Cryptocurrency Brokers

I’m sure you already heard of Bitcoin, Ethereum, Ripple, Litecoin or Bitcoin Cash. There are hundreds of cryptocurrencies out there, but only a few that really matter.

Luckily for traders, some brokers have already added some of these cryptocurrencies to their platform. This means that everybody can sign up and start trading Bitcoin or other coins.

After testing dozens of brokers, here are the best crypto brokers:

Best Cryptocurrency Brokers

Rank Broker Min. Deposit Regulated Features Visit*
1
review $100 YES + CRYPTO TRADING
TRADE NOW
2
review $100 YES + BITCOIN & 9 CRYPTOS
TRADE NOW
3
review $100 YES + GREAT PROMOS
TRADE NOW
4
review $200 YES + ASIC LICENSE
TRADE NOW

*Risk warning: Your capital is at risk. Plus500 is a CFD provider.

How to Choose your Cryptocurrency Broker

While we are all familiar with the broad definition of a broker, is there something more to it when it comes to cryptocurrencies? Simply put, a cryptocurrency broker refers to a website that traders will visit to trade cryptocurrencies at a set price. In many ways, they are similar to forex brokers whose services are a lot more familiar to the general public.

Now, we shall go into what aspects you as a trader must consider when choosing a broker to trade cryptocurrencies.

Top 10 Cryptocurrency Brokers

Rank Broker Min. Deposit Max. Leverage Get Started*
1
ETORO $50 1:400
TRADE NOW
2
PLUS500 $100 1:30
TRADE NOW
3
AVATRADE $100 1:400
TRADE NOW
4
PEPPERSTONE $200 1:500
TRADE NOW
5
IQOPTION $10 1:1000
TRADE NOW
6
24OPTION $250 1:1000
TRADE NOW
7
TRADE.COM $250 1:400
8
ICMARKETS $100 1:500
9
VANTAGE FX $100 1:500
10
FXTM $5 1:1000

*RISK WARNING: Your capital may be at risk.

Which Cryptocurrencies Are You Interested In Trading?

Make sure you have decided on which cryptocurrencies you want to trade in before signing up with your broker. If your choice is a prominent cryptocurrency like Bitcoin, Litecoin, or Ethereum, there will be a relatively broad availability of brokers that have trading options for those. However, less prevalent examples like Monero, IOTA, or Zcash may be a little harder to come by. So study the cryptocurrencies being offered by a broker before you sign up for an account.

Is Leverage Really Necessary? Cryptocurrency markets are volatile in nature with prices fluctuating immensely thereby generating high profits even in the absence of leverage. But for some traders, the desire for more earnings justifies the use of leverage.

Before choosing your broker, settle yourself on whether the already immense profits that come from a cryptocurrency market are enough for you or you would like to use leverage to enhance them even further, bearing in mind, of course, that will also significantly increase the risk factor to your funds.

Negative Balance Protection: It is always advisable to trade with a broker that affords the negative balance protection facility. That way, you will never be at risk of losing more than what you invested in case you sustain very heavy losses.

How Suitable Is The Required Capital For You? This is another subjective part to your decision. Do you prefer trading with a small capital or bigger one to help you zero in on bigger returns? Find out what size trades your broker is offering before you open an account.

Narrow Spreads for the Win: Let us be honest, it is only fair that your broker gets a cut from the money you generated having provided you with the essential facilities for it and all. But let us be honest, you definitely want every last dime for yourself.

A spread refers to the difference between the buying price and selling price of a trade and it varies with each broker. The spread is what counts as fees for your broker so the smaller it is, the lower the cost will be on your part.

Finer Questions to Ask Your Broker

Here are some of the more understated details about your cryptocurrency broker that could make your trading experiences so much more efficient and successful.

1. What Are The Weekend Hours Like?

This is a key detail that distinguishes cryptocurrencies from other prominent trading markets like forex, futures, and equity. Cryptocurrency brokers operate during the weekends as well. There is virtually no difference in purchasing bitcoin at the end of the week as opposed to the middle of the week during peak hours.

But there is a catch. While digital currency exchanges are available during the weekend, your broker may not. So in effect, if there is considerable movement within your relevant cryptocurrency market during a weekend when your broker is not operating, you may not have the ability to respond in any way.

2. How Is It Hedging?

Your broker is probably not keen on revealing if it is hedging cryptocurrency traders but it is important information for you to know. Why is it so important for you to know? Because, as a trader, you want to be absolutely in the clear regarding the policies for risk management being followed by your broker. Let us not forget that cryptocurrency markets are extremely volatile and an unhedged broker is more easily prone to major losses incurred by its clients. Naturally, those costs will warrant compensation via fatter spreads and additional costs for traders. It will be best to sign up with a broker that will not withhold the relevant information from you.

3. What about Commissions and Trading On Margin?

An important thing to note while trading cryptocurrencies is that their prices tend to be more similar to equities than they are to real currencies. So your broker could be charging you commissions in addition to a wide spread on each trade. That, of course, raises the cost probably a bit much for your liking.

Another similarity with equities is that the margin conditions with cryptocurrencies are significantly more than they are with forex or CFDs. Consequently, leverage is usually up to 10x. How considerable the margin rate will be for traders is down to what trading strategies and risk management they subscribe to.

4. The Authenticity of Market Data?

Aside from merely evaluating how it influences spreads, market data for cryptocurrency CFD prices can be a good indicator of how the quality of the product will be in the future. One of the more recent examples of this is BTC-e which was an immensely popular platform for trading bitcoin before it was shut down by Feds. BTC-e was the first bitcoin exchange to incorporate forex trades and so made their exchange accessible via MT4 and supplied cryptocurrency liquidity for brokers.

But once it was shut down, every broker that depended squarely upon BTC-e was left with no hedging options or market data to put a price on its crypto CFDs.

5. Are Short Sales Available?

For many traders, shorting is a crucial strategy option, the lack of which can be a deal breaker with a potential broker.  Many brokers tend to offer ‘long’ only since there are only a few hedging solutions when opening short trades.

Conclusion

Investing in cryptocurrencies can be a truly lucrative venture for you but only if you get it right. And a lot of that is down to which broker you decide to trade with. Trade with the cryptocurrency brokers listed above to make sure that your money is safe, you pick a broker with a stellar reputation and you keep the fees low.

Page Updated: December 5, 2017

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