The average annual return of the S&P 500 index equals 5.90% for the last 20 years. Cryptos often lose and gain as much within one trading day. This brings in some risks but also a fighting chance for active crypto traders. The use of leverage is what magnifies the opportunities.
At the beginning of 2021, FXCC broker introduced gold and crude oil trading with 1:500 leverage on its ECN XL account for non-European clients. Now it’s proud to announce cryptocurrency margin trading with up to 1:40 leverage.
Regulatory environment for cryptos
The opaque regulatory environment is what often keeps investors and traders off the digital currencies market. Speaking of deliverable cryptos, opinions change from country to country, year after year.
Some choose to ban Bitcoin as China did in 2017. In the U.S., opinions split. The IRS is responsible for tax collection in this country. It considers Bitcoin to be property and assumes people have to pay taxes if some profit gets generated due to the change of Bitcoin market price. Securities Exchange Commission says it’s a nonsecurity, but at the same time, it is not that sure about other altcoins. The Commodity Futures Trading Commission views it as a commodity, so at the end of 2017, two of the U.S. Futures exchanges, CME and CBOE, were able to launch Bitcoin futures trading.
Most of the countries’ regulators continue ignoring the legal status of this asset class, waiting for some new information to come in before they make any further steps.
Retail investors and financial advisors hesitate to own crypto assets, include them in investment portfolios, or trade at specialized crypto exchanges. Deliverable crypto’s status can change at any time, which in its turn can impact taxes, reporting rules and obligations.
Ironically, Bitcoin that was built to eliminate the counterparty risk when transferring the valuable asset from one user to another is now facing the most severe counterparty risk because of poorly regulated crypto custody services. Crypto exchanges are being prosecuted by governments, pay fines, and are being forced to shut down too often to consider this environment safe enough to trade cryptocurrencies.
Crypto CFDs as a legit way to benefit from crypto price fluctuations
Contracts for difference (CFDs) are the means to trade cryptocurrencies in a safe environment with reputable brokers. This class of trading instruments does not bear the risks of delivered cryptos as it does not require possessing or exchanging a physical good or security.
Until not long ago, crypto CFDs were not safe to trade due to the lack of liquidity on this market. Poor liquidity can dramatically decrease the efficiency of trading performance, resulting in slippages or requotes.
FXCC CFD broker has been working since 2010. It gained an excellent reputation and enough expertise to ensure safe and fair trading conditions for all the instruments it offers to its customers throughout these years.
Sufficient liquidity of crypto CFDs was the primary concern that kept the company aside from crypto trading long enough. Now that the company is confident to ensure flawless executions, it is ready to announce the launch of crypto trading.
FXCC ECN XL account offers trading:
- BTCUSD (Bitcoin) – Leverage 1:40
- BCHUSD (Bitcoin Cash) – Leverage 1:10
- ETHUSD (Ethereum) – Leverage 1:10
- LTCUSD (Litecoin) – Leverage 1:10
- XMRUSD (Monero) – Leverage 1:10
- ZECUSD (ZCash) – Leverage 1:10
- DASHUSD (Dash) – Leverage 1:10
- XRPUSD (Ripple) – Leverage 1:10
Excellent executions along with favorable trading fees and leverage open wide opportunities to retail and institutional crypto traders worldwide. Feel free to visit the website and learn more about FXCC crypto contracts’ specifications.
Registered FXCC traders can login to the MT4 trading platform, right-click on the Market Watch and opt to Show All Symbols to start trading crypto instruments.