Our Top Picks for Best Crypto Brokers
Choosing the right Crypto broker can be challenging. We have outlined the most comprehensive brokers for your trading experience. Here are three options for the best Crypto brokers:
Plus500
Why Did We Pick It?
Plus500 has emerged as a popular choice among crypto traders due to a variety of factors that contribute to a positive trading experience. Here is why it’s was chosen among the best crypto brokers:
Asset Variety: Plus500 offers a vast array of cryptocurrencies to trade as CFDs, including Bitcoin, Ethereum, Litecoin, Ripple, and many more. Thus, providing a wide range of options for traders interested in diversifying their crypto portfolio.
Regulated Platform: Plus500 is regulated by several financial authorities globally, including the UK’s Financial Conduct Authority (FCA), the Australian Securities and Investments Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC). This regulation provides a sense of security and trust for its users.
User-friendly Interface: Plus500’s trading platform is highly intuitive and easy to navigate, which is advantageous for both beginner and experienced traders.
Risk Management Tools: Plus500 offers a range of risk management features such as stop loss, trailing stop, and price alerts, helping traders to manage their risk effectively.
Demo Account: Plus500 provides a free, unlimited demo account where traders can practise risk-free trading with virtual money before diving into real trading.
24/7 Customer Support: The broker provides round-the-clock customer support to assist traders at all times, which is particularly valuable in the non-stop world of crypto trading.
Read our full review of Plus500.
eToro
Why Did We Pick It?
We picked eToro as one of the top crypto brokers due to several distinguishing features and services that enhance the trading experience:
Wide Range of Cryptocurrencies: eToro provides an extensive array of cryptocurrencies for trading. This allows traders to diversify their portfolio within a single platform.
Social Trading: Perhaps the most unique feature about eToro is its social trading platform. Traders can follow, interact with, and even copy the trades of successful investors, fostering a communal experience that can be particularly beneficial to beginner traders.
User-friendly Platform: eToro’s innovative, engaging, and easy-to-use platform is suitable for both newbie and experienced traders. It manages to integrate plenty of sophisticated features without compromising on usability.
Regulation: eToro is regulated by multiple regulatory bodies including the Financial Conduct Authority (FCA) in the UK, the Cyprus Securities and Exchange Commission (CySEC), and the Australian Securities and Investments Commission (ASIC).
Educational Resources: eToro provides education and learning resources ranging from guides and tutorials to webinars. This can help traders to bring their skills up to speed.
Read our full review of eToro.
Swissquote
Why Did We Pick It?
We picked SwissQuote as one of the top crypto brokers due to its strong reputation and several key offerings:
Strong Regulation and Trust: Swissquote is a Swiss bank regulated by the Swiss Financial Market Supervisory Authority (FINMA), one of the most respected regulatory bodies in the world. This ensures high levels of investor protection and trust.
Selection of Cryptocurrencies: SwissQuote offers a range of popular cryptocurrencies for trading, such as Bitcoin, Ethereum, Litecoin, Ripple and Bitcoin Cash.
Advanced Trading Platforms: SwissQuote provides several sophisticated trading platforms, including their in-house platform and MetaTrader 4 and 5. These platforms cater to a wide range of traders, from newcomers to seasoned professionals.
High Security: As a Swiss bank, SwissQuote adheres to high security standards. With their secure login, encryption systems and secure payment methods, they ensure that their clients’ investments and personal information are well protected.
Market Analysis and Learning Resources: SwissQuote offers traders a wealth of educational and research resources. This includes daily market analysis, webinars, and seminars, enabling traders to make more informed decisions.
Customer Support: SwissQuote provides excellent customer service, including a responsive helpline and an extensive FAQ section, providing support to traders whenever they need it.
Read our full review of Swissquote.
What is Crypto Trading?
Crypto trading is the act of speculating on cryptocurrency price movements via a trading account, or buying and selling the underlying coins via an exchange. Cryptocurrencies are decentralised digital assets that use cryptography for security. The most well-known cryptocurrency is Bitcoin, but there are thousands of others, including Ethereum, Ripple, and Litecoin. Crypto trading can be done in two ways: buying the actual cryptocurrency in the hope of selling it for a profit, or trading on its price movements without owning the actual cryptocurrency, typically via a CFD (Contract for Difference) account. In both cases, the traders aim to profit from fluctuations in the crypto asset’s price, but one must fully understand the risks involved as the crypto markets are highly volatile.
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Where Can You Buy and Sell Cryptocurrencies?
