Top 7 online brokers for cryptocurrency trading In October 2023-Since its launch, cryptocurrencies have had quite the rollercoaster, with some early investors experiencing big returns and those who purchased at the high in late 2021 presumably suffering significant losses. The investing benefits, and viability of the digital currency have been hotly contested, with renowned investors like Warren Buffett claiming that they are practically worthless.
Many of the leaders of the defunct cryptocurrency exchange FTX were prosecuted with crimes in 2022, which raised concerns about the future viability of cryptocurrency as an investment. At the very least, the volatility of Bitcoin and other well-known coins might attract traders and offer the chance for some of them to make money.
While some traders prefer to hold currency in their own hands, others use the futures market. Given that they allow for the use of leverage to both magnify gains and losses, futures may be an even more alluring avenue to play the volatility of virtual currencies like Bitcoin. But in exchange for that bigger gain, futures carry much more risk.
Where you can buy and sell cryptocurrencies
Although you normally can’t trade Bitcoin directly, only futures, traditional brokers have the advantage of providing a large selection of investible products. Cryptocurrency exchanges, on the other hand, are restricted to digital currencies; nevertheless, you can hold the currencies directly and can frequently acquire a number of them, as opposed to just Bitcoin or Bitcoin futures, as you would with a conventional broker. Additionally, firms like Cash App and PayPal have joined the fray by enabling the purchase and sale of cryptocurrencies by American customers.
The top cryptocurrency brokers, including established online brokers and brand-new niche exchanges, are listed below. To find out where you may get a bit extra, you should also look into which brokers give the best bonuses for opening an account.
Top 7 online brokers for cryptocurrency trading In October 2023
Here are the best brokers for cryptocurrency trading
- Robinhood
- Interactive Brokers
- Webull
- TradeStation
- Coinbase
- Binance.US
- Kraken
1.Robinhood
Direct cryptocurrency purchases are a wonderful option with Robinhood. Additionally, you’ll be able to benefit from Robinhood’s incredibly well-liked trading commissions, which are $0 per trade or commission-free. However, you’ll still have to pay a built-in spread markup on all trades. Additionally, you can remain for the same cheap price to trade stocks and ETFs if you are interested in more than just cryptocurrencies. Trading is quite simple using Robinhood’s sleek software. Still, those expecting a fully featured trading experience will be kept a secret.
Key Features
- commission: $0
- Minimum balance Required: $0
2.Interactive Brokers
With one of the lowest market commissions, Interactive Brokers offers trading in four cryptocurrencies, including Bitcoin and Ethereum, through Paxos Trust Company. Through a Paxos-related app, customers may also access cryptocurrency trading around the clock. Additionally, IB enables you to purchase Bitcoin and Ethereum futures as opposed to holding the currencies outright. In the case of this broker, you may purchase Ethereum futures for $3 at 50 coins each contract or Bitcoin futures on the Chicago Mercantile Exchange for $5 at five coins per contract. You can purchase practically anything that trades on an exchange thanks to Interactive Brokers’ comprehensive array of investing options.
Key Features
- commission: 0.12-0.18 percent of trade value; $5 per contract for Bitcoin futures
- Minimum balance Required: $0
3.Webull
Even though Webull may not be as well-known as its competition, the commission-free trading software Robinhood nonetheless offers investors a strong selection that includes trading in cryptocurrencies. Webull does charge a spread markup of 100 basis points (1 percent of the price) on either side of a trade, despite the fact that you won’t pay commissions on cryptocurrency trades (or those in equities and ETFs). Trading is possible for a number of cryptocurrencies, including Bitcoin, Ethereum, and Cardano. Webull is a broker to take into consideration because of its charting features and strong mobile app.
Key Features
- commission: $0
- Minimum balance Required: $1 to trade crypto
4.TradeStation
This broker offers direct currency trading through TradeStation Crypto, with commission-based pricing for traders. Traders have a few options. Your 30-day cryptocurrency trading volume and if your order is directly marketable determine the price. Pricing typically ranges from 0.025% to 0.6% of your order. Additionally, traders can purchase and sell Bitcoin futures and benefit from significant volume trading discounts.
Key Features
- commission: 0.025-0.6 percent
- Minimum balance Required: $0, but futures margin depends on contract
5.Coinbase
You can exchange digital currencies directly on Coinbase, a marketplace that specializes in cryptocurrencies, including Bitcoin, Ethereum, Solana, and Tether. You’ll be able to use more than 200 cryptocurrencies altogether. For added security, you can deposit your coins in a vault that allows for time-delayed withdrawals. The commission structure on the exchange is high. Although its Advanced Trade platform is less expensive, it adds a transaction fee and a spread markup of around 0.5 percent, depending on the amount of the transaction and the funding source.
In June 2023, the SEC filed a lawsuit against Coinbase, alleging that it had illegally functioned as a clearing agency, broker-dealer, and exchange, as well as issued and sold unregistered securities. According to the lawsuit, Coinbase willfully broke securities regulations that are meant to safeguard investors. Coinbase declared that business as usual would resume.
Key Features
- commission: 0.05 percent on Advanced Trade
- Minimum balance Required: $0
6.Binance.US
You may buy and sell digital currencies on Binance, a dedicated trading platform, including the biggest ones like Bitcoin and Ethereum as well as dozens of other, much smaller coins. You will get access to about 130 cryptocurrencies in total. The Binance commission structure is reasonable and only gets more affordable as you trade more. Depending on your trading volume over the last 30 days, trading costs start at 0.45 percent of your trade value (i.e., $45 for every $10,000 transacted) and decrease from there.
After FTX failed in 2022, Binance’s financial situation came under investigation. The Securities and Exchange Commission (SEC) warned investors to be wary of crypto business audits after the accounting firm hired by Binance to verify its reserves halted work for all crypto clients. The Wall Street Journal reports that none of the top four accounting firms are willing to collaborate with Binance.
In June 2023, the SEC filed a lawsuit against Binance, saying that it had illegally operated as a clearing agency, broker-dealer, exchange, and had issued and sold unregistered securities. The lawsuit also charged Changpeng Zhao, the company’s founder, and Binance with misusing user cash. Investors were advised against using Binance platforms by SEC Chair Gary Gensler. Binance asserted that the assets of its users are secure.
Key Features
- commission: 0.45 percent of the transaction value or less
- Minimum balance Required: $0
7.Kraken
With the help of Kraken, you may trade in a wide range of cryptocurrencies, including established ones like Bitcoin and Ethereum, as well as newer ones like Cardano and Solana. If you use a card and fund through a bank, you’ll incur additional fees in addition to the 1.5 percent fee or the 0.9 percent fee for stablecoins. Kraken Pro is a premium tier that caters to more active traders, with fees falling from 0.16 percent to 0.26 percent. Residents of Washington State and New York still need access to Kraken.
Key Features
- commission: 1.5 percent, or 0.9 percent for stablecoins
- Minimum balance Required: $1
Final Thought
Always take all of your needs into account when choosing a broker. For beginner cryptocurrency traders, you’ll also need to decide if you want to hold the digital currency directly or whether you want to trade futures, which have bigger potential rewards but also higher potential risks.
Additionally, you must decide if you wish to trade instruments other than Bitcoin, as most conventional brokers limit you to doing so. If not, consider using a cryptocurrency exchange because they have a wider selection of marketable cryptocurrencies.
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