Whaleclub is a relatively new broker which is powered by Bitcoin. I've been using the platform for the last year, so I thought I would share my experiences. Read on to find out what I like, dislike and the things you need to know before you start trading on Whaleclub.
Trading Forex and Stocks using Bitcoin
So what makes Whaleclub different to other brokers? Well the big difference is Whaleclub runs on digital currency. On standard brokers, you deposit fiat currency using a credit card or bank account. On Whaleclub you can only deposit cryptocurrencies.
This has some advantages. First off there is no complex verification process to go through. You can sign up, make a deposit and start trading within minutes. And secondly it's a good way to put your cryptocurrency to work – instead of just leaving it sitting in a wallet.
Whaleclub lets you trade forex, commodities, stocks and other cryptocurrencies using Bitcoin. You can also deposit Dash or Litecoin.
The Whaleclub Web Trader
Whaleclub has a great interface. There is no software to download and install – it's all web based. Web trader platforms, used to be pretty basic. But these days, they are better than most desktop apps.
Trading on Whaleclub is fairly straight-forward. Even beginners will have no problems opening and closing trades.
Whaleclub offers a binary options type product called Turbo Trading. I've written about it in the past, and in my opinion it's not something you should use. The maths behind binary options, makes trading them completely stupid. You have to win more than double the number of trades you lose to make a profit. And even the best traders can't do this. So while it might seem like fun (even I tried it), it's not a legitimate trading option. It's gambling.
Whaleclub doesn't charge any fees on trade execution except for the spread. You can check out the spreads on this page. To be honest, they aren't particularly competitive, but aren't outrageous. There are many platforms that offer much tighter spreads.
Whaleclub also charges a financing fee and this is charged at the top of EVERY hour. This in my opinion is one huge downside of using Whaleclub. The financing fees are too high and being charged every hour is a bit too much. This means that holding positions for longer than 24 hours is very unprofitable. Whaleclub has obviously been setup for making short term market moves.
Withdrawal and Deposits
Whaleclub only accepts deposits in cryptocurrency – Bitcoin, Dash and Litecoin. And you can only withdraw these currencies as well. Deposits are fairly quick and will obviously depend on the speed of the Bitcoin network (or whatever crypto you're depositing in). Withdrawals aren't instant, they do need to be approved by a whaleclub employee. This is obviously a fraud prevention measure. I've had no issues with Withdrawals and most have been approved within a matter of minutes.
Overall the process of getting money in and out of Whaleclub is fairly painless. Because Whaleclub only uses digital currencies, you don't need to worry about any lengthy verification or approval process. You can signup, deposit and start trading straight away.
If you've read through this review and feel that whaleclub isn't best for you, I've put together a couple of alternative options:
1Broker, like Whaleclub, is a Forex broker that only accepts Bitcoin. On 1Broker you can trade forex and stocks using Bitcoin as a base currency. While it doesn't have an interface that is quite as nice as Whaleclub, it does have some unique copy trading features. You can automatically copy the trades made by successful and profitable traders.
If you're just looking for a good broker with low fees and forex and stock trading, then eToro is my recommendation. They have an excellent trading interface and some really neat copytrading features. eToro doesn't accept Bitcoin deposits (at the moment), so you will need to deposit using Fiat currency. But as far as trading goes, this is your best option.