Contracts for difference have opened up new opportunities for traders to explore the crypto market without the need to own any cryptocurrencies. More brokers than ever have chosen to accommodate traders interested in crypto CFDs, which ensures freedom of choice but also makes finding a reliable broker somewhat daunting. If you are currently facing this predicament, our team has prepared a comprehensive overview of what factors you should take note of when you are trying to choose a broker. Below, you will learn about the importance of regulation, leverage, and all of the other crucial aspects of crypto CFD brokers that can show the viability of a given platform.
Below you can find a list with regulated and trustworthy Crypto trading brokers:
Top 20 Crypto Brokers
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Fusion Markets
- Australia regulated broker
- MT4, MT5, TradingView, Ctrader
- Leverage up to 500
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Axi
- Raw spreads start from 0.0 pips
- Offers order execution faster than standard ECN model
- Axi Select Funded Trader Program offers funding up to $1 million
Trading Instruments- Forex
- Stocks
- IPOs
- Indices
- Commodities
- Cryptocurrencies
-
FP Markets
- Australia & CySEC regulated broker
- MT4/MT5, TradingView, Ctrader, Iress
- EUR/USD spread from 0.0 pips
Trading Instruments- Forex CFDs
- Shares CFDs
- Metals CFDs
- Commodities CFDs
- Indices CFDs
- Crypto CFDs
- ETF CFDs
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Pepperstone
- Australia & CySEC regulated broker
- MT4/MT5, TradingView, Ctrader, Iress
- EUR/USD spread from 0.0 pips
Trading Instruments- Forex
- Indices
- Commodities
- Cryptocurrencies
- Share CFDs
- ETFs
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Global Prime
- Australia regulated broker
- Advanced MT4
- $0 Minimum Account Size
Trading Instruments- Forex
- Cryptocurrencies
- Indices
- Commodities
- Bonds
-
BlackBull Markets
- Broker boasting lightning-fast execution speed
- ECN brokers with tight spreads from 0.0 pips
- $0 minimum deposit requirement
Trading Instruments- Forex
- Commodities
- Futures
- Indices
- Stocks
- Cryptocurrencies
-
IC Markets
- Offers 2,200+ tradable markets, including 61 currency pairs
- Leverage of up to 1:1000 in select jurisdictions
- EUR/USD spreads from 0.8 pips for standard accounts
Trading Instruments- CFDs on Forex
- Commodities
- Index
- Bond
- Cryptocurrencies
- Stock
- Futures
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Markets.com
- Featuring a wide range of CFD assets across 7 markets
- Supports popular platforms like MT4 and MT5
- Social trading app enables smooth trading alongside proven signal providers
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AvaTrade
- Minimum deposits from $100
- Licensed by 11 regulatory bodies
- Retail forex leverage of up to 1:400
Trading Instruments- Forex
- Major stock indices
- Cryptocurrencies
- Commodities
- Bonds
- Individual Shares
- ETFs
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HF Markets
- Up to 1:2000 leverage in specific countries
- Supports trading in micro lots (1,000 units
- A $6 round-turn commission per standard lot for Zero accounts
Trading Instruments- Forex
- Metals
- Energies
- Soft commodities
- Indices
- Stocks
- Cryptocurrencies
- Bonds
- ETFs
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eToro
- Popular broker for social trading
- Trading is conducted on innovative in-house platform
- Offers both investing and trading products
Trading Instruments- Crypto
- CFDs on Forex
- Stocks
- Commodities
- Crypto
- ETFs
- and Indices
-
Eightcap
- Traders can enjoy competitive trading conditions through different account types
- Offers access to over 800 CFD markets through TradingView
- Platforms like MT4 and MT5 enable multi-device trading
Trading Instruments- Forex CFDs
- Commodity CFDs
- Shares CFD's
- Index CFDs
- Crypto CFD's
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CMC Markets
- Provides a choice of 10,000+ trading instruments
- Supports MT4 and Next Generation (proprietary platform
- Spreads for EUR/USD from 0.5 pips
Trading Instruments- CFDs on Forex
- Indices
- Shares
- Commodities
- Treasuries
- Cryptocurrencies
- Share baskets Investments on ETFs
- Shares
- Managed funds
- Options
- and more
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Plus500
- Multi-Level Regulated Broker
- Proprietary trading platforms
- Easy to use mobile app
Trading Instruments- CFDs on: Forex
- Crypto
- Indices
- Commodities
- Stocks
- Options
- ETFs
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FxPro
- NDD broker offering deep liquidity and ultra-fast execution
- Over 99% instant order executions with no requotes
- Supports MT4, MT5, cTrader, and a proprietary platform
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Admirals
- Offers a great range of investment and trading products
- Multi-device trading available through MT4 and MT5
- Offers over 4,000 CFD instruments
