London-based spread better and trading provider CMC Markets (LSE: CMCX) has expanded its range of cryptocurrency instruments and will now add trading support for additional coins, which join its already installed derivatives on bitcoin, ethereum, bitcoin cash, litecoin and ripple.
The updated list of crypto CFDs at the FCA-regulated firm now includes dash, EOS, monero, NEO, stellar, cardano and TRON. The addition of the new crypto assets will enable traders to properly diversify their crypto holdings, the company said.
CMC Markets has added a cryptocurrency derivative product to its trading platform for the first time back in March 2018, giving its investors the added advantage of tax free profits when trading the digital asset. The broker initially rolled out cryptocurrency spread bets and CFDs only to its professional client base, and then expanded the offering to its global customers later in the year.
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In addition, CMC Markets said it has lowered the spreads for clients on their previously tradable cryptocurrency CFDs by an average of 50 percent.
FX broker continue their crypto-friendly approach
CMC Markets’ customers can trade cryptocurrencies either as a spread bet or as a contract for difference (CFD), with access to margin and financing, as well as the ability to take both long and short positions. This often requires the brokerage to establish liquidity relationships with multiple exchanges to produce a volume-weighted average price for its instruments.
There has been rapid growth in UK-based CFDs and spread betting providers looking to cash in on the meteoric rise of cryptocurrency – including Admiral Markets, Plus500, Gain Capital’s City Index, and many others.
Commenting on the news, David Fineberg, Deputy Chief Executive Officer, said: “Recently we have seen that cryptocurrencies are being rediscovered by traders. The volatility seen in early 2018 has subsided making them a less risky, and increasingly attractive, asset class. By expanding our offering, we are now able to satisfy our customers’ desires for alternatives to the original bitcoin and ethereum. Not only is the number of tradable crypto-CFDs impressive, we have also improved the trading conditions for our clients by providing some of the lowest spreads in the industry.”