Recognized Swiss bank Dukascopy has announced on Tuesday the addition of Bitcoin, Ether, and Litecoin CFDs contracts becoming the latest contract for difference (CFDs) broker to offer cryptocurrency trading.
The brokerage unveiled that the cryptocurrency CFD trading will be accessible on the MetaTrader 4 platform, with these new features available in both live and demo trading environments.
According to Dukascopy:
“Unlike traditional purchase of cryptocurrencies trading cryptocurrency CFDs (Crypto) allow speculative operations without having a digital wallet. There is no need to own cryptocurrency coins eliminating cybersecurity risks.”
Furthermore, traders using the broker can take both long and short positions on the three crypto-fiat pairings offered, and the value of all three digital currencies will be pegged to the US dollar.
Moreover, according to the statement, traders utilizing Dukascopy Bank’s services will have a maximum leverage of 1:5, while Dukascopy Europe clients would have a maximum leverage of 1:2.
The firm elaborated:
“Due to the leverage provided on trading accounts, the client can hold cryptocurrency CFD positions larger than [the] amount of traditional currency initially owned.”
The banking service is offering crypto services after several of its competitors have done so in response to increased demand from traders. Additionally, the speculative nature of cryptocurrencies encourages traders to take more significant positions, thus benefiting the broker’s revenue.
The cryptocurrency market has experienced turbulence lately with concerns over the increasing use of fossil fuels for crypto mining, growing FUD, and China’s ban on cryptocurrency mining, impacting the market. All of the major tokens lost substantial value.
Dukascopy, on the other hand, has expanded significantly in 2020 as a result of an influx of retail traders. As a result, the company’s operating income reached CHF 40.1 million, setting a new high in its operational history.
The latest CFD launch suggests that Dukascopy has observed investor demand and the actions of its competitors, and the lack of a digital wallet reduces the cybersecurity risk component.