Bitcoin brokers
Whether or not bitcoin is a good investment is relative to your investment objectives.
Top forex bonus list
Bitcoin investing: compare accounts for buying & selling bitcoin
Use our comparison table of bitcoin accounts to compare costs and the different ways to buy and sell bitcoin. Please note: investing in bitcoin and other cryptocurrencies is very high risk and not regulated by the FCA. There is a very high chance you may lose all your money.
How to choose an account for investing in bitcoin
Here are three tips and things to consider when deciding which provider to buy bitcoin through:
Look for a regulated provider who also offers bitcoin
Even though bitcoin is an unregulated digital currency, many providers that offer bitcoin investing are regulated by the FCA for other things such as stocks, bonds, bank accounts and trading. By choosing a bitcoin account that is attached to a regulated entity, you will be dealing with a provider who is responsible for treating clients fairly (although not directly for cryptocurrency investing).
Compare the costs of investing in bitcoin
The costs of investing in bitcoin can vary dramatically. The key things to consider are:
- Bitcoin commission- some bitcoin accounts will charge a fee when you buy and sell bitcoin on their platform.
- Bitcoin currency exchange fees- if you are buying bitcoin against the USD (BTCUSD) but depositing GBP into your bitcoin wallet, there will be a fee for converting the GBP into USD. It is possible with some exchanges to buy bitcoin against GBP where you do not need to convert fiat currencies.
- Bitcoin price spread- this is the difference between the buy and sell prices. As with investing in stocks, there is always a spread between where people are prepared to buy and people are prepared to sell. The bitcoin spread varies, depending on how active the market is (liquidity) and how much the price is moving (volatility), as well as which bitcoin platform you are investing through.
Understand the risks involved in investing in bitcoin
Before you start investing in bitcoin, decide if you should be investing in bitcoin. The major risks of investing in bitcoin are:
- Sudden price moves- the price of bitcoin can drop and rise quickly and for no apparent reason.
- High investment costs- compared to investing in stocks, it is still expensive to buy and sell bitcoin.
- Bitcoin scams- there are lots of scammers using fake bitcoin ads to scam potential bitcoin investors, so always research bitcoin accounts before investing.
How do you invest in bitcoin?
The world's most famous crypto-currency is an obvious target for investors and traders due to its history of rapid gains and falls in value. This volatility makes it both very risky and potentially very lucrative as an investment.
How to get started investing in bitcoin
If you are buying bitcoins, then you will require a bitcoin address. This is a code to which the bitcoins that you buy will be allocated. You can acquire an address by downloading a bitcoin client to your computer or setting up an online wallet.
What to avoid when you start investing in bitcoin
When using cfds or placing spread bets, it is possible to lose more than your initial stake. This will be amplified if you use leverage. Don't risk more money than you can afford to lose when you take a position. Placing stop loss orders, which automatically close down your position when bitcoin hits a particular value, are an essential way to limit the risk that you face.
What to look for when choosing an account to buy bitcoin in
The various bitcoin exchanges and CFD/spread-betting companies have different fee structures for their services. Make sure that you're not being overcharged and that the trading platform on offer is to your liking. As with any investment, the more you know about factors that will impact the price of bitcoin, the more likely you are to profit.
To invest in bitcoin, you need a bitcoin wallet or account. You can compare bitcoin accounts with our bitcoin account comparison table.
Bitcoin FAQ:
Here are some of the most frequently asked questions people ask before they invest in bitcoin:
What is bitcoin?
Bitcoin is a digital currency. It was launched in 2009, can be mined, bought and sold against many fiat currencies, and is the largest cryptocurrency by market capitalisation.
How much is bitcoin worth?
The price of bitcoin moves all the time and is priced most commonly against the USD. See our bitcoin price chart for the current price.
How does bitcoin work?
Bitcoin works as a digital currency where a record of all transactions are kept on the block chain. Each bitcoin is stored in a digital wallet where it can be spent or sent.
How to get bitcoins
There are two ways to get bitcoin. You can either mine them or buy them through a bitcoin exchange platform.
Is bitcoin safe?
This is undermined yet and the safety of bitcoin is one of the major risks of investing in bitcoin.
Is bitcoin regulated by the FCA?
No, bitcoin is not regulated by the FCA. However, there are FCA-regulated providers that also offer options for buying and selling bitcoin.
Are bitcoin adverts real?
From peter jones to PSY, new scam adverts advertising get-rich-quick bitcoin schemes are flooding the internet. Despite a global ban from google on non-regulated brokers advertising derivatives products, they are still getting through. Amazingly, you see them in the header of the dailymail and other mainstream media websites. Martin lewis, the money-saving-guru from money saving expert, recently sued facebook because they failed to stop scammers using his image in scam ads for get-rich-quick bitcoin schemes. Martin lewis settled with facebook for a £3m charitable donation in the end.
Is bitcoin a scam?
If you see an advert for bitcoin investing, it may well be a scam as google and facebook have banned cryptocurrency advertising. If it looks like a scam, it's a scam. And always check the FCA register for any broker you deal with.
Keep in mind too though that the scammers make clone websites of real brokerages to scam you. So, double and triple-check any broker before sending money. A quick google search can save you from becoming a victim.
How to make money with bitcoin
It is possible to make money investing in bitcoin in the same respect that it is possible to make money investing in high-risk stocks. If you buy low, sell high, you will make money. But unlike investing in stocks where a company generates revenue and profits, bitcoin has no underlying value so it is also possible to lose money very quickly by investing in bitcoin.
Where to buy bitcoin
For more information on where to buy bitcoin, read our guide to choosing a bitcoin account.
Is bitcoin legal?
How to use bitcoin
Bitcoin is becoming more usable every day. Some online merchants accept it as payment and recently, paypal announced that it would accept bitcoin as a payment source.
Is bitcoin a good investment?
Whether or not bitcoin is a good investment is relative to your investment objectives. It is a very high-risk investment.
How to sell bitcoin
When you choose a bitcoin account, make sure there is also the option to sell the bitcoin on it as well.
Where can you get bitcoin investing ideas?
Never believe anyone who says they can make you rich or adopt trading as a career if you are a complete beginner. However, if you do want trading ideas, you can find news and analysis on bitcoin here:
- Bloomberg
- Reuters
- Tradingview provides excellent crypto charts and lots of users post trading ideas.
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The information contained in this website is for informational purposes only and does not constitute financial advice. The material does not contain (and should not be construed as containing) investment advice or an investment recommendation, or, an offer of or solicitation for, a transaction in any financial instrument.
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Compare the best bitcoin brokers
When it comes to bitcoin trading, you need a bitcoin broker you can trust. We’ve compared all your options to help you make the right choice.
Where can I find the best bitcoin brokers?
Right here. We have reviewed all the best and most reliable bitcoin trading platforms out there to help you buy bitcoin. Have a read through our reviews and see what you think. If you’re not ready just yet, scroll down and continue reading to learn more about choosing the best bitcoin broker.
