Cryptocurrency Brokers: Introduction
A cryptocurrency broker is a website which traders can access in order to trade cryptocurrencies at a set price. Unlike a centralized exchange, the trading is done through the use of a dealer network, which is also known as an over-the-counter (OTC) market.
These brokers search and match sellers and buyers who individually own a larger amount of crypto. In numerous ways, they are similar to forex brokers whose services are a lot more familiar to the general public.
In this guide, we will list the best forex brokers you can use for cryptocurrency trading.
eToro is an Israeli social trading broker founded in 2007. The platform offers mainly CFD (contract for difference) brokerage services.
The company is certified by regulating authorities to operate in UK and Australia. All other operations are regulated by a Cypriot entity.
eToro features an easy-to-use interface and tools such as social trading for copying other user’s strategies and CopyFunds for thematic investing. The fees charged on trading are low, and opening and funding an account is fast and ease.
However, its customer services have been reported to unresponsive, and the platform occasionally freezes. The minimum deposit is $100, which is one of the lowest on the market. The platform supports Bitcoin, Ethereum, Litecoin, Dash, Ethereum Classic, NEO and Ripple.
Plus500 is another Israeli CFD and forex broker which caters to cryptocurrency trading. The platform is considered to be secure and reliable as it is listed on a stock exchange (the London Stock Exchange), discloses annual reports, and is authorized by top-tier regulators.
Plus500’s branches received authorization from UK’s Financial Conduct Authority, Cyprus’s Securities and Exchange Commission, Australia’s Securities and Investments Commission and it is also authorized to provide financial services in New Zealand and South Africa.
The platform’s scalping definition is the following: “A trading strategy where a significant portion of the customer’s positions are opened and closed by him/her within 2 minutes.” This means that if Plus500 thinks that you are using this trading method, they are entitled to block and close your account. So if you are a keen on executing lightning-fast trades which are under the 2-minute mark, best look for another broker.
The platform has a user-friendly design, which can be used even by novice traders. Spreads and fees are competitive, and opening an account is easy and fast. The minimum deposit requirement is $100, and many payment methods are accepted including PayPal.
Plus500 offers the option of buying and selling cyrptos as well as stocks, commodities, forex. The supported cryptocurrencies on this platform are Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Ripple, IOTA.
IQ Option is an online trading platform based in Cyprus, which offers a variety of financial tools and assets including cryptocurrencies, binary options, stocks, and forex. Since its launch in 2013, its client base has grown quickly, having over 20 million accounts at a global level.
IQ Option is owned and managed by a Cyprus Investment Firm (CIF) and it is authorized in the EU by the Cyprus Securities and Exchange Commission (CySec), which allows the company to operate in different countries.
The platform’s required minimum deposit is $10, which is the lowest you will find in the market. The broker also allows users to trial an account for free before they decide to purchase one.
According to a test made byTradingBeasts, IQ Option Fees are one of the most competitive in the industry. Spreads differ from a cryptocurrency to a cryptocurrency, but the general rule of the thumb is that the more popular coin you trade, the lower the spread is.
IQ Option stands out from the rest by having its own proprietary platform which incorporates advanced charting and a wide variety of built-in technical indicators such as Bollinger Bands, Moving Average, RSI, and MACD.
The cryptocurrencies available for trading are: Bitcoin, Bitcoin Cash, DASH, Ripple, Ethereum, Ethereum Classic, IOTA, Litecoin, Monero, OmiseGo, Santiment, and Zcash.
Established in 2006 under the name of AvaFX, the broker platform was then rebranded as AvaTrade to highlight that it expanded its range to encompass other assets. It provides spot trading and forex options as well as CFDs for cryptocurrencies and other assets.
The company is regulated by the Central Bank of Ireland and can operate in the EU under MiFID regulation. Its other subsidiaries are regulated by the Australian Securities and Investment Commission (ASIC), the Japanese Financial Services Authority (JFSA) and the Financial Futures Association of Japan (FFAJ), the Financial Services Commission (in the British Virgin Islands) and by the Financial Services Board (in South Africa).
The minimum deposit is of $100. The platform supports the following cryptocurrencies: Bitcoin, Ethereum, Ethereum Classic, Ripple, Dash, Bitcoin Cash, Litecoin, Monero and NEO.
How to Choose your Cryptocurrency Broker
If you plan on using the services of a crypto broker, then there are a few factors which you should consider:
It is very important that a broker has a license to operate from leading regulatory entities. Those that are not authorized to operate should not even be considered as an option.
Depending on your level of experience, you should seek a platform interface that you can easily understand.
– Supported Assets
Check if the broker has the assets you are interested in trading.
It is obvious that you should look or a broker that best suits your budget. In addition to deposit and withdrawal fees, there are also non-trading fees which are charged for account inactivity which you should be aware of.
We hope that the suggestions made in our article will be of help to you in finding the best cryptocurrency broker for your needs.