With the official release of Bitcoin, the first cryptocurrency ever, back in 2009, the world of financial opportunities for traders and investors of all levels has expanded immensely. At the beginning of 2010, it was the sole cryptocurrency with a value of just a few cents. Over the next couple of years, Bitcoin’s price saw a dramatic fluctuation and thousands of other crypto assets have sprung up as well.
Cryptocurrency is a type of online-based currency, uniquely characterized by its decentralized character. Transactions between two parties are carried out without the need of a bank institution or a third-party involvement and are recorded on a public digital ledger known as the blockchain.
Nowadays, many investors and traders seek avenues of cryptocurrency trading and the present publication focuses on its specifics, as well as a listing of ten leading Crypto Trading Brokers.
How Cryptocurrency Trading Works for Traders and Brokers
The cryptocurrency market can be quite intimidating for novice and experienced traders alike due to the wide array of trading terms and notions, as well as the variety of processes involved. To help traders figure out the market more easily, we have divided the process into seven distinct steps. Next, we look into trading from the brokers’ perspective and focus on how operators function and generate their profits.
How Cryptocurrency Trading Works for Traders
Here are the steps that traders need to take to start dealing in the crypto investment world:
Overall, there are two approaches to trading cryptocurrencies – speculating on their price fluctuation using Contracts for differences (CFDs) or buying the online-based assets, with expectations that their price will rise.
With the first approach, traders are speculating on price swings and do not own the underlying assets. Alternatively, traders can take ownership of the relevant digital asset, aiming to store it in a digital crypto wallet and eventually profit from it.
The way the crypto market works is a bit different from the rest of the trading markets due to its decentralized character. Cryptocurrencies are largely volatile, meaning that their price can dramatically move both up and down. Substantial fluctuations in the value of crypto assets can be due to news, blockchain forks, and government intervention, among other factors.
Opening a trading account is probably the easiest step along the way. Traders can accomplish it in a matter of minutes, and all they need to provide is personal and contact information.
What follows next is verification of the newly-created account. This process usually takes up to 24 hours and is part of the mandatory requirements that regulated providers of trading services are obliged to comply with. Other than that, traders should also fund their accounts, using a convenient banking method.
In a hugely volatile market, such as the cryptocurrency one, traders should build and follow a sound trading plan. As attractive as volatile trading markets can be, they are equally challenging. Traders have access to various risk management tools, which may help to minimize losses to a great extent.
To help you choose a crypto trading platform, we have compiled a list of leading global operators. The majority of suppliers have incorporated the advanced and widely popular MetaTrader software, equipped with everything necessary for a seamless trading session.
As a final step of the crypto trading process, traders are supposed to open, monitor, and close their positions. When trading in cryptocurrency CFDs, there is no need to set up a crypto wallet. No matter which cryptocurrency you have chosen to trade with (Bitcoin, Ethereum, Solana, or XRP, for example), you need to decide the size of your position and select between opening a long or short position.
How Cryptocurrency Trading Works for Brokers
Trading brokers offer cryptocurrency CFDs trading, which, as already mentioned, does not entail owning the relevant asset or storing it in a crypto wallet. In terms of cryptocurrency trading brokers and the way they function and derive profits from the services they deliver, we can look into the following trading terms:
From deposit and withdrawal fees to account maintenance and inactivity fees, there may be some additional non-trading expenses charged by operators. These should be carefully checked in advance.
While some trading brokers adopt a commission-oriented pricing policy, others rely on spreads to derive profits from the services they offer.
The spread is the difference between the Buy and Sell price of an asset, or the Bid and Ask price. The tighter the spread, the lower the cost. Much like the other financial instruments, the spread costs of the most frequently traded crypto pairs are lower compared to more rarely traded crypto assets.
Spreads are related to liquidity and supply and demand for a particular asset. The highest-liquidity crypto assets or the most widely traded ones tend to have the tightest spreads, provided there is not a substantial supply and demand imbalance.
