Lowest costs on your Bitcoin trading
|Assumes 1 Bitcoin trade at $45,000||IG||CMC||Plus500||Pepperstone|
|Annual Financing %
|Total cost / one week||$249||$77||$336||$77||$342||-$46||$299||$49||$256||-$25|
|Total cost / one year||$6,870||-$2,130||$11,370||-$2,130||$15,790||-$4,460||$8,685||-$4,365||$11,290||-$3,335|
*Table for comparative purposes only and features representative spreads from Australian competitors on their websites and platforms, and is correct to the best of our knowledge as of June 7th, 2021. Trading costs are based on 1 Bitcoin ($) CFD priced at 45,000 USD. Plus500 costs include the cost of reopening trades due to forced expiration dates. Positive numbers imply charges to client accounts; negative numbers imply credit received by clients. Spreads may change during periods of extreme volatility in the underlying market.
|Market‡||Spread†||Margin Rates*||Overnight Finance (Long)||Overnight Finance (Short)|
|Bitcoin($)||From 100||From 50%||0.0411% (pay)||0.0136% (receive)|
|Bitcoin(£)||From 75||From 50%||0.0411% (pay)||0.0136% (receive)|
|Bitcoin(€)||From 85||From 50%||0.0411% (pay)||0.0136% (receive)|
|Bitcoin(AUD)||From 130||From 50%||0.0411% (pay)||0.0136% (receive)|
† May change due to market conditions.
‡ trading hours on cryptocurrencies are 09:00 Mon - 09:00 Sat (AEDT)
Trade on Bitcoin price movement
Go long or short
Trade on Bitcoin volatility
Trade on leverage
Why trade Bitcoin?
Diversify your portfolio
Risk management tools
Short the markets
Leverage your position
How to trade Bitcoin
Choose a product type
You can trade Bitcoin at City Index as a CFD.
Decide when to Buy or Sell
When you trade Bitcoin at City Index you do not own any underlying Bitcoin assets. You are speculating on the price movements between Bitcoin and the USD.
Manage your risk exposure
Add a Stop Loss Order to protect your position should the market suddenly move against you.
Monitor and close your trade
Once you have placed your trade your profit and loss will update in real time and you can close your trade by clicking "Close trade".
Open a live account in minutes
Why City Index?
Trade wherever you are, on our fast, reliable platforms
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With Bitcoin Fractionals you can trade positions that represent a fraction of a full CFD across all Bitcoin currency pairs, reducing the margin required to trade. This means:
- With a position value of 0.1 of a full CFD, your required margin is 10 times less.
- You trade with reduced exposure to price volatility.
For example you can trade Bitcoin CFDs as shown below:Bitcoin ($)
|Example Buy Price||Trade Size||Value of Position||Margin Requirement (50%)|
What is Bitcoin?
Bitcoin is a decentralised cryptocurrency or peer-to-peer digital payment system which is used as a method of investment as well as transaction for other currencies, services or products.
Initially launched in 2009 by an anonymous internet user or group known only as “Satoshi Nakamoto,” the virtual currency has grown rapidly since its inception.
The value of early Bitcoin transactions were negotiated by miners on the bitcointalk forums with each Bitcoin at the time worth an estimated $0.06.
As Bitcoin has become more widely used and as greater quantities of Bitcoin have been mined the price has risen sharply.
Buying Bitcoin vs Bitcoin trading
There are two main ways to invest in Bitcoin online; you can open a virtual wallet and buy Bitcoin through the blockchain at its current market value or you can trade on price movements of Bitcoin by opening a CFD Trading account.
When you buy Bitcoin on an exchange, it is similar to investing in any other physical asset and you will own the underlying instrument which you can then sell at a later date, should the value of the asset rise.
When you trade Bitcoin as a CFD, you are speculating on the price movement of the underlying Bitcoin market. The price of Bitcoin will be quoted in established currencies, primarily USD, and you will not own the underlying instrument. Additionally you will be trading on leverage which allows you a greater market exposure without tying up large amounts of capital.
- When you trade Bitcoin you can go long as well as short
- You won’t own the underlying asset so don’t need to set up a virtual wallet
- When you trade CFDs on Bitcoin you are trading on leverage, this means you have a larger exposure to the market with less upfront capital. Remember leverage can magnify profits as well as losses.
- When you buy Bitcoin you own the underlying asset and will purchase your chosen amount of Bitcoin at full market value
- You will pay capital gains tax on any profits
- You will purchase Bitcoin on an exchange, this will require you to open a virtual wallet to store your Bitcoin
- It can be expensive to withdraw or fund your virtual wallet, some exchanges charge fees for doing so
- Setting up an account and arranging purchase of Bitcoin can be time consuming and overly complicated
What is the City Index policy on Bitcoin forking?
In the event that the current bitcoin splits into two, new bitcoins are created, this is known as a hard fork. We will generally follow the bitcoin that has the majority consensus of cryptocurrency users and will therefore use this as the basis for our prices. In addition we will also consider the approach adopted by the exchanges we deal with, which will help determine the action we take.
We reserve the right to determine which cryptocurrency unit has the majority consensus behind them.
As the hard fork results in a second cryptocurrency, we reserve the right to create an equivalent position on client accounts to reflect this. However, this action is taken at our absolute discretion, and we have no obligation to do so.
If the second cryptocurrency is tradeable on major exchanges, which may or may not include the exchanges we deal with, we may choose to represent that value, but have no obligation to do so. We may do this by making the product available to close based on the valuation, or by booking a cash adjustment on client accounts.
If, within a reasonable timeframe, the second cryptocurrency does not become tradeable, then we may void positions that had previously been created at no value on client accounts.
Over periods of substantial price volatility around fork events, and we may take any action as we consider necessary in accordance with our terms and conditions including suspending trading throughout if we deem not to have reliable prices from the underlying market.