Over the last decade, an ever-increasing number of people have been fascinated by capitalizing on digital currencies. Ethereum, the world’s second largest cryptocurrency by market value after Bitcoin, reached an all-time peak of over $4,800 in November 2021, and many investors predict its bright, long-term future.
Before Bitcoin was launched, the only way to process money digitally was through an intermediary. Similar to the relation between the Internet and email, blockchain is a system that can be used to build applications and programs. A digital-based currency like Bitcoin is just one of the possible options. Bitcoin is the foundation from which Ethereum emerged.
Ethereum was initially proposed in 2013 and then introduced to the world in 2014 by Vitalik Buterin, a programming genius of Russian-Canadian origin. The platform was officially launched in July 2015. Much like Bitcoin, Ethereum is a global software platform backed by ground-breaking decentralized blockchain technology. Ethereum’s native cryptocurrency is Ether or ETH.
A cornerstone in Ethereum’s history is the split of Ethereum (ETH) and Ethereum Classic (ETC), which is also known as a hard fork. The original Ethereum blockchain is Ethereum Classic (ETC), and Ethereum (ETH) originated from the hard fork. While ETC’s supply is a fixed one, ETH managed to gain wider popularity and has no fixed supply.
Plenty of the world’s latest technological advancements are founded on Ethereum. As a blockchain network, Ethereum facilitates the development of smart contracts that can be utilized to create decentralized applications (DApps). To build such an app, developers should learn Ethereum’s coding language, called Solidity.
The platform runs the smart contracts without any delays, deceptions, and third-party interference. Smart contracts cannot be edited once they are deployed on the Ethereum network.
The current article draws attention to Ethereum trading, the array of opportunities that it delivers, and a carefully picked list of ETH brokerage services suppliers. In case novice traders cannot seem to wrap their heads around Ethereum, they are welcome to read more about it.
How ETH Trading Works for Traders and Brokers
As we already established, Ethereum is a decentralized platform, making use of smart contracts, allowing programs to run without the possibility of deceits and third-party interference.
Ethereum is the blockchain network on which the Ether cryptocurrency runs. Miners validate transactions through a mechanism known as Proof of Work. They receive ETH as a reward, while gas fees are charged for transacting on the network.
The founders of the Ethereum network have foreseen its rapid growth in popularity, and as a result, the network is expected to move to the Proof of Stake mechanism. With it, miners would not be needed, instead, validators will take over. Ultimately, the goal is to make the Ethereum network more energy-efficient and less time-consuming.
Starting at around $2.77 in 2015, Ether’s price has been fluctuating over the years of its existence, with an all-time high of $4,865 in 2021. Considering its price swings and its huge potential, Ethereum is a thrilling cryptocurrency trading market. Thanks to Ethereum’s volatility, savvy traders can capitalize on the price changes.
We are now going to look at Ethereum’s trading, first, from traders’ point of view, and then, from brokers’ point of view.
How ETH Trading Works for Traders
First of all, traders should make a clear distinction between a broker and an exchange. The basic difference stems from the other side that they are dealing with. At exchanges, people would trade Ethereum with each other, hence their peer-to-peer character. Brokers, on the other hand, either offer Ethereum and other cryptocurrencies at a fixed value or allow traders to speculate on their price fluctuations via Contracts for differences (CFDs).
We are now going to outline some of the basic notions that Ethereum traders should be aware of.
Crypto CFDs enable traders to speculate both on rising and falling prices. They do not invest directly in a product (or Ethereum in our case). Instead, they are trading on price fluctuations in real time.
To trade Ethereum online, traders have two options. The first one is by trading on price fluctuations via cryptocurrency CFDs, and the second one is by purchasing the digital asset itself.
Since cryptocurrency CFD trading permits traders to use leverage, they gain exposure to larger trading volumes with a smaller initial investment. Notwithstanding, traders should be aware that despite the larger winning potential that leverage mechanisms bring, they also magnify the risks involved. ETH Trading through a brokerage platform done via CFDs does not require using a digital wallet.
As far as the styles of trading are concerned, traders can apply several different strategies. The first one is referred to as Day Trading, whereby traders enter and exit positions within the same day. The second one is known as Swing trading, which involves trades conducted in the short- to medium-term ranges. The third trading style goes by the name of trend trading and entails trading assets for lengthier periods.
