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Top-5 providers of Crypto CFD liquidity

For years the Forex market has been associated with fiat trading pairs – crowds of people and institutions were buying and selling assets. The explosive growth of digital currencies interfered with the process, as traders discovered brand-new opportunities given by cryptocurrencies.

Today, top-rated FX brokers add crypto CFD contracts to expand their customer bases. The mixed brokerage model enables traders to access both assets (fiat and crypto) from one account – the opportunity sounds great but we need to dive into the definition of CFD contracts for cryptocurrencies.

Crypto CFDs. Meaning and pros

Contracts for differences mean that a trader doesn’t own underlying assets physically. Futures contracts are set between a brokerage company and a trader and settled in payments after a position closure.

For instance, a trader wants to open a position for the BTC/ETH pair at 14.71 Ethereum. When the price moves higher, a trader closes his (her) position and gets the difference between the initial and final prices (e.g., 1.13 ETH).

As for the core pros of Crypto CFDs, traders outline the following advantages:

  1. Safe and secure process. Crypto holders need to understand that digital assets must be stored in secure wallets; otherwise, funds will be possibly stolen by cybercriminals. Contracts for difference mean that a trader holds no assets by himself (herself) – funds are stored on a trading platform responsible for their security.

  2. Access to margin trading. Spot investments and trading opportunities are good but the leverage mode unlocks greater opportunities, as traders may multiply their gains essentially.

  3. Crypto brokerage companies provide traders with a wide network of technical and analytical instruments.

Crypto CFDs are considered a competitive advantage for a broker; meanwhile, traders expect to face the lowest spreads and high order execution speed. Liquidity is something you need to take into account. Here is the list of the best liquidity providers for crypto CFDs:

#1. B2Broker

It was 2017 when the company first entered the market with CFDs for 30 crypto trading pairs. As of today, the liquidity pool covers 115 pairs to provide brokers’ end-users with access to the most in-demand digital assets.

The company offers a BTC spread starting from just $0.1, while an order execution time commences from 12 milliseconds.

Margin requirements are 20% for most crypto trading pairs, offering your clients to trade with up to 1:5 leverage. The company aims to provide brokerage companies with ultra-competitive advantages; this is why some exchange pairs (with USD, EUR, and GBP) are available with revised margin requirements (10% or 1:10).

B2Broker constantly upgrades its liquidity offerings, adding CFDs for new trading pairs. Totally, the company unlocks access to 400 instruments.

#2. GBE Prime

GBE Prime builds up a liquidity pool that includes top-rated FX institutions from around the world. Trading servers are distributed among London, New York, and Tokyo to provide brokerage companies with an opportunity to choose the best location for their connections.

The company covers liquidity for more than 10 trading pairs that include Bitcoin, Ethereum, Ripple, and Litecoin. Tight spreads and low commissions are among the core competitive advantages.

On top of crypto CFDs, GBE Prime provides liquidity for FX, Metal, Commodities, Metals, etc., offering 250 products in general.

#3. Leverate

Leverate is a 12-years-of-experience company tailored to suggest eye-catching solutions for diverse players of financial markets. Crypto CFD liquidity is among the most in-demand services.

LXCapital is a package that connects your order book to the deep liquidity pool that includes more than 15 crypto trading pairs. The company guarantees high order execution speed, low spreads, and zero gaps.

While talking about connectivity, Leverate distributes liquidity through MetaTrader 4 or Sirix (a company’s own product) platforms.

#4. Brokeree

Brokeree is a company that builds up a liquidity bridge for brokerage companies that enable clients to trade crypto CFDs.

The company partners with top-rated liquidity aggregators to unlock access to the deepest liquidity pools in the market. NEXUS and Fintech Group are the core aggregators Brokeree has partnered with.

Brokers get access to the highest liquidity for more than 50 trading pairs, minimum execution time, and lowest spreads. As for the distribution options, Brokeree provides liquidity through MetaTrader 4 and MetaTrader 5 platforms.

#5. X Open Hub

The company provides brokerage businesses with access to more than 3000 instruments, connecting them to deep institutional liquidity pools.

As for CFD contracts for cryptocurrencies, the company’s pool contains pairs with 7 digital assets: Bitcoin, Ethereum, Litecoin, Ripple, DASH, EOS, and Stellar. Spreads start from $1.05. Execution speed is among the industry-leading ones. X Open Hub is proud of revised pricing structures for STP and ECN brokerage companies.

Aside from CFDs for cryptocurrencies, the provider offers liquidity for FX, Indices, Commodities, Shares, and ETFs.

Newer brokerage businesses that are going to implement crypto CFD trading, compare offerings and conditions to understand which provider is the best to partner with.

 

 

 

 

 

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Artyom Goryushin

Artyom Goryushin

Technology Advisor & Market Analyst

Entrepreneur

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Moscow

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This post is from a series of posts in the group:

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