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SBIFX Trade is a Forex company featuring the narrowest spreads and abundant currency pairs. One of the features is that it is under the umbrella of SBI Holdings, which has the crypto asset exchange “SBIVC Trade” and “SBINFT Co., Ltd.”
Forex that can be done with SBIFX trade etc. is actually highly related to crypto asset investment and trading, and there are multiple benefits for crypto asset investors and traders to start FX. In fact, many people invest in both crypto assets and FX.
In this article, we will explain the benefits of starting FX and the strengths of SBIFX trading for cryptocurrency investors and traders.
table of contents- What is FX, explain the mechanism and trends
- Reasons why Forex attracts attention from cryptocurrency investors and traders
- Strengths of SBIFX Trade
- Steps to start trading with SBIFX Trade
- What is “SBI Holdings”, the operating company of SBIFX Trade?
- SBIFX trading starting with at least 1 currency
1. What is Forex, explain the mechanism and trends
What kind of investment product is FX? As a premise for explaining the relationship between crypto asset investment and FX, this chapter will explain the basic mechanism of FX and the background to why FX is attracting attention.
1-1. FX mechanism
Forex is also called “foreign exchange margin trading”, and it is an investment product that aims for profit through buying and selling legal currency, for example, “buy 1 dollar at 100 yen and later sell 1 dollar at 105 yen”.
In a larger category, Forex falls under Contracts for Difference (CFDs). Cash settlement trading is a financial product in which the difference between the buy price and the sell price is the difference between the buy price and the sell price, instead of actually investing in physical assets such as stocks.
In a difference settlement transaction, only the difference portion is subject to delivery, rather than the object being traded at the time of sale. For example, if you buy 1 dollar for 100 yen and later sell it for 105 yen, only the difference of 5 yen is actually subject to the transaction.
Forex traders aim to earn from such trading differences. In addition, in Japan, there is also a feature such as being able to apply leverage of up to 25 times when trading FX, and you can aim for a large profit by moving an amount larger than your investment.
1-2. Why is the FX market attracting attention now?
The FX market is a traditional financial market that already boasts a huge trading volume, and there are constant news and topics on a daily basis.
2022 will be a turbulent year for the financial market as a whole, and stocks and crypto assets have plummeted due to the deterioration of sentiment such as the situation in Ukraine and the impact of the FRB (US Federal Reserve System) monetary tightening (interest rate hike). On the other hand, the appreciation of the dollar accompanying the US interest rate hike and the selling of the yen due to low growth expectations for the Japanese economy were also factors. to high.
Below is a chart (weekly) that shows the dollar-yen exchange rate from January 2022 to December of the same year. The fluctuation of the dollar-yen exchange rate, which is usually stable and has almost no price fluctuations, has had a great impact not only on FX investors but also on the general public.
On the other hand, the 2022 market with such high volatility (price volatility) offers opportunities for FX investors who can easily take positions in both long and short positions to make large profits both in rising and falling prices. bottom.
Furthermore, it has been pointed out that there is a possibility of a new trend reversal in 2023 as the interest rate hikes by the US Fed come to a halt, suggesting that there will continue to be great investment opportunities in the FX market.
2. Reasons why FX is attracting attention from cryptocurrency investors and traders
Forex is also attracting attention from crypto asset investors and crypto asset traders. This chapter explains why.
2-1. There is a correlation between crypto assets and FX trading methods
Crypto assets and foreign exchange are different investment products, but the point of deciding whether to buy or sell from the chart is the same, and the “chart analysis (technical analysis)” learned in trading Bitcoin etc. can be applied to Forex. . Therefore, if you have chart analysis skills for crypto asset trading, you can start FX investment more profitably than general investors.
Conversely, it is also possible to deepen your understanding of chart analysis in Forex and use it to buy and sell crypto assets. In the already mature Forex field, there is a lot of Japanese information on chart analysis. Therefore, it makes sense to learn chart analysis through Forex.
2-2. More investment opportunities
If crypto asset investors start diversified investment in FX, investment opportunities will increase. This is because there are many cases where the exchange rate is the opposite even if the cryptocurrency market is difficult to make a profit.
For example, the crypto asset market in the second half of 2022 had an intermittent period of no significant price movement, but as mentioned above, the exchange market fluctuated significantly.
Below is the BTC/USDT chart (weekly) from January 2022 to December 2022. After the bear market, you can see that the market environment was difficult to make profits efficiently in a range market with no noticeable price movements for several months.
