Choose a bitcoin trading platform that offers the most markets, best pricing and client security. CFD, spread betting and trading Bitcoin on leverage carries a high level of risk and can result in losses that exceed your deposits. CFDs are complex instruments and come with a . Bitcoin remains the most valuable cryptocurrency, and most online Forex brokers start to offer trading in this evolving asset class, either via direct market access or through derivatives, most commonly contract for differences (CFDs). Use a regulated Bitcoin broker or exchange. The regulatory body develops rules and services protect the integrity of the market, as well as traders, and investors, such as the Financial Conduct Authority (FCA) in the UK. Due to possible safety concerns, open your trading account with a regulated Bitcoin trading platform.
Trading bitcoin broker14 Best Bitcoin Brokers (List and Review ) - Cryptalker
Bitcoin is a decentralized currency — meaning that it is not controlled by any single person or authority. 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.
Once the coins have been purchased, you will then need to withdraw them to a private wallet. 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. However, does that really matter? Essentially, if you are looking to buy Bitcoin because you think its value will increase in the future, then CFDs can facilitate this.
In fact, the benefits of using Bitcoin brokers that specialize in CFDs are four-fold — as we explain below. 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. 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. 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.
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.
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. 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.
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. Most Bitcoin brokers allow you to deposit and withdraw funds with a range of payment methods. This might include:.
As we discussed earlier, the likes of Coinbase charge a whopping 3. This can include:. 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.
However, when it comes to selling your Bitcoin you will also need to pay a commission. This means that you will pay 1. As noted earlier, most of the Bitcoin brokers that we recommend on this page charge no trading commissions at all. All Bitcoin brokers will charge a spread. 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. Still confused how the investment process works at a Bitcoin broker? This unravels the end-to-end process of opening an account, depositing funds, buying Bitcoin, and crucially — cashing out your investment. Furthermore — and perhaps most importantly, regulated brokers are required to verify your identity before you can deposit funds.
Once again, the process takes minutes. Safe storage and security of private keys remain additional risks and challenges. This is one reason many Forex and CFD brokers do not offer physical transactions of assets while relying on derivative contracts. High volatility also adds a significant trading risk. We reviewed over Bitcoin brokers based on eleven criteria.
Each research consists of over 2, words and lasted more than ten hours. Over brokers were reviewed in-depth and from a trader's perspective, ignoring the marketing tactics deployed by some to confuse retail traders. Therefore, we sourced the list of our Best Bitcoin Brokers from more than , words of dedicated research compiled over 1, hours, ensuring the most comprehensive approach to identify the Best Bitcoin Brokers.
It depends on your geographic location and trading preferences. Yes, a growing number of brokers offer Bitcoin, but usually as a derivative contract. Some also support Bitcoin auto trading as an option. A Bitcoin broker allows investors and traders to transact in Bitcoin and underlying derivative contracts. There are Bitcoin brokers who developed a dedicated Bitcoin trading app to support trading it.
The best Forex broker to trade Bitcoin depends, once again, on your needs and preferences. All five that made our Best Bitcoin Brokers list are competitive choices worth considering. The fees vary across brokers and exchanges but can include spreads, commission, and a network fee if you purchase the physical asset. Deposit and currency conversion costs may also apply. It is a complicated practice of trial and error, but cryptocurrency wallets do the math for you.
Miners need to verify each transaction, and they seek the highest reward. Each block has a limited size, and for the inclusion of yours into the next block, you must pay a fee. Usually, the calculation is in Satoshi per byte. For example, if your transaction is 10, bytes and the current cost on the Bitcoin blockchain is 12 Satoshi per byte, you will have to pay , Satoshi. As the Bitcoin trading price increases, so do the fees in fiat currency value.
There is plenty of competition, a growing number of transactions, which significantly outstrip the supply of miners. Scaling has become a distinct issue with cryptocurrencies. Each broker provides its regulatory information at the bottom of the homepage. You can then check it against the database of the regulator and verify. Best Bitcoin Brokers.
Top Rated. Best Overall 9. Trading Platform. Excellent educational offerings. Great 9. Markets Review. Highly regulated, choice of fixed or floating spreads. AvaTrade Review. Global bitcoin exchange is ideal for crypto traders. Very Good 9. Coinbase Review. Plus Review.
Bitcoin Industry Overview Bitcoin officially launched in but was a pure retail phenomenon for many years until when its price began to increase exponentially. Bitcoin Trading Regulation As with all assets, regulation varies by jurisdiction, and in the case of Bitcoin and other digital assets, it may differ between regions within the same country if there is some kind of federalized political system.
What to Look for in a Bitcoin Broker? Here are some attributes each Bitcoin broker must excel at: Regulation: Always make sure that you trade with a regulated broker.
Traders must avoid trading with an unregulated broker, irrelevant of how attractive an offer may be. Reputation: Regulation is not all that traders should rely on, as reputation is equally important. A Bitcoin broker that enjoys the trust of a growing number of traders and has been operational for over a decade points to a secure trading environment. Price: While the price of Bitcoin may appear the same across all exchanges, you must look at the difference between the bid and the ask price, known as the spread.
It is how brokers earn their revenues, and there can be vast differences in the mark-up, which will directly impact your profitability. Select a broker with tight spreads so you can earn more from each trade. Market makers with commission-free trading usually cover the difference with a notably higher mark-up.
Payment Charges: Most brokers waive deposit fees, but some apply internal withdrawal charges. Also, check the costs of your payment processor , as most payment options carry costs. Depending on your preference and circumstances, you may want to make sure your broker supports your payment processor.
You may also face currency conversion charges if you transact in a currency that differs from your account base currency. Customer Support: You never know when something unexpected occurs, and trading with a Bitcoin broker that offers swift access to customer support can assist.
Otherwise, it will be less beneficial than you may need it to be. The MT4 and MT5 trading platforms require upgrades, available at a cost, to achieve improved usability for trading Bitcoin. Some brokers offer them free of charge, while others have developed a proprietary trading platform.
Do not be afraid to test them all as demo accounts to see the differences and find the one that suits you the most. Variety of Coins: All brokers offering cryptocurrency CFDs will provide access to the top four assets by market value. It is adequate for new retail traders to get started , but if you require broader access, the choice of brokers will narrow significantly. By combining these two ways of operating, one can try to make a price forecast and understand how best to invest.
Best Bitcoin Brokers. Get Bitcoins without Mining. Best Cryptocurrencies.