Access the world’s most popular crypto assets including bitcoin, ETH, LTC, XRP
Automatically copy the trades of top crypto traders
Deposit using paypal + 9 other deposit options available
Access the world’s most popular crypto assets including bitcoin, ETH, LTC, XRP
Automatically copy the trades of top crypto traders
Deposit using paypal + 9 other deposit options available
Margin trading with full legal compliance
Various payment options
Margin trading with full legal compliance
Various payment options
Huge range of cryptocurrencies
2 factor authentication
Huge range of cryptocurrencies
2 factor authentication
Fully automated platform with instant transactions
A wide variety of payment options
Fully automated platform with instant transactions
A wide variety of payment options
Safe & secure cryptocurrency exchange
Liquidity accepted in over 200 countries
Safe & secure cryptocurrency exchange
Liquidity accepted in over 200 countries
Live support in 23 languages
Secure and easy to use with fast KYC process
Live support in 23 languages
Secure and easy to use with fast KYC process
What is a bitcoin broker?
A bitcoin brokerage is a middleman for buying and selling bitcoin. In the same way that you’d use a bureau de change at an airport to exchange your currency to another, a broker is a company that will buy and sell bitcoin at a fixed price. Bitcoin brokers are also one of the only options that allow you to buy a very large amount of bitcoin at a time (for instance if you want to invest £50,000 or more).
How do brokerages work?
Brokers or trading platforms allow you buy bitcoin at a set value, which the platform or broker holds for you. Technically, using this method you do not own the coin itself, rather you own the value-change of it. Therefore, its a trade. If you buy bitcoin at £1,000 and it goes up to £1,100, you could sell it and keep the extra £100. Simple really.
How do I use a bitcoin broker?
It’s easy. Just go to the broker site and it will have the current rate at which they’re selling bitcoin displayed. If you’re happy with the bitcoin price then set up an account, select how much you want to buy, then enter your payment details and get moving.
What should I look for in a broker?
Design and ease of use
The purpose of a broker is to make the process of buying bitcoin easier. You want to make sure the bitcoin broker is designed in such a way as to make it as simple as possible for you to navigate through and make your BTC purchases.
Price
Different bitcoin brokers will charge a different amount for buying bitcoin, as any commission charged by a platform will be included in the price listed, referred to as spread. To find the best rate it’s a good idea to compare multiple platforms.
Payment charges
You want to make sure you’re getting a good deal on your purchase. Depending on the platform and your chosen payment method, there could be fees of 0% to 5% of the purchase amount, with credit card being the most expensive option.
Reputation
You will want to be sure you are sending your money to a company that will not disappear with your cash. In the UK, brokers must be regulated so look out for this when reading reviews. There are many platforms that have been around for a while and have good reputations. Some of the common options you should consider include etoro and coinmama.
Variety of coins
If you want to buy more than just bitcoin, you can find brokers with a range of cryptos. Platforms will usually offer all the top coins, and will often be more than happy to assist you in buying.
Do I have to verify my identity?
Yes, you have to verify your identity to register with a bitcoin broker. Usually you’ll have to provide proof of your ID (such as a passport and a driving license) and address (such as a utility bill or bank statement). Typically you’ll have to provide a selfie of you holding your photo ID to prove it’s yours.
What’s the difference between a bitcoin broker and an exchange?
On a bitcoin exchange you buy and own bitcoin directly from other people, it’s peer-2-peer, whereas with a broker you’re buying the value of the coin from the platform. Exchanges are much more complicated to use as they have cryptocurrency price charts and constantly refreshing order lists; there’s a huge learning curve. A broker platform however handles the whole process for you and provides a fixed price.
Do brokers charge commission or fees for buying bitcoin?
Yes, but these are included in the BTC price displayed. The price advertised is the price you pay, without any percentage commission being added when you’re entering your details. The only additional fees will be if a platform charges a fee for specific payment methods (e.G. Credit cards).
Can I buy multiple cryptocurrencies through a broker?
Yes, most brokers sell a variety of cryptocurrencies, including the major coins such as bitcoin, bitcoin cash, ethereum, litecoin, and ripple at the very least.
Do I need a wallet to use a bitcoin broker?
No, as the platform holds all values for you.
Should I use brokers to buy and sell bitcoin?
Well, it depends. If you want an easy and seamless way to capitalise on the growth and price fluctuations of bitcoin, this is the best and most simple option. If however you’re looking to hold your bitcoin personally; to use, spend or otherwise – then an exchange is the better option.
Bitcoin OTC brokers: what are they, how do they work, and should you use them
Learn everything you need to know about trading large amounts of bitcoin over-the-counter using a bitcoin OTC broker.
What is the OTC market?
A large amount of bitcoin trading occurs on platforms like binance or coinbase where the exchanges act as the market makers. They match the buyers (who set the bids) and sellers (who set the asks) on the platform and take a fee for their services.
The OTC market connects buyers and sellers as well, but it does so via bitcoin broker. Bitcoin brokers essentially replace the exchanges as the “market makers”, acting as the new middleman between buyers and sellers.
The OTC market has a niche target that focuses on traders with significant sums of cash who prefer their orders to be filled by one party. The persons seeking a trade will quote prices to their broker, and it’s the job of the OTC broker to connect their client with another trader to complete the transaction.
Buyers and sellers communicate through their bitcoin brokers, which helps them remain anonymous throughout the transaction. The majority of OTC transactions involve large sums of money because OTC bitcoin brokers help wealthy traders avoid “slippage”.
Slippage occurs when a buyer places a large order on an exchange, which is then filled by multiple sell orders that can vary slightly in price. The result is an increase in total fees paid and a variance in the price paid for the asset. Direct transactions via OTC markets ensure a singular transaction at an agreed-upon price between the two parties.
What are bitcoin OTC brokers?
The first thing to know about bitcoin brokers is that they are not financial advisors. Financial advisors form relationships with their clients and usually manage funds on the clients’ behalf. In contrast, OTC brokers typically trade per explicit request from clients and per limits/goals previously established.
The key advantage of trading with a bitcoin broker is the elimination of any slippage. Bitcoin brokers charge a single fee for their service, but they eliminate excess fees charged by major exchanges when making significant digital asset investments.
OTC brokers develop networks of buyers and sellers to ensure each client’s needs are met. When searching for the right bitcoin OTC broker, it’s important to find a firm that has an established network. Doing so will improve the odds of finding the right buyer or seller for any type of trade.
In order to trade via an OTC broker, investors will have to prove their source of funds and net worth to the firm. Therefore, brokers require clients to complete an identity verification process known as KYC (know your customer), which helps prevent identity theft, money laundering, and other types of fraud.
Why use a bitcoin broker?
OTC brokers are not for everyone. The average investor should find everything they need on popular exchanges like binance or coinbase, but for larger investors trading over-the-counter makes sense.
Below is a comprehensive list of pros and cons for those investors considering an OTC bitcoin broker.
