SimpleFX offers bitcoin users the chance to buy mainstream CFDs on the MT4 platform
- Bitcoin Cash
BTCUSD: 2% ; EURUSD: .0001; GBPUSD: .00015; GOLD: .025; OIL: .06Trading Fees
- Credit Card, Bank Wire, Neteller, Skrill, Bitcoin
- USD, EUR, GBP, AUD, BRL, CAD, CHF, CNY, DKK, IDR, JPY, PLN, RUB, SEK
- Crypto: 2:1; Forex/CFDs: up to 500:1
- As far as CFD brokerages go, SimpleFX probably has the lowest fees out there.
- Accepts bitcoin deposits in relatively-anonymous accounts.
- Allows the trading of mainstream CFD instruments with bitcoin or fiat.
- There is no bitcoin mini – you’ll need to have at least 1 bitcoin as collateral.
- Extremely difficult method of calculating overnight swaps – usually cheap, but transparency suffers.
SimpleFX is good for depositing bitcoin and trading mainstream market CFDs, like Forex, stocks, indices and the like, SimpleFX is a great product. Bitcoin depositors get an instant registration and trading experience. We are big fans of their proprietary web-based platform, and they also provide access to metatrader 4 across all platforms.
SimpleFX was a really great product for crypto CFDs, and then the crypto spreads widened. By a lot. If you combine this issue with the small leverage offered and the lack of bitcoin mini contracts, it is almost as if SimpleFX prefers you not to trade their bitcoin CFDs. If you want to trade bitcoin CFDs, might want to compare CFD products.
Opening an account
Though not limited to cryptocurrency deposits, it is evident that simplefx has been developed with bitcoin in mind. The registration process consists of entering your email account, proving you are not a robot, and confirming your email address. If that is too difficult, they’ve integrated facebook and google+ insta-login. After email is verified, a return to the site prompts setting a password, after which bitcoin users can deposit. To trade with “hard currency” additional verification is required, which is outlined below.
|Individual Account||Enterprise account|
|Identification||Upload passport or ID photo, input full name, citizenship and birth||Memorandum and articles of Incorporation; Last two years financial statements or three month’s bank statements; copy of shareholders and director’s register; ID verification for directors and 25% shareholders|
|Proof of Residence||Full address and a utility or bank statement not older than three months, which clearly shows name, address and date of issue||Full address and utility or bank statement, not older than three months, demonstrating company name, address, and date of issue|
The Simplefx Product
Aside from it’s…simple method of registration, users will appreciate the simplicity with which simplefx presents its product. While more advanced traders might prefer downloading their metatrader 4 platform, which can be done through the accounts tab located under the username in the upper right-hand corner, many will be content to trade from the robust web-based platform which greets users when they arrive at the site. As an added bonus, the standard platform offerrs a “shoutbox” which is pretty active with traders to-ing and fro-ing, and a lovely live chat box, staffed by a patient and ever-present support squad. We will not go into the metatrader 4 system, which we have done elsewhere. Instead, we will focus our review on the web-based platform.
Making a Trade on the SimpleFX Platform
A table displays all Commodity, Equity, Index, Metal and Crypto CFDs (bitcoin and litecoin against USD, EUR, CNY and JPY), as well as about 50 forex pairs. Any particular instrument can be added to your favorites with a click of the “star”, the graph icon will populate the graphing feature with your selection, and the info icon displays pertinent information about the CFD or forex pair, including swap rates if applicable, contract sizes, margin requirements, and the minimum/maximum order sizes allowable.
Clicking on the buy or sell column opens up the trade slip. We will use the btcusd pair to explain what the different fields mean.
Traders have the choice of setting up a market order, which automatically buys at the market rate, or a pending order, otherwise known as a limit order. You’ll notice that the size of the order is set as default to 0.01, or one mbit. However, the contract size for btcusd is set at 100, so actually an order of .01 is the equivalent of buying one bitcoin. While leverages are adjustable up to 500:1 for most CFDs and Forex pairs, crypto pairs offer leverages of only 2:1.
Just underneath the trade “size” box, you’ll notice the required margin, which shows the balance amount that must remain frozen to support the position. A margin call is made when 50% of the required margin is breached, a forced closing, otherwise known as the stop out, at 30%. Just underneath required margin is the stops and limits module, expanded by pressing on the plus.
At the bottom of the slip, you’ll notice a trade calculator. The trade calculator provides information about the particular instrument, gives a quick link to change your leverage, and allows you to play around with a P/L calculator, to see how price movements affect your position.
Stop losses can be expressed in either a currency or points. As it pertains to bitcoin, points are equal to one cent, or the second digit after the period (in forex a point is a pip, and points vary depending on the underlying CFD instrument). In the example above, then, you can see that the 10 point stop loss means that, if bitcoin were to fall by 10 cents a sell order would automatically be placed. Expressed as currency, you would simply write out the exact level at which you would like to take your profit and/or cut your losses.
After all has been configured, simply click on the buy or sell button, and the order will be placed. Open orders are displayed at the bottom of the screen, conveniently displaying p/l in your base currency and in points, as well as the swap amount owed/due. To avoid the whole process displayed above, a click on “one-click trading” allows for the instant buying or selling of your desired amount of any instrument simply by clicking on its buy or sell ticker from the main display.
Simple FX also provides access to the best-in-show metatrader 4 downloadable trading platform. To download, simply click on your user name top-right, and click on the metatrader 4 logo. Don’t forget to adjust the leverage as suits. Deposits, withdrawals and internal transfers are also managed from this accounts page, easily completed by sending your bitcoin to the appropriate address displayed.
The fees are contained within the spread. spreads which are relatively in tune with the wider CFD market.
Simple FX Mobile
The web-based product is really nicely optimized for mobile, though it does take a bit of time for the trading template to load. Pro-tip: If it seems to get stuck, click on the graph icon at the bottom, and then back to the up/down icon to load the pairs.
Of course, utilizing the metatrader 4 platform gives access to their excellent mobile apps.
Might look elsewhere if:
You live in the US and want to trade mainstream CFDs with your bitcoin.
You want leverage on crypto.
AvaTrade is better for crypto trading, with much tighter spreads and bitcoin mini contracts. Proper futures exchanges are cheaper, spreads are narrower, and pricing indexes are done transparently. Bitmex is the best of the bunch, and if you hold bitcoin and want to leverage your trading, we can’t recommend it enough.
Simplefx has some pretty attractively priced mainstream instruments, but they don’tr really seem to want your bitcoin CFD trading business.