You can buy and sell cryptocurrencies on a cryptocurrency exchange, which is a digital marketplace for trading various cryptocurrencies. Some popular cryptocurrency exchanges include Binance, Coinbase, Kraken, eToro, and Bitfinex, among others. These exchanges allow users to buy cryptocurrencies using fiat currencies like USD, EUR, and GBP, or exchange one cryptocurrency for another. Some even offer advanced features like margin trading and futures. Alternatively, some traditional online brokers like SwissQuote and Robinhood also allow users to buy and sell specific cryptocurrencies. It’s crucial to ensure that the platform you choose is reputable and secure, and always remember that investing in cryptocurrencies can be risky due to their volatility.
Do You Need a Broker to Trade Cryptocurrencies?
The decentralised, anonymous nature of cryptocurrency means that you don’t technically need a broker to trade the currency. You can trade crypto with anybody—no fees, no centralised exchange, and no mediator. So, the question becomes whether you should work with a cryptocurrency broker.
A crypto broker serves as a middleman between the person buying and the person selling the cryptocurrency. The broker might also buy up a lot of cryptocurrency to sell on its own platform, making more of a direct seller. However, more often than not, the term “cryptocurrency broker” is used to refer to an intermediary. You place your order through the broker. After you pay for the cryptocurrency, the broker places your order on the crypto exchange.
What is the Role of a Cryptocurrency Broker?
A cryptocurrency broker serves as an intermediary in the crypto market by facilitating the buying and selling of cryptocurrencies for their clients. Here are some key roles of a cryptocurrency broker:
Providing Access: Brokers provide individuals with access to a platform where they can trade various cryptocurrencies. They might provide access to a greater variety of cryptocurrencies than some individual exchanges.
Market Orders Execution: They execute the orders placed by their clients on their trading platform. This can involve purchasing cryptocurrencies at the lowest available price or selling at the highest available price.
Security: They provide secure platforms for transactions, striving to protect users’ financial and personal information through encryption and other security measures.
Leveraged Trading: Some brokers allow leverage trading, which enables traders to borrow funds to open larger positions than their account balance would allow.
Educational Resources: Brokers often provide instructional materials, research, and tools to help clients understand the crypto market and enhance their trading strategies.
Customer Service: They offer customer support services to assist clients with any issues or questions regarding their accounts or the trading platform.
Regulation Compliance: Reputable brokers comply with financial regulations set by government authorities, adding an extra layer of protection for traders.
Advantages of a Cryptocurrency Broker
There are several advantages of a cryptocurrency broker. First and foremost, the main advantage is the easy setup. Solo crypto trading is often associated with technical issues relating to the blockchain. Because a broker already has an established system, the technical issues are more avoidable. Also, a cryptocurrency broker lets you conduct leveraging, which is a type of trading that allows you to borrow funds to increase your position.
A cryptocurrency broker has more advanced technical instruments (such as a downloadable platform, mobile app, website, etc.) than someone who is doing it on their own. Crypto trading is faster, and you may also find that, when you use an established system, the price of the crypto is fairer.
Disadvantages of a Cryptocurrency Broker
Crypto brokers have their disadvantages. The main downsides to a crypto broker are fees and commissions. When you’re trading on your own, you don’t have to pay commission to anyone. A broker will likely charge commission, so you have to weigh the advantages listed above against the costs of such fees. Additionally, a crypto broker that is not reputable or regulated could cause you to lose money.
Is Cryptocurrency Trading Risky?
The short answer is yes. Cryptocurrency trading is risky because the currencies themselves are usually very volatile. It’s not uncommon for the value to plummet hundreds of dollars at the drop of a hat. It’s also not uncommon for it to suddenly skyrocket in value.
Also, another major risk is crypto cybercrime. There is little to no regulation of this trading field, and cryptocurrency is not backed by the government. It doesn’t go through a bank, nor will the SEC reimburse you if you lose all your money. Crypto-related cybercrime ranges from mishandling private information to hackers raiding and depleting users’ cryptocurrency accounts.
How Can I Tell if a Crypto Broker is Regulated?
The EU and the US, under the Biden administration have started to regulate cryptocurrency brokers. This should speed up in the aftermath of the SVB disaster. Additionally, countries like the UK are pushing forward with regulating cryptocurrency brokers.
While most countries do enforce regulations, it is still important to remain vigilant of the warning signs of an unscrupulous or untrustworthy broker. Spotting these warning signs is key to avoiding being a victim. Such signs include non-existent services and products, unrealistic promises, questionable marketing practices, and anonymous identities of brokers.
Non-Existent Services: If the broker lists certain services in its marketing, it should have those services. For example, if a broker says that it offers research and data, there should be research and data available on its platform. Simply put, the products and services listed should be there for you. If the broker is being dishonest about these services, move on.
Unrealistic Promises: If a crypto broker promises you that you are going to get rich, they are not trustworthy. A good broker knows that all trading, whether crypto or non-crypto, is volatile, and you shouldn’t make promises that might not come true. The broker should only promise to be ethical and provide a solid platform. Making unrealistic predictions is a sign that the broker is unscrupulous.