Best bitcoin brokers
Bitcoin market journal has researched and analyzed the top bitcoin OTC brokers to help investors identify the firm that is right for them. If you decide that it’s time to make a substantial investment in digital assets, review our list first to learn everything you need to know about what to look for when choosing the right bitcoin broker for you.
| Name | description | incorporation year | fees | auxiliary services | twitter followers | regulated | score |
|---|---|---|---|---|---|---|---|
| circle trade | boston-based circle is one of the market leaders in the over-the-counter trade of digital assets. Aside from its OTC brokerage services, the company also offers retail investor solutions through its circle invest business and a payments service through its circle pay business. | 2013 | brokerage fee included in agreed price | advisory, research, retail investor offering, payments | 46,700 | yes | 4.5 |
| itbit | new york-based itbit is a digital currency exchange that launched in 2013. The exchange also offers OTC bitcoin trading service targeted at high net worth individuals and businesses that want to transact in a minimum of 100 bitcoin. Itbit charges a 0.1 percent flat fee on each OTC trade and offers same day settlement to its customers. Itbit’s OTC trading desk has clients in over 100 countries, and the company is a regulated bitcoin exchange in the state of new york. | 2012 | 0.1 percent per transaction. No crypto withdrawal fees. | Full-service digital asset exchange, all USD funds held are insured | 7,825 | yes | 4.5 |
| genesis trading | new york-based genesis global trading provides two-sided liquidity for digital currencies on a daily basis. The company was formerly secondmarket’s trading division and is owned by leading bitcoin venture capital firm digital currency group. Genesis has been offering its bitcoin brokerage services since 2013, which makes it one of the longest-standing OTC bitcoin brokers in the market. Due to its ownership by the DCG, it is also considered one of the most reputable. | 2013 | spread above XBX bitcoin index | out of hours trading, access to grayscale investment trusts, digital asset lending | 6,425 | yes | 4.5 |
| cumberland mining | cumberland mining, a DRW holdings LLC subsidiary, is another US-based bitcoin broker that transacts in institutional-sized trades. The chicago-based company provides two-way liquidity in bitcoin and other digital currencies for high net worth individuals and enterprises. | 1992 | brokerage fee included in agreed price | advisory | 6,112 | yes | 4 |
| jump trading | chicago-based jump trading is one of the newer entrants in the growing bitcoin OTC brokerage market. The brokerage firm has developed a dashboard for its users that enables investors to traders to interact with jump trading’s OTC desk using a secured connection, which alleviates the reliance on third-party messaging platforms. Its OTC brokerage business executes over $2 billion worth of digital assets each month. | 1999 | brokerage fee included in agreed price | advisory | 568 | yes | 3.5 |
| kraken OTC | san francisco-based digital asset exchange kraken launched an OTC trading service in 2018 to enable its professional customers to engage in off-exchange transactions. Additionally, the exchange's OTC trading service includes market analysis, 1-to-1 service, full asset support, and 24/7 global coverage. Minimum transaction size is $100,000. | 2011 | brokerage fee included in agreed price | full-service digital asset exchange, market analysis, 24/7 global coverage | 376,000 | no | 3.5 |
| B2C2 | london-based B2C2 has been trading since 2015, providing liquidity for large transactions to both individuals and institutions. The minimal settlement amount is $50,000. Clients are able to take advantage of post-trade settlement, allowing them to initiate a trade without depositing any cash. Clients are able to trade gold for bitcoin as well, with a minimum trade size of one ounce. | 2015 | brokerage fee included in agreed price | advisory | 906 | yes | 3.5 |
| XBTO | new york-based XBTO has been providing OTC liquidity since it was founded in 2015. It conducted the first-ever block trade of bakkt bitcoin futures contracts. XBTO is also involved in crypto mining, using renewable energy to power its operation. In addition to OTC trading, XBTO also provides clearinghouse services via stablehouse.Io for stablecoins. | 2015 | brokerage fee included in agreed price | asset management, venture capital, crypto-mining, consulting services | 495 | yes | 3.5 |
| bitstocks | london-based bitstocks was launched in 2016 to provide bitcoin liquidity to high net worth individuals as well as institutional investors. The company requires you to make a minimum deposit of £5,000 ($6,500) and offers both an OTC brokerage services and an advisory service. For OTC trades, the company’s commission is built into the execution price, similarly to the way genesis global trading handles it. If you want to also benefit from the brokerage’s advisory services, however, you will have to pay a 25 percent performance fee on the profit you make on your trades. | 2014 | brokerage fee included in agreed price, 25% of profit on "advisory" trades | advisory & research | 1,867 | no | 3 |
| octagon strategy | hong kong-based octagon strategy is an OTC broker, run by former head of electronic trading at morgan stanley and macquaire, wayne trench, that claims to be asia's largest digital asset broker. Minimum trade size is $100,000, and there is no maximum. | 2016 | "small" transaction fee upon execution | RFQ/API, market making, bespoke services | 1,145 | no | 2.5 |
Should you buy bitcoin using an OTC broker?
Investors who want to reap the benefits of OTC bitcoin brokers should first check the balance in their bank accounts before picking up the phone. Brokers require a certain level of cash or volume to justify the investment. Single exchanges, no matter the size, lack the liquidity necessary to fill massive order blocks.
Exchanges fulfill the needs of the typical investor in the vast majority of cases. They offer hundreds of altcoins with different asset pairings, margin trading, automated investing, stop/limit market orders, and, most importantly, investors can purchase fractional shares of coins.
Answering one simple question will, in most cases, reveal whether or not an investor should pursue OTC bitcoin brokerage trades: does your total purchase amount exceed the limits of traditional digital asset exchanges? If so, then you are better off trading with an OTC broker.
Related articles
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Best online brokers for bitcoin trading
The best crypto exchanges for US bitcoin trading offer three essential benefits. The first, and most important, is robust security with two-factor authentication, cold storage, and integrated safe wallets. Second is a user-friendly website and platform. Third, they provide access to trading a variety of cryptocurrencies like bitcoin and ethereum.
In our assessment and ranking of cryptocurrency exchanges, we focused on traditional exchanges headquartered and regulated in the united states, as well as the incumbent online brokers in the US, which are expanding to offer bitcoin trading on top of regular stock trading (e.G. Buying shares of apple or google).
Best bitcoin trading platform
- Tradestation - best trading platform
- Coinbase - best crypto exchange
- Etoro - low fees
- Kraken - maker-taker fee schedule
- Bittrex - most altcoins
- Gemini - offers gemnini dollar
- Robinhood - best mobile app
Here's a breakdown of some of the best online brokers for US crypto trading.
Best trading platform - open account
promo offer: commission-free trades on stocks, etfs & options trades
As a trading technology leader, tradestation supports casual traders through its web-based platform and active traders through its award-winning desktop platform, all with $0 stock and ETF trades. Tradestation crypto allows you to buy, sell, and trade bitcoin, litecoin, ethereum, bitcoin cash and XRP. Tradestation crypto caters to both institutional and recreational clients. Read full review
Best crypto exchange
Founded in june of 2012, coinbase is the largest US-based cryptocurrency exchange, housing over 20 million users. Coinbase is best known for its easy to use website and crypto trading platform, coinbase pro. Coinbase supports 14 different cryptocurrencies for trading, including bitcoin (BTC), ethereum (ETH), and litecoin (LTC), among others.
Low fees - open account
promo offer: 0% commission stocks
Etoro is great for traders seeking zero-commission stock and ETF trades, an efficient platform, and access to copy trading. That said, there are hidden fees, education is sub-par, and etoro doesn't offer the same range of investments as traditional brokers. Etoro's crypto offering includes 16 different coins. Although crypto fees are cheap, you can only withdraw your crypto assets with a dedicated etoro wallet.
Maker-taker fee schedule
Kraken was founded in july of 2011 and offers trading on 18 different cryptocurrencies, including monero (XMR), ripple (XRP), and dash (DSH). Kraken currently offers a web platform but does not have a mobile app.
Most altcoins
Bittrex was founded in seattle, washington in 2014. Although bittrex doesn’t provide a mobile or desktop platform, it still offers over 100 tradeable coins, including bitcoin (BTC), ethereum (ETH), and litecoin (LTC).