Overnight fees, also known as financing rates, are charged when a trader holds a leveraged position for more than a single day. Since a leveraged position entails borrowing funds from the broker to trade, customers are supposed to pay interest.
In the context of financial markets and crypto trading, leverage refers to using borrowed funds to get greater market exposure. In other words, traders finance just a portion of their trades, and the rest is borrowed from the Trading Broker they have established an account with. Leverage enables traders to multiply their potential profits, but simultaneously magnifies risks, especially in the context of the highly volatile crypto markets.
Financial regulatory authorities are appointed by governments or other bodies to monitor the operation and transparency of financial markets and the companies that are involved in financial activity. The main objective of these institutions is to ensure fair and safe trading conditions for customers, as well as prevention and investigation of fraud.
Top Ten Cryptocurrency Trading Brokers
The next section of the current publication is dedicated to a listing of 10 award-winning suppliers of trading services. Of all the trading assets they have included in their product offerings, we have concentrated on cryptocurrency trading, the related commissions, spreads, and leverage, as well as additional trading tools and features.
- 1. AvaTradeMin Deposit$100FeesNo deposit and withdrawal feesCommissionsNoneSpreadFrom 0.20% to 2% Over-market spreadsLeverage EU2:1Leverage non-EU2:1CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
AvaTrade has been at the forefront of the online trading industry since 2006 and is one of the first operators to make trading available for retail customers. Innovations and new technologies have always been among the company’s priorities. AvaTrade was also one of the pioneers of crypto trading.
As a highly regulated broker, AvaTrade has obtained the regulatory approval of financial institutions in Europe, Japan, Australia, the UAE, South Africa, and the British Virgin Islands. Over the years, the company has managed to build a solid reputation and a network of more than 300,000 regular traders.
AvaTrade’s product offering features more than 1,000 trading instruments, including Forex, stocks, commodities, indices, and cryptocurrencies. Traders can take advantage of leverage of up to 2:1 when it comes to trading the highly volatile digital assets. Spreads vary per instrument, as values start from 0.20% and reach up to 2%.
Customers are supplied with a choice between the MetaTrader 4 and 5 platforms, the proprietary WebTrader, AvaOptions, as well as the AvaTradeGO. Along with a cutting-edge trading platform, AvaTrade offers a wealth of trading resources. The company has implemented a proprietary risk management tool, called AvaProtect.
The minimum investment entry on AvaTrade’s platform is $100, which makes it a particularly suitable option for novice traders. Aside from the fee-free transactions, the company does not charge any additional commissions.
- 2. eToroMin Deposit$10Fees1% fee for buying cryptocurrencies, added to the Bid-Ask spread;
Conversion fees to non-USD deposits and withdrawals;
A $5 fee on withdrawals;
Inactivity fee after 12 months of no loginCommissions1% fee for buying cryptocurrenciesSpreadFrom 1%Leverage EUN/ALeverage non-EUN/AThis ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.
As one of the most popular social trading platforms, eToro has garnered the attention of millions of traders and investors from all over the world. Customers of the brand have access to various trading tools on the advanced platform and can interact with other fellow traders and investors from around the world.
The innovative CopyTrader feature has been developed and popularized by eToro, revolutionizing the way people perceive trading. It allows inexperienced traders and all others to replicate the trading moves of investors and thus start profiting from trading in the very beginning.
Customers of the brand have many options to diversify their trading portfolio, share their ideas and explore new strategies. The user-friendly platform has been developed in such a way that even novice traders can adapt easily to the specifics of trading the hugely volatile digital assets.
Etoro’s cryptocurrency spreads vary per instrument, with spreads for Bitcoin at 1%, and those for Tezos (XTZ) reaching 5%. Some of the top-traded crypto instruments available on the eToro platform include BTC, ETH, and ADA, among others. Traders can follow each coin’s trends with the help of advanced tools and charts.
They have access to the latest market research and news concerning the trading with various crypto assets. To protect their investments, customers of the brand can use the Stop Loss and Take Profit features, and thus manage successfully the trading risks they take.
