Cryptocurrency trading

A cryptocurrency is a type of digital money created from code. They function autonomously, outside of traditional banking and government systems.

Cryptocurrency trading is the process of speculating on a digital currency's price movements. Instead of buying and selling directly via a crypto exchange, you can get exposure to cryptocurrency price movements without owning the asset, through a CFD trading account.

As opposed to when you buy crypto directly, when you speculate on its price via CFD trading, you can go long or short, based on your view of the market.

There are a number of costs to consider when trading CFDs on cryptocurrencies, including spread costs, holding costs (for trades held overnight - this is essentially a fee for the funds we 'lend you' to cover the leveraged portion of the trade) and guaranteed stop-loss order charges (if you use this risk-management tool).

Learn more about our trading fees

We aim to provide a diverse, balanced view of the cryptocurrency market's performance with our three crypto indices, which enable you to take a broader view of the crypto market.

For our Major Crypto Index, we've established a cap so no single cryptocurrency can constitute a weighting of greater than 40% of the index. While no individual constituent makes up more than 40% of the Emerging Crypto Index, we may establish a cap of 40% for this index should it become necessary at a future date. The All Crypto Index gives 60% of the total weighting to major cryptos and 40% to emerging coins. Each cryptocurrency is then weighted equally within that banding. The weightings of any uncapped component that then fall below a 5% floor will be increased to that value, taking proportional market capitalisation from any uncapped index component.

We monitor our crypto indices periodically to see whether any adjustments need to be made to constituent weightings. We also monitor closely for any hard or soft forks, which may necessitate adjustments to the constituent cryptocurrencies. If such adjustments are made, we will change the index divisor to ensure that there is no resulting impact on the index prices.

One of the features of spread betting and CFD trading is that you only need to deposit a percentage of the full value of your position – the initial margin requirement – to open a trade, known as trading on leverage. Trading on leverage amplifies your profits and losses equally, so it's important to manage your risk.

CMC Markets Germany GmbH is a broker regulated by the German Federal Financial Supervisory Authority (BaFin). It holds funds of private clients separately from its own funds in separate bank accounts. In the unlikely event that CMC Markets Germany GmbH is unable to meet its financial obligations, the EdW would cover any claim for damages by claimants up to €20,000, provided that certain criteria are met.

CMC Markets Germany GmbH is a company authorised and regulated by the German Federal Financial Supervisory Authority (BaFin). CMC Markets complies with the requirements of §84 of the German Securities Trading Act (WpHG) regarding client funds.

There's no cost when opening a live trading account with us. You can also view prices and use tools such as charts, Reuters news or Morningstar quantitative equity reports, free of charge. However, you'll need to deposit funds in your account to place a trade.

Our income primarily comes from our spreads, while other fees, such as overnight holding costs, make a minor contribution to our overall revenue.