Offers gemini dollar
Founded in 2015 by the winklevoss twins, gemini is a licensed digital asset exchange and custodian built for both individuals and institutions. Gemini lets users buy, store, and sell bitcoin (BTC), ethereum (ETH), litecoin (LTC), bitcoin cash (BCH), and zcash (ZEC), as well as the self-named gemini dollar (GUSD).
Best mobile app
Robinhood crypto allows users to trade bitcoin (BTC), ethereum (ETH), bitcoin cash (BCH), litecoin (LTC), dogecoin (DOGE), ethereum classic (ETC), and bitcoin SV (BSV). Ten additional coins can be added to a watch list. Robinhood crypto is best-fitted for users who trade multiple classes of assets. Read full review
Pricing details
Below is pricing information for each of the top online brokers for bitcoin trading. Each company uses a different structure.
Tradestation - open account
promo offer: commission-free trades on stocks, etfs & options trades
Headquartered in plantation, florida, tradestation is a wholly owned subsidiary of monex group, inc., one of japan’s largest online financial services providers. (1). Tradestation's roots date back to the 1982, when the company was formed under the name omega research. The company's flagship tradestation platform was launched in 1991, and tradestation group was a NASDAQ listed company from 1997 - 2011, until it was acquired by monex group (2).
Tradestation crypto features a simple pricing structure. Account balances below $100,000 pay a 0.50% maker fee and a 0.50% taker fee. Account balances over $100,000 don’t pay a maker fee, paying either a 0.25% or 0.125% fee based on account size. At this commission rate, it would cost $5.00 to buy $1,000 worth of bitcoin (BTC).
Coinbase - coinbase.Com
If buying bitcoin from a linked ACH account, the average commission is
1.49%. If buying bitcoin by selling another cryptocurrency you already hold in your coinbase wallet (or vice versa), then the average commission is
.50%. For example, buying $1,000 worth of bitcoin would cost
$15 from a linked bank account.
Etoro - open account
promo offer: 0% commission stocks
As an early pioneer in social copy trading, etoro was founded in israel in 2006 as a financial trading technology developer. After launching its first product, it has since grown to service over 9 million users with an innovative platform that continually evolves to be one of the largest social networks globally, with clients in over 170 countries.
Etoro charges no fees for sending or receiving transactions. Blockchain fees are applicable for sending and receiving. However, etoro does charge a conversion fee of 0.1%, set to market rates. Minimum withdrawal amounts and fees are also imposed for each type of cryptocurrency. The minimum bitcoin withdrawal amount is 0.0086 BTC and the withdrawal fee is 0.0005 units.
Kraken - kraken.Com
Kraken uses a maker-taker fee schedule with price incentives based on your trading volume over the last 30 days. For example, the average customer who trades less than $50,000 a month will pay $2.60 in fees for every $1,000 in trading volume. Fees for market makers range between 0% and 0.16%, while fees for takers range from 0.10% to 0.26%. This fee schedule, is more competitive than competitors like coinbase and gemini.
Bittrex - bittrex.Com
Bittrex has a simple pricing model, and charges a flat 0.25% on all trades. At this commission rate, it would cost $2.50 to buy $1,000 worth of bitcoin (BTC). Higher-volume traders, those trading more than $25,000 a month, should look at kraken for discounted pricing.
Gemini is much more expensive than other exchanges, charging between $0.99 - $2.99 on transactions under $200, and 1.49% on orders over $200. This means it would cost $14.90 to purchase $1,000 worth of bitcoin (BTC). Overall, gemini is the most expensive crypto exchange included in this guide, charging more than five times what other exchanges would charge for the same transaction.
Robinhood
Robinhood crypto does not charge a commission for placing crypto trades; however, it generates tiny profits from each order as it is routed. This routing practice, known as payment for order flow (PFOF), is also how robinhood makes money from stock trades. In their user agreement, robinhood crypto states that they may receive activity-based rebates from crypto exchanges, brokers, and market-makers, among other crypto intermediaries. Bottom line, since robinhood is not transparent with its pricing structure, there is a possibility the all-in costs per trade are actually much higher than some competitors. Unfortunately, there is no way to know for certain.
Pricing details per exchange
Final thoughts
Trading cryptocurrencies is becoming more widespread as investors around the globe become more comfortable with blockchain technology and the exchanges that offer online crypto trading. Security enhancements for digital wallets continue to improve as well, providing traders more confidence that buying bitcoin is safe.
Read next
Explore our other online trading guides:
About the author: blain reinkensmeyer as head of research at stockbrokers.Com, blain reinkensmeyer has 18 years of trading experience with over 1,000 trades placed during that time. Referenced as a leading expert on the US online brokerage industry, blain has been quoted in the wall street journal, the new york times, and the chicago tribune, among others.
About the author: steven hatzakis steven hatzakis is the global director of research for forexbrokers.Com. Steven previously served as an editor for finance magnates, where he authored over 1,000 published articles about the online finance industry. Steven is an active fintech and crypto industry researcher and advises blockchain companies at the board level. Over the past 20 years, steven has held numerous positions within the international forex markets, from writing to consulting to serving as a registered commodity futures representative.
All pricing data was obtained from a published web site as of 01/20/2020 and is believed to be accurate, but is not guaranteed. For stock trade rates, advertised pricing is for a standard order size of 500 shares of stock priced at $30 per share. For options orders, an options regulatory fee per contract may apply.
Advertiser disclosure: stockbrokers.Com helps investors across the globe by spending over 1,000 hours each year testing and researching online brokers. How do we make money? Our partners compensate us through paid advertising. While partners may pay to provide offers or be featured, e.G. Exclusive offers, they cannot pay to alter our recommendations, advice, ratings, or any other content throughout the site. Furthermore, our content and research teams do not participate in any advertising planning nor are they permitted access to advertising campaign data. Here is a list of our partners.
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Fxdailyreport.Com
Bitcoin, the peer-to-peer digital currency that was launched in 2009 by satoshi nakomoto, is now being used by major retailers (both online and offline) as a payment method. So much so, some forex brokers now offer trading with bitcoins.
