Crypto CFD has long been an attractive alternative to make profits from the cryptocurrency market. IC Markets can be a good place to trade it.
Many might argue that cryptocurrencies are disruptors to the systems. It's undeniable that crypto could potentially change the fundamental of the financial markets. While some might see this as a bad thing, others thrive from it and manage to gain a lot of profits. The high volatility of the crypto markets makes it easier for traders to take advantage of the extreme price movements. Sure, it might bring a lot of risks but most people rather die trying than simply wait and be late to the party. This has led to various ways of trading crypto, one of which is the crypto CFD.
CFDs or Contract For Difference isn't a new thing. In fact, it is a popular form of derivative trading. While this product is familiar among many traders, not a lot of people realize that crypto can also be traded in the form of CFD. That being said, there are a lot of good brokers offering crypto CFD nowadays. Let's take an example from IC Markets.
Why IC Markets?
IC Markets is one of the most popular brokers among CFD traders. There are many reasons why they manage to gain their reputations. The best answer is probably because of the features they offer. To start with, they have plenty of trading platforms to choose from. The leverage for CFD products can go from 1:5 up to 1:200, and the broker has a lot of instruments to trade with. Those include forex, equities, commodities, and of course cryptocurrency. The best part of trading crypto CFD in IC Markets is that traders won't be charged any commission fees.
IC Markets is an online forex broker operating under the company of International Capital Markets Pty Ltd. Traders under the Australian jurisdiction are provided with the trading service of IC Markets AU that is headquartered in Australia and licensed by the Australian Securities and Investments Commission (ASIC).
On the other hand, non-Australian traders who open an account in this broker are registered under IC Markets SEY that is based in Seychelles, and regulated under the Seychelles Financial Services Authority (SFSA). The dual operation is a result of the relatively new rules from ASIC that prohibit their regulated broker to offer trading services outside Australia.
Classified as an ECN broker, IC Markets provide clients with MetaTrader 4, MetaTrader 5, cTrader as platform trading options. This broker also follows market trends to include Cryptocurrencies as one of its products, enriching its already wide selection of trading assets that include Currencies, Indices, Metals, Energies, Softs, Stocks, as well as Bonds.
The minimum deposit in IC Markets is in the middle range compared to other ASIC-regulated brokers, as it reaches $200 for every client. Market analysis materials are also prepared regularly for trading insights on IC Markets's official website, proving their competence to serve their traders with important contents created by market experts that work specifically for them.
For payment methods, IC Markets allows funding and withdrawal via wire transfer, credit card, PayPal, Skrill, Neteller, FasaPay, UnionPay, as well as Bitcoin via BitPay. The more interesting aspect from this broker is its multi-base currencies that include USD, AUD, EUR, GBP, SGD, NZD, JPY, CHF, HKD, and CAD.
As the trading technology in IC Markets is highly equipped with co-located servers and extremely low latency (especially on cTrader), the broker is widely known for its capability in hosting traders with the special needs for high-frequency trading as well as scalping.
To sum up, IC Markets is a fitting destination for active traders looking for a well-regulated broker. IC Markets is also flexible in terms of base currency and payment methods, signaling their commitment to welcome traders beyond their home country. As of late 2019, IC Markets provided their website in 18 international languages including English, Korean, Indonesian, French, Spanish, Italian, Malay, German, and Chinese.
Should You Try Crypto CFD Trading?
The real question is, why do a lot of people opt to trade crypto CFD? The answer is simple: it's because crypto CFD trading comes with a lot of advantages such as follows:
1. Easy to Withdraw
Many believe that crypto CDFs liquidity is much better than the cryptocurrency itself. With regular Bitcoin, traders have to go through a lengthy process to withdraw their profits. Additionally, traders are required to convert their cryptocurrency to fiat money in order to enjoy their profit. With crypto CFD, that won't be a problem. The reason is that CFD isn't the actual instrument, therefore there is no need to convert at all. All the traders have to do is submit a withdrawal request to the broker.
