First Global Credit, a platform that lets users that hold bitcoin leverage them to trade stocks, is now adding commodity futures to the list of what can be traded on the website.
First Global’s CEO Gavin Smith stated from his office in Geneva, Switzerland.
“Commodity Futures is the next logical step in providing digital currency holders with the same choices fiat currency holders have. As more people adopt bitcoin as part of their portfolio, they will expect access to the same choices fiat holders enjoy.”
The Commodity Futures Trading Service will initially offer 5 markets and two to three months for each contract; E-mini Crude Oil Futures, Comex Miny Copper, Comex E-Micro Gold, e-Mini S&P Futures, and E-mini NASDAQ 100.
Marcie Terman, First Global’s Communications Director, added:
“We’ve started with the E-mini contracts because we wanted to make this service accessible to as many people as possible. These mini contracts have relatively small margin requirements. The clients still get the benefit of trading a leveraged contract because in the case of futures, leverage is built directly into the contract.”
To trade futures using bitcoin as margin, clients need to register an account and then go through the standard verification process where proof of identity and proof of address are submitted. Bitcoins are deposited in segregated client accounts and then they can be used to trade stocks, ETFs, futures as well as trade bitcoins against 4 fiat currencies. In addition to the trading opportunities, any account of more than 10 bitcoins automatically receives interest as well, currently set at 2% per annum.