Forex broker plus500 has opened for Bitcoin trading.

[Bitsinmyhead]

I think this is pretty huge. Plus500 is a pretty large and solid site. They even run a lot of TV ads here in Norway. You get 4:1 leverage, meaning if you deposit 200 you can trade with 800, and you can also short. Best part is they accept credit card deposits so it is probably the easiest way to get into Bitcoins for a lot of people even though its only "paper Bitcoin". Unfortunately  they do not accept US customers.

[Seth Otterstad]

How can they possibly offer trading at under 1% spread?

http://www.plus500.co.uk/Instruments/BTCUSD

[molecular]

cool.

is it possible to take delivery of the bitcoins?

[Bitsinmyhead]

How can they possibly offer trading at under 1% spread?

http://www.plus500.co.uk/Instruments/BTCUSD

Seems amazing and I really doubt they can make money with that tight of a spread. Maybe its some kind of marketing decision to get a bunch of new customers?

is it possible to take delivery of the bitcoins?

No, but maybe in the future if they add Bitcoin deposit/withdrawals.

[lexxus]

cool.

is it possible to take delivery of the bitcoins?

Delivery? This is CFD.

[Stampbit]

thats a pretty tight spread there

[molecular]

thats a pretty tight spread there

maybe they just make it up in fees somehow?

[MartinReynolds]

This is pretty awesome, hopefully they enable Bitcoin withdrawals and it would be a bit of competition with MtGox.

[sd]

This is pretty awesome, hopefully they enable Bitcoin withdrawals and it would be a bit of competition with MtGox.

There are no BitCoins, it's a contract for difference.

http://en.wikipedia.org/wiki/Contract_for_difference

[MartinReynolds]

This is pretty awesome, hopefully they enable Bitcoin withdrawals and it would be a bit of competition with MtGox.

There are no BitCoins, it's a contract for difference.

http://en.wikipedia.org/wiki/Contract_for_difference

Oh right, I guess I didn't understand it.  I will have to read up on it.

Regards,

Martin.

[Bitsinmyhead]

maybe they just make it up in fees somehow?

No other fees, in fact they have some very nice deposit bonuses:
http://www.plus500.com/en/Marketing/Promotion1.aspx?id=67176&pl=2

If you are only into Bitcoins for the trading, you probably save money by using them instead of Mt. Gox.

[MarCoin]

Warning! CFD price can be easily manipulated by those brokers (but anyway, Gox does it too). Lot of broker's profits comes from price manipulation, not from spread or commissions

[🏰 TradeFortress 🏰]

Warning! CFD price can be easily manipulated by those brokers (but anyway, Gox does it too). Lot of broker's profits comes from price manipulation, not from spread or commissions

On the other hand, 1broker closed down BTCUSD because of users manipulating prices.

[Bitsinmyhead]

Manipulation can certainly be a problem, but it is usually a bigger problem when the leverage is higher. With 4:1 leverage you would need to move the price almost 25% to force someone out.

Still, 4:1 leverage is pretty sick, and if you time your entry well in a trending market like this there is a lot of money to be made. Bought 8 Coins yesterday putting up just ~200 Euro and I am already up well over 50% on my account.

[bangersdad]

Plus500 do not like scalpers...be warned. They also refused to define what they consider to be scalping - but still froze my account.

I have also seen screen evidence of plus500 disabling the buy/sell options when a market becomes volatile.

I think playing with small money no problem - but i know i would not trust plus500 with a large amount of my fiat.

[Bitsinmyhead]

Ye, whenever you make a winning trade you literally take money out of their pockets and they don't like that much. However as long as you keep your position for more than a couple of minutes you will not have any problems with their scalping rules.

Obviously, if you are going to take a huge long term position it will be better to just buy the coins on Gox, but for quick and easy access to buying when you hear some positive news like this China stuff it is great. Avoids the pain of just seeing the price go up and up while you wait for the wire transfer to hit Gox. Also, remember plus500 is actually regulated in the UK so should something go wrong you at least have a chance compared to some of these Bitcoin sites.

[SOSLOVE868]

maybe they just make it up in fees somehow?

No other fees, in fact they have some very nice deposit bonuses:
http://www.plus500.com/en/Marketing/Promotion1.aspx?id=67176&pl=2

If you are only into Bitcoins for the trading, you probably save money by using them instead of Mt. Gox.

Their bonuses for me just like traps....you need at least accumulate trading amount up to 60 times of your deposit , then you can get withdraw you money...it is better not to take their bonuses.. but for some one who hold huge amount of BTC, it is wise to use their service to hedging the risk of BITCOIN.

[Bitsinmyhead]

If you use the site to buy and hold you are correct, its probably best to avoid the bonus, but if you trade somewhat active you will go through bonus requirements in no time.

Lets do the math:
-If I deposit $5000 I get $1100 bonus.
-I need 1000 traderpoints to be able to cash this out.
-For every $1250 or about 10 Bitcoins that I buy or sell I receive 11.25 points.

All it would take to cash out this bonus will be to buy or sell 870 Bitcoins. With the 4:1 leverage I have $20 000 in buying power with my $5000 deposit so it would take me about 5 trades to be able to cash out. Not too bad, and if you have done any Bitcoin trading you know you can do that in a day

[SOSLOVE868]

If you use the site to buy and hold you are correct, its probably best to avoid the bonus, but if you trade somewhat active you will go through bonus requirements in no time.

Lets do the math:
-If I deposit $5000 I get $1100 bonus.
-I need 1000 traderpoints to be able to cash this out.
-For every $1250 or about 10 Bitcoins that I buy or sell I receive 11.25 points.

All it would take to cash out this bonus will be to buy or sell 870 Bitcoins. With the 4:1 leverage I have $20 000 in buying power with my $5000 deposit so it would take me about 5 trades to be able to cash out. Not too bad, and if you have done any Bitcoin trading you know you can do that in a day

you are wrong, that if you deposit £5000 you only get £500...if you deposit £7500 you will get £1000.
and for example, able to withdraw this £500, required £1000 trading point.
for trading bitcoin you will get 750 for 10.11 trading point. for that 500, you need to trading amount up to 75000.which mean you need hold full stock for 13.36 times.  I think this is very risk...and remember each time you purchased stock they will charge you.

[Bitsinmyhead]

I think the bonuses might be different for different countries then. Here in Norway it is NOK7500 ($1100) for NOK30000 ($5000). The rest of my math is correct, so it should be very easy to clear.

Even if what you are saying is true for UK, you need to remember you have 4:1 leverage so if you deposit £5000 you actually get to trade with £20000, making the £75000 requirement less than 4 full trades.

Of course I 100% agree that trading with leverage can be very risky, but so are most Bitcoin related things.