In addition, stock and crypto asset prices can be influenced by the US dollar, so a better understanding of exchange rates means more accurate crypto asset market analysis.
2-3. More favorable conditions than crypto asset trading
Compared to crypto assets, FX has more favorable leverage (margin trading) conditions.
Based on the regulations in Japan, the maximum leverage that can be applied is “2x” for crypto assets, but “25x” for FX.
Increasing the trading volume with high leverage also carries the risk of incurring a large loss, but if you can ride the market fluctuations well, you can make a huge profit with a small capital.
Furthermore, as of January 2023, FX is more advantageous in terms of taxation.
Cryptocurrency trading profits are classified as “miscellaneous income”, so the tax rate can be up to about 55%, more than half of which can be collected. And at this time, the tax rate tends to be high because it is taxed on the total amount combined with other income such as salary income.
On the other hand, the tax on the profit earned in domestic Forex is uniformly fixed, and it is about 20%, which is about 15% income tax and 5% inhabitant tax.
Below is a comparison of tax rates excluding the special income tax for reconstruction.
| 5% to 45% | 15% |
| Ten% | Five% |
| 15% to 55% | 20% |
In this way, FX can be said to have better conditions for leverage and tax even in the same trade.
3. Strengths of SBIFX Trade
If you choose Forex as a new investment product to add to your portfolio, you first need to choose a Forex company to use.
The point when choosing a FX broker that is highly convenient for crypto asset investors is that it has an affinity with the crypto asset market and has the potential to be used over the long term.
“SBIFX Trade” is an FX exchange operated by the SBI Group, which has a crypto asset exchange “SBIVC Trade” under its umbrella and launches SBINFT Co., Ltd. It is also focusing on crypto assets and NFT businesses, and is characterized by the high future potential of the operating company itself.
In this chapter, we will explain the strengths of SBIFX trading in comparison with other FX services.
3-1. Excellent spreads and swap points
In the FX industry where trading commissions are generally free, the main cost is the burden of the “spread”. Spread means the difference between the prices presented by both “currency buyers” and “currency sellers”, but in reality it is delivered as a rate after including the commission received by the FX company.
Therefore, “wider spreads” actually mean higher fees, which is a disadvantage for traders to make a profit.
SBIFX trade spreads are at a narrow level even among domestic FX. Below are the spreads that can be confirmed on the official website of each service as of February 2023.
| 0.18 sen | 0.48 sen |
| 0.20 sen | 0.50 sen |
| 0.20 sen | 0.50 sen |
| 0.20 sen to 2.00 sen | 0.40 sen to 3.20 sen |
| 0.20 sen | 0.50 sen |
In addition, let’s check “swap points” which can be a cost other than the spread.
A swap point is a small amount of interest that is generated based on the interest rate difference between two countries’ currencies.
Swap points of SBIFX Trade are among the best in the industry. If you buy a high-yield currency and sell a low-yield currency, you will earn interest just by holding your position.
In this way, SBIFX Trade can be said to be an excellent Forex company in terms of transaction costs and interest.
3-2. Abundant currency pairs with 34, new service “Reserve FX”
In addition, SBIFX trade supports 34 currency pairs (exchanges).
Below are the number of currency pairs (exchanges) that can be confirmed on the official website of each service as of February 2023.
If you compare it with other domestic Forex services, you can see that the number 34 is quite large.
| 34 |
| twenty four |
| twenty two |
| 51 |
| 20 |
The more currency pairs you have, the more options you have, so you can say that SBIFX’s trading environment has a high degree of freedom.
In addition, SBIFX Trade also offers a new service called “Accumulated FX”. By continuing to purchase a fixed amount on a regular basis, you can enjoy the benefits of dollar cost averaging and realize low-risk FX investment that is not affected by sudden exchange rate fluctuations.
Forex is usually treated as a high-risk, high-return investment product that uses leverage for relatively short-term trading, and the holding period is several months at the longest. However, if you use reserve FX, you can efficiently aim for interest income from swap points with long-term holdings of several months or more while reducing risk without the hassle of trading.
3-3. Abundant campaigns (as of February 2023)
In SBIFX trade, the abundance of campaigns to be carried out is also a big attraction. As of February 23, 2023, eight campaigns and special projects are underway.
