First Global Credit: Encouraging Bitcoiners to Become Traders
Written by: Daniel Dob
2016/01/30 8:00 AM
While Bitcoin represents a great currency for trading, there
aren’t too many platforms that accept the digital currency as market
trading collateral. A newly-formed company known by the name of First
Global Credit Private Trading Group is aiming to change this.
Also read: China’s Growing Number of Internet-Connected Users is Positive for Bitcoin
First Global Credit Private Trading Group Is Looking for Talented Traders
to recent reports, the company has begun a search for capable traders.
Those who wish to get access to a professional grade currency and stock
trading account, which will be part-subsidized by the company, will have
to submit an application. Traders do not require any particular
training or studies, but to join the platform, potential traders will
have to come up with a strategy statement of roughly 750 words,
outlining how they wish to use their bitcoin collateral to make profit
while trading currency, stocks and ETFs on the platform.
Once a trader is awarded the account, they’ll have to deposit one
bitcoin into it, which will be doubled up by the firm. The two bitcoin
collateral will allow traders to work with up to 20 bitcoins worth of
capital, which is based on the 10-times leverage principle. Traders are
also free to convert their collateral into fiat and vice versa, to avoid
issues caused by volatility. Once successful trades are made, the
profit will be split between the trader (75%), and the firm (25%).
To help put things better into perspective, The Bitcoinist held an exclusive interview with the CEO of First Global Credit Private Trading Group.
What was the intention when creating a private trading group using bitcoin as market collateral?
We’ve created the private trading group for two reasons. First, we
are looking to find profitable traders so we can make money for First
Global Credit. But it is also my hope that this will attract talent that
would never get the chance to develop a career in trading. People with
innate talent who would never get the opportunity to become market
traders because they lack the contacts, formal education or they just
live in an out of the way place.
Considering bitcoin’s volatility and lack of centralization, wouldn’t it be a bad collateral option?
This is absolutely the case for most companies. But First Global
benefits from my background and that of my development team. We have
developed hedging systems for complex, volatile commodity trading and
have adapted those skills to another market type, bitcoin.
What types of investments will be made by traders? Solely bitcoin?
We accept the bitcoin as collateral and loan the trader fiat currency
to put the trade into the market. They have a choice of 200 NYCE or
NASDAQ stocks to trade, about 10 LSE stocks and about two dozen ETFs.
They can go long or short the stocks as they wish. When the trader makes
a profit on the stock and it is sold, the profits are swept into their
account in bitcoins.
It’s also worth adding that due to the Switch Service outlined
above, traders can use trade via both fiat and bitcoin, thus allowing
them to profit with both currencies.
What do you think about the First Global Credit Private
Trading Group initiative? Will it encourage more people to look forward
towards a career in trading? Let us know your thoughts in the comment
well if you do look to trade with bitcoin as collateral, there are already some places to go.
and they dont want to keep your profits (apart from the spread that is ofc).
check out 1broker (thx for using my affiliate link: https://1broker.com/m/r.php?i=7601)
Its around since 2012 and you can trade a bunch of forex pairs, inidzes, commodities, and selected stocks via cfds.
You can either trade directly from the website or via the api (either write your own connection, use the one fyrstikken wrote or wait a bit because I know that there are some other platforms already working on adding it (wink wink tradewave what do you think)*.
*...if you write your own implementation, you can put your reflink in with every order, so that you get a slice of the spread at every trade as developer.
there is also simplefx.com, but they use a mlm referral scheme, so the spreads are significantly higher.
can you direct me to more info on that?
Monetizing your software
Monetizing trading software, that was built for other traders on top of
our API, can be done in various ways and there are no specific
However, we strongly recommend to use the possibility of overwriting the
trader's referral_id in the order/create method. Per the terms of our
you will receive a profit share once the order gets executed. You can
read more about our referral program at https://1broker.com/?u1=referral (login required).
@sai how hard would something like this be to implement here? This seems very much like btce PAMM. I like the notion of charging per order rather than per month.
PAMM is about copying trades of other traders in a master-slave relationship.
this just a method on how you can monetize on your work of writing a connection to the 1broker api.
But ofc it does open the door to some interesting options for your users.
You could for instance give away your program/service for free or at a discount and make money as soon as people actually use it.
This looks interesting. Can one of you give me an example on how this will work? I can guess what it does but want to fully understand.
broker (e.g.: 1broker) makes money from the difference between the price on the market and what he charges his clients (its the difference between ask and bid that is bigger than if you would have direct acces to an exchange (e.g.: NYSE).
So when you buy, you a pay a bit more and when you sell, you get a bit less.
The system at 1broker let you get 15% of that at every trade anybody makes as long as your ref code is placed with the order.
When you referr somebody manually with a ref link like ( https://1broker.com/m/r.php?i=7601 ) you get that bonus for making somebody sign up and trade, but if you write a connection to the api you can pass along your own ref link to everybody using your api connection and thus benefit.
But before you go out and start trading like a bat from hell with those 200x leverages, a word of warning is due:
You should really know what you are doing.
This is different than the bitcoin world.
This is where the real sharks are swimming.