Accessing a New Asset Class With The Best Cryptocurrency Brokers
The best cryptocurrency brokers contrasted and compared based on overall service quality. Find the right broker and the right cryptocurrency market for your trading.
Choosing the Right Cryptocurrency Broker
Cryptocurrencies are a new financial asset class that provide traders with an exciting opportunity. Analysts have shown that over holding periods of longer than four years, cryptocurrencies have performed better than every other asset on a risk-adjusted basis.
The sharp price movements of this new asset class have also provided traders with countless opportunities to tap into returns above and beyond what the market provides. However, a big part of having success in the cryptocurrency markets is choosing the right platform to access the market.
Brokers are playing an increasingly important role in providing access to this new asset class. Hacks on some of the biggest cryptocurrency exchanges in 2019 have made brokers a better option for traders than ever. However, choosing the right cryptocurrency broker is not an easy task.
Aspects such as security, trading platforms, and instruments offered are all important factors to consider. We have reviewed the leading brokers that provide access to the cryptocurrency market. We present the brokers that provided the best overall service.
Before delving into the brokers that performed best across a variety of considerations, potential users need to be aware of the risks of cryptocurrency trading. Due to the sharp price movements of cryptocurrencies and the instruments that track their price, users need to understand the risks associated with this new asset class. The potential to lose money is present and users should never take risks where they cannot afford to take the loss.
Founded in Poland in 2002, X-Traders Broker (XTB) has quickly become one of the leading forex and CFD brokers in the world. The company is publicly listed on the Warsaw Stock Exchange and regulated by the Financial Conduct Authority (FCA) in the United Kingdom. Users of XTB benefit from the regulatory oversight that publicly listed services are subject to. All client funds are separated providing an extra layer of protection to the users of this broker.
In terms of the cryptocurrency markets, XTB provides products that track the price of both bitcoin and altcoins. The following cryptocurrency markets are available to trade with XTB:
- Monero against
- IOTA against bitcoin
*All markets for all brokers are traded against USD unless otherwise noted
For those familiar with using the MetaTrader4 (MT4) desktop trading platform, XTB will be a top consideration. XTB also have their own proprietary xStation 5 trading platform which is supported on desktop, mobile, and tablet.
easyMarkets is a European headquartered broker that has been operating since 2003. The company also operates in the Asia Pacific and is regulated by the Australian Securities and Investment Commission (ASIC) and CySEC.
easyMarkets provides narrower access to the cryptocurrency markets than other brokers on this list with the exception of Oanda. The markets offered are Bitcoin, Ethereum, and XRP. These markets are also limited in terms of opening times for trading. The markets are open for trading between 22:00 GMT on Sunday to 21:00 GMT on Friday.
However, users may find other advantages to easyMarkets such as the ability to trade through a variety of platforms including MT4, easyMarkets app, and their own platform. Users can also receive an e-book on cryptocurrencies at no charge through the easyMarkets website. This is useful if users want to further their understanding of this new asset class.
eToro has been positioning and marketing themselves as a broker which takes their cryptocurrency trading division seriously. The company has been established since 2007 and introduced cryptocurrency trading services in 2007.
The company is still private but has gone through several rounds of venture capital funding. eToro is headquartered in the European Union (EU) but is overseen by numerous regulatory bodies worldwide. These bodies include the FCA, Cyprus Securities and Exchange Commission (CySEC), and the ASIC.
The following cryptocurrency markets are available on eToro:
- Ether Classic
- Bitcoin Cash
- Stellar Lumens
The markets are mainly provided through CFD products. A CryptoPortfolio product is also offered which is more suited for long-term investors. One of the unique features of the eToro platform is their social trading platform where users can view the positions and performance of other traders. eToro have their own web-based trading platforms and application that allows traders to manage their positions directly from their browsers or mobiles.
The London-headquartered City Index has been established since 1984. The broker provides users with access to the financial markets through both spread betting and CFDs.
The broker is owned by the publicly listed Gain Capital. Gain Capital is a US-based company that owns forex.com. Users who wish to access City Index in either the United States or Canada will be redirected to forex.com.
Similar to XBT, users of City Index will benefit from all of the upsides of Gain Capital being a publicly listed company which means more regulatory oversight and compliance standards.
City Index provides access to the following cryptocurrency markets:
- Bitcoin (USD, EUR, GBP, and AUD)
- Bitcoin Cash
Traders have the ability to go either long or short in the above markets. City Index provides a number of different platforms through which users can access the above markets. This includes support for mobile, web, and desktop.
Pro's and Con's
74% of retail CFD accounts lose money
Accessing a New Asset Class
Making the final decision for a cryptocurrency broker involves a lot of decisions. The above reviews can be used to ensure that the broker you choose has the market you wish to trade. Ultimately, all of the brokers reviewed here have good security, services, trading platforms, and will allow traders to go both long and short.