InstaForex Becomes Latest Online Forex Broker to Launch Bitcoin CFD Trading
The list of online forex brokers entering the bitcoin market and launching CFDs of the digital currency continues to increase during 2014. Starting with Plus500 and AvaTrade in 2013, along with eToro, FXOpen, and Markets.com and many other smaller firms this year, the newest broker to launch bitcoin trading is InstaForex. Similar to other firms with the exception of FXOPen, InstaForex is offering bitcoin trading as a CFD. As such, the CFD is a synthetic trading product that mimics the price of bitcoins but doesn’t provide actual ownership and delivery of the digital currency. However, as a synthetic product, it offers more flexibility with its trading conditions. As such, InstaForex’s bitcoin CFD comes with up to 25:1 leverage.
A Russian broker, InstaForex has expanded its operations to markets its products around the globe. Among regions where the broker has an active presence is South East Asia, where they market in countries such as Malaysia, Singapore, and Indonesia. Currently, InstaForex operates as an unregulated broker, having dropped its Belize IFSC license last year. At the time of ending its connection with Belize, a representative commented to Forex Magnates that the broker “took a decision to stop licensing in Belize. First of all, the PR Value of license could not match the dynamic growth of the company. Secondly Belize has rather low investment potential and, quite frankly, does not have very high level of regulation and accounting.” They added that there would be additional news on the matter but have yet to provide an update about their regulation.