- 3. AdmiralsMin Deposit$100FeesNo deposit and withdrawal fees;
Monthly inactivity fee of $10 after 12 months of no login activity
0.3% currency conversion feeCommissionsNoneSpreadFrom 0.3% to 3%Leverage EU2:1Leverage non-EU2:1CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Established in 2001, Admirals has its headquarters in the United Kingdom and operates in compliance with the regulations of renowned financial institutions such as the CySEC, the FCA, the ASIC, and the FSCS, among others.
To get access to the trading tools available on the trading platform, customers are supposed to deposit as little as $100. Admirals makes use of the widely-popular MetaTrader 4 and 5 software, along with the MetaTrader Supreme Edition.
The company’s portfolio includes more than 8,000 financial instruments. Crypto trading is a much sought-after option, as the supplier has an offering of more than 30 cryptocurrency pairs. The top crypto CFDs at Admirals include Bitcoin, Ethereum, XRP, Litecoin, Bitcoin Cash, Cardano, Dogecoin, and Solana.
Trading Cryptocurrency Cross Pairs is also an option, as customers may choose between BCH/BTC, DSH/BTC, EOS/BTC, and ETC/BTC, among others.
A look at the company’s spreads on cryptocurrency trading shows that they vary from 0.3% to 3% across the different crypto assets. As for the maximum allowable leverage for retail accounts, it is up to 2:1.
In terms of educational resources and analytical tools, Admirals has a lot to offer. Besides extensive information on trading notions, concepts, and strategies, Admirals also delivers webinars, seminars, and different tutorials to its customers.
- 4. PepperstoneMin Deposit$200FeesNo deposit and withdrawal fees;
No account maintenance and inactivity feesCommissionsNone for standard accountsSpreadFrom 0 to 35Leverage EU2:1Leverage non-EU10:1CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Since its outset in 2010, Pepperstone has evolved into a high-end supplier of online trading services, managing to build an exclusively competitive platform that highlights trading in forex, shares, indices, commodities, and cryptocurrencies.
Pepperstone’s cryptocurrency trading portfolio includes more than 20 different assets to choose from, each with a specific spread and leverage. Minimum spreads vary per instrument, from 0 to 35. As for the non-trading expenses, they have been reduced to a minimum, as the supplier does not charge account inactivity fees.
What traders are supposed to do to start trading is open their accounts (with a minimum of $200) and verify them. Customer accounts are kept separately from the company’s funds, delivering traders with extra peace of mind.
Among the risk management tools that Pepperstone has on offer is “Negative balance protection”. Customers of the brand can choose between the popular MetaTrader 4 and 5 platform, as well as cTrader. As far as the allowable account types are concerned, traders can select between a Standard and a Razor account. While the pricing of Standard accounts is spread-based, the one for Razor accounts is commission-oriented.
The payment methods that can be used to fund the trading account are comprehensive and include card payments, bank transfers, Skrill, Neteller, Paypal, and Union Pay.
- 5. Markets.comMin Deposit$250FeesNo deposit and withdrawal fees;
Currency conversion fees may be applicable;
2.5% Overnight feeCommissionsNoneSpreadFrom 0.0015 to 70Leverage EU2:1Leverage non-EU10:1CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.9% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Markets.com is a fantastic source for traders looking for a comprehensive and dependable online platform with a wide range of account options and trading features. Established in 2008, Markets.com has been globally recognized for its perfectly equipped trading environment and the great variety of more than 2,200 trading assets.
This trading broker has been licensed by a total of 5 global financial institutions, including the ASIC, CySEC, and the FCA.
There are no fees on deposits and withdrawals. As a zero-commission supplier of trading services, Markets.com makes a profit by charging spreads on trades. They differ for each of the crypto assets and range from 0.0015 to a maximum of 70 (USD). The maximum allowable leverage for trading in the crypto CFDs also varies per instrument. The one for Cardano, Tezos, and Polkadot, for example, is 2:1. Monero, Litecoin, Ripple, and Dash can be traded with a maximum leverage of up to 5:1. Bitcoin Futures and Ethereum CFDs can be traded with a leverage of up to 10:1.
