How Do Conventional Forex Exchanges Operate?

Before we dive deep into the best Bitcoin forex brokers and how you can get started, an understanding of how a conventional forex exchange works is needed.

In its simplest form, forex trading is the exchange of one national currency for another. The term forex stands for foreign exchange. However, unlike tourists trying to buy currency for their upcoming trip, forex traders are aiming to make a profit off of the fluctuating price changes between two national currencies.

This is done by buying one currency while simultaneously selling another. For example, if you think the Euro is going to appreciate against the US dollar, you would buy EUR/USD. Alternatively, if you think the US dollar is going to appreciate against the Japanese Yen, you would buy USD/JPY. These are known as currency pairs, and there are dozens of different ones that can be traded on the forex market.

When you trade a currency pair, you are essentially betting that one currency will go up while the other goes down. If your prediction is correct, you will make a profit. If not, you will incur a loss.

With the growing popularity of Bitcoin and its volatile price swings, forex exchanges have started to offer BTC/USD and other cryptocurrency pairs. So, traders can now trade with Bitcoin on forex exchanges just as they would on traditional crypto exchanges. However, apart from allowing the trader to trade with physical Bitcoins, forex exchanges also offer users the ability to trade using a Bitcoin derivative called CFD (Contract for Difference).

Here is a look at some of the best Bitcoin forex brokers:

Other Quality Forex Brokers

There are a number of good Forex options for BTC traders including the following:

IQ Option

IQ Option is a broker that offers Bitcoin binary options and CFDs. IQ Option allows you to trade with leverage on Bitcoin. The platform allows you to have an exclusive custom build trading platform that caters to your needs. With a minimum deposit of $10 on the basic account, IQ Options is an attractive alternative for newbies looking to trade Bitcoin on forex exchange.

Pros

• Low minimum deposit requirement
• Reliable customer support
• Offers a variety of trading instruments
• Customizable trading platform
• Comes with a demo account
• Offer leverage as high as 1:1000 in select jurisdictions
• Features an intuitive trading app

Cons

• Its crypto multiplier feature is limited to non-EU customers
• Not available to U.S customers

FXCM

FXCM (Forex Capital Markets) is one of the earliest forex rokes that was founded as far back as 1999. The platform offers over 50 currency pairs for trading, including Bitcoin CFDs and Ethereum CFDs. With a long-standing reputation in the industry, FXCM is a regulated broker in multiple jurisdictions and has been operational for over two decades.

Pros

• A long-standing and reputable company
• Offers a range of tools and research options
• Comes with a deposit bonus of up to $300
• Offers support for trading multiple cryptocurrencies
• Features trading tournaments for top traders
• Comes with a demo account

Cons

• High bank withdrawal fees
• Product offerings could be better
• Their platform lacks 2FA

Saxo Bank

Saxo Bank is a Danish online bank that offers Bitcoin CFD and forex trading. The platform was established in 1992 and is one of the oldest forex brokers in operation today. Saxo Bank offers a range of over 40,000 instruments for trading including cryptos, stocks, ETFs, and commodities. Saxo Bank is regulated by multiple financial authorities, including the Danish Financial Supervisory Authority.

Pros

• A long-standing and reputable company
• Offers a wide range of tradable instruments
• Comes with a demo account
• Features an intuitive trading platform
• Offers an immersive trading experience
• Competitive pricing for VIP account holders

Cons

• High fees for some products and services
• Steep account minimum account balance requirements
• Their educational resource could be better

How to Pick the Best Bitcoin Forex Broker

Investing in Bitcoin has been a hot topic of debate for the past few years.

Some people believe that Bitcoin will change the way we interact with money, while others think it is a fraud or a bubble set to burst. However, there is no denying that more and more people are starting to invest in Bitcoin, given its availability on mainstream forex exchanges like the ones mentioned on our list.

However, how do you go about picking the best BTC forex broker? Here are a few things to look out for:

Reputation

Make sure to pick a forex broker that is long-standing and has a good reputation in the industry. You can check out online forums or review sites to get a better idea of what other people are saying about a particular broker.

Regulation

It is important to pick a broker that is regulated by multiple financial authorities. This will ensure that your money is safe and protected in the event of any unforeseen circumstances.

Trading platform

The trading platform should be easy to use and navigate. It should also come with all the features and tools that you need to trade effectively.

Customer support

The customer support team should be responsive and available to answer any of your questions or queries. Trading platforms generally offer some collection of email, phone and live chat support.

Make sure the exchange in question has your preferred channel for support.

Pricing

Make sure to compare the pricing of different brokers before making a decision. Some brokers might offer cheaper fees but have fewer features, while others might be more expensive but offer a better overall trading experience.

Conclusion: Find the Forext Broker That Works for You

Now that you know what to look for in a Bitcoin forex broker, it’s time to choose one from our list.

We’ve researched for you and have hand-picked the best ones based on the criteria mentioned above. So, whether you’re a beginner or a seasoned trader, we’re confident that you’ll find a broker that’s right for you.