The world of digital finance continues to evolve, and one of the most intriguing developments in 2025 is the integration of cryptocurrency with traditional financial markets. Bybit’s recent launch of stock CFDs (Contracts for Difference) on its MT5 Gold & FX platform has sparked significant interest—especially among users looking to trade U.S. equities using USDT. This feature allows traders to gain exposure to major American companies without leaving the crypto ecosystem.
In this comprehensive review, we’ll explore how Bybit's MT5 stock CFD functionality works, assess its benefits and risks, analyze trading costs, and evaluate its place in the broader landscape of digital asset investing.
What Are Stock CFDs and How Do They Work?
A Contract for Difference (CFD) is a derivative product that enables traders to speculate on the price movements of underlying assets—such as stocks—without actually owning them. With Bybit’s new offering, users can go long or short on 78 top U.S. publicly traded companies across sectors like technology, finance, and consumer goods.
👉 Discover how you can start trading global markets using digital assets today.
One of the standout features is leverage up to 5x, which amplifies both potential gains and losses. Importantly, leverage levels are fixed by the platform and cannot be manually adjusted—users must check availability per asset directly on Bybit’s site.
Since CFDs don’t involve actual ownership, traders do not receive shareholder rights such as voting power. However, when a company pays cash dividends, Bybit adjusts positions accordingly: long holders receive credit, while short sellers are debited. Stock dividends or corporate actions involving share issuance are not reflected in CFD accounts.
Setting Up Your MT5 Account: Fast and Integrated
Opening an MT5 account through Bybit is straightforward. Users can access it via the “Gold & FX” section on either the web or mobile app and activate the account with one click. The system automatically generates login credentials, including a read-only investor password.
A key advantage is seamless fund transfer between your main Bybit USDT wallet and the MT5 account. There's no need for bank wires or third-party processors—funds move instantly within the platform.
However, to use MT5 services, users must complete KYC Level 2 verification or enterprise certification, aligning with anti-money laundering (AML) standards.
It's important to note that the MT5 service is provided by Infra Capital Limited, a Mauritius-based entity regulated under the SEC-2.1B investment dealer license by the Mauritius Financial Services Commission (FSC). While this offers a regulatory framework, it does not extend compliance to major jurisdictions like the U.S., UK, EU, or Japan.
Key Risks You Should Know Before Trading
1. Leverage and Liquidation Risk
With up to 5x leverage, even small market movements can lead to significant losses. If your margin level drops below 50%, Bybit initiates forced liquidation based on the "largest loss first" principle. These trades are executed at market price—not mark price—potentially resulting in slippage during volatile conditions.
2. Execution and Liquidity Transparency
Bybit uses an ECN-like pricing model with raw spreads and no added markup. However, the platform does not disclose its liquidity providers, order routing methods, or trade execution quality reports. This lack of transparency raises concerns about fair pricing during fast-moving markets.
3. Limited Shareholder Benefits
As a CFD trader, you’re not a shareholder. No voting rights, no stock splits, and no bonus shares. Only cash dividend adjustments apply—other corporate actions are ignored.
4. Jurisdictional Restrictions
Bybit explicitly prohibits CFD trading for residents of restricted regions including the United States and Japan. Users must ensure they comply with local regulations before engaging in any trading activity.
5. Holding Costs Add Up
Trading isn’t free. Costs include:
- Fixed commission: $0.04 per share (minimum $5 per trade), waived on closing.
- Overnight funding (swap): Charged daily at UTC+3 00:00.
- Triple swap on Fridays to cover weekend exposure.
- Holiday adjustments apply as announced.
For long-term positions, these fees can erode profits—even if the market moves favorably.
Additionally, be aware that MT5 charts display only the Bid price by default. Buy orders execute at Ask, which may create a perceived gap between charted values and actual fill prices—a standard but often misunderstood aspect of CFD platforms.
Pros and Cons of Bybit’s Stock CFD Offering
Advantages
- Low entry barrier: No requirement for investment experience documentation—ideal for crypto-native users.
- USDT-denominated trading: Deposit, margin, and settle trades entirely in USDT, avoiding fiat onboarding hurdles.
- Fast internal transfers: Instant movement between main wallet and MT5.
- Cost-effective for small trades: Compared to IG ($15 minimum) or CMC Markets ($10 minimum), Bybit’s $5 minimum fee benefits micro-traders.
Drawbacks
- Limited regulatory reach: Infra Capital Limited’s Mauritius license doesn’t grant access to regulated markets in Europe or North America.
- Lack of transparency: Opaque execution practices and undisclosed liquidity partners reduce trust.
- No direct market access: Unlike brokers with prime brokerage relationships, Bybit acts as a counterparty.
👉 Learn how regulated platforms are shaping the future of digital finance.
The Road Ahead: What’s Next for Bybit?
Bybit’s CEO Ben announced plans during a May 2025 livestream to phase out reliance on MT5 by the end of the quarter. The goal? Enable users to trade indices, gold, oil, and U.S. stocks directly on the main platform, eliminating the need for external clients like MetaTrader.
Moreover, Bybit is actively pursuing regulatory licenses in Europe, Southeast Asia, and Hong Kong, signaling a strategic shift toward compliance and institutional legitimacy. Product expansion in derivatives is also expected, potentially introducing more sophisticated instruments tailored to retail and professional traders alike.
Frequently Asked Questions (FAQ)
Q: Can I use USDT to trade U.S. stock CFDs on Bybit?
A: Yes. USDT serves as both margin and settlement currency, allowing seamless integration between your crypto holdings and stock CFD trading.
Q: Does Bybit offer real stocks or just derivatives?
A: Bybit offers CFDs only, which are derivative contracts. You do not own the underlying stock and cannot vote or receive physical shares.
Q: Is leverage customizable on stock CFDs?
A: No. Leverage is fixed at up to 5x depending on the asset and cannot be adjusted by the user.
Q: How are dividends handled in CFD trading?
A: Cash dividends result in cash adjustments—credited for long positions, debited for shorts. Stock dividends and splits are not applied.
Q: Can U.S. residents use this service?
A: No. Bybit does not provide CFD services to users in restricted jurisdictions such as the United States and Japan.
Q: Will I be charged overnight fees?
A: Yes. Swap fees are applied daily at UTC+3 00:00, with triple charges on Fridays to account for weekend exposure.
The fusion of stablecoins like USDT with traditional equity exposure marks a pivotal step in financial convergence. While Bybit’s current implementation offers speed and accessibility, it comes with notable caveats around regulation and transparency.
As the line between crypto and conventional finance blurs, platforms that prioritize clarity, compliance, and user protection will lead the next wave of innovation.
👉 Explore a secure, compliant way to enter global markets with cutting-edge tools.