Swissquote Partners with Bitstamp to Launch Bitcoin Trading

Swiss bank Swissquote is the first online bank to launch Bitcoin trading. The company is pioneering a new product for the brokerage industry, choosing to launch trading in the virtual currency without Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term. Clients of the Swiss brokerage will be able to exchange euros and US dollars into Bitcoin using their trading accounts.

The lack of leverage in Swissquote’s offering represents a great alternative to unregulated exchanges for clients of the Swiss brokerage. Demand for trading 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 has been slowly picking up amongst retail traders in recent months. As the popularity of the new asset class has been growing, several retail brokers have started offering CFDs on Bitcoin.

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Swissquote has chosen to take a conservative approach in terms of leverage and has opted to partner with Luxembourg-based cryptocurrency exchange Bitstamp. The Swiss company highlights that Bitstamp is the first and only licensed Bitcoin exchange operating in the European Union.

Clients of Swissquote will be able to trade sizes varying from 5 units of base currency to a minimum of 100,000 EUR or USD. The trading fees vary between 0.5 and 1 percent of the transaction’s value, depending on the total amount that is invested.

Commenting on the news, the CEO of the Swiss brokerage, Marc Bürki, said: “Many investors are interested in cryptocurrencies, but are afraid to trade them. The players in this market are mostly little known and require a transfer of funds to a foreign account.”

“As a Swiss bank we offer our clients a simplified, transparent process, without foreign transfers, that is within reach of everybody,” Bürki explains.

Swissquote’s solution is coming at a time when clients are getting increasingly interested in trading cryptocurrencies outside of Bitcoin. The Swiss brokerage’s offering in the area could well continue to grow provided that there is enough demand from clients.