We did the research for you to help you find the best Bitcoin brokers. We analysed the 102 online brokers we cover, then tested their cryptocurrency offerings and services.
Our top 5 picks for the best crypto brokers in 2022:
- Exness is the winner.
- eToro takes second place.
- Eightcap rounds out the top three.
- Swissquote came in fourth.
- Capital.com just made it to the list in fifth place.
At over 12 years old, bitcoin continues to grow and mature as an alternative asset and is considered by many to be like a digital version of gold.
After peaking at over $17,000 per coin in late 2017, bitcoin retreated in price, and then surged back to claim record price highs above $69,000 in November 2021. As of publication, the total value of all bitcoin is nearly $1 trillion, representing a significant portion of the entire cryptocurrency market — which is $2.36 trillion as of December 2021.
This guide explains what bitcoin is and how to buy it, and summarises the best cryptocurrency brokers for trading bitcoin CFDs.
Do not miss a chance to get additional monthly bonuses and payouts for trading at EXNESS Group.
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What is bitcoin and how does it work?
Bitcoin, also known as cryptocurrency, is a type of public internet money or electronic cash. It was launched in January 2009, following the published of its design in a white paper. The supply of bitcoin is limited, and each bitcoin is created through mining, in which anyone in the public can verify transactions to help secure the network.
Bitcoin behaves very much like a commodity due to its limited supply and the intensive mining process. Bitcoin mining is similar to gold mining in that it requires a significant amount of effort and money. However, due to the use of blockchain technology, which means that all transactions are public and anyone can join the network, bitcoin is far more efficient than gold in many ways.
Furthermore, due to the cryptographic primitives used in the bitcoin blockchain, bitcoin is highly resistant to any form of censorship, and forged transactions are impossible (and in bitcoin wallets).
Best Bitcoin Broker for 2022
Here are the best forex brokers for buying cryptocurrency such as bitcoin based on over 113 different variables.
- Exness – Best overall for crypto trading
TOP 4 REASONS TO TRADE BITCOIN AT EXNESS
Bitcoin or other types of cryptocurrency are very trending right now. Traders are looking for a place that is safe and has the best conditions to start trading Bitcoin. In my opinion, one of the greatest forex brokers that has Bitcoin trading is Exness.
Here are the four reasons why. However, remember that when you’re trading on Exness, you don’t trade or process any Bitcoins, you trade the contract for difference (CFD), the difference between the buy and sell price of one product. To put it simply, you buy CFD Bitcoin that is worth $2,000. Tomorrow, the price will increase to $2,500, so you will make a profit of $500.
In September 2017, Exness officially opened for Bitcoin trading. What made them stand out was their tight spread and that they charge absolutely no commission. On the first few days, the spread is usually around $5 to $7 for each coin, while some other brokers give a price of $15 to $20 for every coin. In recent months, when the price of Bitcoin has peaked up to about $20,000, the spread of other brokers was approximately $100-$500. However, at Exness, traders found the spread really low, at around $20 to $120 per coin. The low spread is the key feature that attracts traders to Expense. You can check the NASDAQ spread in real time here.
Of all the forex brokers, Exness offers you the highest leverage in Bitcoin trading. Exness is popular for its unlimited leverage, and for Bitcoin, their leverage is 1:50. In comparison, XM offers you only 1:10 leverage for Bitcoin. In conclusion, at Exness, you can buy Bitcoin 50 times cheaper. Remember, you buy Bitcoin for trading only, so you don’t actually own any Bitcoin.
What could possibly be the best thing for Bitcoin traders like you and me? No swap means no matter how long you keep your coins, there is no holding fee. You can review Exness Swap here.
As one of the biggest brokers in the world, Exness has the duty to offer traders the highest liquidity. It only takes you milliseconds to execute your orders. Do you know how long it takes at Coinbase? four to five hours. Do the math yourself. It is very important for a broker to have high liquidity because traders want to buy or sell Bitcoin as quickly as possible since the price is always changing. With the high liquidity that Exness offers, I can easily follow my strategies in a nick of time.
How do you buy bitcoin?
There are three primary methods for buying and selling cryptocurrencies such as bitcoin:
Buying bitcoin (the underlying asset): The most common method of buying bitcoin is to purchase physical bitcoin from an online bitcoin exchange such as Exness. Your bitcoin is then stored and secured in the broker’s digital wallet (or you can withdraw it to the wallet of your choice).
Purchase a bitcoin CFD (contract for difference): CFDs are another popular way to trade bitcoin. You do not own the underlying bitcoin when you trade CFDs. Instead, you are placing a bet that the price of bitcoin will rise or fall. The main advantage of CFDs is that you can short bitcoin if you believe the price will fall.
The main advantage of CFDs is that you can short bitcoin if you believe the price will fall. Long-term holding can be costly due to the cost of carrying CFDs overnight (i.e., rollover premiums).