2. Secure
A lot of people might argue that CFD brokers are considered safe from online breaches. The reason is that there have been very few cases of CFD platform hacking. On the other hand, crypto exchanges are prone to multiple hack attacks. In other words, there is much more risk in keeping crypto assets in the exchange. Sure, there are several exchanges that equipped themselves with 2FA or other security methods. But it does not mean that the hackers won't try to steal cryptocurrencies stored on the exchanges.
With crypto CFD brokers, the danger of hack attacks can be minimized. The trader doesn't actually need to own crypto to buy an asset, so there is no fear of any cryptocurrency getting stolen. Not to mention that CFD brokerages like IC Markets are generally licensed by financial regulators.
3. Higher Leverage
Another factor that makes crypto CFD trading popular is the ability to get good leverage from brokers. In fact, a lot of CFD brokers offer higher leverage than traditional crypto platforms. In most exchanges, traders couldn't even use leverage for crypto trading. The standard leverage for crypto CFD varies according to the broker's policy.
How to Trade IC Markets Crypto CFDs
To trade IC Markets crypto CFD isn't too hard since this broker is pretty much beginner-friendly. But, it is understandable that some new traders might not know how to start trading crypto CFDs with this broker. The steps are actually pretty simple:
1. Open a Live Account
Just like any other broker, the first step to start trading crypto CFD in IC Markets is to open a live account. There are a few steps traders need to complete in order to create a trading account in IC Markets. To begin with, traders will be required to fill in some of their personal details. This includes the country of residence, first and last name, email, as well as a phone number. It is important to make sure that both emails and phone numbers are valid as they will be used in the verification process. Traders also require to attach some important documents as proof of identity. This can be an id card, driving license, or passport.
2. Choose a Trading Platform
The next step to trading IC Markets crypto CFD is to pick a trading platform. IC Markets offers MT4, MT5, as well as cTrader. Each trading platform assigns different leverage. The leverage for cTrader is 1:5, while the leverage for MT4 and MT5 can go up to 1:200. Traders who are looking for more trading power might feel more comfortable using MetaTrader. But, if leverage isn't a problem, then cTrader can be an amazing choice as well.
3. Pick a Coin
Choosing a trading instrument is an important step in trading, CFD trading isn't any different. Considering each crypto behaves differently, this might affect the trader's strategy. It is always a great idea to choose a broker with more options when it comes to CFD trading. Right now, IC Markets has a wide range of crypto CFD coins to choose from. Traders can access popular coins such as Bitcoin, Ethereum, or Litecoin. In addition to that, they can gain access to alternate coins such as Dogecoins, Tezos, Uniswaps, and many more.
4. Open a Position
The next step to trade IC Markets crypto CFD is to open a position. The IC Markets Crypto CFD service allows traders to go long or short without holding the cryptocurrency. That means, traders can gain exposure to the product without worrying about the security risks associated with storing it and the risk from the exchange. That is the best part of trading crypto CFD.
5. Get the Profit
At the end of the day, the main idea of trading is to gain profits. Therefore, once traders have accumulated enough profits, the last step is to withdraw. IC Markets have one of the fastest withdrawal processes in the industry. Traders can submit the withdrawal request straight from the client's area.
IC Markets offers all kinds of withdrawal methods starting from bank wire transfer, broker to broker, as well as debit or credit cards. They also allow withdrawals using e-wallets like PayPal, Neteller, Skrill, and many more. It's worth noting that the withdrawal request cut-off time is 12:00 AEST/AEDT. So, any withdrawal request submitted before that time will be processed on the day of receipt.
Trade Crypto CFD with the Best Spreads
CFD trading is a great way to trade any financial instruments without being exposed to the risk of having the actual asset. The same rules apply to crypto CFD as well. Considering the crypto market is highly volatile, trading crypto CFD can be a safer way to gain profits from it. But, looking for a crypto CFD broker with plenty of benefits can be difficult. However, CFD brokers like IC Markets have a lot of choices when it comes to CFDs. Not only the typical high leverage and multiple crypto choices, but this broker also provides competitive spreads that start from 8.7 pips for BTC/USD.
Aside from CFD, a lot of traders like to trade other crypto derivates. While this can bring a lot of benefits, there are some risks that come with it. Explore all about crypto derivatives and how to manage the risks in this article.