Aside from the custom-built, user-friendly trading platform, Web Trader, Markets.com also supports the MetaTrader 4 and 5 software. A sufficient selection of educational resources, analysis instruments, and banking solutions increase Market.com’s ranking and make it even more compelling.
- 6. easyMarketsMin Deposit$100FeesNo deposit and withdrawal feesCommissionsNoneSpreadSpreads from 0.001 to 45Leverage EU2:1Leverage non-EU2:1CFDs and Options are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs and Options work and whether you can afford to take the high risk of losing your money.
EasyMarkets is a reputable, regulated trading broker that has been in operation for more than 20 years. The company’s goal has always been to provide its customers with the most cutting-edge products, trading instruments, and services.
By opening an account with easyMarkets, traders get exposure to trading in major cryptocurrency CFDs, including Bitcoin, Ethereum, Ripple, Litecoin, and many more. The trading broker guarantees no slippage, as trades are executed at the rate customers see, so surprises due to spread change during volatility are highly unlikely. Furthermore, spreads are fixed, in line with the Price Transparency Promise of the company.
The Free Guaranteed Stop Loss is yet another standard feature of the easyMarkets platform, as well as the Negative Balance Protection.
The crypto trading listing of easyMarkets comprises 20 cryptocurrency pairs, with varying spreads from 0.001 to 45. As for the maximum allowable leverage, it is set to 2:1. The crypto trading offering of this online supplier is constantly expanding, so traders are most likely to find the asset they would like to trade with.
The widely popular MT4 and MT5 platforms are available for traders of all levels. They also have access to markets on the go thanks to the easyMarkets App, equipped with all features and available to download both for iOS and Android devices.
- 7. FP MarketsMin Deposit$100FeesNo deposit and withdrawal feesCommissionsNo commission for Standard accounts;
$3 per side for Raw accountsSpreadMinimum Spreads from 0.0020 to 9.2918;
Average Spreads from 0.0020 to 15.4577Leverage EU2:1Leverage non-EU2:1CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.34% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
FP Markets is yet another leading supplier of cryptocurrency CFD trading, enabling traders to make the most of this exciting asset class. Established in 2005, the operator is perfectly equipped with trading tools, educational resources, and convenient functionalities for a seamless trading experience.
The top 5 most traded cryptos on the market – Bitcoin, Ethereum, XRP, Bitcoin Cash, and Litecoin, along with other popular digital assets can be safely traded on FP Markets. This variety offers traders a great opportunity to diversify their trading portfolio without the need to set up a digital crypto wallet.
FP Markets makes use of the world’s most popular trading platforms, MetaTrader 4 and MetaTrader 5. The software offers plenty of technical indicators, a customizable interface, Expert Advisors, and a host of exciting trading features. Automated opening and closing positions, along with technical indicators and charts, and other tools make the trading process a breeze.
Taking a leveraged position while trading in cryptocurrency CFDs is possible, with a maximum ratio of 2:1. Spreads vary from 0.0020 to 9.2918. Crypto products to trade on FP Markets include ADA, BTC, ETH, and RPL, among others.
FP Markets has implemented a Copy trading program, enabling traders to locate, follow and copy the trading moves of successful traders automatically. This makes trading a profitable source of side income, without the need for in-depth market research.
- 8. PrimeXBTMin DepositNo minimum deposit requirements;
0.01 BTC for Copy-tradingFeesNo account maintenance fees;
No deposit and withdrawal feesCommissions0.05%SpreadFrom 0Leverage EUFrom 5:1 to 200:1Leverage non-EUFrom 5:1 to 200:1PrimeXBT products are complex instruments and come with a high risk of losing money rapidly due to leverage. These products are not suitable for all investors. You should consider whether you understand how these products work and whether you can afford to take the high risk of losing your money.
