Update 3rd May; Whaleclub just added Technology Stocks to their platform!
Apple, Facebook, and Tesla Motors were just added to the list of markets offered on Whaleclub. These stocks are now available to trade with up to 10x leverage using your bitcoin only — no banks involved!
Very excited to also see that pre-market (8AM-9:30AM ET) and after-hours (4PM-5PM ET) trading are available for these markets. This is a world first.
Whaleclub Director of Operations, Petar Zivkovski, along with Director of Marketing and Business Development, Jessica Lee, took over operations of Whaleclub in October 2015. This was merely a year after TradingView members founded the Club as a real-time feed of bitcoin trade ideas, supplied primarily from the TradingView and Teamspeak communities.
While Lee has a background in Public Relations and international journalism, Zivkovski has been trading professionally and building trading systems for over two decades. He began using bitcoin in early 2013, and quickly started trading.
The Whaleclub mission is to build a globally accessible trading platform powered by bitcoin, Zivkovsky explains. “Bitcoin really excels at transferring value quickly, cheaply, and globally. Whaleclub is bitcoin-only and the entire team are strong believers in the bitcoin, the currency, and Bitcoin the community.”
Using a bitcoin only platform means that trading accounts don’t require any personally identifying information. Know-Your-Customer (KYC) and Anti-Money-Laundering procedures (AML) are not required. “This is not something you can achieve with political currencies,” states Lee.
However, Lee says that Whaleclub monitors the evolving digital currency regulation landscape very closely. “We're strongly in favor of a global, smart regulatory framework for digital currencies - that would go a long way in establishing mainstream legitimacy.”
“Whaleclub is committed to regulatory compliance in all states and regions in which its services are offered. New York's Bitlicense is a first step in digital currency specific regulatory frameworks, but there is still much to improve.”
- Jessica Lee, Director of Marketing and Business Development at WhaleClub
The New York BitLicense is the common term used for a business license of digital currency activities, issued by the New York State Department of Financial Services (NYSDFS) under regulations designed for companies. This particular regulation is limited to activities that include the New York State or a New York State resident. The third and final draft was issued in June 2013, spearheaded by former Superintendent Benjamin Lawsky.
Other regions, are yet to define clear-cut regulatory frameworks, and the landscape is ever-evolving. Lee advises that “like many other bitcoin companies, we are open to hearing from and collaborating with regulators on a case-by-case basis until an encompassing regulatory framework is established.”
Whaleclub is based in Hong Kong, home to one of the largest communities of bitcoin traders in the world. The trading platform, powered entirely by bitcoin, now serves over 8000 traders. The team reported executing over 100,000 trades, with a volume of over US$10m in bitcoin last month.
The platform offers advanced order types for experienced traders; a simple, intuitive user interface for new traders; spreads and volatility that cater to scalpers, swing traders, mid-term and long-term traders; and the option to go long and short at the same time with different position sizes, which caters to hedgers.
“Our business is based on the pure exchange rule: at any time and for any price, there are traders willing to go long and traders willing to go short.”
Lee describes the trading platforms reception as positive, since launching early in 2015, and community feedback inspired further development. New markets, such as Gold, Oil, and EUR/USD, have been added, trading against bitcoin from anywhere in the world, without the involvement of banks.
All Whaleclub trades are executed instantly, at the price specified by the trader, or at the best available price when the trader enters a market. According to Lee, having zero fees on order executions, positions, balances, inactivity, and deposits sets Whaleclub apart from other trading platforms.
By comparison, one of the largest cryptocurrency trading platforms, Bitfinex, charges 0.100% maker fees and 0.200% taker fees for all trades less than $500,000.
Maker fees are paid when a limit order is placed under the ticker price to buy, or over the ticker price for a sell. Taker fees are paid when an order is executed against the orderbook.
In addition, there is no partial execution and no slippage trading with the Club, which can both be major sources of trading losses. Whaleclub states that on average traders save 35% on fees, relative to a traditional exchanges, thanks to full execution and no slippage.“If aggregate client positions are unbalanced, meaning there are significantly more longs than shorts, or vice-versa, the exposure (difference) is hedged with our liquidity providers.”
Currently, Whaleclub offers up to 40x leverage. 10x, 5x, and 3.3x are also available, or traders can simply trade without. The only restriction is a 20 bitcoin maximum for an active position. Withdrawals are processed manually “through a standardized, checklist-based procedure,” which usually takes place once a day.