Top recommended forex brokers offering bitcoin trades
| broker | info | bonus | open account |
|---|---|---|---|
| min deposit: $5 spread: from 0.2 pips leverage: 500:1 regulation: FSA (saint vincent and the grenadines), cysec | 50% deposit bonus, real contest 1st prize luxury car BMW X5 M, copy trading, trade&win. | Visit broker | |
| min deposit: $1 spread: from 0 pips leverage: 3000:1 regulation: cysec, IFSC | $100 no-deposit bonus, 100% deposit bonus | visit broker | |
| min deposit: 0 spread: non-spread, fee 0.1% per trade leverage: non-leverage regulation: - | visit broker | ||
| min deposit: $1 spread: from 0 pips leverage: 2000:1 regulation: FCA UK, cysec, FSP, bafin, CRFIN | 35% of the account deposit | visit broker | |
 | min deposit: $50 spread: starting 0 pips leverage: up to 400:1 regulation: FCA UK, NFA, CFTC, ASIC, IIROC, FSA, CIMA | visit broker | |
| min deposit: $300 spread: floating, from 0 pips leverage: 500:1 regulation: FCA UK reference number 579202 | visit broker | ||
| min deposit: $200 spread: starting 0 pips leverage: 500:1 regulation: ASIC australia, FCA UK | visit broker | ||
| | min deposit: no minimum deposit spread: 1.2 pips leverage: 50:1 regulation: CFTC, NFA, FCA, MAS, ASIC, IIROC | visit broker | |
| min deposit: $10 spread: leverage: regulation: cysec | - | visit broker | |
| | min deposit: $200 spread: from 3 pips leverage: 400:1 regulation: NFA, FCA, cysec | visit broker | |
| min deposit: $100 spread: starting 0 pips leverage: up to 500:1 regulation: FCA UK, ASIC australia, MAS singapore | visit broker | ||
| min deposit: $1 spread: fixed spread from 3 pips leverage: up to 1:1000 regulation: CBR, cysec and FFMS | 30% forex deposit bonus | visit broker | |
| min deposit: $250 spread: as low as 0.1 pips leverage: up to 400:1 regulation: ASIC australia and FCA UK | visit broker | ||
 | min deposit: €100 spread: the spread can be as low as 0.01%” (0.01% = spread for EUR/USD) leverage: 1:294 regulation: ASIC, cysec, FCA (UK) | visit broker | |
| min deposit: $100 spread: starting from 0.9 pips leverage: 400:1 regulation: MIFID, FSB & ASIC | visit broker |
Bitcoin – what is it
Bitcoin is a completely digital form of currency and uses cryptography which controls the creation and transfer of this currency. There is no centralized exchange for any transaction to occur with this currency. Any number of bitcoins can be sent to anyone living anywhere in the world without the intervention of any traditional financial institutions such as banks. Any user that wants to use bitcoins needs to have only a bitcoin address and a reliable internet connection. The user has to remain online for as long as the transaction needs to be processed. Every transaction that takes place is recorded in a public ledger called the blockchain. However, any user can receive bitcoins even when they are offline to their bitcoin address.
A user can get a bitcoin address by downloading a bitcoin client. The popular ones are bitcoin-qt and multibit. The difference that exists between the two of them is in the size of the blockchain that needs to be downloaded. A user that wants to download bitcoin-qt needs about 10 GB hard disk space. Multibit is a lighter version.
One can get a bitcoin address also by getting an online wallet. These are specialized websites that offer bitcoin services. They store the coins in a ‘cold storage’ which are offline safe deposits to prevent them from any misappropriation or pilferage. Only a small percentage is maintained online for immediate redemption.
If you are a forex trader that wants to trade in bitcoins, read on to find out the criteria you need to keep in mind to choose the best forex brokers that offer bitcoin trading.
Best forex broker that offers bitcoin trading – how to choose one
Given below are 10 factors that you need to consider to choose the best forex broker. It is a good idea to identify three or four brokers that offer bitcoin trading and then choose the best that satisfies all the belowsaid criteria.
It is important to choose a forex broker that complies with all regulations set up by local and international regulatory authorities. This ensures that the forex broker has a clear perception of the business, is sufficiently capitalized and maintains the clients’ funds in segregated accounts.
Any dealing with the forex broker requires that the client shares personal information financial data, passport details and other utility bill details. It is therefore important that the broker ensures one hundred percent security for the data. The broker should also offer a high level of internet security. It is vital that the forex broker has installed SSL encryption to prevent interception of sensitive data by the wrong recipients. It is good to choose a forex broker that offers two-factor authentication. This makes it difficult for hackers to intrude into customers’ accounts. You should also choose a broker who has an extensive privacy policy. This would ensure that your details are not sold by the broken to anyone else.
Depending on your trading appetite, you can choose a market maker that has dealing desks or choose an STP/ECN broker that passes your order to an interbank market.
Choose a forex broker that offer not only currencies but also precious metals, bitcoins, stocks, bonds, commodities, index options, etc.
#5: commissions, fees and spreads
The best forex broker would offer the most competitive commission rates and reasonable fees. The spreads offered by the broker should be in tune with your specific requirements.
It is particularly important to choose a broker that offers a demo account. The trader can practice a few dry runs before trading in the real markets. The trading platform offered by the user should be easy-to-use, navigable and rich with features.
Ensure that your style of trading is compatible with that of the broker that offers bitcoin trading.
Choose a forex broker that offers a reasonable amount as minimum deposit, fair withdrawal and payment terms, acceptable leverage ratio, terms of trading and other features.
Choose a forex broker that offer good and reliable customer service options.
#10: education and trading tools
The best forex broker has on offer a number of trading tools, tutorials and guides that would help the trader in his endeavor.
Best forex brokers that offer bitcoin trading
Etoro is the latest among forex brokers to make a foray into offering trading with bitcoins. They offer cfds. However, this site is not recommended for day traders as traders can enter and exit trades only up to four times in a day. This broker uses bitstamp as data feed for price references. It is to be noted that they do not accept US clients.
Bitcoin trading from ava trade website is available through cfds: bitcoin mini and bitcoin weekly. The leverages offered are 2:1 and 20:1, respectively. Whereas bitcoin mini CFD does not expire, bitcoin weekly CFD expires at 21.00 hours every friday. For both the contracts, data feed used is from BTC-E. Ava trade also provides an additional amount of $10 in addition to the spread. Ava trade does not allow weekend trading. This is a drawback for traders as they cannot take advantage of the fact that bitcoins can be traded on all 7 days of the week unlike currencies. Ava trade does not accept US clients.
Instaforex has recently introduced the facility of trading in bitcoins to its clients. The leverage offered by the broker is 25:1. There is no actual delivery of the cryptocurrency during trading. The gains are accrued from the rate fluctuations of bitcoins. The cryptocurrency can be traded on the instaforex platform with a leverage of up to 1:25.
Best cryptocurrency brokers for 2021
Daniel ‘harris’ major
I have tested 40+ crypto brokers. You can find the best cryptocurrency brokers below. This is by far the easiest way to get started with cryptocurrencies.
Cryptocurrency trading has become really popular in the past years. It’s growing more ever year.
Many big trading brokers have already added some of these cryptocurrencies. Everybody can sign up and start trading bitcoin or other crypto coins. This is the easiest and probably the simplest way to invest in cryptocurrency.
After trying out most brokers, here are the best cryptocurrency brokers:
Best cryptocurrency brokers (non-US traders only)
Plus500 – top rated trading platform
Plus500 is a big name in the trading industry. They have a really low minimum deposit requirement and a great trading site.
Buy/sell cfds on bitcoin in addition to buying stocks, commodities, forex etc (traded only through cfds). Plus500 is the most complete trading platform.
- Trade cfds on bitcoin & many other cryptos
- Minimum deposit is only $100
- Regulated and trusted platform
- Very fast signup process
- Live chat
- Many payment methods (even paypal)
- You cannot withdraw any cryptocurrency
- You have to complete a questionnaire, upon sign up
Plus500 disclaimer: 76.4% of retail CFD accounts lose money.
IQ option – lowest minimum deposit ($10)
If you don’t want to make a huge initial investment, then IQ option is the best broker for you. The minimum deposit requirement is only $10. This is by far the lowest in the industry.
- You can trade many cryptocurrencies
- Minimum deposit is only $10
- Best trading platform
- Multiple account currencies
- Free demo account
- Regulated by CYSEC (#247/14)
Etoro – top crypto broker
Etoro is a really popular trading site. They have been around since 2006. Etoro is regulated by CYSEC, FCA and ASIC.
