Scandinavian multi-asset fintech company Skilling has announced a drastic change in its cryptocurrency offering. In a world where many brokers charge spreads of $100 – $150 per Bitcoin traded, Skilling’s spread will lower to approximately $0.50 with a post-trade “taker fee” charged instead.
The new transaction cost now aligns with the format provided by most of the world’s leading cryptocurrency providers and moves away from the CFD industry’s model of wider spreads.
Like all CFDs, the spreads on crypto CFDs vary but the average spreads will now fluctuate between $0.10 and $0.50 during normal market conditions.
Zero leverage cryptocurrency trading account
Skilling also this week announced the launch of an unleveraged crypto account type. The account features zero leverage across all instruments that Skilling offers but with zero swaps for 30 days on all crypto CFDs. Positions held beyond 30 days will be charged an administrative fee.
Michael Kamerman, CEO of Skilling Group explained: “Today’s largest crypto providers do not offer a fee structure with wide spreads like the CFD industry charges. Instead, they offer low spreads with a post-trade taker, or trading fee. Instead of over-complicating our crypto offering, we decided to change our trading fee structure to a new, more commonplace format, offering the lowest crypto spreads in the industry with a trading fee charged post-trade.”
“There are three stumbling blocks that CFD brokers face when attracting longer-term crypto enthusiasts: fee structures, leverage, and overnight swaps,” Kamerman added. “These changes made by Skilling mean that our clients are still trading a CFD with all its regulatory protection, but now with a fee structure they expect.”
With this new account type, Skilling has removed leverage and there are no overnight swap charges for 30 days. Trades held open for 30 days will incur an administrative charge. Customers are still buying and selling CFDs but with product characteristics more in-tune with what they have requested, the broker said.
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Skilling said that due to regulatory restrictions, the instruments would not be available to investors in the UK or China.
Over 800 CFDs now on offer on trading platform
The broker currently offers over 800 forex and CFD instruments, including those based on currency pairs, popular stocks, commodity markets and indices. Trades are also executed on spot FX. Last year the company announced it was launching a CFD based on BITO, the Bitcoin CFD launched by ProShares in New York. This offers 5:1 leverage on the ETF’s price moves, with a maximum holding per account of $50,000.
The company has also been broadening its overall cryptocurrency offering: in September it expanded the number of cryptocurrencies available via its CFDs menu to include Solana, Terra Luna and Tezos. Available via its cTrader and Skilling Trader services, the coins were offered on a 2:1 leverage basis with a maximum holding of $5000 per account.
Skilling has also dipped its toe into the growing fan token market, in the wake of Lionel Messi’s signing with PSG, as part of his fee was paid with fan tokens. Tokens added to the platform include PSG, Juventus, Atletico Madrid and Roma.