Numerous individuals hold the belief that digital currencies are the upcoming trend in the financial industry. If you plan on delving into the world of cryptocurrencies, selecting a trustworthy broker to trade or invest in them is crucial to prospering in this market. To commence your journey, explore our recommendations for the best crypto brokers and carefully select the one that aligns with your preferences. Let’s take a look at it in more detail.
Best Crypto Brokers: Crypto Brokers Vs Crypto Exchanges
Before diving into the comprehensive roster of the leading cryptocurrency brokers for the year, it would be prudent to first clarify what a crypto broker is and how it distinguishes it from a crypto exchange. In essence, it’s essential to discern the disparities between these two entities.
A crypto exchange permits you to deposit certain cryptocurrencies and subsequently exchange them for alternative assets. Such transactions occur either between two parties or through the exchange acting as an intermediary or via the platform itself.
The key aspect to bear in mind is that you can solely engage in trading using the assets you currently own. This implies that if you intend to trade Ethereum for Bitcoin, you must possess Ethereum coins in your possession at that time.
In contrast, when dealing with crypto brokers, this rule does not apply. These brokerages provide access to specialized trading tools that allow you to trade assets that you do not necessarily possess.
Thus, obtaining Bitcoin does not necessarily require exchanging your Ethereum for it. Instead, you can utilize one of the alternative Bitcoin trading pairs and take advantage of the unique features offered by the brokerage.
Popular crypto exchanges like Binance have gained traction among traders due to their user-friendly interface and ability to execute buy and sell orders like traditional stock exchanges.
Some exchanges even offer additional features such as margin trading and DeFi functionality, allowing investors to maximize their digital assets.
Despite the convenience, signing up with a crypto broker may be a better option for some. Security is a primary concern, and crypto exchanges have a history of poor management, unethical business practices, and even bankruptcy, resulting in the loss of billions of dollars worth of clients’ assets.
In contrast, many crypto brokers are overseen by reputable regulators, offering an extra layer of protection to investors.
Furthermore, since brokers are not solely focused on the crypto industry, they tend to be better equipped to withstand the volatile nature of the crypto markets. For instance, eToro provides trading services for stocks, commodities, and cryptocurrencies.
In addition to security and diversification, many crypto brokers offer derivative products like CFDs and binary options, which can be challenging to find on exchanges.
With these instruments, traders can make leveraged bets on crypto assets without having to own and store them securely, eliminating the risk of crypto keys being lost or stolen.
Best Crypto Brokers in 2023
1. HYCM
Best Crypto Brokers: HYCM
Although not a conventional crypto exchange, HYCM is a leading forex and CFD broker that facilitates trading in a more extensive range of cryptocurrencies compared to most dedicated crypto trading platforms.
HYCM employs a type of financial contract known as CFDs or Contracts for Differences, which are intricate agreements utilized for speculating on the performance of an underlying asset. This broker offers an extensive selection of crypto CFDs, enabling users to place wagers on the price fluctuations of the underlying cryptocurrencies.
If you desire access to a world-class trading platform that encompasses both forex and crypto CFD trading, HYCM could be the ideal choice for you. By opting for HYCM, you can benefit from a comprehensive range of trading instruments and leverage the versatility of CFDs to speculate on the dynamic crypto market.
2. Caleb & Brown
Best Crypto Brokers: Caleb & Brown
Caleb & Brown endeavors to simplify the often confusing world of cryptocurrency for clients who may not be well-versed in the market. With a personalized approach, the platform provides global access to liquidity, thereby rendering trading easier and more affordable.
At Caleb & Brown, clients have the option to trade over 1000 assets, with robust security measures put in place to safeguard their accounts. Token access is limited solely to the account owner, and the platform provides personalized assistance from a dedicated broker to guide clients in making optimal investment decisions.
As an Australian-based firm, Caleb & Brown also grants access to XRP, TFuel, and Theta – assets that are unavailable on most U.S. exchanges. Beyond crypto trading, clients can also seek guidance from their brokers on an array of financial matters, including financing college tuition, planning for retirement, saving for significant purchases, or budgeting for vacations.
3. Public.com
Best Crypto Brokers: Public.com
Public.com offers a way for anyone to enter the world of cryptocurrency without any account minimums. If you’re interested in investing in more expensive assets like Ethereum and Bitcoin, you can purchase fractional crypto tokens.
Additionally, you can gain knowledge about crypto by reading up on it within the Public app. Tracking the social feed allows you to see what other investors, including celebrities like Shaq, are doing.
Public.com offers a range of tokens, including Cardano, ApeCoin, Dogecoin, Litecoin, Bitcoin Cash, Shiba Inu, Stellar, Ethereum Classic, Dash, and ZCash. Each cryptocurrency has a chart that shows its trajectory, and you can invest in specific themes related to these projects.
It’s not always easy to keep up with the constantly changing cryptocurrency market and its many projects, but Public.com simplifies the process for you. The app takes on the heavy lifting of researching various projects so that you don’t have to. Overall, Public.com offers an accessible and user-friendly way to enter the world of cryptocurrency.
4. IFC Markets
Best Crypto Brokers: IFC
IFC Markets offers a trading platform that allows you to invest in a wide range of cryptocurrency products and other assets. Traders who operate with small-volume, intraday, and mid-day trading strategies will benefit from IFC’s 15 years of experience. The platform is insured by AIG Europe and has received multiple international awards. Additionally, IFC Markets allows you to create synthetic assets.
