Cryptocurrencies are online-based payment assets that make use of cryptography to secure transactions. They are not reliant on or issued by a central authority and are almost impossible to counterfeit. These features make cryptocurrencies impervious to government interventions. Blockchain technology is an integral part of cryptocurrencies, ensuring the legitimacy of each transaction.
Nowadays, there are thousands of cryptocurrencies in the marketplace, as the first ever blockchain-based virtual currency was Bitcoin (BTC). As a form of decentralized payment, it eliminates the need for third-party involvement in financial transactions.
Launched in 2009 by an anonymous developer or a group of developers, going by the name of Satoshi Nakamoto, Bitcoin has gone through surges and collapses in value over the years. As of November 2021, Bitcoin reached its peak value of $69,000, and as a result, a lot of people are interested in the cryptocurrency for investment purposes rather than as a payment tool.
Cryptocurrencies are denominated into cryptocurrency tokens or coins, which could be bought, sought, traded or converted on Bitcoin exchanges. Traders could also participate in the market by using Contracts for differences (CFDs) and speculate on Bitcoin’s price fluctuations. Alternatively, Bitcoin could be generated by mining.
Cryptocurrencies have been highly acclaimed for their numerous benefits. Cryptocurrency transactions can be completed in a matter of minutes, the costs are lower compared to other payment methods, and they are easily accessible. Other than that, they feature a high level of security and transparency and ensure personal and financial privacy.
All these benefits, combined with the potential for diversification and protection against inflation, make cryptocurrencies, particularly Bitcoin, a much sought-after trading vehicle.
Along with the reasons for praise, Cryptocurrencies have been reprimanded for a number of flaws, including their use for illicit activities, their volatility, as well as the instability of their fundamental infrastructure.
The current publication covers the topics on the way BTC trading functions, the related commissions, fees, and spreads, as well as a listing of top-rated BTC Trading Brokers.
How BTC Trading Works for Traders and Brokers
A beginner in BTC trading may be wondering where to start. In the lines below, we are going to cover the basics of BTC trading, as well as some fundamental terms to be aware of. To start, traders should distinguish between Bitcoin trading and investing. The latter entails purchasing cryptocurrency and holding it, over a longer term, hoping its value will appreciate. Trading involves buying the digital currency low and selling it high, thus targetting short-term profits.
How BTC Trading Works for Traders
In this section, we are going to outline some major steps that novice traders should take to start successfully trading Bitcoin.
- To start trading Bitcoin, traders should create an account at a BTC Trading Broker. We have compiled a list of 10 top-ranking BTC Trading Platforms, which can be reviewed in the following section of this article.
- The second step along the way involves identity verification of the newly-created account. To accomplish this, users should upload a clear photo of their ID card or driving license. The Know Your Customer (KYC) procedures may also involve the provision of proof of residence and proof of income.
- What traders are supposed to do next is deposit funds into their trading accounts. The different trading brokers offer various payment methods, which may include card deposits, bank transfers, or e-wallets, for example. Credit card transactions are immediately conducted and the Bitcoin purchase will be instantly reflected in the Bitcoin wallet.
- Before buying their first Bitcoin, traders should set up a wallet to store them. Bitcoin wallets are programs that enable traders to buy and sell the virtual assets. They work by generating Bitcoin addresses. While small amounts of Bitcoin require software wallets, larger amounts necessitate hardware wallets.
Trading in crypto CFDs does not require holding the assets in a crypto wallet.
- And last but not least, users start their trading journey by buying cryptocurrency, or Bitcoin in our case. The popularity of Bitcoin is largely due to its volatility. In other words, if traders can anticipate the market fluctuations, they can profit from the online-based currency.
How BTC Trading Works for Brokers
Bitcoin brokers provide a safe medium to buy and sell cryptocurrencies online. They facilitate the process of buying and selling Bitcoin by offering it at a predetermined price. To understand how trading works for brokers and how they generate profits, we should clarify a couple of notions.
First of all, traders should be familiar with the concept of market making. Essentially, it involves providing liquidity to buyers and sellers in a financial market at the same time. Liquidity can be defined as the extent to which an asset can be bought and sold without impacting its market price. In other words, market liquidity allows buyers and sellers to easily trade an asset.