12 Comments
Jan 20 2023
Dude, I think it is not easy to trade CFD either Forex, Stocks, even at Crypto. All the steps that above is very basic move to trade in there. All need some good trading strategy in order to get profit as much as posibble and with low risk of course. Talking about the risk, which have more higher risk? I mean all CFD has high risk; Forex, Stocks, Commodity and crypto too and if I see the spread, why crypto has very high spread which is at 8.7 pips
Jan 22 2023
Alexander Wendell: You are correct about CFD risk. Forex, commodities, and stocks all traded commodities offer some features such as two ways to profit and volatile markets that give you the opportunity to make profits at any time, but they also come with a certain amount of risk. and higher risk. Riskier than other investments such as stocks. And trading is uncertainty condition we don't know the market will bullish or bearish, but we only can only predict.
For cryptos with more spreads, I think of the crypto market itself. As the range or width of spreads can increase because liquidators react to price direction uncertainty created by high volatility or lack of market liquidity. Because of this, crypto spreads can wider.
Jan 22 2023
I think crypto trading is riskier than forex. The mechanism is the same, but the analysis is different. All because the crypto market is highly volatile. As you said, even investing in cryptocurrencies carries higher risks. All because the market is very volatile. See the chart below for an example of Bitcoin for Months.
As you can see, the $16.00 month occurred on January 9th. Suddenly, it could go up to $20,000 in 10 days. You can see the price of bitcoin skyrocketing. In the meantime, you can see the forex market for a month in the chart below.
The lowest score is 1.05, which is only 0.4 points higher to 1.09. And although this is a general chart, it has been at 1.06 points for months and has only gained 0.3 points so far. Can you imagine a graph with five numbers after the decimal point like MetaTrader? In metatrader chart, Forex can be volatile, but cryptocurrencies are more volatile than forex because the chart in general, the price has very spike movement.
Jan 22 2023
Joey: I agree, the crypto market is very volatile and even broker leverage is lower than the forex market. But that doesn't mean you don't have a strategy to profit from cryptocurrencies as you can see, trading can be another alternative for acquiring cryptocurrencies. It's cheaper because you can deposit in US dollars and withdraw later in cryptocurrency, and you don't have to buy 1 BTC for $20,000. Take advantage of volatility just by placing a trade.
Here you can see some tips in these article :
Jan 22 2023
What is leverage in crypto trading? Is it really 1:200? If yes, the IC's Market leverage is a very high leverage in crypto trading. Also, how much should I deposit to trade cryptocurrencies on IC Markets? I mean I don't want to unable to trade because I deposit only few funds. It's very troublesome and time consuming. As you know, although some brokers don't charge you with deposit's fee, the medium that used for deposit always charge the fees and if you deposit twice, the deposit fee charged will also be doubled. Also, can you tell me how to count the most ideal deposit for trading crypto?
Jan 22 2023
William Patrick: I will answer your question with some points :
What is leverage in crypto trading in IC Market?
Based on this website's review, the IC Market offers leverage 1:20 for crypto trading. For the details you can check at : IC Market Review. And you can see the list of leverage at the picture below:
How much should you deposit to trade cryptocurrencies on IC Market?
First, you know the leverage of IC Market is 1:20, the minimum deposit in there is $200. So, your minimum buying power is at $4000. I think it is enough to trade 1 position only. So, if you want, you need to deposit $500 for $10,000 buying power.
Mar 26 2023
William Patrick: Leverage in crypto trading refers to the use of borrowed funds from a broker to increase the potential return on investment. For example, if you have a leverage of 1:200, it means that for every $1 you deposit, you can trade up to $200 worth of cryptocurrencies. However, it is important to note that leverage is a double-edged sword, as it can also magnify losses. IC Markets does offer high leverage in crypto trading, up to 1:200. The amount you should deposit depends on your risk appetite and trading strategy. It is important to have enough funds to cover your potential losses, as well as any margin requirements imposed by the broker. To determine the ideal deposit amount, you should consider your trading goals, risk tolerance, and available funds. It is generally recommended to risk no more than 1-2% of your account balance per trade, so you should calculate the maximum amount you are willing to lose on a single trade and adjust your position size accordingly. You should also factor in any deposit fees and the potential impact of currency exchange rates if you are depositing funds in a different currency. Overall, it is important to carefully consider your trading goals and risk tolerance before depositing funds with any broker. You should also ensure that you fully understand the terms and conditions of the broker, including any margin requirements and fees.