A lot of ETH Trading Brokers offer a feature called Copy Trading. This feature allows traders to imitate the trades of other customers and thus generate profits from Ethereum. This is done by identifying the desired trader and instructing the brokerage platform to mimic their trading moves.
How ETH Trading Works for Brokers
While some platforms publish a fixed price for Ethereum on their website, other types of brokers enable customers to trade Ethereum using Contracts for differences, as we already explained above. This in turn introduces the ability to open and close positions swiftly and trade with leverage. By trading in Ethereum CFDs, users do not own any Ether. However, they are enabled to trade against the coin’s value as it diminishes and increases.
In the following lines, we mention some of the ways brokers generate profits.
Fees and commissions are among the means brokers use to generate profits. Depending on the policy adopted for their pricing structure, different trading operators may follow varying strategies. For example, brokers that charge no commissions make profits relying on Bid-Ask differences.
The spread is the difference between the Bid and Ask price of a financial asset. Usually, the bid price is lower than the Ask price. Spreads could be close or wider, depending on the difference of opinion of buyers and sellers on the market.
Although not all cryptocurrency trading brokers charge other fees, traders should be aware that some of the platforms have overnight fees and inactivity fees. Overnight fees are charged for keeping one’s trading position open for more than a single day. As their name suggests, inactivity fees are charged when a trading account remains inactive for a particular period (most commonly for more than 12 months).
Top Ten ETH Trading Brokers
Traders fascinated by Ethereum’s potential will surely be interested in the best ETH brokers, enabling them to deal with the digital asset seamlessly. When picking a trading platform, there are some fundamental features to be considered including regulatory licenses, fees, commissions, spreads, and leverage.
To help you make a knowledgeable decision, we have compiled a list of top-performing brokerage platforms offering ETH trading. We have also covered other important parameters such as accepted payment methods, reputation, user-friendliness, and portfolio diversification.
- Min Deposit$0FeesNo deposit feesCommissions$2.25 per lot commissionSpreadFloatingLeverage EU2:1Leverage non-EU10:1CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74-89% of retail investor accounts lose money when trading CFDs with this provider.
Launched in 2010, Fusion Markets is an Australian-based financial services platform. The professionals at Fusion Markets adhere to the principles of offering competitive prices, expert customer support, and cutting-edge technologies.
Fusion Markets holds licenses from the Australian Securities and Investment Commission (ASIC) and the Vanuatu Financial Services Commission (VFSC). Customers’ funds are safely stored in segregated Client Trust Accounts.
Before opening a live account, customers are actively encouraged to try a free demo account and practice trading without the risk of losing their funds.
With Fusion’s competitively priced cryptocurrency CFDs, clients of the brand get exposure to the world’s most popular crypto assets such as Ethereum, Bitcoin, and other altcoins.
Fusion+ is the Copy Trading platform of Fusion Markets, enabling traders to manage finances for friends and family. By becoming a Fusion+ Money Manager, customers have their trades automatically copied to selected users within their network.
DupliTrade is yet another functionality of the platform allowing customers to duplicate the trading moves and strategy of carefully selected traders from the platform.
The trading platform offers customer support via telephone, email, and live chat regarding all kinds of organizational and technical issues. The operator delivers everything necessary to maximize its customers’ investment potential and chances of success.
- 2. AvaTradeMin Deposit$100FeesNo deposit and withdrawal feesCommissionsNoneSpread0.25% Over-marketLeverage EU2:1Leverage non-EU25:1CFDs 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.
As a heavily regulated and trustworthy investment platform, AvaTrade holds licenses from several renowned financial authorities, including CySEC, ASIC, FSCA, and ADGM, among others.
Ethereum is among AvaTrade’s highly traded digital assets. Open to traders 24/7, the platform offers typical 0.25% Over-market spreads for the digital currency, maximum leverage for EU-based clients of 2:1 and 25:1 for Non-EU residents.
As a solid number two cryptocurrency for several years now, Ethereum can be traded on AvaTrade’s platform and advantages are not lacking. Instead of buying the ETH itself, traders can speculate on its price fluctuation.
The opportunity for leveraged trading is yet another benefit commonly used by experienced traders. It enables them to open larger positions than ones that their account balance would allow. While trading with leverage can amplify one’s profits, it can do the same to one’s losses.
Furthermore, trading ETH with AvaTrade does not require a wallet, due to the SSL-secured platform. AvaTrade’s customers can trade cryptos against Fiat currencies, unlike many other trading exchanges, which allow trading crypto to crypto only.