Markets featuring low liquidity will commonly have wide bid-ask spreads, whereas high-liquidity markets are characterized by tight bid-ask spreads. While tight spreads suggest that there is a consensus between buyers and sellers, wide spreads suggest a difference in opinion. In other words, bid-ask spreads can be defined as the measure of market liquidity. This is the difference between the highest price a buyer is willing to pay and the lowest price a seller is ready to accept.
Traders should be wary about the fees and commissions that the respective BTC trading platform charges. Some zero-commission operators generate profits through spreads. There are also some additional account maintenance fees, which should be checked in advance.
Top 10 Bitcoin Trading Brokers
We have compiled a list of 10 best-in-class BTC Trading Brokers, providing traders with a sufficiently diverse range of platforms to choose and profit from. In the short reviews below, we have covered some fundamental parameters to be considered when picking a BTC Trading Broker. We have also provided the relevant information regarding each trading platform’s minimum deposit requirements, fees, commissions, and spreads, along with other useful information.
- 1. AvaTradeMin Deposit$100FeesNo deposit and withdrawal feesCommissionsNoneSpread0.20% Over-marketLeverage 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.
If you are interested in BTC trading, then AvaTrade is a broker platform that you should definitely check out. Founded in 2006 as AvaFX, the company has its headquarters in Dublin and was later rebranded to reflect its diversified portfolio. The advanced trading platform also features a highly functional app, AvaTradeGo, allowing traders to actively engage in the market while they are on the go.
DupliTrade is AvaTrade’s automated trading platform offering customers the chance to replicate other traders having a wealth of experience in the sphere.
In terms of trading costs, AvaTrade outperforms its competitors. However, inactive accounts are charged rather high in comparison to other brokers. To be able to enjoy the full range of services available at AvaTrade, users are advised to load a balance of 1,000 – 2,000 of the selected currency. Deposits are carried out via credit cards and wire transfers. Other methods such as e-wallets can be utilized in particular regions only.
Apart from Bitcoin, other cryptocurrencies that are available for trading on AvaTrade include Bitcoin Gold, Bitcoin Cash, Ethereum, EOS, NEO, Dash, Litecoin, Ripple, Uniswap, and Stellar, among others.
Regarded by many as a pioneer in online trading, AvaTrade features certificates from major regulatory bodies within the sphere of trading and finances and complies with the regulatory requirements of 7 global regions.
Users are presented with best-in-class customer support and are able to try out the free demo accounts before transferring real funds to their accounts.
- 2. IQ OptionMin Deposit$10Fees
CommissionsNoneSpreadAverage at around 2 pipsLeverage EU2:1Leverage non-EU10:1CFDs are complex instruments and entail a high risk of losing money rapidly due to leverage. 77% 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.
- No deposit and withdrawal fees;
- 2.9% fee charged on opening a ‘long’ cryptocurrency position;
- 0.01% – 0.5% Overnight fee affecting CFDs on cryptocurrencies
Established in 2014, IQ Option is an outstanding digital trading platform that has promptly developed to become a popular choice among traders worldwide. As a holder of a license from CySec, the company has been authorized to offer its services in all countries of the European Economic Area. IQ Option also has other licenses from different regulatory authorities over the world – ASIC in Australia, FSA in Japan, and FCA in the United Kingdom, among others.
The brokerage platform offers a nice selection of the world’s most sought-after investment assets. With more than 48 million registered users, it is a top choice among traders of all professional levels. Featuring a variety of trading instruments, IQ Option offers Cryptocurrency trading as well. Traders can diversify their portfolio with BTC trading, as well as other virtual-based currencies such as Ethereum, Binance Coin, Litecoin, and Ripple, among others.
Users of IQ Option may choose between three account types. The first one is the demo account, allowing them to try out the platform’s trading instruments and functionalities for free in practice mode. Real accounts are opened once users complete the verification procedures and transfer funds to them. VIP accounts enjoy some special perks such as having a specially appointed account manager, as well as taking part in weekly tournaments for free. To become a VIP account holder, users should deposit a minimum of $3,000.
As for the available deposit and withdrawal options, users can choose between debit and credit cards, bank transfers, and digital wallets, among other payment methods.
