Forex Capital Market aka FXCM is a reputed, international provider of online foreign exchange. It’s in the news today after it announced the introduction of cryptocurrency baskets for its retail customers. The company already serves as an online foreign exchange, contracts-for-difference [CFD], and as a platform for crypto-trading.
FXCM has dubbed this basket “CryptoMajor,” and will be adding Bitcoin [BTC], Ethereum [ETH], XRP, Litecoin [LTC], and Bitcoin Cash [BCH]. The use of multiple financial instruments in baskets will make it possible for investors to trade in all of them at once, without the need to manage each instrument separately.
CEO of FXCM, Brendan Callan, welcomed the announcement and said that the basket of cryptocurrencies will ease the pain of constantly monitoring the markets. He added,
“CryptoMajor therefore streamlines the trading process and protects our customers from unanticipated and adverse market movements. It is a great opportunity for our customers who are looking to move into Crypto trading but don’t want to risk too much overexposure.”
Cryptocurrency baskets are gaining popularity among investors who lack the time and knowledge to read through hundreds of cryptos. Coinbase’s GDAX, a Bitcoin trading platform informed investors about the various assets listed on it. However, Coinbase offered differential weightage for Bitcoin [BTC], Bitcoin Cash [BCH], Ethereum [ETH], and Litecoin [LTC], while FXCM offers equal weightage to every coin to hedge transparency and not overly expose the product to just one crypto.
In 2018, multiple crypto-projects introduced crypto-baskets like Flipside crypto with Coinmetrics.io, Dailycryptobasket.com, and Set protocol’s project, to name a few. However, the idea of the crypto-basket is in tough competition with tokenized projects, according to a report, and are yet to prove themselves to gain mass adoption.