Trading Instruments- CFDs on Forex
- Indices
- Stocks
- Commodities
- Bonds
- ETFs
- Cryptocurrencies
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Saxo Bank
- Holds a banking license
- Offers forex options and spot trading
- Minimum EUR/USD spreads from 0.9 pips
Trading Instruments- Stocks
- ETFs
- Bonds
- Mutual funds
- Crypto ETPs
- Options
- Futures
- Forex
- Forex options
- Crypto FX
- CFDs
- Commodities
-
IG
- Offers different account types, including DMA (Direct Market Access) one
- Offers turbo warrants on forex pairs, commodities, indices, and equities
- Supports popular platforms like MT4 and TradingView as well as ProRealTime, L2, and more
Trading Instruments- CFDs on Indices
- Forex
- Shares
- Crypto
- Futures
- Commodities
- Options
- Interest Rates
- Sectors
- Bonds
- Knock-out trading
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Vantage FX
- Broker offering some of the lowest spreads from 0.0 pips
- Operating in multiple markets under licenses from tier-1 regulators
- Provides a range of account types with great trading conditions
Trading Instruments- Forex
- Indices
- Commodities
- Shares CFD
- ETFs
- Bonds
-
XM Group
- Registered for outward passporting with multiple EU regulators
- 99.7% order fill rates and low minimum deposit requirements ($5)
- Supports MT4 and MT5
Trading Instruments- Forex
- Stocks
- Indices
- Commodities
- Thematic Indices
What is Crypto Trading
Cryptocurrency trading has gained significant attention in recent years due to the potential for high returns and the growing adoption of digital currencies. The value of cryptocurrencies can fluctuate rapidly due to market forces, making them high-risk, high-reward instruments.
There are two primary ways to trade cryptocurrencies:
- Spot Trading: This involves buying and selling cryptocurrencies directly, with the ownership of the asset being transferred to the buyer. Spot trading is typically offered by crypto exchanges.
- Contracts for Difference: Typically referred to as CFDs, these contracts enable speculating on the price movements of cryptocurrencies. No ownership of the underlying asset is involved in CFD trading. Crypto CFDs are characteristic of brokers, and they involve the usage of leverage.
To participate in cryptocurrency trading, investors typically need to create an account with a reputable exchange or brokerage, deposit funds, and select the cryptocurrencies they want to trade. Picking the correct platform could pose a challenge, however. You will also need to keep in mind that, as established, sticking to brokers will mean trading crypto solely through CFDs. Feel free to continue reading if you are interested in learning what you need to pay attention to when you are trying to find your cryptocurrency broker of choice.
Regulation and Security
As trading cryptocurrencies, especially through CFDs, carries a lot of risk, it is in a trader’s best interest to pick a broker that is secure and that offers risk-management measures along with negative balance protection. Therefore, traders are encouraged to stick with brokers licensed by regulatory entities that demand such protections.
Licensing information is typically provided on the footer of a broker’s homepage, and licenses may be issued by entities like the Australian Securities and Investments Commission (ASIC), the Financial Conduct Authority (FCA) of the UK, and other entities that regulate their local financial sectors. Regulators in these countries have implemented rules to protect investors from high-risk trading practices and to ensure that brokers provide fair and transparent services. Moreover, supervisory bodies continue to evolve their rules and guidelines to address the rapidly changing landscape of cryptocurrency CFDs.
Below you can find links to the main entities that oversee the offering of crypto trading through CFDs:
- Financial Conduct Authority or FCA (United Kingdom)
- Australian Securities and Investments Commission (ASIC)
- Cyprus Securities and Exchange Commission (CySEC)
- Vanuatu Financial Services Commission (VFSC)
- Federal Financial Supervisory Authority or BaFin (Germany)
- Commodity Futures Trading Commission or CFTC (USA)
- Financial Services Agency or FSA (Japan)
Key advantages of regulated crypto CFD brokers include:
- Disclosure requirements: Brokers must provide clear and transparent information to clients about the risks and costs associated with CFD trading.
- Capital requirements: Brokers must have sufficient capital to cover potential losses.
- Risk management: Brokers must implement risk management measures to protect clients from excessive losses.
When selecting a Contracts for Difference (CFD) broker, security is also a top priority. A reputable broker should have robust security measures in place to protect client funds and personal data. This includes segregation of client funds away from the operating capital of the broker, two-factor authentication, and the utilization of encryption technology.