With IFC Markets, you can diversify your portfolio by trading Cryptocurrency CFDs on Bitcoin and Ethereum and CFDs on crypto futures. This gives you access to unique asset classes that can help spread your risk. You can also use 1:8 leverage, and enjoy low spreads and low minimums, making it affordable to invest in the cryptocurrency market.
5. Uphold
Best Crypto Brokers: Uphold
Uphold is a highly regarded cryptocurrency broker, praised for its extensive range of services and products. This platform offers access to over 200 different cryptocurrencies, far more than most other exchanges. However, Uphold goes beyond just crypto trading, also supporting the trading of stocks and precious metals, making it a one-stop shop for a variety of assets.
One of the standout features of Uphold is its crypto staking page, which provides its users with attractive interest rates for passive income generation. This feature can be especially beneficial for those looking to diversify their portfolio and generate additional revenue streams.
If you are someone who enjoys trading multiple asset classes such as Bitcoin, altcoins, stocks, and precious metals, Uphold might be the perfect choice for you. The platform’s extensive selection of products, combined with its user-friendly interface and reliable service, make it a top choice for traders of all experience levels.
6. Interactive Brokers
Best Crypto Brokers: Interactive Brokers
Interactive Brokers stands out among competitors as a top choice for active crypto traders. Many crypto exchanges charge a spread on buy or sell orders, resulting in extra costs for traders. However, Interactive Brokers distinguishes itself by charging no added spreads, markups, or custody fees, and offering low commissions starting from just 0.12% to 0.18% of the trade value.
In addition, Interactive Brokers offers a wide range of digital tokens from Paxos Trust Company, including popular options like Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. This variety of assets allows traders to diversify their portfolios and take advantage of market opportunities.
Interactive Brokers also provides a secure and regulated platform, being a member of FINRA, and SIPC, and regulated by multiple agencies worldwide. Additionally, traders have access to sophisticated trading tools and resources to help them make informed decisions and maximize their profits.
7. WeBull
Best Crypto Brokers: Webull
For those who aim to manage their stock and crypto portfolios in one platform, Webull is an ideal choice. It offers a comprehensive range of popular cryptocurrencies such as Bitcoin, Ethereum, Dogecoin, and other altcoins to help you diversify your holdings with ease.
Webull also enables you to trade crypto instantly, which is a valuable feature in the highly volatile crypto market. By providing quick and easy access to both stocks and crypto, Webull is a convenient and efficient option for investors looking to manage their portfolios all in one place.
8. Coinmama
Best Crypto Brokers: Coinmama
Coinmama is a top-notch exchange platform that boasts an enormous user base of 2.8 million individuals, indicating its popularity among investors.
It is widely used by foreign investors, as it operates in a staggering 188 countries, and its support for various fiat currencies is unparalleled. You can buy cryptocurrencies using almost any fiat currency, although prices are shown only in USD or EUR.
Coinmama is an excellent choice for non-U.S. investors, but it is equally beneficial for U.S. users, except for individuals residing in New York or Hawaii.
Coinmama offers low fees and a decent selection of tradable cryptocurrencies. While it may not offer the largest selection of cryptocurrencies, it still allows you to trade most of the top cryptocurrencies available on the market.
9. Admiral Markets
Best Crypto Brokers: Admiral Markets
Admiral Markets is a well-known name in traditional finance, particularly in stocks, forex, and advanced trading tools. However, what many may not know is that the platform also offers cryptocurrency trading options.
While Admiral Markets allows clients to trade cryptocurrencies, it’s important to note that this is limited to trading CFDs or contracts for difference.
These contracts don’t represent actual cryptocurrencies, but rather derive their value from underlying crypto assets. Despite this, Admiral Markets provides traders with a range of benefits, including access to a variety of trading tools, low fees, and reliable customer support.
10.FxPro
Best Crypto Brokers: Fxpro
FxPro may not be the first name that comes to mind when you think of top cryptocurrency brokers. Many people who are familiar with the platform might not even associate it with cryptocurrencies at all.
However, FxPro does offer its clients the opportunity to engage in cryptocurrency trading and acquisition.
But there is a catch. FxPro’s approach to cryptocurrency trading is different from what you might expect from other crypto-specific brokers. Instead of allowing clients to buy or sell actual cryptocurrencies, FxPro enables users to trade crypto CFDs.
This means that clients do not receive the actual cryptocurrencies they trade, but rather a contract for difference.
In other words, FxPro is not a traditional buying or selling broker for cryptocurrencies. Rather, it is a platform where users can trade crypto CFDs, which is a financial derivative product that allows traders to speculate on the rise or fall of cryptocurrency prices without owning the underlying asset.
This approach to cryptocurrency trading may appeal to some investors who are interested in cryptocurrency but prefer a more traditional trading experience.
Conclusion
Cryptocurrency brokers offer traders a convenient avenue to participate in the digital currency markets and capitalize on the market’s fluctuations while minimizing risks linked to exchanges. Although not the most economical way to trade digital assets, crypto brokers provide numerous advantages, such as access to derivatives and the opportunity to execute leveraged trades. It’s important to exercise caution when trading on margin since the gains and losses can be magnified, particularly in the unpredictable realm of cryptocurrency.
