Best Bitcoin Brokers for 2021
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Bitcoin’s meteoric rise and subsequent volatility have made the fortunes of many astute traders around the world. By luck or by correctly timing the market, trading Bitcoin has the potential to be very lucrative.
Before you get started, you need to choose the right broker for you. The trading platform’s ease of use, the broker’s fee structure, and leverage limits are all important factors for review.
In this guide, we will walk you through the key things to look for, highlight the best Bitcoin brokers in 2021, and show you how to get started!
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eToro: Best all-around Bitcoin broker
OUR RATING
- Well-designed and intuitive trading platform
- Tight spreads for Bitcoin & other cryptos/crosses
- One of the widest crypto & crosses offerings (via CFDs)
- Offers social trading & CopyTrade
67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.Our criteria for choosing the best Bitcoin brokers
Sifting through dozens of brokers is no easy task. To help you cut through the noise and highlight the best Bitcoin brokers in 2021, we considered the following 6 criteria:
- How user-friendly is the platform?
- Can Bitcoin be bought directly or via CFDs?
- Are the fees & spreads as low as they can be?
- What are the leverage limits & margin requirements?
- How do deposits & withdrawals work?
- Where is the broker regulated?
The best Bitcoin brokers in 2021
1. eToro: Best all-around broker for Bitcoin & other cryptocurrencies
eToro is a leading online broker with a global presence. It boasts over 5 million customers around the world and a full range of Cryptocurrencies, Stocks, Forex etc., available directly or via CFDs.
US customers can trade cryptocurrencies with eToro, although they do not have access to other instruments yet due to the ban on CFDs.
Bitcoin trading on eToro can be done directly for long, un-leveraged trades, or via CFDs for other orders. This way, eToro makes it possible to short-sell Bitcoin, leverage your trades and use custom order types even without a Bitcoin wallet.
Trading on the eToro platform is simple and very intuitive. The web platform is easy to use and has a social media-like design. It comes with a great mobile app for trading & monitoring your positions on the go.
Both platforms offer a range of charting & research tools, and eToro has an excellent trader education library to help you better your skills along the way.
Beyond Bitcoin, eToro offers trading for 17 cryptocurrencies, 64 currency pairs, 16 crypto pairs, and even a Gold/BTC pair. Leverage for Bitcoin trading is available up to 2:1.
A main feature of the eToro platform is the social trading dimension. eToro allows you to see what other traders are saying & doing, and to automatically copy their trades with their popular CopyTrade tool.
CopyTrade can be a source of inspiration for your own Bitcoin trading and a way to take a more passive approach by letting others do the work for you. Beware nonetheless not to focus excessively on past performance, particularly given the very high volatility of Bitcoin!
Additionally, eToro does not charge commissions, offers competitive spreads, and makes its fees (overnight rollover etc.) very transparent to traders.
Our Rating
- Clean and intuitive trading platform
- Tight spreads for Bitcoin & other cryptos/crosses
- One of the widest crypto & crosses offerings (via CFDs)
- Stocks & other non-crypto assets unavailable in the US
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider.2. CryptoRocket: A popular offshore Crypto broker with higher leverage limits
CryptoRocket is an up & coming crypto-focused broker that offers a wide range of fiat-to-crypto trading pairs (e.g. BTC/USD), crypto-to-crypto pairs (e.g. ETC/BTC) as well as Stocks, Forex & other instruments via CFDs.
CryptoRocket is a relatively new online brokerage that takes pride in its simplicity.
Opening an account is very fast, without cumbersome ID verification, and customer service is helpful & responsive.
The minimum deposit to start trading is $10, and you can try your hand with their free demo account before using your own money. Deposits can be made via credit card, wire transfer, or directly via a Bitcoin wallet. Withdrawals are also relatively faster than other brokers.
CryptoRocket is integrated to the popular MetaTrader desktop and web trading platform and to its complementary mobile app for trading on the go. Despite a more complicated interface, MetaTrader allows great customization and offers a wide range of charting & analysis tools for more advanced traders.
