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Monex Listed Cryptocurrency CFD Contracts- The 1st in Crypto Derivatives Race

Monex Securities has become the first Japanese foreign exchange firm to start offering cryptocurrency contract-for-difference service (CFD contracts) with a leverage rate limit of 2x. 

Monex Securities is a subsidiary of Monex Group, Inc., Tokyo, Japan-based financial services company. Coincheck, the famous cryptocurrency exchange from Japan also run by Monex Group. 

On July 8, the firm officially announced the launch of CFD contracts in a press release. The announcement highlighted, the company would offer new financial services while abiding the regulations of FIEL.

Earlier, Koinpost reported about Japan’s House of Representative plans to launch two major crypto cryptocurrencies laws on the Payment Services Act (PSA) and Financial Instruments and Exchange Act (FIEA) from May 1, to regulate crypto markets while leveling out the protocols to follow by the crypto-focused firms.

Reportedly, to start with Monex is offering crypto CFD contracts for Bitcoin (BTC)/yen, Bitcoin Cash (BCH)/yen, XRP/yen, and Ether (ETH)/yen trading pairs. Though, the firm has decided to extend the services for other trading pairs subsequently after evaluating the results which would be based on “demand, liquidity risks, price fluctuations risk, and crypto blockchain network risk.” 

CFD Crypto Derivatives Service Comes With High Risk 

CFD is a type of a derivative/financial contract in which a buyer signs a contract with a seller and agrees to pay the difference of an amount that is calculated between an open and closing trade rates of assets during the settlement time.

Due to leverage, CFD contracts are highly complex financial instruments with a high risk of losing money. Reportedly, almost 70-76% of retail investors lose money when trading CFDs without much understanding.

As per the market trend, there are few forex brokers where users can trade crypto CFD contracts. These are eToro (an overall platform for crypto trading), Dukascopy (balanced offerings), Swissquote (a global brand), XTB (good customer service), CMC Markets (pricing is good), IG (offers flexible trading, Crypto 10 Index), FOREX.com (Competitive pricing on crypto CFDs are competitive).