List of ongoing campaigns:
| Receive 3 months of Amazon Prime when you open an account and trade FX | From October 17, 2022 | Users who “open a new account after October 17, 2022” and “execute FX transactions of 300,000 or more currencies by the month following the account opening month” will receive 3 months of Amazon Prime and a 2,000 yen Amazon gift card. |
| Accumulated Jumbo Plus – Earn lottery tickets with Accumulated FX – | November 1, 2022 6:00
~ 05:30 on April 29, 2023 |
A lottery ticket will be presented to users with a position value of 2 million yen or more during the program period in the account of “Accumulated FX”. |
| Pound pushing campaign | February 15, 2023 7:00
～March 4, 6:30 |
(1) Reduce the GBP/JPY and GBP/USD spreads
(2) Up to 500,000 yen cashback for cumulative new contracts for GBP/JPY and GBP/USD pairs 3) Users who have exceeded 30 million new contracts in terms of pound/yen and pound/dollar will receive 10kg of rice that won a special award at the 23rd International Rice Taste Analysis Contest. |
| [Up to 1 million yen]W return campaign | February 7, 2023 7:00～
March 4, 6:30 p.m. |
(1) Cashback of 15 yen for every 10,000 new contracts in the Australian dollar/yen pair, NZ dollar/yen pair, Mexican peso/yen pair, and South African rand/yen pair.
(2) Cash back by adding “20%” to the received swap points for the Australian dollar/yen pair, NZ dollar/yen pair, Mexican peso/yen pair, and South African rand/yen pair. |
| USD/JPY swap up to 20% up! | February 6, 2023 7:00 to March 4, 2023 6:30 | Cash back up to 20% of the total amount of swap points received in “US dollar / yen” according to the difference between deposits and withdrawals during the campaign period. |
| February 2023 New Account Opening Program | February 1, 2023 00:00 to March 10, 2023 16:00 | “Open an account and log in by applying from the official website by February 28, 2023”, “Entry from the campaign participation application form by 16:00 on March 10”, “By 5:30 on April 1 , Cash back up to 302,000 yen to users who have made transactions of 300,000 or more currencies. |
| fundraising charity project | October 1, 2022 to March 31, 2023 | Depending on the user’s deposit amount, a part of the equivalent amount will be donated to the public interest foundation from the sales of SBIFX trade. |
| “500 Yen Deposit Bonus” limited to customers who have opened a new account | Until 6:00 on the 10th of the month following the month in which the account opening date belongs | After opening a new account, deposit 500 yen to the user who logged in to any of “WEB NEXT”, “Rich Client NEXT”, and “FX Trading App” |
4. Procedure to start trading with SBIFX Trade
Anyone between the ages of 18 and 80 can easily start trading with SBIFX Trade. Here’s how to get started:
- Register your email address
- Confirmation and acceptance of contract details, etc.
- Submit identity verification documents
- Enter your name, date of birth, address, etc.
- Confirm the notes and submit the form
- If you pass the examination, your account will be opened.
There are three ways to submit identity verification documents, and the time required for the examination will change depending on which method you choose.
- Shooting with smartphone: Shortest day until opening
- WEB upload: Minimum 2 days until opening
- Email/mail: 2 days minimum to open
Basically, it’s best to choose the easiest option, “Shoot with a smartphone.”
5. What is “SBI Holdings”, the operating company of SBIFX Trade?
Finally, let me briefly introduce SBI Holdings, the operating company of SBIFX Trade.
SBI Holdings is a Tokyo Stock Exchange Prime listed company with a market capitalization of approximately 750 billion yen. In addition to FX exchanges, it is a financial conglomerate that owns “SBI Securities”, the No. 1 online securities company led by Yoshitaka Kitao, and “SBI VC Trade”, a crypto asset exchange.
SBI SECURITIES has gained tremendous support from individual investors, and as of the end of September 2022, it has surpassed 9 million accounts for the first time at an online securities company.
We are also expanding our activities in the crypto assets and NFT (non-fungible token) areas, and we are an operating company that can be expected to have future potential.
6. SBIFX trading starting with at least 1 currency
Although FX trades another financial product called foreign exchange, there are many parts that are similar to crypto asset (virtual currency) trading.
Transaction costs and safety are important when choosing a Forex company, but SBIFX Trade excels in both. In addition, SBIFX trade can be traded from a small amount of at least 1 currency.
The post Reasons why “SBI FX Trade” is recommended for cryptocurrency investors appeared first on Our Bitcoin News.
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