Trading Ethereum on AvaTrade can be accomplished in three easy steps – opening a trading account, depositing funds, and choosing Ethereum on the platform.
With a demo account that is a mirror image of the real trading account, users can get used to the platform and trade in practice mode without risking any real funds. The broker covers all deposit and withdrawal fees, thus minimizing the non-trading expenses to a minimum.
- 3. eToroMin Deposit$10 - $10,000Fees
Commissions1% fee for buying cryptocurrenciesSpreadStart at 1% for cryptocurrenciesLeverage EUN/ALeverage non-EUN/AThis ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.); 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.Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.
- Conversion fee to non-USD deposits and withdrawals;
- 1% fee for buying or selling cryptocurrency;
- Inactivity fee charged after a year of no login activity;
As one of the leading ETH Trading Brokers in the market, eToro delivers a straightforward yet comprehensive trading environment both for novice and seasoned traders. With no commissions charged for ETH trading, as for the other trading products available, this broker profits from spreads, which turn out to be very competitive.
The trading platform enables inexperienced traders to trade passively by using its patented Copy Trading feature. This functionality allows newly-joined customers to mimic the moves of top-performing traders and thus enjoy profits as early as they start trading. Customers can filter by the top performers’ gains in the last 12 months, as well as the average risk score, associated with their trading.
To start trading Ethereum, the minimum deposit that traders are supposed to transfer depends on their country of residence. Customers residing in the United Kingdom and the USA can deposit as little as $10. Clients based in Australia, Bulgaria, and France, among other countries should transfer a minimum of $50. As for the range of allowable deposit methods, the platform utilizes card payments, bank wires, and digital wallets.
Besides Ethereum, those interested in cryptocurrency trading can diversify their trading portfolio by trading in other digital assets such as Bitcoin, Bitcoin Cash, Litecoin, and XRP, among others. No crypto wallets are necessary, as the trading platform features a built-in one. Active investors can benefit from another useful feature – ETH News, delivering the latest information on the second most popular crypto asset.
As a platform bearing the seal of acceptance of financial regulators such as the FCA, CySEC, and ASIC, eToro delivers safety and security to its customers.
- 4. PepperstoneMin Deposit$200Fees
CommissionsNone for standard accountsSpread
- No deposit and withdrawal fees;
- No account keeping and inactivity fees
Leverage EU2:1Leverage non-EU10:1Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.7% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
- Minimum spread 2.4
- Average spread 5.45
Since its launch in 2010, Pepperstone has emerged as a highly-performing provider of financial services. The trading portal focuses on shares, forex, indices, commodities, and cryptocurrencies, among other financial products.
As a global Forex and CFD broker, Pepperstone holds licenses from renowned regulatory bodies such as the FCA, ASIC, and CySEC, among others. Low spreads, strict regulations, and a range of platform offerings all combine to deliver a seamless trading environment that would fascinate both inexperienced and seasoned traders.
By depositing a minimum of $200 (or currency equivalent), traders get access to the extensive range of financial instruments offered by the brand. Those interested in cryptocurrency trading will find out that Pepperstone offers an excellent trading environment for these kinds of digital assets.
Cryptocurrency CFDs are predisposed to huge price fluctuations. Due to the highly volatile character of the crypto assets, traders can make the most of their trading experience without the need of owning a digital wallet. Ethereum, Bitcoin, and the rest of the available cryptocurrencies on Pepperstone can be traded during the weekend.
Ethereum minimum spreads stand at 2.4, whereas the average spread values amount to 5.45. The leverage ratio for retail accounts is 2:1, and the one for professional brokers is 10:1.
As far as the technical analysis tools that the platform offers, the Autochartist software serves to analyze customers’ trades. Furthermore, account-holders who have deposited more than $500, are eligible to request the brand’s additional Smart Trader tools.
- 5. FP MarketsMin Deposit$100FeesNo deposit and withdrawal feesCommissionsNoneSpreadFloatingLeverage EU2:1Leverage non-EU2:1Trade Responsibly: Derivative products are highly leveraged, carry a high level of risk, and are not suitable for all investors.
Founded in 2005 and headquartered in Australia, FP Markets operates in compliance with the strict guidelines of ASIC and CySEC regulators, among others. The online broker offers more than 10,000 tradable CFD products, including Forex, metals, indices, commodities, and cryptocurrencies. The operator guarantees low latency and deep liquidity.