- 3. FP MarketsMin Deposit$100FeesNo deposit and withdrawal feesCommissionsNo commission for Standard accounts and $3 per side for Raw accountsSpreadМinimum spread of 9.13Leverage EU2:1Leverage non-EU2:1CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Operating in the sphere of digital financial services since 2005, FP Markets has been a leader in Australia and on the global scene as well. The trading platform offers a range of financial instruments accessible on desktop and mobile devices. The platform complies with the strict regulatory requirements of several financial authorities and offers an extensive range of educational resources.
With the help of innovative trading platforms, the company gives access to more than 100 different financial products such as indices, forex, futures, and cryptocurrencies. FP Markets provides traders with the opportunity to participate in Cryptocurrency CFD trading in Bitcoin, Litecoin, Ripple, Ethereum, and Bitcoin Cash.
Customers are actively encouraged to open a demo account first to explore the opportunities of trading in practice mode without risking any funds. Additionally, there are two types of accounts on the trading platform – Standard and Raw ones. While Standard accounts feature 0% commission and spreads as low as 1.0 pips, Raw accounts are charged with a $3 commission per side and spreads as low as 0.0 pips. Both types of accounts have minimum deposit requirements of $100 and leverage of 2:1 for cryptocurrencies. Both the MetaTrader 4 and MetaTrader 5 platforms are free of charge, as well as the Iress Mobile version.
Bank transfers, card payments, Skrill, and Neteller are among the payment methods accepted by the company. Generally, online methods are instantaneously processed, while bank transfers may take up to several days. The team of knowledgeable experts could be reached via email, live chat, and a convenient Call-Back feature. Besides outstanding customer service, the platform offers fast execution of trades.
- 4. AxiMin DepositNo minimum amount specifiedFeesNo fees for deposits and withdrawalsCommissionsNone for cryptocurrenciesSpread0.35Leverage EU5:1Leverage non-EU30:1CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% 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.
Axi boasts a global reputation as a dependable provider of financial services to more than 60,000 customers of different levels of knowledge across 100+ countries over the world. Launched in 2007 in Australia, the company also has offices in London.
The professionals at the company never stop looking for ways to improve, so that they are able to deliver the best trading experience possible. The company operates in strict compliance with regulators from Australia (ASIC), Dubai (DFSA), and the United Kingdom (FCA), among others. Clients’ funds are held in segregated accounts.
Axi offers two types of accounts – a Standard account and a Pro Account, with a choice to set up a Demo account for both.
The company offers MT4, the most popular trading platform, along with a set of trading instruments devised for an outstanding trading experience. The extensive range of markets at the disposal of traders helps them choose the opportunities which suit their trading style the most. The assets offered on the trading platform include currencies, commodities, indices, and cryptocurrencies.
Customers of the company are provided with the opportunity to trade CFDs on 10+ cryptocurrencies, including Bitcoin, Ethereum, and Litecoin. Traders do not need to set up a digital wallet as they can use the MT4 platform to store their assets. With 5:1 leverage on cryptocurrency trades with Axi /for EU-based clients/, users are able to maximize their profits.
- 5. eToroMin Deposit
Fees1% for buying and selling cryptoCommissionsFrom 0%SpreadSpreads for cryptocurrencies start at 0.75%Leverage EU2:1Leverage non-EU25:1eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Crypto assets are highly volatile and unregulated. No consumer protection. Tax on profits may apply.
- Starting from $10 for the UK and USA
- Minimum deposit requirements vary across regions
Combining the features of a social network and an investment app, eToro is among the leading companies within the industry. Launched in 2007 with the aim to revolutionize the market and offer accessible investment tools to traders around the world, eToro has been enjoying great success over the years. Boasting an extensive network of 25 million users worldwide, the platform is supported in 19 different languages.
Offering a safe, friendly, and convenient platform, eToro is a top choice for Bitcoin investors as well. Etoro platform makes use of an ever-growing portfolio of cryptocurrencies including Bitcoin, Bitcoin Cash, Ethereum, and Litecoin, among others. Aiming to enhance investors’ education, the multi-asset platform provides news and analysis, as well as an eToro academy. Under the section Top Markets, users of the platform will find a wealth of information for BTC trading, as well as trading with other popular cryptocurrencies.
The company introduced the CopyTrader feature back in 2010, enabling novice traders to copy the trading moves of other experienced users. Etoro is known also as a pioneer in Bitcoin trading, introducing it to investors and traders in 2013. As of 2017, the platform has diversified its portfolio of trading instruments by adding other cryptocurrencies to it.
