USDT is a type of cryptocurrency known as a stablecoin. USDT is known more commonly as Tether as it aims to be 'tethered' to the price of USD. Some Forex brokers allow USDT deposits, so traders may use the blockchain to send deposits.
All cryptocurrencies, including stablecoins, can be subject to volatility. USDT operates on different blockchain protocols, such as the Bitcoin network derived Tether Omni or the Ethereum based Tether ERC-20. The trader should be aware of which protocols are available at a particular broker offering USDT deposits, to help ensure the safety of deposits.
Some brokers offer Tether denominated trading accounts, while others may convert Tether to a fiat such as USD. A selection of brokers offering different types of Tether and ways to deposit in Tether is provided below, as well as a longer article about Forex brokers that accept USDT.
| Online Broker | Minimum Deposit | Forex Trading Platforms | About |
|---|---|---|---|
| easyMarkets | $25 Minimum Deposit | MT4, MT5, easyMarkets Platform, TradingView Forex Trading Platforms | easyMarkets allows deposits by Tether TRC-20 and Tether ERC-20 About |
| Deriv | None Minimum Deposit | MT5, Deriv X, cTrader Forex Trading Platforms | Deriv offers deposits in Tether Omni, Tether ERC-20 and Tether TRC-20, with no minimum deposit requirement About |
| Dukascopy | $1000 Minimum Deposit | MT4, MT5, JForex Forex Trading Platforms | Dukascopy Bank allows Tether ERC-20 deposits to a USD fiat account, where they are converted About |
| IC Markets | $200 Minimum Deposit | MT4, MT5, cTrader, TradingView Forex Trading Platforms | IC Markets offers USDT funding via Tether ERC-20 and TRC-20 About |
| Olymp Trade | $5 Minimum Deposit | Olymp Trade Platform Forex Trading Platform | Olymp Trade allows deposits in Tether Omni, Tether ERC-20, Tether TRC-20 and Tether BEP-20 About |
USDT (Tether) Deposits At Forex Brokers
USDT is a type of cryptoasset known as a stablecoin. Stablecoins use varying mechanisms to peg their value to a currency, in this case the US dollar. Thus it becomes possible to use the reach and efficiency of the blockchain to send, use and store a crypto that aims to mirror the value of the dollar. Some Forex brokers allow the trader to deposit with Tether, either into a USDT denominated account or to a fiat account, which converts it to fiat.
Tether is a type of cryptocurrency that is build as a layer on top of different protocols. For example, Tether Omni is built on the Bitcoin network (this is described as the first stablecoin), while Tether ERC-20 is a token built on the Ethereum network. So when looking for a Forex broker offering Tether deposits, it is important to note which protocol it supports to help ensure safety of deposits (sending one on the wrong network can results in loss of the cryptocurrency).
The stability of Tether is contingent on its peg to USD. This does mean that it is exposed to USD volatility. Tether pegs the value of each token to the US dollar, and says it matches each token with a reserve holding the USD or equivalent. So if someone wanted to redeem a USDT token, then in theory this could be done, which is the mechanism used to peg the value of USDT to the dollar.
In practice this mechanism depends on a level of trust as well as a level of stability in the crypto market, as in times of intense market volatility Tether has lost its peg (i.e. the value of a USDT could significantly differ from than the value of USD). Cryptoassets are extremely volatile and this volatility can spread to stablecoins like USDT, even though they are designed to be stable.
In general, Forex brokers (brokers offering Forex and other leveraged markets to trade) provide accounts denominated in a fiat currency, such as USD. To make a deposit into this account, the trader needs to use a payment provider, for example a Credit or Debit Card, Bank Transfer or an e-Wallet.
The Forex broker will normally set a minimum deposit (though in some cases there may be no minimum deposit for at least one or more account types). The provider itself will generally have a minimum deposit, which may be higher than the broker's minimum deposit. That is, in practice, the minimum deposit may be higher than the Forex broker's minimum deposit, in some cases. The brokers may also offer different minimum deposits for accounts denominated in cryptocurrencies.
Cryptocurrencies have their own network, known as the blockchain. Different protocols have their own network, for example the Bitcoin network or the Ethereum network or the TRON network. These blockchains are, in general, separate networks and only take their own tokens (though there are efforts at cross blockchain networks). Sending a token on the wrong network will normally result in a loss of those funds. This is true for the different types of Tether, as each type of Tether (e.g. Tether Omni, Tether ERC-20 on Tether TRC-20) is a different network.
So to make a USDT deposit, the trader can send USDT along the network matching the token, for example from a wallet to the Forex broker. The time taken for a token to be processed across a network is generally relatively quick, though it can be slower in times of network congestion.
However, the time taken will be contingent on the approval process by the Forex broker, to fully process the transaction at their end. This is true of fiat deposits by other methods which may themselves very quick. To send USDT along a network requires a network fee, which will normally be calculated or suggested by the exchange or wallet used to send USDT. This fee can vary, depending on such factors as network congestion. Other fees may apply, such as deposit fees.
The Forex broker may convert the Tether deposit into a fiat currency such as USD, to allow the trader to trade in their fiat denominated account. However, some brokers may offer USDT denominated accounts, thus allowing the trader to trade markets priced in USDT.
Thus the trader may be interested in finding a Forex broker which accepts USDT, as it can potentially leverage the convenience and power of the blockchain to send deposits. However, there are various factors to consider when using cryptocurrencies including volatility (even for stablecoins) and safety of funds. Finally, USDT deposits may only be available in some regions. Following is a case study of USDT funding via the well-known CFD provider, IC Markets. This concerns its branch in the Seychelles, regulated by the FSA.
IC Markets Case Study: Tether Funding
- Minimum deposit: $200
- Online trading platforms: MT4, MT5, cTrader, TradingView
IC Markets supports a wide range of trading styles, from long to short-term. However, it is known for its focus on shorter-term and automated trading. IC Markets provides a wide range of platforms, including copy trading, and can offer high-speed order processing.
2,500+ CFD markets are available, including Forex. In fact, IC Markets can be seen as supporting the wide range of ways that a trader might trade this complex market. For example, short-term trading, scalping, high-volume trading, and on to swing trading. User-friendly TradingView is offered, as well as cTrader and both MT4 and MT5. All of these platforms allow trading with robots.
IC Markets, regulated in the Seychelles, allows account funding via a wide range of methods, including cryptocurrency funding. Crypto deposits are converted into the fiat account denomination (USD, GBP or EUR).
There are two ways to send USDT to IC Markets, one via BVNK (the stablecoin payment platform) and the other directly via the blockchain, T&Cs apply. BVNK processed funding is normally instantaneous, while the blockchain can take a matter of minutes up to a few hours, depending on congestion and the network chosen. This said, deposits via BVNK are subject to an additional approval process, and this could potentially delay the transfer.
If the traders wants to send via the blockchain, TRON TRC-20 can be faster than Ethereum ERC-20. This is because the TRON blockchain is designed for speed. At IC Markets, either of these two blockchains are available.
Funding is initiated via the deposit page in the trader's account, and IC Markets does not charge an additional deposit fee. However, the blockchain charges fees to send and these need to be taken into account. In general, TRON may be cheaper than Ethereum, but the trader needs to check for applicable fees, before initiating any deposit.
