The most popular forex trading platforms are the MetaTrader 4 and MetaTrader 5. This is because these platforms are technologically advanced and offer enhanced security. This enables traders to place trades without worrying about the platforms’ stability. It is the key features of these platforms that enable traders to accurately monitor and precisely enter and exit the forex market.
When it comes to trading Bitcoins, there are a couple of options available to traders. They can buy the cryptocurrency from a Bitcoin exchange and hold it till the price has risen to the expected level and then sell. Investors can also trade Bitcoins on these exchanges which have mushroomed in the recent times. Either way, what they are doing is trading the variation in the value of the cryptocurrency.
Yet another option is to trade Bitcoins on forex trading platforms. Typically, they enable traders to trade the cryptocurrency against USD or EUR. They also offer Bitcoin-based CFDs. All these involve trading value variance. What is fundamentally different from trading on exchanges is that the traders do not have to actually possess the Bitcoin because it is used as an underlying asset.
As such, Bitcoin trading on forex platforms provides traders with the best of both worlds. Read on to know more about the advantages of working with Cryptocurrency MetaTrader Brokers.
#1: Safety and Security
The Bitcoin exchanges do present several options to traders. However, they are very unstable and are often susceptible to scams. A large number of exchanges that have cropped up after the introduction of the Bitcoin are no longer there now. As a result of this, many investors have lost their investments. Some of the exchanges are reliable, but some others are nothing but scams.
Though the same conditions prevail in online forex trading as well, the situation is far better compared to that of the Bitcoin exchanges. The reason is that it is always possible for you to choose to work only with regulated forex trading platform providers. This is because these forex brokers are required by law to comply with certain stringent stipulations and also meet the specified capital adequacy norms. Additionally, they are required to keep their funds and that of their clients in segregated accounts. This ensures a great deal of safety and security to traders.
#2: Cost of Trades
Forex brokerages often build all of the trading costs into the spread they offer. The spread may vary on the basis of price volatility of the asset. When it comes to Bitcoin exchanges, they generally offer tighter spreads and add some percentage of commissions depending on the trade volume. In certain situations, the total cost of trading may even be higher.
Leverage provides traders with a great deal of flexibility. This, in turn, makes trading the cryptocurrency on forex platforms more beneficial to the traders than using the exchanges for Bitcoin trading. Leverage offered by forex brokerages goes up to 1:20 whereas it ranges from 1:2 to 1:3 on exchanges. Some brokers are known to offer much higher leverage on Bitcoin trades.
#4: Coin Variety
When it comes to coin variety, the exchanges may enjoy a slight advantage over the online forex brokerages. This is actually not a big problem because the best forex brokerages offer a lot of benefits to traders.
MetaTrader 4/MetaTrader 5 Trading Platforms
Most of the online forex brokerages offer the MetaTrader (MT4 and MT5) forex trading platforms. In fact, the MT4 and MT5 platforms are considered to be the gold standard in the forex market. This cannot be considered as just an arbitrary decision.
The MetaTrader 4 platform is more popular among traders because it provides the best user experience, is available in multiple languages, has advanced charting capabilities, automated trading through Expert Advisors (EAs), comes with advanced communication tools, utilizes limited resources, offers security, ensures a great deal of flexibility, and enables customization. MT5, an advanced version of MT4, is a good choice for new traders. It is more powerful, offers more timeframes, enables more pending orders, and provides more technical indicators. On MT5, it is possible for traders to create technical indicators and trading robots or EAs on their own. This means that the MT5 is more customizable. The use of the MT5 platform is, therefore, on the rise in the recent times.