As for the related fees and commissions, eToro has introduced 0% commission stocks to the world of investments, as well as no additional administration and management charges. Users residing in the UK and the US can open accounts depositing as little as $10. Customers from other destinations such as Australia, Austria, Finland, France, Spain, Sweden, and the United Arab Emirates are supposed to observe a minimum of $50.
- 6. PrimeXBTMin DepositNo; 0.01 BTC for copy-tradingFees0.05 % (for cryptocurrencies)CommissionsFrom 0,0001%SpreadFrom 0Leverage EU200:1 (100:1 for Copy-trading)Leverage non-EU200:1 (100:1 for Copy-trading)PrimeXBT 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. Seek independent advice if necessary.
Since its launch in 2018, PrimeXBT has been dedicated to delivering top-tier trading tools and a secure trading environment for its customers. Along with the facilitation of buying and selling major stock indices, commodities, and foreign currencies, it is a highly-renowned crypto-leverage platform.
PrimeXBT is suitable for experienced traders in search of advanced features. Simultaneously, PrimeXBT has the copy-trading feature, allowing novice users to mimic the moves of experienced traders enjoying market success. This approach is also known as covesting.
The PrimeXBT Turbo trade is yet another exciting feature that sets the platform apart from the rest. It allows customers to generate more than 70% returns on investments by making short-term price predictions. The platform users can also take advantage of the multi-level Referral system.
This BTC Trading Broker also offers its customers some advanced technical analysis tools, as well as some extensive educational sources. The cryptocurrencies that Prime XBT accepts from other exchanges or digital wallets include Bitcoin (BTC), Ethereum (ETH), Tether (USDT), USD coin (USDC), and Covesting (COV).
Besides the opportunity for creating a demo account, the user interface is straightforward and convenient.
The website is not available for traders based in the US, Canada, Japan, and several other destinations. As far as the security of the platform users is concerned, PrimeXBT operates in accordance with strict practices and measures. KYC verifications are carried out in line with the highest requirements within the industry.
- 7. Capital.comMin Deposit$20FeesNo deposit and withdrawal feesCommissionsNoneSpread90.00Leverage EU10:1Leverage 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 is yet another reputable brokerage platform, allowing users to trade the world’s most popular markets. Launched in 2016, the online trading venue features commission-free operations. Aside from spreads and overnight fees, no signup, deposit, and inactivity fees are payable.
With more than 380,000 active traders worldwide, Capital.com offers a quick and hassle-free registration process. To start trading, customers are supposed to create and verify their accounts, as well as transfer funds. The minimum amount to deposit is set to $20.
With a leverage of 10:1 for cryptocurrencies, traders invest 10% only. However, novice traders should be aware that while trading with leverage implies the opportunity to generate greater profits, the chances of losing are also amplified.
The online trading platform features high-quality educational content to the benefit of its customers.
Capital.com offers its users some valuable risk management tools, with the stop-loss order at the forefront. Placing a stop-loss order has been widely implemented for two basic reasons – either to curb losses or to secure profits. Considering that BTC trading markets are very volatile, applying this risk management tool may be very beneficial. Apart from BTC trading, the platform features an extensive list of more than 470 other cryptocurrencies.
Regulated by the Financial Conduct Authority in the UK, and several other renowned supervisory bodies, the trading platform offers safety and transparency to its customers. This is a major advantage that Capital.com has over a lot of other specialized cryptocurrency brokers.
- 8. XTBMin DepositNo minimum amount specifiedFees0.08%CommissionsNone for standard accountsSpread
Leverage EU2:1Leverage non-EU5:1CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% 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.
- Min Spread 0.50%
- Target Spread 0.5% - 1%
XTB is yet another market leader with a long presence in the trading market dating back to 2002. It is regulated in multiple jurisdictions by some of the world’s most renowned financial authorities and listed on the Warsaw Stock Exchange. The company has a solid presence in more than 13 countries around the world, including the United Kingdom, Poland, France, and Germany.
With more than 2,100 global markets that are accessible on its platform, many customers prefer it for BTC trading. Along with cryptocurrencies, the platform offers trading in other assets such as Forex indices, commodities, and EFTs.
