Crypto investing has become very popular recently, especially since many brokers are listing Bitcoin, Litecoin, Dash and Ripple as available assets.
Although every broker you find, will give you the opportunity to trade bitcoin contracts, many brokers have ridiculously wide spreads. A recent comparison of brokers in August 2022, found spreads ranging as wide as $150, to as narrow as $30, with the price of a BTCUSD at $23,800.
Remember: Only trade crypto with a Licensed and Regulated broker!
How To Compare Crypto Brokers
Here is a quick checklist of items to compare between bitcoin brokers.
- Verify the Crypto / Bitcoin broker is actually licensed and regulated.
- Check the address of the company you are trading with.
- Signup for their Free demo account.
- Check minimum trade size
- Check their minimum deposit requirement.
- See how tight the spreads are for BTCUSD and ETHUSD.
Many people make the mistake in thinking their broker is actually an exchange, but many brokers are in fact just CFD brokers.
Regulated Crypto Brokers
PepperStone is the best CFD broker for trading Crypto, because they have the tightest spreads on Crypto CFDs.
They are a popular globally licensed and regulated broker, offering a choice of trading apps, see here.
Start with a Free Demo Account, signup here.
Between 74-89 % of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money
If Your Broker is Not Regulated… You Will Get Scammed!
Read about the Crypto Trading Scam
How To Avoid Crypto Scams
There are two types of scams that are now very common with Crypto Currency investors.
- The first one is “trading robots” or trading apps, which promise to make you a lot of money, by automatically trading on your behalf. You should read about real trading software, see here.
- The second problem is brokers who are not licensed or regulated. Every financial company must be licensed by the government. Popular brokers are licensed in Australia by ASIC or in Cyprus by CySEC. The FCA in the United Kingdom recently banned brokers from offering CFD’s on Crypto Currency to U.K. residents.
If you go with a broker who promises to make you rich, and they are not licensed, you can read the complaints page now, so you understand what you will be dealing with.