Post
Topic
Board Service Discussion
Re: Bitcoin on Metatrader 4 Forex Platform...
by
ecfxmarket
on 02/10/2013, 17:05:17 UTC
Swap rates can make a huge difference and also can vary substantially between brokers. By the way VenetFx does not trade Bitcoin CFDs. What they do is accept accounts denominated in Bitcoin and also accept Bitcoin for deposits and withdrawals. AvaTrade and Plus500 do trade BTC/USD CFD's on accounts denominated in USD, EUR etc. The swap rates between the latter two are very different.

The counterparty to the CFDs is the broker who may typically hedge the trade. This does add certain risks.

By the way it is very easy to loose the entire investment with a Forex broker so it is paramount to be extra careful. To illustrate selling Bticoin short with 10x margin can wipe out an account real quick.

All of these things a very true... Brokers can easily trade against you and it will screw with your mind. You'll think that it's a bad strategy when in reality, there's a device for MT4 brokers called the Virtual Dealer Plugin.... Very evil software that trades against profitable client accounts...  That would be the main thing to worry about with the FX brokers other than margin call (which is usually around 20% for most brokers).  Personally, I develop autotrade bots for Mt4 that work well to combat that....