Questionable Marketing: This is especially common on social media. If a broker makes fake accounts on social media, with each account claiming to be a satisfied customer, that broker is a scammer. Don’t just avoid doing business with the broker, block them too.
Anonymous Identities of the Brokers: You should know the identity of the broker with whom you’re getting in business. While the nature of cryptocurrency allows for anonymous transactions, starting a crypto platform is, essentially, starting a business. A broker must be transparent about its identity, just as any business would. If the broker won’t even share their name, there is likely a good reason, and you should definitely avoid them.
How Do Cryptocurrency Brokers Make Money?
Cryptocurrency brokers make money by charging fees and commissions on the transactions they conduct. Cryptocurrency is new enough that many brokers are able to charge higher fees than they would for other, non-crypto products.
Additionally, they also make money from trading derivatives. Traders using brokers to buy and sell cryptocurrency derivatives contracts do not own the actual cryptocurrency. Since traders don’t own the crypto coins, Brokers get to speculate with the asset while making money from the derivatives contracts simultaneously.
All in all, cryptocurrency is volatile, but it can be lucrative. When you’re looking for the best cryptocurrency broker, make sure you pick a broker who is transparent, honest, and has nothing to hide. Reading reviews will help you with your selection.
How Did Investing.com Choose the Best Crypto Brokers?
At Investing.com, our mission is to provide traders with accurate and up-to-date information about brokers. To achieve this, we’ve developed a comprehensive rating system that quantifies each broker’s performance. Our ranking methodology is designed to offer traders valuable insights into broker features, strengths, and potential areas for improvement. We aim to equip traders with the knowledge they need to make informed decisions on their trading journey.
We selected the best Crypto brokers through a rigorous evaluation process that considered multiple critical factors. Our approach aimed to provide you with a comprehensive understanding of each broker’s strengths, features, and potential areas for improvement. Here’s an overview of how we chose the best Crypto brokers:
- In-Depth Analysis: Our team of experienced experts delved into each broker’s offerings to assess their platform. We evaluated the broker’s Crypto platform for user-friendliness, advanced charting tools, ease of use, and compatibility with various devices.
- Easy Access: We assessed the ease and speed of accessing Crypto trading.
- Trust and Safety: Regulatory compliance was a top priority. We ensured that brokers offering Crypto trading were licensed and regulated by credible authorities. We evaluated the broker’s measures for fraud prevention and client fund security to ensure a secure trading environment.
- Additional Features: We also ascertained the presence of other supplementary features to support traders, encompassing market variety, account options, fee structures, customer service, trading tools, and more.
Can You Trust Our Recommended Brokers?
Yes, while more than 200 brokers and trading platforms that we don’t suggest are tracked by us, only legitimate brokers that are supervised by at least one internationally renowned regulator are recommended by Investing.com.
Final Say
Navigating the dynamic and volatile world of cryptocurrencies can be significantly streamlined with the support of a reliable and trustworthy broker. While factors such as asset variety, user-friendly platforms, security, regulation, and robust customer service play integral roles in defining the quality of a broker, it is ultimately your personal trading goals, risk tolerance, and trading knowledge that will determine which crypto broker is best for you. This article aimed to shed light on some top-ranking crypto brokers to help guide your decision. However, remember, investing in cryptocurrencies carries a risk, and it is crucial to undertake diligent research and possibly seek advice from a financial advisor before venturing into the realm of crypto trading. Happy trading!
FAQ
Which Crypto Broker Has the Lowest Fees?
Crypto brokerage fees can vary greatly among platforms and can include different types of costs like trading fees, deposit/withdrawal fees, and spread costs. These fees may also vary based on your trading volume. Some of the platforms known for competitive fee structures include:
Binance: Recognized for having some of the lowest fees in the industry.
Coinmama – A well-known bitcoin exchange platform has a unique cost structure. There is a 3.9% cost for Maker and Taker. The deposit cost is matched by a 2.93% fee for futures and options (F&O). 3.9% is charged for withdrawals, with an extra 2% for volume-based pricing. The smallest transaction amount is $30.
How Can I Trade Crypto With No Fees?
Completely free crypto trading is quite rare as most platforms need to charge fees to maintain their operations.
How Much Money Do You Need to Buy Crypto?
The amount of money you need to start buying cryptocurrency depends on several factors including:
The price of the cryptocurrency: Some cryptocurrencies like Bitcoin can be quite expensive, with a single coin costing thousands of dollars. However, cryptocurrencies are divisible, and it’s possible to buy a fraction of a coin. For example, Bitcoin can be divided into eight decimal places, and the smallest unit, a hundredth of a millionth BTC, is called a “Satoshi.”
The minimum purchase amount on the platform: Most cryptocurrency exchanges have minimum purchase amounts. The specific amount can vary wildly from one platform to another, but it can often be as little as $1 or less.
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