FP Markets is among the most popular trading platforms offering excellent conditions for cryptocurrency CFDs trading. Along with Ethereum and Bitcoin, traders can choose among other popular cryptos such as Ripple, Bitcoin Cash, and Litecoin.
Trading Ethereum is a magnificent way to diversify your trading portfolio. Spreads for this trading asset are varying, and customers can take advantage of a 2:1 leverage for trading cryptos. There is no need to set up a crypto wallet.
FP Markets is a platform offering a favorable environment for social trading. There are many educational and informative resources, readily available for the customers of the company. The Traders Toolbox is a convenient functionality of FP Markets, offering novice and experienced traders a suite of 12 advanced trading tools. This range of instruments ensures customers of the brand will be able to apply a sound risk management policy to their trading sessions.
The trading platform does not charge any additional fees with regard to deposits and withdrawals, as well as inactive accounts. As for the minimum deposit requirements, they depend on the type of account. The minimum deposit for standard accounts is $100, or currency equivalent. The list of accepted payment methods by FP Markets includes card payments, bank transfers, and an extensive list of digital wallets.
- 6. AdmiralsMin Deposit$1Fees
CommissionsNoneSpreadMinimum spread 0.3%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.
- No deposit and withdrawal fees
- Inactivity fee after one year of no action through a certain account
Admirals, formerly known as Admiral Markets, is another outstanding trading company enabling its customers to invest and trade in more than 8,000 financial instruments, including Forex, indices, commodities, stocks, bonds, and crypto CFDs. The rebranding came as a result of the expansion of their product offering.
Since its inception in 2001, Admirals has been constantly developing and upgrading its services in numerous locations, thus turning into a real global leader. The brand boasts nearly 50,000 clients worldwide across more than 130 countries.
The financial services provider is a strictly regulated one, holding licenses from prominent financial authorities in the United Kingdom, Estonia, Cyprus, and Australia.
As far as cryptocurrency trading is concerned, and more specifically, Ethereum trading, customers can use a leverage ratio of up to 2:1 for retail accounts, and competitive spreads of 0.3%.
Providing customers with the opportunity to make informed decisions is among Admiral’s main priorities. Due to this reason, the operator puts forward plenty of educational materials such as webinars on Forex and other financial markets. The extensive range of educational tools available at Admirals is constantly growing. All the market, educational and analytical tools are neatly arranged and traders can navigate the website in a quick and hassle-free manner.
The minimum allowable deposit stands at only $1, and accounts can be funded by using a range of convenient payment methods.
Traders can choose between a total of 5 account types, as well as the opportunity to opt for a demo account on the MetaTrader 4 and MetaTrader 5 platforms. Admirals also offers a proprietary mobile application, just as user-friendly, clutter-free and secure as the web-based trading platform.
- 7. Markets.comMin Deposit$250Fees
- No deposit and withdrawal fees;
- Currency conversion fees may be applicable;
- 2.5% Overnight fee
Leverage EU2:1Leverage non-EU10:1Trading Foreign Exchange (Forex) and Contracts For Difference (CFD) is highly speculative, carries a high level of risk, and is not appropriate for every investor. Any advice provided on this website is general advice only and has been prepared without taking your individual objectives, financial situation or needs into account.
- Spread (%) 0.4333%
- Spread Per Unit: 5.00
Operated by Finalto (BVI) Ltd, Markets.com is authorized and regulated by the B.V.I Financial Services Commission. As a commission-free brokerage platform, it generates profits from market spreads. The trading platform offers a tailor-made approach to traders and investors for a variety of financial tools. It delivers all the necessary features, trading tips, and educational material for a seamless trading experience. No matter if traders are looking to trade short-term or aim at longer-term investments, Market.com’s products are designed to meet any trader’s requirements.
The trading platform is also preferred by many traders interested in cryptocurrency markets, with Ethereum and Bitcoin at the forefront. Offering next-generation trading platform technology and a comprehensive range of adept trade tools, Markets.com is ideally suited for capitalizing on the widely popular digital currencies.
Markets.com offers a range of 25 different crypto assets, allowing traders to take advantage of price fluctuations without owning the respective assets. Trading sessions for Ethereum and the other cryptocurrencies are open 24/7. CryptoBlend is an exclusive tool, developed by the trading brand. The instrument enables traders to pick up on the performance of the four most traded and most popular digital currencies – Bitcoin, Ethereum, Ripple, and Litecoin.