Feb 6 2023
I would like to ask about instrument trading that can be traded on IC Markets, especially cryptocurrency CFDs. What are the assets to choose from in IC Markets? What trading platforms can be used to trade cryptocurrencies? I mean, the article has said about two trading platforms, Metatrader 4 and Metatrader 5. Among these trading platfroms, which one is the best choice?
I would also like to ask you one more question. The highest leverage you can choose for crypto CFDs. Choose your own leverage when trading cryptocurrency CFDs on IC markets because you are afraid to use high leverage to avoid over-trading, especially when making risky trades such as cryptocurrency CFDs Can you do it? thank you very much!
Feb 6 2023
Tony: For the best trading platform that to trade Cryptocurrencies is Metatrader 5. Because it offer more asets to trade meanwhile Metatrader 4 is more limited. For the first time Metatrader 4 created, the purpose of the trading platform is to trade Forex, Stocks, and Comodities. But since more assets that can be traded with more spesific time frame, the Metatrader 5 is created.
to learn more about those different, you can read in here : Exness MT4 vs MT5, the difference.
The cryptocurrencies that you can choose to trade on IC Market are : Bitcoin, Ethereum,Dash, Litecoin, Bitcoin Cash, Ripple, EOS, Emercoin, NameCoin, Peercoin, Polkadot, Stellar, Chainlink, Dogecoin, Tezos, Uniswap, Cardano, Binance, Avalance and etc. You can check in their website.
Mar 27 2023
What are the steps involved in trading Crypto CFDs on IC Markets, and what strategies should I consider to minimize risk and maximize potential profits? Additionally, how can I leverage the tools and resources provided by IC Markets, such as their trading platforms and educational resources, to enhance my trading skills and make informed trading decisions in the volatile world of cryptocurrency trading? Finally, what are some of the key factors I should keep in mind when ing a specific cryptocurrency to trade on IC Markets, and how can I stay up-to-date on market trends and news to make informed trading decisions?
Aug 25 2023
Is there anyone here who has encountered an issue similar to mine? I'm keen on becoming a client of IC Markets. I've spent several months trading in a demo account to prepare for actual trading. Now, I feel confident and ready to open a real account and register with them. However, I faced an obstacle during the KYC process because of my US nationality, and the broker declined my application. I'm curious to know if anyone has faced a similar situation and if there are any tips to overcome it, allowing me to get verified and commence real trading with IC Markets. I'm hopeful that someone can share their insights. Thank you in advance!
Aug 26 2023
In simple terms, brokers such as IC Markets must adhere to the rules and regulations established by various countries to ensure fair and secure trading. In the United States, organizations like the SEC and CFTC are responsible for ensuring that brokers comply with these rules and safeguard the interests of investors.
Now, when we talk about international brokers like IC Markets, it can become quite challenging for them to meet all the requirements set forth by US authorities. They would have to go through the process of registering with the SEC, becoming members of organizations like FINRA, and fulfilling specific financial obligations. This can be a considerable amount of work and might not align with the typical operational practices of international brokers. Due to these complexities, some brokers opt not to accept clients from the United States. This decision helps them avoid legal and regulatory complications and allows them to focus on serving clients from other countries where the regulatory framework better aligns with their business practices.
Indeed, only a limited number of brokers welcome US traders. As per the information I've come across, it's widely known that obtaining a US license is an arduous process due to the stringent requirements in place. One of the primary reasons forex brokers refrain from accepting US clients is the rigorous regulations imposed by the US government. The US government has enacted a series of regulations concerning forex brokers, including the Dodd-Frank Act, introduced in 2010. This legislation mandates that forex brokers must register with the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA), which can be a time-consuming and costly endeavor.
Read more: CFTC Vs SEC: What are the Key Differences?