Crypto derivatives are risky — there are no two ways about it. But on the brighter side, they can also bring you very high return-of-investments — the kind you normally wouldn’t expect from more conventional (and less risky) investment vehicles. And this high RoI has essentially caused the popularity of crypto derivatives to rapidly grow over the past 2-3 years or so.
This rising popularity has eventually produced hundreds of structured derivative products linked to the prices of digital assets. And as you would expect, due to their high-risk nature, these products have now set alarm bells ringing in most major economies.
Unsurprisingly, a regulatory clampdown has followed.
Forget smaller players, even industry heavyweights like Binance are finding themselves on the wrong side of this clampdown, and to the extent that they had to roll back crypto derivative offerings in several countries including Italy, Germany, Brazil, and Hong Kong.
This is why if you are into crypto derivatives trading, it is imperative that you find yourself a trusted platform having regulatory compliance in multiple jurisdictions – one that offers a near-perfect blend of security and features.
Award-winning, multi-asset brokerage house Eightcap says it fits the bill on both fronts.
Eightcap steps in as the new home of crypto derivatives
Eightcap is a regulated financial broker launched in 2009 in Melbourne, Australia. It has since expanded its services worldwide.
Eightcap is regulated by the Australian Securities and Investments Commission (ASIC), the Financial Conduct Authority (FCA), the Securities Commission of The Bahamas (SCB), and the Cyprus Securities and Exchange Commission (CySEC).
The company prides itself as one of the leading CFD trading platforms globally offering Forex, Indices, Commodities, and Shares. (The company recently won the title of Best Global Forex MT4 Broker 2020 at the Global Forex Awards).
On Aug. 6, 2021, Eightcap announced that it was adding cryptocurrency derivatives to its portfolio.
Eightcap launches 250+ crypto derivatives
All cryptocurrency trading on the platform is available via CFDs (please note that if you’re a retail trader in the UK, you may not be able to trade crypto CFDs due to regulatory restrictions).
At launch, Eightcap’s crypto desk is offering more than 250 derivatives via the popular MT4 and MT5 platforms. The company seems to be focusing mainly on making the new offering convenient for new and experienced users alike. And a lot of the features on the platform are geared towards ensuring that.
Easy deposits and quick withdrawals
For example, you can fund your account using multiple different payment methods, including debit and credit cards, PayPal, Skrill, and Neteller, among others. Similarly, the platform is promising super-quick withdrawals to reassure users that they can transfer funds from their Eightcap accounts in real-time, without any hassles. And you don’t need to have a crypto wallet of any sort while trading derivatives.
Platforms and tools
As previously stated, Eightcap is a MetaTrader-only broker and it offers both the MT4 and MT5 platforms.
Additionally, it also offers the option to add Capitalise.ai to your trading setup. For those out of the loop, Capitalise.ai can be a pretty handy tool for automating your trading, with no knowledge of coding required.
Other than that, you also get access to FX Blue Labs; a tool that lets you customize your CFD trades with the help of an array of widgets, charts, and apps.
Eightcap celebrates its low spreads as the “icing on the cake” for traders. Based on our early assessment, that claim is not far-fetched, as the platform indeed has some of the lowest spreads compared to most of its competitors offering similar products. For example, it lets you trade Bitcoin CFDs with spreads as low as 12p/coin.
To put that into perspective, there are many crypto derivatives trading platforms out there that charge as high as 372p/coin on BTC.
Tons of educational material
If you are relatively new to crypto derivatives and CFD trading, there is plenty of educational material on the Eightcap website to help get you started. There are separate guides for trading basics and strategies, MetaTrader, how to use its feature-rich platform like a pro, as well as overviews of important financial events.
There are also separate sections dedicated to in-depth market research and analysis, CFD/Forex news, and market updates.
Other benefits of using Eightcap for crypto derivatives trading include:
- Availability on Mobile, Desktop & WebTrader.
- A pretty healthy track record when it comes to offering state-of-the-art financial and technological security.
- Up to 21 Time-Frames.
- Up to 38 pre-installed technical indicators.
- Trading strategies library.
- Backtests and simulations.
- No commission trading on standard accounts.
Overall, Eightcap appears to be a pretty reliable broker with a neat track record. The fact that it is authorized by tier-1 regulators, such as ASIC and the FCA, adds even more to the trust factor.
The company’s entry into the crypto derivatives market indeed counts as a positive development, especially for tens of thousands of crypto investors who might have feared a loss of access to their crypto derivative trading options due to regulatory complexities.
We plan on covering Eightcap’s crypto-focused products in more detail in the coming weeks. Until then, keep checking the official Eightcap website for more info and regular updates.