Belize-based Broker MTrading Suspends Crypto CFD Offering

Announcements, News | February 18, 2019 By:

Belize-based broker MTrading is reportedly suspending its cryptocurrency contracts-for-difference (CFD) offering due to weak demand from clients.

MTrading, which offers over 25 forex currency pairs, indices, CFDs, stocks, fossil fuels and precious metals for personal investment and trading options, launched its crypto instruments when the crypto markets were growing in price. In 2017, the price of bitcoin climb from below $1,000 to nearly $20,000. Since December 2018, however, the digital currency has been steadily sliding down in value.

In its announcment, MTrading said that clients with open positions in crypto instruments now have a close-only feature, which means they will not be able to open new trades with cryptocurrency. The close-only mode will last until February 28. At that point, all positions that are still open will be closed automatically.

MTrading said that while they believe their trading conditions were very good for crypto trading, the demand for these instruments was not what they had anticipated, adding that focusing on fewer instrument classes will allow them to give clients even better trading terms and more opportunities in Forex, Stock CFDs, commodities and Indices.

“We still believe blockchain and cryptocurrency has a place in the future, but for now, better opportunities lie in more traditional instruments,” the company said.