XTB offers a well-rounded guide on BTC trading specifics, so customers who are not used to the ins and outs of cryptocurrency trading are advised to have a look at it. Apart from valuable information on Bitcoin trading, the trading platform delivers details regarding Litecoin, Ethereum, and Ripple. Traders can choose between 9 separate cryptocurrencies or 18 cryptocurrency pairs. As a reputable cryptocurrency broker, XTB offers great asset management tools.
Setting up an account at XTB is easy and prompt. Once created, the account should be verified, which may take up to 24 hours. As for the available account types, users may choose between a Standard and Pro Account. The Demo account helps novice traders to practice trading without risking any real funds.
- Min Deposit$100FeesNo deposit and withdrawal feesCommissionsNone for standard accountsSpreadFrom 1.0 pips for standard accountsLeverage EU10:1Leverage non-EU500:1Margin trading involves a high level of risk and is not suitable for all investors. You should carefully consider your objectives, financial situation, needs and level of experience before entering into any margined transactions with Blueberry Markets, and seek independent advice if necessary. Forex and CFDs are highly leveraged products, which means both gains and losses are magnified. You should only trade in these products if you fully understand the risks involved and can afford to incur losses that will not adversely affect your lifestyle.
Blueberry Markets is another top-rated trading services provider dedicated to delivering first-class service to its customers. Holding licenses from ASIC and SCB, the platform offers a completely safe trading environment. Founded in 2016 in Australia, the company is renowned for its low spreads and excellent level of customer care. Offering more than 300 trading instruments the platform will certainly not disappoint those interested in BTC trading.
Besides Bitcoin, account holders can trade in other popular cryptocurrencies such as Ethereum, Litecoin, and Dash. Blueberry Markets’ customers can trade crypto CFDs on the MT5 platform, eliminating the need of holding an e-wallet. They can easily take advantage of the volatile cryptocurrency market and make the most of the rising and falling prices of the virtual assets.
With 10:1 leverage traders are able to generate higher returns on their investments against a smaller initial investment. Traders are also enabled to diversify their portfolios through cryptocurrency CFDs. They can speculate on the price fluctuations of Bitcoin, for example, without actually owning the online-based asset.
Blueberry Markets provides traders with the opportunity to pick from two account types – a standard one and a direct one.
As for the deposit and withdrawal methods that can be used to move funds to and from traders’ accounts, the users of the platform can choose between card payments, Skrill, and wire transfers, among others.
- 10. Global PrimeMin Deposit$200FeesNo fees for account deposits and withdrawalsCommissionsNoneSpreadAverage spreads starting from 0.4 pipsLeverage EU30:1Leverage non-EU200:1Trading derivatives is high risk. Losses can exceed your initial investment. You should only trade with money you can afford to lose. Any Information or advice contained on this website is general in nature and has been prepared without taking into account your objectives, financial situation or needs. Past performance of any product described on this website is not a reliable indication of future performance. You should consider whether you’re part of our target market by reviewing our Target Market Determination, and read our PDS and other legal documents to ensure you fully understand the risks before you make any trading decisions. We encourage you to seek independent advice if necessary. The information on this website is not intended to be an inducement, offer or solicitation to any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Established in 2010, Global Prime is a digital trading platform that is founded on the principles of integrity and dependability. As an Australia-based company, it functions under the regulations of the Australian Securities & Investments Commission (ASIC). It also holds a license from the Vanuatu Financial Services Commission (VFSC) and the Financial Services Authority of Seychelles (FSA).
Retail traders are provided with options to choose from Forex, indices, commodities, CFDs, and cryptocurrencies, among other instruments. Overall, the broker offers more than 100 markets. The trading platforms offered by Global Prime are MetaTrader 4, TraderEvolution, and FIX API. Traders at Global Prime can take advantage of the available additional features including a margin calculator, a YouTube channel, a trading community, and a trading academy. Copy trade opportunities are also available.
Customers of the trading platform have access to popular cryptocurrencies including Bitcoin, Litecoin, and Ethereum.
The process of opening an account with Global Prime is fast and straightforward. Account verification is the next step along the way. Once set up and verified, the account should be funded and trading can commence.
Funding of the trading account can be accomplished through card payments, PayPal, and Skrill, among other convenient methods. With no deposit and withdrawal fees and average spreads starting from 0.4 pips, Global Prime offers a competitive trading environment.