Top CFD Brokers to Buy & Trade Cryptocurrencies

Today, cryptocurrencies became widely accepted and a popular asset class that is used for investments by individual and institutional investors. Bitcoin, Ethereum and other altcoins are part of the forex market – by far the largest in our current economy with $6 trillion daily trading volume. Cryptocurrencies are typically uncorrelated to the traditional markets and are seen as a good hedge in times of uncertainty. Some investors prefer to take long positions in Bitcoin and other cryptos, by talking a buy-and-hold approach. They can use crypto exchanges but given continuous security issues more and more people prefer to hold their long-term crypto holdings in cold-storage and wallets. But the price volatility of digital assets presents a great opportunity for retail traders to make a regular profit by betting on the price swings of Bitcoin, Ethereum and other altcoins. So what are the top CFD brokers to buy and trade cryptocurrencies? 

What is CFD Broker? 

Let’s us quickly explain what is CFD broker is and how it is different. Usually, traditional broker connects buyers and sellers of a particular asset making money on Bid/Ask price, which is also known as Bid/Ask Spread. With the traditional  broker, someone needs to actually own a stock or any other financial contract in order to be able to sell it. 

CFD broker on the other hand are different and have a number of advantages. 

The Contract for Difference (CFD) is the financial instrument that allows investors to trade the direction of the underlying security over a short period of time (usually max up to a day). With CFD you don’t have to buy and own the underlying asset, and there is no physical delivery. Instead, CFD pays the difference in a settlement price between the opening and closing trade and is very popular in forex and commodity trading markets. 

So when you invest in Bitcoin or Ethereum via CFD, you don’t buy the digital asset but only will get the difference in a price move. Investors don’t have exposure to the security risk and hacker attacks so common for many crypto exchanges. With CFD, you can invest in Bitcoin with as little as $10 per trade but still get a full price upside. 

Another interesting feature of CFD brokers is that they provide leverage so you can increase your return on capital. While for traditional currencies the leverage can be as high as 300:1, for cryptocurrencies is usually quite modest and can go up to 20:1. Leverage, or Margin Trading, is essentially borrowing money for each trade. So, in case of cryptos, say for each $100 invested, you can get a trading position of $2000 in that particular cryptocurrency. There is a small borrowing cost, but if say the Bitcoin price moved 20% (which happens often) the value of your investment will go from $2000 to $2400. 

You will make $400 on the trade when you only invested $100. That is a 400% return on investment!  That is why so many investors prefer to trade cryptocurrencies with CFD and leverage, as their return on investment can be phenomenal thanks to the volatility of Bitcoin and other digital assets. But investors also have to be careful as leverage works the other way too if the trade goes against you. Managing risk is extremely important and you should never invest more then you are prepared to lose. 

Now let’s discuss what are the most important things to look at when choosing a CFD broker trading platform. 

How to Choose a Reliable CFD Broker? 

Today, there is a large number of various brokers and trading platforms where you can trade and invest in cryptocurrencies. But not each of these is good and reliable. We hear many complains from our readers about different scam brokers that only interested to get your money. It is our mission to review different CFD brokers and share with our community which ones are scam and which ones can be trusted. So when you chose a new CFD broker, there is a number of key things you need to look at: 

1. Regulatory Framework

Investments and trading are strictly regulated activity and usually, it is countries financial regulator that oversees such market participants. It is obvious, that regulated CFD broker will have to comply with all the laws and regulations and also have sufficient capital base and financial standing to be able to maintain its regulatory status. It is also quite obvious, that regulator from a respected jurisdiction such as the United Kingdom, Ireland or any other country in the European Union will ensure that the broker operates in the right way, otherwise, its owners and senior management can face huge fines and even go to prison. On the other hand, regulator in some distant off-shore island will not provide such cover. 

That is why when choosing the broker, first of all, check which jurisdiction it is regulated. For example, our top recommended brokers such as AvaTrade, Plus500 and IQ Option are regulated in multiple jurisdictions such as the UK, Ireland, Malta, Cyprus and other countries.

2. Trading Platform

Another important feature of the CFD broker is the actual trading platform.

Usually, there are two different approaches with some brokers (like AvaTrade or IQ Option) prefer to develop their own in-house platform while others (like Plus500) can use a third-party platform such as Meta Trade for example. Usually, most of the popular brokers will offer a number of trading platforms. In-house systems are usually more simple and user-friendly and more suited for beginner traders. Experienced investors can take advantage of extended functionality offered by professional trading terminals such as Meta Trader 4 & 5. 

It is also important for CFD broker to have a user-friendly mobile app to make sure that you can access your trading positions at any time, anywhere. 

3. Investment Universe

The investment universe is a list of different assets where you can invest via certain CFD broker. If you are looking to trade Bitcoin or Ethereum, it is also useful to know which other altcoins the broker gives access to. While with some brokers, you can only invest in 3-4 cryptocurrencies, the more popular ones will provide access to at least 12-15 different cryptos. As you will get into trading, you will most likely want to diversify your portfolio and invest in other asset classes as well, so make sure that your CFD broker offers access to stocks, commodities, Forex, ETFs, Indices and of course major cryptos. 

