After we reported last week that IG Group became the first online broker to offer binary options trading on Bitcoin, now comes word that Plus500, a medium-sized UK-based Forex broker, is becoming the first Forex broker to offer ‘pure’ Bitcoin pair trading.
Plus500 has introduced the BTCUSD pair for trading. Given the wild volatility in Bitcoin prices, Plus500 is allowing leverage of just 4x on the BTCUSD pair, versus typical 40-50x leverage on most other FX pairs.
The spread on the BTCUSD is also (very!) wide, at about 72 pips, or in other words a 0.72% difference between the buy and sell prices at any point in time. That comes in at 36 times (!!) the typical 2 pips spread for major FX pairs.
Plus500 will certainly not be the only FX brokerage to offer Bitcoin trading for long. Stay tuned to LeapRate…
Forex Industry Report