Range of Crypto CFDs and Other Instruments
While cryptocurrency CFDs are popular instruments due to their high volatility and potential for significant price swings, many brokers offer a somewhat limited yet sufficient number of crypto CFDs. The types of cryptocurrencies involved can include:
- Bitcoin: Created in 2009, Bitcoin was the first decentralized digital currency. It continues to stand as the most popular cryptocurrency, and as such, the vast majority of crypto CFD brokers include Bitcoin in their market selection.
- Altcoins: Traders can also speculate on the price movements of altcoins, i.e., cryptocurrencies that are not Bitcoin. Examples include Ethereum, Litecoin, and Ripple.
- Meme Coins: These are cryptocurrencies whose origins are tied to an internet joke. At the time of writing, Dogecoin is one of the largest meme coins and the one you are most likely to come across while browsing the markets of crypto CFD brokers.
If you are planning to trade specific cryptocurrencies, definitely make sure to thoroughly check a broker’s instrument range before you register. Moreover, if you are interested in trading other CFD instruments in addition to crypto, confirming that a broker you are considering offers the said markets is also important. CFDs can be traded on forex (EUR/USD, GBP/CAD, etc.), indices, commodities, and shares, among others.
Crypto CFD Trading Costs
It’s essential to become familiar with the fee structure of a broker before opening a trading account, as fees can significantly impact trading profits. A good understanding of the fees will allow you to pick the broker that best suits your trading style and budget.
Although exchanges typically charge maker/taker fees, the main costs associated with cryptocurrency CFD trading are the spreads, commissions, and overnight fees. The spread is the difference between the bid and ask price of a cryptocurrency, and it can vary depending on market conditions. Some brokers may also charge a commission on top of the spread, but usually, commissions are only charged if the client is using an account with spreads that can fall to 0 pipis.
Besides the costs outlined thus far, traders might also encounter monthly dormancy fees, which are incurred when a user neglects their account for a specified number of months. Then, we have overnight fees, also known as swap fees. As the name implies, they are charged when a trader holds a position overnight. Crypto trading enthusiasts should also be aware of potential deposit and withdrawal fees, with the latter being far more common.
Trading costs also serve to highlight yet another reason why transparency and reputability are important for a broker to have. Any broker that is looking to welcome crypto CFD traders will offer extensive information regarding its fee structure. Its support agents should also be able to answer fee-related queries in detail and without delay.
Deposits and Withdrawals
When trading cryptocurrency CFDs with a broker, both deposits and withdrawals should be a breeze. This means that a good broker will offer various options, that its transaction fees will be either low or, ideally, non-existent, and that transactions are processed quickly.
The most common payment method types for CFD broker deposits include bank transfers, credit/debit cards, and digital wallets. Bank transfers are a secure and reliable option, but they can take several days to process. Credit and debit cards, such as Visa and Mastercard, are an excellent alternative that typically boasts faster processing times, typically within 1-3 business days. With digital wallets, traders can enjoy instant deposits. Last but certainly not least, there are brokers that not only offer crypto CFD trading, but also give traders the opportunity to top up their accounts via cryptocurrencies.
As for withdrawals, the payment method selection does not differ much in most cases. Processing times vary depending on the payment method chosen, but will generally take longer than deposits. In some cases, you might be looking at several days to a week for the money to reach your preferred cashout solution.
Do keep in mind that not everything listed on the broker’s deposit and cashout FAQ page will be available to you, seeing as some payment solutions are region-specific. If the particular broker you have chosen does not provide enough details regarding deposit and cashout method availability, it is advised that you get in touch with its support team.
Leverage Limits
Leverage allows traders to control a larger position with a smaller amount of capital, making it possible to profit from even small price movements. However, it also means that even small losses can quickly add up, potentially wiping out a trader’s entire account balance. The risks are further increased when volatile instruments like crypto CFDs are involved. Thus, regulators of various jurisdictions have severely limited the leverage accessible to retail and professional traders alike. This is also why it is important to stick to regulated brokers that offer negative balance protection. Otherwise, a crypto CFD position that goes south could result in major losses.
Across Europe, the UK, and Australia, the maximum leverage that retail clients can enjoy is 1:2 when it comes to crypto CFDs. Professionals have a slightly higher cap of 1:5 to work with.
Those who wish to use slightly higher leverage can consider a broker licensed by regulators like the Vanuatu Financial Services Commission, the Financial Services Authority (Seychelles), or the regulator of the St Vincent and the Grenadines. Some VFSC and FSA (St Vincent and the Grenadines) licensees offer a maximum leverage of 1:10 or even 1:200. The former still pales in comparison to the leverage offered to retail forex traders, so if you are familiar with forex or other CFD instruments, trading crypto CFDs might take some getting used to.