4. Free Demo Account

That is a very important feature, especially if you are just making your first steps in trading. Most of the popular brokers such as AvaTrade, ZuluTrade, Plus500 and IQ Option will allow you to open a free demo account with at least $10,000 in virtual cash. That can be extremely useful as you can first explore the trading platform and make your first bet risk-free. Obviously, once you familiarise yourself how the broker trading platform works and how to make trades, you can move into real-money account but you can take as much time as you want to learn. 

5. Social Trading Capability

Another extremely useful feature that is so popular among beginner investors is social trading capability. What social trading is, is that it allows you to simply follow or copy trades of professional traders and their investment strategies for a profit-share. These traders would be experienced investment professionals who in most cases manage money for a living. You will be able to see the description of their trading style and also the performance of their strategy. If you like the idea, you simply start following and making trades alongside them. And you can invest with experienced traders and make a profit even if you don’t have trading experience at all. If you are interested to learn more about the world largest social trading platform please read this ZuluTrade review

6. Minimum Deposit & Minimum Trade Size

That is probably the last most important thing that you need to consider. Most of the brokers will accept popular payment methods such as debit or credit card, PayPal, wire transfer and others. While some brokers will say their minimum deposit can be as low as $10 we urge you to be wary of such offers. 

With an established and reliable CFD broker, the minimum deposit can start at $100 and in some cases can be as high as $500. We think that is reasonable as in reality if you only invest $10 you won’t be able to do much. And if you decide to deposit at least $100, that means you are serious about investing and won’t just open the account for the sake of it. 

When it comes to minimum trade, many brokers will require you to invest at least £10 per trade but if you use a leverage the actual trading position can be higher. 

Our list of the best CFD Brokers to buy & sell Cryptocurrencies

Over the past years, we have reviewed more than 50 different CFD brokers and trading platforms. Some of them are good, many are average and some are a complete scam. Today, we want to share the best CFD brokers that we have reviewed and that are currently available on the market. So here they are… 

AvaTrade

One of the oldest and largest CFD brokers that have been a pioneer in online trading since 2006. It has a professional community of more than 200,000 experienced traders with an average trading volume surpassing $60 billion per month. With AvaTrade you can invest in major cryptocurrencies, stocks, Forex, commodities, ETFs and indices via a number of in-house and third-party investment platforms. AvaTrade offers 20:1 leverage when investing in cryptocurrencies with 24/7 customer support in different languages. AvaTrade is headquartered in Dublin, has regional offices in Paris, Dublin, Milan, Tokyo and Sydney as well as other countries and is regulated in 6 jurisdictions. 

AvaTrade Review How to buy Bitcoin

For more information, read AvaTrade review

You can open Free AvaTrade Account here.

Plus500

Plus500 is the largest CFD broker in the UK that has been operating since 2008 and is regulated by the Financial Conduct Authority.  Plus500 is a highly rated CFD provider that holds client funds on aggregated account in accordance with the FCA client money rules. The company Plus500 Ltd is listed and traded on the London Stock Exchange and offers access to more than 2000 financial instruments. Plus500 provides its investors with trading access to the largest cryptocurrencies such as Bitcoin, Ethereum, Crypto 10 Index, NEO, Litecoin, IOTA, Ripple, XRP, Bitcoin Cash, Stellar, EOS, Tron, Cardano and Monero. Plus500 offers 1:2 leverage on cryptocurrencies, ultra-tight spreads and no commissions and trading access to major cryptos 24/7. 

Plus500 Trading Platform | EthereumTrading.rpo

For more information, read Plus500 review.

You can open Free Plus500 Account here.

IQ Option

Another popular CFD broker on our list if IQ Option. The company is headquartered in Cyprus and is regulated by CySEC, the local regulator. Since 2014, this broker reached more than 7 million registered users thanks to its super-user friendly in-house trading platform that is suitable for both beginner and professional traders. You can invest in 12 largest cryptocurrencies with IQ Option and other asset classes such as Forex, stocks, commodities and ETFs. Due to specific regulatory regime in Cyprus, IQ Option is very popular with investors from outside the EU especially Asia, Russia and Middle Eastern countries. 

IQ Option Review - How to Start Trading

For more information, read IQ Option review.

You can open Free IQ Option Account here.

ZuluTrade

Last, but not least, on our list is the world largest social trading network where you can copy and invest alongside professional traders and investors. ZuluTrade allows you to auto-follow the strategies you selected, to review the list of trades and choose which one to execute yourself. While ZuluTrade is not actually a broker, it works with a number of popular CFD brokers that provide automated trading via APIs. The great thing about social trading is that you don’t need to be an investment guru to invest in top-performing investment strategies. With social trading, you can invest on auto-pilot and make money when you sleep while professionals do all the work for you. And you only pay a profit share, which means you only pay when the strategy you follow makes money. ZuluTrade works with AvaTrade and a number of other brokers including one in the United States. 

ZuluTrade Review Traders to Follow

For more information, read ZuluTrade review.

You can open Free ZuluTrade Account here.

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