The leverage ratio for EU-based customers of the company is 2:1 for all cryptocurrencies, except for Bitcoin futures, where it is 1:1.
The operator does not charge any deposit and withdrawal fees and the minimum deposit amount is set to $250, or currency equivalent.
There is also the possibility for trading on the go, with a native Market.com app, for iOS and Android mobile devices.
- 8. Capital.comMin Deposit$20FeesNo deposit and withdrawal feesCommissionsNoneSpread6.60Leverage 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 is yet another renowned trading platform preferred by thousands of traders across the globe due to the great customer support team, the zero trading commission, as well as the user-friendly interface. The trading platform is available in almost any part of the world, including the United Kingdom and Europe, Asia, Australia, and more.
The number one reason why Capital.com is a widely popular option for trading crypto, including Ethereum, is the safety that the platform provides. Its customers have the opportunity to buy and sell assets that track Ether’s price movements, or CFDs. Traders do not have to deal with keys and e-wallets and the related risk of losing them. Apart from the major cryptocurrencies such as Bitcoin and Ethereum, Capital.com offers plenty of other altcoins.
Yet another broker charging no commission, Capital.com is compensated for the services it delivers through Bid/Ask spreads. In other words, when traders open a position, they pay the difference between the Bid and Ask prices. As spreads vary across the different financial instruments, they should be individually checked. The ones for Ethereum stand at 6.60. Although spreads are defined by the market conditions, Capital.com is dedicated to offering the most competitive ones.
A Stop Order is a useful mechanism that is available on the trading platform. It closes an open position once it reaches a predetermined value. In other words, it protects traders from accumulating large losses.
- 9. IC MarketsMin Deposit$200Fees
CommissionsNone for standard accountsSpread
- No deposit and withdrawal fees;
- No account inactivity fees
Leverage EU2:1Leverage non-EU5:1CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.93% 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.
- Minimum spreads of 4.560
- Average spreads of 11.605
IC Markets is yet another high-performance platform ideally suited for trading in cryptocurrency CFDs, including Ethereum. Since its launch in 2007 in Sydney, Australia, the operator has been dedicated to delivering the best and the most reliable trading environment both for retail and institutional customers. Designed by professional traders to meet the needs and requirements of their customers, IC markets offers fast execution times, competitive spreads on a wide range of trading markets, and a knowledgeable team of customer support experts.
Cryptocurrencies can be traded 24/7 on MT4 and MT5 platforms. This ETH Trading Broker stands out as one of the best online venues for trading the widely popular digital assets. Price fluctuations on cryptocurrencies such as Ethereum and Bitcoin are largely dependent on news and trading sentiments.
Cryptocurrency CFD products offered by IC Markets enable customers to go long/short without owning the underlying assets. In other words, traders can take advantage of this much sought-after market, without taking the risks associated with owning a crypto wallet. Educational materials are available for free.
Customers can choose between a number of funding options including credit and debit cards, digital wallets, wire transfers, and online banking, among others. Client funds are safely stored in Segregated Client Trust Accounts and online payments are handled using SSL technology. No additional fees are charged for deposits and withdrawals.
- Min Deposit$100FeesNo deposit and withdrawal feesCommissionsNoneSpreadFloatingLeverage EU2:1Leverage non-EU10:1Margin 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 was initiated in 2016 in Sydney, Australia, and has grown to become a leader in the country. The brokerage platform offers access to more than 300 instruments to trade in Forex, and share CFDs, commodities, and cryptocurrencies, among others.
Blueberry Markets is a strictly regulated trading platform across several jurisdictions. It conforms to the regulatory requirements of ASIC and SCB. Customers’ funds are protected no matter where they are trading from.
Blueberry Markets provides traders with the opportunity to plunge into the cryptocurrency market with its competitive spreads. Trading Bitcoin and other crypto CFDs, including Ethereum, Litecoin, and Ripple is made exceptionally easy and hassle-free thanks to the user-friendly trading platform.
Minimum deposits start from $100, as the range of payment solutions includes card payments, bank transfers, and e-wallets, among others. Commissions are not charged for standard accounts.
The range of educational resources provided by the brand is exceptionally helpful and well structured into three separate categories – beginner, intermediate, and advanced.
Traders do not need a digital crypto wallet to store their assets, as trading crypto CFDs on the brand’s MT5 platform does not require one. They can take advantage of price fluctuations of the cryptocurrency market, by making predictions regarding the direction of cryptocurrency prices without acquiring the underlying assets.