Trading Platforms
Whether you’re a seasoned trader or just starting out, the platform you utilize can make all the difference. A good platform should provide you with the tools and features you need to execute trades efficiently, analyze markets, and manage your risk exposure.
Given their significance, platforms are something you should definitely take into consideration. When it comes to trading crypto CFDs, many brokers offer at least a couple of options. MetaTrader 4 (MT4) and MetaTrader 5 (MT5), for example, are popular choices among traders. They were developed by MetaQuotes, and their advanced charting tools, automated trading capabilities, and a wide range of technical indicators make them staples in crypto CFD trading. cTrader is another platform that sees much use, and it is known for its fast execution and advanced trading features. Meanwhile, the web-based TradingView offers real-time market data, advanced charting tools, and a community-driven approach to trading. There are also brokers that have opted to create their own proprietary software, though you can rest assured that a lot of them still allow traders to use at least one popular third-party platform.
Is the Broker Suitable for Novice Traders?
CFD brokers that offer crypto trading have made significant strides in ensuring that novice traders will have all the tools they need to grow and hone their skills. If you are about to start your crypto CFD trading journey, the factors below will give you an idea of whether a given broker will be a suitable place to start.
Firstly, it is a good idea to pick a broker that offers an extensive FAQ section as well as educational content, including tutorials, webinars, and e-books. This will help you grasp the basics of trading crypto CFDs and introduce you to concepts such as market analysis, risk management, and trading strategies. Most importantly, such brokers often provide guides centered around their own trading platforms, account types, and the like.
A beginner-friendly CFD broker will also offer a range of account options, each designed to suit different trading styles and risk tolerance levels. For novices, demo accounts are of particular note since they let users practice crypto CFD trading without breaking the bank. If you open a demo account, you will be provided with virtual funds that can be used to try out strategies.
Once you are ready to move on to trading with real funds, it is best to go with a retail account that has a relatively low minimum deposit requirement. At some brokers, this figure can be $10 or even lower. This will allow you to test the waters without committing a significant amount of capital.
Of course, low costs will further help in ensuring a smooth trading experience for a beginner. Thus, narrow spreads, a lack of commissions, and low fees in general (cashout fees, etc.) are also desirable.
Customer Support
Ideally, you will not face any problems once you have settled on a broker. Nonetheless, you will want to have the peace of mind that should something go wrong, you will be able to rely on your broker’s customer support team.
Aim to choose a broker that provides diverse communication channels. Traders should be able to reach out to their broker through phone, email, or live chat. Availability is also crucial, and the customer support staff of a competitive broker will assist users around the clock, five or seven days a week.
If you would like to learn more about how a broker treats its users, you can browse client reviews on websites like Trustpilot. This way, you will learn how quick the support team is to solve issues, whether the staff is friendly and helpful, and so on.
Other Factors to Consider
While everything we have covered above will give you a good idea of whether a crypto CFD broker is worth a try, there are a few other factors you could keep in mind. For example, execution speed determines how quickly one can enter and exit trades. It also lowers the risk of slippage, making brokers with fast execution an appealing option.
Additionally, a virtual private server (VPS) can be a game-changer for traders, offering low latency and a secure and reliable environment to run trading software. Some CFD brokers provide complimentary VPS services in partnership with providers.
Last but not least, brokers that support copy trading are also worth considering. They allow traders to replicate the strategies of experienced investors, automating their trades and minimizing risk. Users can select and follow top performers and potentially benefit from experts’ experience and skills.
Why You Should Trust RationalFX
When it comes to making informed decisions about forex brokers, it’s essential to rely on trustworthy sources. Rational FX, a company with over 17 years of experience since its founding in 2005, has established itself as a credible authority in the industry. With an impressive collection of over 2500 reviews on Trustpilot, boasting a score of 4.2, it’s clear that Rational FX has built a reputation for providing reliable and unbiased information.
What sets Rational FX apart is its rigorous evaluation process, which considers over 30 different criteria when selecting forex brokers. This comprehensive approach ensures that every aspect of a broker’s service is taken in consideration, including regulation, forex spreads, trading platforms, deposit methods, and reputation. With its wealth of experience, transparent review process, and outstanding customer feedback, Rational FX is a trusted source for anyone seeking reliable information on forex brokers. You can reach us via e-mail at [email protected] or contact us through our social media accounts here: Facebook, YouTube, or leave a feedback here.