1Broker - Trade the Markets with Bitcoin
- Bitcoin-only Forex and CFD platform.
- Very competitive fees, but interest charged on overnight leveraged holdings.
- Proprietary web-based platform short on frills, but extremely user friendly.
- Anonymous and quick registration, bitcoin-optimized deposit and withdrawal process.
1Broker is a bitcoin-only forex and CFD trading platform, developed entirely to service the bitcoin trading market. This has a number of advantages and disadvantages. One will be hard pressed to find a registration and deposit path that leverages the advantages of bitcoin as well as 1Broker, and bitcoin being the sole accepted currency simplifies the process for accessing the platform and placing an order. On the negative side, the simplicity comes with a cost in terms of platform sophistication, so more advanced traders expecting metatrader 4 level trading suites will most likely look elsewhere. And of course, the rather limited market, in terms of saturation and the amount of time it has been around - means that 1Broker does not have the track record of other more established brands, nor does its turnover facilitate such nice-to-haves as live chat. And of course, the lack of KYC offered to bitcoin traders precludes the option of getting a license.
That being said, 1broker has emerged as arguably the top bitcoin-only trading platform and is worth having a look.
Opening an Account
1broker is a product of the bitcoin boom, meaning that registration requirements are kept to a minimum - username, password and email - and a characteristically simple bitcoin deposit process. After sending bitcoin to the designated address, or scanning the QR code from your bitcoin wallet, users should expect to wait approximately 20 minutes, or two confirmations, for the bitcoin to appear in the account. After that, you have got full access.
Making a Trade
1broker utilizes a proprietary trading platform which, though it won't be dethroning metatrader 4 from best in the market any time soon, is quite user-friendly, accessible cross device, and basically does what it needs to do.
1Broker offers a number of different markets including Stock Indexes, individual stocks and commodities, upon which traders can open up CFD on short or long positions. On the Forex side, 1Broker offers a number of different currency pairs, including all the major USD crosses as well as a number of EUR pairs. BTC/USD is the only crypto pair on offer.
Clicking on the name of the trading instrument opens details box, which has a very simple line chart showing performance over customizable time periods, a small stock description, and some vital stats - highest leverage available, the order limit, spread, etc. From there, a click on long or short opens up the order slip.
1broker offers market and limit orders, stop entries (an order to buy when the price is above the current level), stop losses and take profit. Generally speaking, leverages of up to 15 are available to traders. Margin calls are not offered - rather, automatic stop-losses are set, usually at xxx. It is important to note that this simply sets a market order - if the market is moving drastically and liquidity is dried up, the stop loss might not successfully trigger. It is thus possible not only to lose your entire position, but in rare cases for the position to go into negative, which would be covered by any liquid funds in your account.
Leveraged positions will be charged an overnight interest rate. The greater the leverage used, the higher the interest payments, as a leveraged position essentially means you are borrowing the difference between your liquid holdings and your open position from 1Broker. We document below in the fees section overnight fees by market. While the rates seem low, at a high leverage they add up.
The risk management and reserve strategy is managed by market, and they do not cross-finance between markets. While this is a responsible approach, it means that particular markets, particularly the btc/usd market, are under-capitalized and often leveraged positions are not available, particularly during periods of high volatility.
1Broker's fees are expressed in the spread between long and short positions, which varies by instrument. BTC/USD, for example, generally has a spread of $1.80, while major forex pairs have miniscule spreads (EUR/USD offers spreads at 1/100th of a penny actually). 1Broker does wrack up a bit of fees by way of their overnight interest rates, shown below:
|Market Type||Long Position||Short Position|
|Gold and Silver||0.0204%||0.0077%|
Please note that overnight fees are not charged on Saturday or Sunday (except for bitcoin, which accrues charges every day), meaning that fees are charged "roughly 260 days a year".
The simplicity of the platform lends itself easily to mobile trading, although no work has been put in on the 1broker side to optimize for handheld devices. There is a bit of fat-finger discrimination going on here, but you can trade in a pinch. (pun intended, baby)
While courteous and knowledgeable, accessibility is definitely an issue as support is email-only with a 24 hour SLA.
1broker is one of three bitcoin-only forex and cfd brokerages. It offers anonymous trading on a platform that is proprietary and simple. Advanced traders will most likely prefer to look elsewhere, but for those looking for an extremely user-friendly and straightforward platform to hedge your bitcoins or grab a position in a specific stock, index or currency (or buckle up for a crazy ride with leverage-on-steroids CFD/Forex pseudo-gambling, whichever you prefer) 1broker is a good choice.
- Trading Platform: Proprietary web-based
- Markets: Major Indices, Equities, Commodities, 15 Forex pairs, Bitcoin
- US Traders: Yes
- Regulated: N/A
- Offices: Unknown
- Min Deposit: .01 bitcoin
- Max leverage - Cryptopairs: 15:1
- Standard Max Leverage: 200:1
- Margin call: N/A
- Stop out: 30%
- Telephone: N/A
- Live Chat: N/A