PrimeXBT was established in 2018 and since the very beginning, the company has been growing and upgrading its services, resulting in a presence in over 150 countries around the world. This trading broker offers an all-inclusive service when it comes to trading cryptocurrencies.
In addition to the great diversity of crypto trading tools, PrimeXBT allows its customers margin trading up to 200 times their initial investment amount. The company is an award-winning provider of margin trading and has also been rewarded for its highly-performing trading app.
Furthermore, the trading platform offers the so-called “Covesting” feature, which enables customers to duplicate the trading moves of other experienced traders and thus invest less time and effort in their new endeavor.
Traders of higher levels will not be disappointed by the platform either. PrimeXBT offers some advanced trading features allowing them to increase their profits. The “turbo” trading option, for example, enables customers to make short-term price predictions. There are also some advanced technical analysis instruments and charting tools helping traders make informed decisions and manage their investments cleverly.
Leveraged trading from 5:1 to 200:1 is available, in accordance with the selected trading instrument. Besides BTC/USD, traders will find other crypto assets to trade in such as ADA/USD, ETH/USD, LTC/BTC, SOL/USD, and XRP/USD, among others.
- 9. Capital.comMin Deposit$20FeesNo deposit and withdrawal feesCommissionsNoneSpreadFloatingLeverage EU2:1Leverage non-EU30:1CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83.45% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Capital.com offers an excellent trading environment, fully equipped with advanced trading tools and characterized by lightning-fast order execution. Among the five asset classes that the platform offers, crypto trading is a widely popular choice for traders and investors.
As a company enjoying global popularity, Capital.com is licensed and regulated by financial institutions in many locations. The company complies with the high standards of security and transparency, set by the ASIC in Australia, the FCA in the United Kingdom, and the CySEC in Cyprus, among other regulators.
Unlike many competitors, Capital.com charges no commission on deposits and withdrawals. Educational sources, dynamic charts, and indicators are at the disposal of traders free of charge. Capital.com derives profit from Bid/Ask spreads or the difference between the Buy and Sell prices. The value of the spread varies across the different trading tools, and it can be easily checked in the live spread section of the trading broker.
Cryptocurrency is possibly the most exciting asset class to trade with at Capital.com, providing exposure to many digital assets, with Bitcoin at the forefront. Since Capital.com offers trading in CFDs, customers can speculate on the price movements of crypto assets, without actually buying them and holding them in crypto wallets.
Trading in crypto CFDs allows investors to take a leveraged position, which may entail magnified profits but also larger losses.
- 10. IC MarketsMin Deposit$200FeesNo deposit and withdrawal fees;
No account inactivity feesCommissionsNone for standard accountsSpreadMinimum spreads from 0.000 to 8.710
Average spreads from 0.000 to 42.036Leverage EU2:1Leverage non-EU5:1Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary.
IC Markets delivers everything necessary for a flawless trading experience, with a product offering of more than 2,000 tradable instruments, tight spreads, and fast order execution. Traders also have the option to go for automated trading.
The trading portfolio of IC Markets comprises 60+ Forex products, more than 1800 stocks, as well as bonds, commodities, and indices. Those interested in the thrilling crypto investment opportunities, will find a total of 21 digital currencies to trade with.
IC Markets makes use of the industry-standard MT 4, MT5, and cTrader platforms. The IC markets’ App is available for download on the App Store and Google Play, so trading on the go is a breeze.
Deposits to trading accounts are instantly processed and withdrawals are executed in a fast and hassle-free manner. Traders can choose between card transfers, PayPal, Skrill, and Neteller. Account opening and funding are easily and quickly accomplished, and a free demo account is at the disposal of IC markets’ customers.
IC Markets is licensed and monitored by several financial regulators across the world, including the Australian Securities and Investments Commission, the Cyprus Securities and Exchange Commission, the Financial Services Authority, and the Securities Commission of The Bahamas. As per the provisions of the relevant regulator, every office of the company operates in strict observance of anti-money laundering practices and the safe storage of customers’ funds.