CryptoRocket offers tight spreads on Bitcoin & other cryptos and does not charge commissions.
As an offshore broker based in Saint Vincent and Grenadines, it is not regulated and offers significantly higher leverage, up to 100:1, for Bitcoin trading. While this may seem appealing, do not forget that high leverage carries equally high risk and should be used cautiously!
Our Rating
- Much higher leverage limits
- MetaTrader integration offers access to advanced tools
- Fast signup, easy deposits & withdrawals
- Offshore (unregulated) broker
- Overall range of tradable assets remains limited
Trading leveraged products such as Forex and CFDs may not be suitable for all investors as they carry a degree of risk to your capital.What to consider when choosing a Bitcoin broker
Now that you had a look at our top 3 Bitcoin brokers, let us look at some of the factors you should pay attention to when choosing a crypto broker:
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User-friendliness of the platform
When evaluating a broker, look for a platform that makes sense to you at first use.
Are the search functions clear? Can I place trades easily? Do I have the charting & analysis tools I need? Can I easily monitor my portfolio, my P&L, and the fees I’m paying?
Asking these questions will help you decide whether a broker’s platform is right for you.
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Trading directly or via CFDs
There are several ways to trade Bitcoin, but they can be placed in 2 categories: direct and indirect. Direct trading means that you have a Bitcoin wallet, actually own Bitcoin and buy or sell your own.
Trading CFDs, on the other hand, does not involve actual Bitcoin changing hands, it is simply a directional bet on the price of Bitcoin. CFDs are more flexible because they do not go through the blockchain. You can thus easily buy & sell Bitcoin in any quantity, leverage your trades, and even short-sell. Before you start, make sure you understand the trading options your broker offers.
Learn more about investing in Bitcoin, shorting Bitcoin, and CFD trading with our dedicated guides!
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Commissions, fees & spreads
Once you like the Bitcoin broker’s platform and the instruments it offers, you need to look at the fee structure. Most CFD brokers do not charge commissions on each trade, but some may offer commission-based accounts.
The main way CFD brokers make money is through the spread: the difference between the price at which you can buy or sell. You want to compare the Bitcoin spread between brokers to determine who offers the lowest prices.
Last, you should consider the other fees you could be charged. The standard ones are withdrawal fees, overnight rollover fees for multi-day CFD trades, and currency conversion fees. Make sure you fully understand how much a trade cost you before opening a trading position!
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Leverage limits & margin requirements
To expand the value of your trade position (albeit at greater risk!), you may want to use leverage buy or short Bitcoin. When comparing Bitcoin brokers, you may want to look at the maximum leverage offered on Bitcoin trades.
Similarly, it’s important to know the margin requirements on leveraged trades. How much minimum equity do you need to have in your portfolio? Below which margin level will the broker automatically close your trade?
If you fancy leverage trading, make sure to review these points for each broker.
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Deposits & withdrawals
When trading Bitcoin directly, you want to be able to transfer Bitcoin seamlessly from your wallet to the Broker. Similarly, when trading CFDs, you would like to have as many deposit options as possible for maximum convenience.
You should consider the minimum withdrawal amount, the withdrawal fees, and the time required for the money to be transferred to your bank account.
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Regulation
You should always review whether and where the broker is licensed to operate. Regulated brokers face tougher constraints on marketing, leverage & instrument types, but they are also safer.
Unregulated Bitcoin brokers are not necessarily unsafe, but you should always cross-check their references to make sure they are sound before deciding to trade with them.
Getting started with Bitcoin trading
Now that you understand how to choose a cryptocurrency broker and reviewed the best Bitcoin brokers in 2021, let’s look at how to get started!
1. Set up an account with your preferred broker
The first step is to register and open an account. We will use the example of the wildly popular eToro platform as a guide.
First, you need to register for an account. You only need to provide a few basic information at first, such as name, email, password, and a phone number that you will need to verify.
