCA regulated brokers still do not offer Bitcoin trading, there are of course a load of Cyprus based brokers that do, but you’re better off with a UK Based and properly regulated broker.
It’s good to see more mainstream brokers embracing cryptocurrencies and providing access so UK traders can speculate with FSCS protection and not have to deal with off shore brokers.
If you want to trade Bitcoin with ETX select the FX tab and choosing Cryptocurrency on the platform.
What is Bitcoin?
- Bitcoin is a cryptocurrency that is not backed by any central organisation like a government or bank.
- But just like other currencies it can be speculated on.
- This means it is very risky, expect high volatility and the potential for the cryptocurrency to go to zero or through the roof.
Why trade Bitcoin through a derivatives broker rather than a Bitcoin exchange?
Owning Bitcoin requires the user to have a digital wallet to store the coins. Spread betting and CFDs allow traders to speculate on the currency without this requirement.
You can go either long or short, meaning you can take advantage of price swings whatever view you take.
You can also use a CFD or spread bet to use leverage to trade meaning you have to only put down a small deposit known as margin.
With a Bitcoin exchange, you cannot use margin and must pay for your Bitcoin in full. You also cannot go short Bitcoin through a Bitcoin exchange.
Trading Bitcoin on leverage does mean you can have a bigger position, but with leverage comes risk. Expect a very high amount of risk in Bitcoin speculation as margin rates are low, but volatility is high.
You will be able to trade Bitcoin with ETX Capital from 23:00 on Sunday until 21:55 on a Friday (UK times).