| Online Broker | About |
|---|---|
| Titan FX | Titan FX offers MT4 and MT5 Bitcoin CFD trading with leverage up to 20:1 About |
| Pepperstone | Pepperstone offers Bitcoin CFD trading on MT4 as well as MT5, cTrader and TradingView About |
| Oanda Global | Oanda Global offers Bitcoin CFD trading on MT4 and MT5, with leverage up to 10:1 About |
| IronFX | IronFX provides MT4 Bitcoin CFD trading About |
MT4 Bitcoin Trading
These brokers offer MT4 Bitcoin CFD trading. But what is MT4 Bitcoin trading ?
What is Bitcoin ?
Bitcoin itself is a network on the Internet, allowing payments in the digital currency Bitcoin (BTC). Bitcoin is an asset which is transferred from wallet to wallet when payments are made. It is a peer-to-peer payment network, meaning that there is no middleman. But how are payments processed ? This happens on the blockchain.
What is the blockchain ?
The blockchain consists of a record of transactions made in the cryptocurrency (and other data) and processes to enable this record to be created when payments are made. It is stored on the Internet. The Bitcoin network contains network nodes which verify transactions which have been processed. But who processes payment ?
Blockchain payment processing
Payments on the Bitcoin blockchain are processed by miners. These are participants who use computers running software to compete for the right to make blocks of processed payments. The reason they do this, is so that they get a reward of Bitcoin and transactions fees when they successfully complete a block. But are these records secure ?
The security of the blockchain
The blockchain consists of blocks of processed payment data (and other data). But these blocks use cryptography which chains them together and protects them from being altered once added to the chain. Hence the term 'crypto' currency and hence the term 'blockchain' as it is a chain of blocks of processed data.
How is Bitcoin traded ?
Bitcoin is used as a payment method. But it is also traded by speculators on exchanges (hence its ticker symbol BTC). However a CFD broker allows the trader to trade Bitcoin without having to trade it on exchanges. This happens because a CFD is contract between the trader and a CFD provider which allows the trader to speculate on its price movement, but without having to own the cryptocurrency asset (i.e. without buying or selling any Bitcoin). The price of the CFD is based on the price on exchanges.
However to trade Bitcoin CFDs, a trading platform is required. Trading Bitcoin CFDs and spread betting Bitcoin allows the trader to access the Meta Trader 4 (MT4) platform which is used to trade CFDs and to spread bet and can support Bitcoin algorithmic trading.
What is MT4 ?
MetaTrader 4 (MT4) is a trading platform which contains a number of features, allowing it to support both discretionary and MT4 automated trading. In discretionary trading the trader makes their own trading decisions. In automated trading the computer makes the trading decisions following a set of rules or algorithms. These rules can be defined by the trader or they can use rules defined by other traders. These programs are called Expert Advisors (EAs). The trader does not have to use automated trading, and can use the charting tools on the MT4 platform. With MT4, it is also possible to download and design indicators, in addition to the range available on the platform.
