TOP 5 Rated Regulated Crypto BrokersApr 2019
Between 71.61-80.6% of retail investor accounts lose money when trading CFDs with these providers.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
The comparison above doesn't cover all brokers out there. We might be partners with some of the listed companies.
The cryptocurrency market is more live than ever. If we want to get on the right track right from the beginning, we need to choose our crypto broker carefully. Every broker offering crypto trading is not the same. If a broker meets the requirements of one particular client, it does not mean that it will also meet yours. There are several aspects to think about when choosing your cryptocurrency broker.
How to go about choosing the best crypto broker
To avoid being scammed or treated unprofessionally you should trade solely with regulated brokers. Only brokers that are regulated in your jurisdiction can legally offer services to you, such companies are under constant supervision of the regulatory body. The UK market is regulated and supervised by the FCA, Cyprus and Europe by the CySEC and Australia by the ASIC.
Initially, you have to find out whether the broker you are considering offers all the cryptocurrencies you want to trade. Bitcoin, Ethereum, and Litecoin can be traded everywhere. Less popular cryptocurrencies like IOTA, Monero, Zcash, and others might, however, not be offered by every crypto broker. Keep that in mind and if you plan to trade them at any point, you have to know whether it will be possible.
Cryptocurrencies are volatile in their very nature, but if you want to trade with bigger capital than you have you can take advantage of leverage. All brokers that are regulated in the EU follow ESMA laws and offer leverage 2:1. Remember, however, that leverage does not only multiply your earnings but also your losses, should your prediction be incorrect.
You probably do not want to trade with a broker that does not include negative balance protection in the package. The negative balance protection feature ensures you never lose more money than you invest. All users that trade with a broker that is e.g. licensed by the CySEC regulator are protected against negative balance.
How much do you plan to trade with? Does your crypto broker offer to trade with a small starting capital? If not, is it an obstacle for you? Or do you plan to trade in big in order to make that big money? Decide for yourself before you choose your cryptocurrency broker.
Fees – as low as possible
Let's face it, no one really likes them, but they are always there. Yes, we are talking about fees. We know that brokers have to finance its operation somehow, but the lower the fees are, the better. In general, most cryptocurrency brokers we know charge your account with a spread (i.e the difference between the ask and bid price) and with an overnight fee. It is quite hard to determine which broker has the lowest fees as they are not fixed and they tend to change according to the current market conditions. We figured, that the best way for us to compare fees of one of the most popular European and Australian crypto brokers is to scan today's data, place them side by side and see which one will do the best. That is exactly what we did.
Note: The data were taken at 19:00 UCT+2 on the 7th of April 2019 for Bitcoin only, the spread will at least slightly vary on a different date.
|IQ Option||$ 358.6|
As you can see from the table and screenshots above, the spreads vary quite significantly from broker to broker. On the date of measuring the Bitcoin spread at these 5 popular crypto providers, the tighest spreads were reported at Plus500, Etoro and Forex.com. Some brokers, like IQ Option, display the spread only in percentage, in such case you have to take the current price of the coin divide it by 100 and then multiply it by the spread percentage. E.g ($4982.69/100) x 7.197 = $358.6.
While the spread is plausibly the most substantial fee you will have to face when trading, you should also know how big is the overnight fee charged by your broker. This fee is deducted from your balance if you stay in a position overnight. The expense should by monitored especially by traders who want to hold on to their cryptocurrencies for a while. We will again inspect overnight fees for Bitcoin only, but you can find the overnight fee for specific cryptocurrencies on the trading platform of the broker or on a page dedicated to broker's fees.
|Broker||Buy overnight fee||Sell overnight fee|
* Amount credited to your account balance
Note: The overnight fee is subject to change, while it might not change drastically please note that the data above is accurate only to 07.04.2019
To beat their competition, the worl's leading cryptocurrency brokers try to attract clients to an intuitive trading enviroment suitable for both experienced and inexperienced traders. Almost all brokers include in their offer technical analysis tools and basic risk management features like a stop loss or take profit. Most companies do not, however, limit their offer only to the mentioned necessities and also offer price alerts, advanced educational centres or perhaps even social trading network. Here are a few special features that one of the top European and Australian crypto providers have to offer.
|Broker||Special features||Special features|
|Plus500||Price alerts (via an email or SMS), Beginner friendly trading platform||Trailing Stop|
|IQ Option||An award-winning in-house built platform, Online chat with other traders||Crypto digest videos (twice a week)|
|Etoro||Professional social trading network||Educational centre|
|XM.com||MT4 & MT5 & XM WebTrader||Account types with special advantages|
|Forex.com||Superior trade executions||Accepts traders from US and Canada|
7 Popular Cryptocurrency Brokers
Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Ripple, IOTA, Monero, EOS, Neo, Stellar, Cardano, Tron
Bitcoin, Bitcoin Cash, Bitcoin Gold, Dash, Ethereum, Ethereum classic, Litecoin, Ripple, Zcash, Omisego, Qtum, Tron
Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Ripple, Dash, Litecoin, Cardano, IOTA, Stellar, EOS, NEO, ZCASH, Binance Coin
Bitcoin, BitcoinCash, Ethereum, Ethereum Classic, Litecoin, Dash, Ripple
Bitcoin, BitcoinCash, Ethereum, Ripple, Litecoin
Bitcoin, BitcoinCash, Ethereum, Ripple, Litecoin
Bitcoin, BitcoinCash, Ethereum, Ethereum Classic, Dash, EOS, Ripple, Litecoin, Stellar
Conclusion – The best crypto broker
It would be easy to point a finger and say this is the best crypto broker for you to choose. We, however, know that each client has different preferences. While one trader might want a trading platform with the lowest spreads to day trade cryptocurrencies, the other might rather appreciate a copy trading system to follow the world’s most successful investors. The brokerage comparison in the article reflects all tested features and gives to companies the appropriate score. That, however, does not mean you will rank the companies in the same order as your needs might differ.