You will then be asked several follow-up questions (occupation, address etc.) and will take a short questionnaire to determine your trading profile. Expect to be asked about your financial knowledge, your network, risk appetite, and previous trading experience. These questions will help eToro tailor its recommendations and determine the appropriate instruments for you.
Once you are through with this step, you can start trading up to €2,000.
However, before gaining full access to the eToro platform (no deposit limit & faster withdrawals), you will have to complete your identity verification. You simply need to submit proof of identification & of residence, wait a few days, and your account will be open. Meanwhile, you can trade up to the deposit limit, or unlimited with eToro’s free demo account!
Last, thanks to eToro’s excellent customer service, you will be immediately assigned an account manager who will get in touch shortly to help you get started.
2. Fund your account
Once you tried your hand at Bitcoin trading with eToro’s free demo account, you can now get started using your money.
Funding your account is easy, and eToro offers 7 different ways to transfer funds, from credit card & PayPal to UnionPay and Wire Transfer. If your identity is not verified yet, you can only deposit up to the limit of €2,000, but there will be no limit once you are verified.
Before sending the money, you will be able to see the applicable exchange rate to USD (you can also deposit in EUR and GBP, but will be charged a conversion fee).
Once your account is funded, you are ready to trade.
3. Place your first Bitcoin trade
As one of the best Bitcoin brokers, eToro makes Bitcoin trading seamless.
Search for BTC in the search tool & click on it. You will be able to see a range of resources, from the BTC discussion feed, charts, key statistics, and research to guide your trade decision.
When you are ready, click “Trade”. The trade window will show you the price for each transaction (long or short Bitcoin) and will allow you to choose the dollar amount or BTC quantity you want to trade. You can then use leverages of up to 2:1 and specify other conditions (e.g. order type).
Importantly, non-leveraged long orders will be executed directly (i.e. you will own the underlying BTC). All other orders will be executed as CFDs, with overnight fees detailed at the bottom of the trade window.
When you are ready, click “Open Trade” to launch your first live Bitcoin trade!
Summary
Trading Bitcoin can be very profitable if done well, and finding the right cryptocurrency broker is the first step of the journey.
In this guide, we reviewed the key dimensions to consider when choosing a broker, highlighted the best Bitcoin brokers in 2021, and showed you how to set up an account & place your first trade. You’re now set and ready to start trading Bitcoin!
eToro: Best all-around Bitcoin broker
OUR RATING
- Well-designed and intuitive trading platform
- Tight spreads for Bitcoin & other cryptos/crosses
- One of the widest crypto & crosses offerings (via CFDs)
- Offers social trading & CopyTrade
67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.Glossary Of Cryptocurrency Terms
FAQs
What are the main ways to trade Bitcoin?
The simplest, cheapest and most accessible way is to trade via CFDs, as they do not require a Bitcoin wallet or to go through the Blockchain. You can also trade directly with your own Bitcoins, or use derivative products such as futures, options and ETNs.How volatile is Bitcoin?
Bitcoin is arguably one of the most volatile assets in the world. In the past, BTC has frequently jumped or fallen >30% in a single day!What are the most important factors when selecting a Bitcoin broker?
This guide offers more details but at a high level, some of the main factors are: direct vs. CFD, fees, ease of use of platform, leverage limits and regulation.Do I need a crypto wallet to trade Bitcoin?
You can have one, but you do not need it to trade via CFDs! Bitcoin CFD trading does not involve ownership of Bitcoin, it is simply a directional bet on the price of the asset.What type of fees can I face in trading Bitcoin via CFDs?
Fees will typically include the bid-ask spread and daily rollover costs for multi-day positions.See Our Full Range Of Cryptocurrency Resources – A-Z
Adam Green
Adam Green
Adam Green is an experienced writer and fintech enthusiast. He he worked with LearnBonds.com since 2019 and covers a range of areas including: personal finance, savings, bonds and taxes.View all posts by Adam GreenWARNING:
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