RoboMarkets to Stop Offering ‘High Risk’ Crypto CFDs

RoboMarkets, a Cypriot broker offering trading services across Europe, announced on Wednesday the termination of its services with cryptocurrency contract for differences (CFDs) to protect its clients from high-risk investment instruments.

The press release shared with Finance Magnates detailed that the broker-dealer will close all cryptocurrency positions at current quotations on March 24th 'between 12:00 and 13:00 server time'.

The brokerage has been offering digital currency trading for years and currently lists ten crypto CFDs instruments: BTCUSD, BTCEUR, XRPUSD, DSHUSD, LTCUSD, LTCBTC, ETHUSD, ETHBTC, ETHEUR and EOSUSD.

Commenting on the move, RoboMarkets CMO Denis Golomedov said: “We have claimed repeatedly that our priority is protection of clients' interests. That is why we have decided to close crypto for our clients. This will help us make the clients' assets safe from high risks entailed by operations with crypto instruments.”

Regulators Are against Crypto Derivatives

Additionally, the Cypriot broker highlighted the United Kingdom regulator’s ban on the sale of retail cryptocurrency derivative products to justify its latest decision. While many UK-regulated brokerages like IG Group dropped crypto instruments, RoboMarkets was not compelled to take the step.

“We see that large regulators, such as the FCA, have already made steps to limit access of retail investors to Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term and expect other European regulators to do the same in the near future,” Golomedov added.

“The crypto market is rather toxic and connected to high risks, quite often neglected by retail investors. The growth of the crypto market and the hype around this segment can lead to a serious disturbance among retail investors and brokers in 2021.”

With the Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term and demand for cryptocurrencies, many brokerages are freshly adding cryptocurrency CFDs. Finance Magnates earlier reported that ThinkMarkets stated to offer services with four cryptocurrencies due to high demand among its client base.