Buy/sell bitcoin on etoro in addition to buying stocks, commodities, forex etc. Etoro is the most complete trading platform.
- Trade bitcoin & many other cryptos
- Minimum deposit is $200
- Regulated and trusted platform
- Australian traders are also accepted
- Great support team
- Many payment methods (even paypal)
- You cannot withdraw any cryptocurrency
- You have to complete a questionnaire, upon sign up
Etoro disclaimer: 71% of retail CFD accounts lose money.
Highlow – best all-round crypto broker
Due to regulation highlow stopped accepting traders from the EU and UK.
Highlow is an australian trading broker (AFSL no.364264). What I like most about this broker is the intuitive platform. It is so easy to use. Especially new traders will like the clean layout.
I’ve been using highlow for a few years now and I never had a problem. Highlow publishes their number of trades on the homepage. There are millions of trades on this broker each month.
I use the main platform which is web based. This means, that you don’t have to download any software. This platform is stable and safe (they use SSL).
I have also tried the ios app and the android app. They are great, but I just don’t like trading on smartphones in general.
The payouts on highlow are amazing (up to 200%, which is more than on other brokers).
Highlow is a great broker for cryptocurrencies (but only if you are not from EU,UK, US). They have a good reputation, great support team and awesome promotions for new traders.
- Trade bitcoin & other cryptos
- Minimum deposit is only $50
- Regulated and trusted platform
- Fastest signup process (no questionnaires)
- Multiple account currencies
- Free demo account (no registration needed)
Nadex – US traders welcome
Nadex is a CFTC regulated broker. In fact, this is probably the only US broker that has this regulation.
Only US traders are allowed on nadex. Non-US traders check out the next broker.
Update OCTOBER 2019: looks like nadex removed crypto trading. After contacting them I found out that they will add it back soon. Register on nadex now and get updated when they add it.
Recently, nadex started offering bitcoin trading.
- Trade bitcoin, forex or binary options
- Minimum deposit is $250
- CFTC regulated broker
- Great support team
- Many payment methods (even paypal)
Crypto brokers with most cryptocurrencies
Here are the most popular cryptocurrencies offered by cryptocurrency brokers:
- Etoro – bitcoin, ethereum, litecoin, dash, ethereum classic, NEO and ripple.
- Plus500 – bitcoin, ethereum, litecoin, bitcoin cash, ripple, IOTA.
- Avatrade – bitcoin, ethereum, ethereum classic, ripple, dash, bitcoin cash litecoin, monero and NEO.
Lowest minimum deposit brokers
These are the best brokers with low minimum deposit requirements:
- Etoro – $200
- Plus500 – $100
- Avatrade – $100
This is really important because the crypto market itself is unregulated. Depositing on a regulated broker means that your money is safe.
We’ve also looked at the support team and the payment methods. You can deposit easily using multiple payment methods on the brokers below.
Top rated brokers that have cryptocurrencies
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.
Etoro disclaimer: 71% of retail CFD accounts lose money.
You still can’t decide which broker is best for you?
How to choose your cryptocurrency broker
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.
Lets go into what aspects you as a trader must consider when choosing a broker to trade cryptocurrencies.
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 (official site), litecoin (official site), or ethereum(official site), 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.
Pros and cons of cryptocurrency brokers
Here are some features that these broker have or don’t:
pros
- Signup up with a crypto broker is probably the fastest way to get started with cryptocurrency trading
- If you are less tech-savvy then a broker is safer for you
- You can start buying cryptocurrency while traditional exchanges don’t always accept this payment method
- Most of the time you can’t withdraw cryptocurrencies from a broker. You have to exchange it back to fiat money (USD/EUR etc.)
Cryptocurrency brokers – what to look for
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 (why is the stock market closed on the weekend?). 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.
More great features you could be interested in
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.
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.
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.
As you see, 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.
Ready to start trading?
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. Excel at trading bitcoin by creating your own trading strategy.
These cryptocurrency brokers make it really easy to trade bitcoin and other coins. You don’t have to be a trading expert. It helps if you know what a blockchain is or how the ledger and transactions work, but this is all optional.
Sign up now and see for yourself how easy it is to get started.
Popular crypto brokers
Crypto investing has become very popular recently, especially since many brokers are listing bitcoin, litecoin, dash and ripple as available assets.
Although every broker you find, will give you the opportunity to trade bitcoin contracts, many brokers have ridiculously wide spreads. A recent comparison of brokers, found spreads ranging as wide as $150, to as narrow as $10, with the price of a BTCUSD at $16,240.
Reminder: only invest with a licensed and regulated broker!
How to compare bitcoin brokers
Here is a quick checklist of items to compare between bitcoin brokers.
- Verify the bitcoin broker is licensed and regulated.
- Signup for their free demo account.
- Check minimum trade size
- Check minimum deposit requirement.
- See how tight the spread is on bitcoin.
Regulated crypto brokers
Pepperstone is the best CFD broker for trading crypto, because they have the tightest spreads!
They are a popular globally licensed and regulated broker, offering a choice of trading apps, see here.
Start with a free demo account, signup here.
Plus500 is a very popular CFD broker, that is licensed in multiple countries, look here.
Offering tight spreads on bitcoin and crypto currency trading, plus their unique trading platform, makes plus500 a popular choice.
Try a free demo account at: plus500.Com.
Disclaimer: crypto trading availability is subject to regulations. 76.4% of retail CFD accounts lose money.
If your broker is not regulated… you will be scammed!
How to avoid crypto scams
There are two types of scams that are now very common with crypto currency investors.
The first one being “trading robots” which are suppose to make you a lot of money by automatically trading on your behalf. You should read about real trading software, see here.
The second are the brokers who are not licensed or regulated. Every financial company must be licensed by the government. Popular brokers are licensed in australia by ASIC or in cyprus by cysec. The FCA in the united kingdom recently banned brokers from offering CFD’s on crypto currency to U.K. Residents.
If you go with a broker who promises to make you rich, and they are not licensed, you can read the complaints page now, so you understand what you will be dealing with.
Bitcoin brokers – understand the advantages of cryptocurrency trading
Bitcoin is a cryptocurrency, which can be spent, conserved, or invested, and also it can be swiped also. Trading with tornado.Cash was taken into consideration to be high-risk, but the current patterns show that it has ended up being a big hit the binary alternatives sector. This decentralized money is not regulated by any government, or by any type of main authority.
What establishes the price of bitcoins?
Bitcoin’s rate is established according to the supply as well as need proportion. Bitcoins in blood circulation are limited, and brand-new ones are produced at a really slow rate.
Bitcoin trading is prominent due to –
Low rising cost of living danger – inflation is the biggest concern for investors, since all the money lose a few of their buying power when the get banks maintain printing extra money. With bitcoin minting system being restricted to simply 21 million bitcoins, it hardly obtains impacted with inflation.
Low collapse danger – currencies fluctuations depend on government trade plans, which at times create devaluation, and even bring about the collapse of money. Bitcoin is a digital global currency, which is not managed by any kind of federal government.
Basic, secure and also economical – the bitcoin repayments happen in between peer-to-peer with no intermediary, which is why it is simple and also low-cost.
Easy to lug – bitcoins worth million bucks can be lugged in your pocket, in a memory stick. This can not be made with gold or cash money.
