SYDNEY, AUSTRALIA / ACCESSWIRE / October 26, 2018 / Sydney CySEC regulated CFD broker EuropeFX (europfx.com) announced the addition of cryptocurrencies to their award-winning MetaTrader platform. The move comes as a direct response to client requests for a smoother entry in the world of cryptocurrency trading.
The broker's home regulator CySEC (Cyprus Securities & Exchange Commission) had taken a very cautious stance on allowing brokers regulated in Cyprus to add cryptocurrencies to their list of tradable assets pending decisions from other Euro regulatory bodies as well.
The addition of cryptos was eventually cleared. EuropeFX however didn't immediately add the asset to their product lineup. As company CEO Joseph Gafni explained "just because something becomes popular, it doesn't necessarily mean it will be a good fit for our clients or even for a retail environment. We never add any features or products until these have been found to meet the particular needs of our client base and only after the technology has undergone exhaustive testing."
The company now supports trading in several cryptocurrencies, including Bitcoin, Ethereum, Litecoin, Ripple and Dashcoin. All trading is carried out on the MT4 platform, without the need for any external crypto exchange accounts. The asset is supported on all the various platform versions offered by EuropeFX including desktop and mobile devices.
The latest move from European regulators and in particular ESMA (The European Securities and Markets Authority) included wide-ranging new provisions for the maximum leverage limits for CFD trading. These provisions were aimed at limiting potential downside on trades. The new provision for leverage on cryptocurrencies was set at a maximum of 2:1.
Results of a client survey carried out by EuropeFX across multiple regions, pointed to general support for the new ESMA guidelines, particularly where cryptocurrencies were concerned. Given the often extreme volatility seen around these particular assets, the company went even further and set their leverage limits on cryptocurrencies at 1:1, a move seen as an additional safeguard to client best interests.
For clients wishing to retain their current trading conditions and margin levels, EuropeFX established a reclassification process, in-line with the ESMA MiFID (Market In Financial Instruments Directive) recommendations for client classification. This rigorous process requires detailed information and demonstrable proof of ability, experience and financial standing.
This reclassification is strictly by client request and is only open to existing clients.