Untraceable – issuance of bitcoin is not controlled by any kind of government, so the danger of seizure is nil.
Binary alternatives bitcoin trading system
Binary alternatives brokers are obtaining aware of appeal of these bitcoins, as well as its continuous ever-changing worths. Consequently they are using this opportunity to offer investors with the latest volatile crypto-currency as an added payment technique. Bitcoin brokers giving crypto-currency as trading option include –
One touch option – bitcoin trading can be performed with anyoption or one-touch option. The existing preferred money pair is BTC/USD.
Setoption – the newest choice readily available for asset trading is BITCOIN/USD.
Bitcoin brokers supply a basic trading online platform. All you need to do is visit their website, enter your details, and create an account. You can start with trial account to comprehend the market action.
The trading screen is easy.
Choose the cost direction (UP/DOWN).
Select the duration.
Is bitcoin trading secure?
Bitcoin network is possibly the globe’s large spread computer job. One of the most common weakness right here is the user mistakes. Bitcoin wallet files can obtain shed, stolen, or deleted mistakenly similar to any kind of other files in the digital form.
Nonetheless, individuals can use audio protection strategies to protect their money. Alternatively, you could choose the service providers that supply top-level security, as well as insurance coverage versus loss or burglary.
We give most current details on bitcoin brokers as well as online trading systems on our website. Please visit our website to check out the broker reviews in order to make the right selections.
Trading with bitcoins was thought about to be risky, but the present trends show that it has come to be a big hit the binary choices field. Bitcoin’s rate is figured out according to the supply as well as demand ratio. Binary choices brokers are obtaining familiar with popularity of these bitcoins, as well as its consistent rising and falling values. Bitcoin brokers giving crypto-currency as trading option include –
Bitcoin brokers supply an easy trading online platform.
Best bitcoin brokers – learn 2 trade full 2021 guide!
Best bitcoin brokers – learn 2 trade full 2021 guide!
Bitcoin brokers, looking to join the cryptocurrency revolution by buying some bitcoin of your own? If so, the easiest and most-effective way of doing this is through a bitcoin broker.
In a nutshell, the best bitcoin brokers allow you to quickly open an account, deposit funds with a debit or credit card – and then buy as much or as little bitcoin as you like.
With that said, there are hundreds of platforms active in the market, so knowing which broker to sign up with is no easy feat. As such, we would suggest reading our guide on the best bitcoin brokers.
Not only do we unravel our top 5 bitcoin broker picks of 2021, but we also explain why opting for bitcoin cfds is the safest, cheapest, and most convenient way of making an investment.
Table of content
Etoro - buy and invest in assets commissions-free
- Buy over 800 stocks, cryptocurrencies, and etfs without paying any commissions
- Trade thousands of cfds
- Deposit funds with a debit/credit card, e-wallet, or bank account and paypal
- Perfect for newbie traders
What are bitcoin brokers?
A bitcoin broker is simply an online trading platform that allows you to buy and sell cryptocurrencies. Much like a traditional online stockbroker, the process requires you to open an account, deposit funds, and then decide how much bitcoin you wish to buy. Brokers typically allow you to use everyday payment methods like a debit/credit card, bank account, or e-wallet, which makes the buying process super-easy.
In return, bitcoin brokers will charge you a fee. This can come in a range of shapes and sizes, so your costs will depend on the broker that you use. For example, while popular bitcoin brokers like coinbase charge fees to deposit funds and make a purchase – platforms like crypto rocket and etoro do not. As such, you need to understand the broker’s fee structure prior to taking the plunge.
With that being said – there are two types of bitcoin brokers active in the online space – so the one that you opt for will depend on your long-term investment goals. Crucially, this will either be a broker that requires you to store your bitcoin in a private wallet, or a broker that facilitates your investment via a regulated CFD.
Types of bitcoin brokers
It’s super-important for you to understand how your choice of broker can have a major say on the make-up of your bitcoin purchase, so we explain this in more detail in the sections below.
✔️ buying ‘actual’ bitcoin
Bitcoin is a decentralized currency – meaning that it is not controlled by any single person or authority. As such, those holding bitcoin in a private wallet are 100% responsible for keeping it safe. In other words, if your bitcoin wallet was hacked – or you transferred funds to an invalid address, your bitcoin would be lost forever.
Unlike a traditional investment, you would not be able to pick up the telephone and ask the broker to investigate the loss. On the contrary, this is the risk of buying ‘actual’ bitcoin, as you need to ensure that you keep it safe at all times.
Now, this isn’t necessarily an issuer per-say if you know how cryptocurrency wallets work. However, if you’re a complete newbie entering the bitcoin space for the first time, the thoughts of having to store your own coins is nothing short of petrifying – especially if large amounts of capital are involved.
Nevertheless, if you do want to own ‘actual’ bitcoin, the broker in question will facilitate your order via an everyday payment method. Once the coins have been purchased, you will then need to withdraw them to a private wallet. Some platforms allow you to store the coins within the broker’s ‘web wallet’ – albeit, this is extremely risky.
✔️ buying bitcoin cfds
So that leaves us with option 2 – buying bitcoin cfds. For those unaware, a CFD (contract-for-difference) is a financial instrument that allows you to invest in an asset without you taking ownership. Instead, you are simply speculating on whether the price of the asset will go up or down.
Not only does this include assets like bitcoin, but literally any financial instrument that is traded in the traditional markets. Think along the lines of gold, oil, stocks, indices, gas, wheat, and etfs. On the one hand, buying a bitcoin CFD will mean that you do not actually own the underlying asset.
In fact, the benefits of using bitcoin brokers that specialize in cfds are four-fold – as we explain below.
1. Fees are much lower
One of the most popular bitcoin brokers in the online space is that of coinbase. The overarching reason for this is that the platform makes it super-easy to buy bitcoin with an everyday debit or credit card. However, coinbase charges handsomely for its services.
For example, you need to pay 3.99% to deposit with a debit/credit card, and then a further 1.5% every time you buy or sell bitcoin. These fees are huge in comparison to bitcoin brokers that specialize in cfds.
In fact, most of the bitcoin brokers that we recommend on this page not only allow you to deposit funds for free – but you can trade bitcoin without paying any commissions.
2. CFD brokers are heavily regulated
Much of the wider cryptocurrency broker space operates in an unregulated manner. This is mainly due to the fact that very few countries have yet to install crypto-specific legislation – meaning that platforms are able to trade without holding a license.
On the contrary, the CFD broker space is heavily regulated – which means that your funds remain safe at all times. For example, all of the top-rated bitcoin brokers listed on this page hold a tier-one regulatory license. This includes bodies such as the UK’s FCA, australia’s ASIC, or cyprus’s cysec.
3. Storage and selling is seamless
As we briefly noted earlier, buying ‘actual’ bitocin is a logistical nightmare. For example, you are required to withdraw the coins out of your chosen broker, and then keep them safe in a private wallet. When it comes to offloading your bitcoin investment, you then need to transfer the coins back into an online broker, and exchange them for cash. This is a highly cumbersome process that is fraught with risk.
With that said, by using a bitcoin broker that specializes in cfds, you do not need to worry about storage at all. This is because cfds merely track the underlying asset – meaning the financial instrument does not exist. As such, there is no fear of your bitcoin being lost or stolen!
Furthermore, this also makes it a breeze when it comes to cashing your investment out. As your bitcoin is stored at the broker via a CFD instrument, you simply need to place a sell order to exit your trade. As soon as you do, you can then withdraw the funds back to your debit/credit card, bank account, or e-wallet.
4. Ability to apply leverage and short-sell
Unlike a conventional bitcoin broker, those offering cryptocurrencies in the form of cfds allow you to apply leverage. For those unaware, this means that you will have the option of trading more than you have in your account.
In the UK, for example, investors are able to apply leverage of up to 2x when trading bitcoin, meaning that a £500 investment would allow you to buy £1,000 worth. In other regions, you can trade well up to 100x – meaning a £500 balance would allow you to trade with £50,000!
Similarly, CFD brokers hosting cryptocurrencies also allow you to short-sell bitcoin. This means that you can make gains in the event bitcoin goes down in value.
Payments at bitcoin brokers
So now that you know the two types of bitcoin brokers currently active in the market, we are now going to discuss payments. After all, you will be buying bitcoin with real-world money – so you need to think about how you intend getting funds in and out of the broker.
Payment methods
Most bitcoin brokers allow you to deposit and withdraw funds with a range of payment methods. This might include:
- Debit cards
- Credit cards
- Local bank transfer
- International bank wire
- Paypal
- Skrill
- Neteller
- Western union
It’s best to check whether or not your preferred payment method is supported prior to opening an account with the broker.
Deposit/withdrawl fees
In some cases, bitcoin brokers will charge you a fee to deposit and/or withdraw funds. As we discussed earlier, the likes of coinbase charge a whopping 3.99% on debit/credit card deposits.
This means that a £1,000 deposit would cost you £39.99 in fees. At the other end of the spectrum, the likes of etoro charge nothing on deposits, and a mere $5 on withdrawals.
Bitcoin broker fees
Bitcoin brokers are in the business of making money, so you need to have a firm grasp of the platform’s fee structure. This can include:
Trading commissions
This is a commission charged by the broker every time you place a trade. This includes a fee when you buy bitcoin, as well as when you sell it. If a trading commission is charged, then you will pay a percentage of the amount you wish to buy.
For example, let’s say that the broker charges a fee of 1.5%, and you wish to buy £2,000 worth of bitcoin. This would translate to an initial fee of £30. However, when it comes to selling your bitcoin you will also need to pay a commission.
For example, let’s say that your £2,000 bitcoin investment is now worth £3,000. This means that you will pay 1.5% on the current market value of £3,000 – which equates to £45. As noted earlier, most of the bitcoin brokers that we recommend on this page charge no trading commissions at all.
Spreads
All bitcoin brokers will charge a spread. Much like the traditional investment space, this is the difference between the ‘buy’ and ‘sell’ price of the asset.
For example, let’s say that bitcoin has a ‘buy’ price of $6,000, and a ‘sell’ price of $6,060. By calculating the difference between the two prices, we get a spread of 1%. This means that you need your bitcoin investment to increase by at least 1% just to break even.
There is often a trade-off between the spreads and commissions charged by bitcoin brokers, so you need to check this before signing up. For example, while a broker might not charge any commissions, you might find that its spreads are somewhat uncompetitive.
How do bitcoin brokers work?
Still confused how the investment process works at a bitcoin broker? If so, you’ll find a simple step-by-step guide outlined below. This unravels the end-to-end process of opening an account, depositing funds, buying bitcoin, and crucially – cashing out your investment.
Step 1: find a bitcoin broker
To get the ball rolling, you’ll need to find a bitcoin broker that meets your needs. If you like the sound of investing in bitcoin via cfds, you’ll find our top-five picks listed towards the bottom of this page.
If you want to own ‘actual’ bitcoin, it might be worth using etoro. This is because the platform is regulated, it accepts heaps of payment methods, and ultimately – you don’t need to withdraw your coins out.
Etoro - buy and invest in assets commissions-free
so, let's see, what we have: bitcoin brokers listed here can offer you bitcoin trading in the UK including online bitcoin investing. Our comparison lists licensed bitcoin accounts for buying and selling bitcoin. At bitcoin brokers
Contents
- Top forex bonus list
- Bitcoin investing: compare accounts for buying & selling bitcoin
- How to choose an account for investing in bitcoin
- Look for a regulated provider who also offers bitcoin
- Compare the costs of investing in bitcoin
- Understand the risks involved in investing in bitcoin
- How do you invest in bitcoin?
- Bitcoin FAQ:
- What is bitcoin?
- How much is bitcoin worth?
- How does bitcoin work?
- How to get bitcoins
- Is bitcoin safe?
- Is bitcoin regulated by the FCA?
- Are bitcoin adverts real?
- Is bitcoin a scam?
- How to make money with bitcoin
- Where to buy bitcoin
- Is bitcoin legal?
- How to use bitcoin
- Is bitcoin a good investment?
- How to sell bitcoin
- Where can you get bitcoin investing ideas?
- Compare the best bitcoin brokers
- Where can I find the best bitcoin brokers?
- What is a bitcoin broker?
- How do brokerages work?
- How do I use a bitcoin broker?
- What should I look for in a broker?
- Do I have to verify my identity?
- What’s the difference between a bitcoin broker and an exchange?
- Do brokers charge commission or fees for buying bitcoin?
- Can I buy multiple cryptocurrencies through a broker?
- Do I need a wallet to use a bitcoin broker?
- Should I use brokers to buy and sell bitcoin?
- Bitcoin OTC brokers: what are they, how do they work, and should you use them
- What is the OTC market?
- What are bitcoin OTC brokers?
- Why use a bitcoin broker?
- Best bitcoin brokers
- Should you buy bitcoin using an OTC broker?
- Best online brokers for bitcoin trading
- Best bitcoin trading platform
- Pricing details
- Pricing details per exchange
- Final thoughts
- Read next
- Fxdailyreport.Com
- Top recommended forex brokers offering bitcoin trades
- Best cryptocurrency brokers for 2021
- Best cryptocurrency brokers (non-US traders only)
- Plus500 – top rated trading platform
- IQ option – lowest minimum deposit ($10)
- Etoro – top crypto broker
- Highlow – best all-round crypto broker
- Nadex – US traders welcome
- Crypto brokers with most cryptocurrencies
- Lowest minimum deposit brokers
- Top rated brokers that have cryptocurrencies
- How to choose your cryptocurrency broker
- Which cryptocurrencies are you interested in trading?
- Pros and cons of cryptocurrency brokers
- Cryptocurrency brokers – what to look for
- More great features you could be interested in
- Ready to start trading?
- Popular crypto brokers
- How to compare bitcoin brokers
- Regulated crypto brokers
- How to avoid crypto scams
- Bitcoin brokers – understand the advantages of cryptocurrency trading
- Best bitcoin brokers – learn 2 trade full 2021 guide!
- Best bitcoin brokers – learn 2 trade full 2021 guide!
- Table of content
- What are bitcoin brokers?
- Types of bitcoin brokers
- ✔️ buying ‘actual’ bitcoin
- ✔️ buying bitcoin cfds
- 1. Fees are much lower
- 2. CFD brokers are heavily regulated
- 3. Storage and selling is seamless
- 4. Ability to apply leverage and short-sell
- Payments at bitcoin brokers
- Bitcoin broker fees
- How do bitcoin brokers work?
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