Invest in an exchange-traded product (ETP): ETPs are a type of security that can include anything from a structured product or fund to a derivative contract or trust. ETPs include exchange traded funds (ETFs), exchange traded notes (ETNs), and other securities that track the price of bitcoin, such as the Greyscale Trust (GBTC).
What does a bitcoin broker do?
Bitcoin brokers allow you to buy and sell cryptocurrency. You cannot trade cryptocurrencies like bitcoin without a broker. When trading bitcoin, it is important to use a trustable broker to avoid scams.
What is the best forex broker to trade bitcoin?
Traders who wish to purchase the underlying physical bitcoin will find that Exness is a great option, followed by Swissquote Bank and Interactive Brokers. For bitcoin CFD trading, which includes the ability to go long or short on bitcoin, we recommend forex brokers such as Capital.com, and AvaTrade due to their range of crypto assets (as long as you are located outside of the U.K.).
Due to regulatory restrictions, CFDs cannot be traded in the UK by UK residents due to regulatory restrictions (unless you are designated as a professional client). Click here to learn more.
Can you trade crypto on forex?
Most cryptocurrencies are available as the underlying physical asset or as a CFD or other derivative, including spot forex contracts. For example, Saxo Bank launched bitcoin crypto trading as a spot forex contract, which behaves similarly to a CFD despite the legal distinction. If you want to trade crypto on Exness.com, crypto CFDs are available outside of the United States (except in the U.K., unless you are designated a professional trader).
Which broker is good for cryptocurrency?
Coinbase is an excellent choice if you only want to buy and hold cryptocurrency. Coinbase has nearly 70 million users and is highly regulated in the United States and other countries.
However, not all cryptocurrencies are supported or available in all regions, so if you want more trading tools and the ability to trade in either direction (long or short), a CFD or forex broker is your best bet.
Which crypto broker has the lowest fees?
While Coinbase and Binance both offer entry-level pricing, Binance is cheaper with just 0.1% for the maker fee (when you place a limit order) or taker fee (when you place a market order), compared to Coinbase, which charges 0.5% for both maker and taker fees on its base level (lowest) pricing tier. Binance and Coinbase are the largest cryptocurrency exchanges globally.
In terms of fees for active traders, Coinbase only outranks Binance when you compare the highest tiers offered by each broker. For example, for traders that surpass $1 billion dollars in volume—or 150,000 BTC—Coinbase is cheaper, offering a 0% maker fee and a 0.04% taker fee. The 0% maker fee kicks in when you surpass $300 million on Coinbase, whereas on Binance you are charged a maker fee no matter how much volume you trade.
How much is one bitcoin worth?
Powered by blockchain technology, the price of one bitcoin reached a new all-time high of almost $70,000 in November 2021. The price gains were mostly attributed to new institutional investors entering the market and buying bitcoin.
I first wrote about cryptocurrencies in 2013, when bitcoin was still a novelty. Yet, as I’m writing this, the combined market cap of cryptocurrencies is over $2 trillion, with bitcoin accounting for nearly half. According to Coinmarketcap data, the price of bitcoin can fluctuate widely across various trading venues, though cryptocurrency markets have become more efficient in recent years—despite the high volatility.
Is buying bitcoin risky?
Despite the possibility of large gains, buying bitcoin remains risky. The main risk is high volatility (price swings). If you buy bitcoin and then the price falls, you could suffer significant losses. When purchasing bitcoin, adding leverage (trading with borrowed funds) will only increase your risk.
Besides that, bitcoin remains a complicated financial product. Many investors have lost money simply by losing their private keys, whether as a result of exchange hacks or due to inadequate security in self-hosted wallets. Using a regulated, reputable broker is critical for trading bitcoin safely.
How do I know if a crypto broker is regulated?
Only use regulated bitcoin brokers to avoid scams. To verify a broker’s regulatory status, first decide the broker’s legal name and country, and then look them up on the appropriate regulator’s website.
In the United Kingdom, for example, a broker must be authorised and regulated by the Financial Conduct Authority (FCA). We track, rate, and rank brokers across 20 international regulators at Dailybluepips.com.
Is trading cryptocurrency legal?
In some jurisdictions, buying, trading, or owning cryptocurrency is prohibited or illegal. Meanwhile, it is perfectly legal in other countries. For example, it is legal in the United States (U.S.) and the United Kingdom (U.K.) to purchase cryptocurrency from regulated brokers. CFDs, on the other hand, are illegal to trade in both countries. The ban on bitcoin CFDs in the United Kingdom went into effect on January 6, 2022.
How do you safely store bitcoin?
If you do not want to keep your bitcoin with your online broker, you must keep it in a secure location. To protect your bitcoin, you must use either a hot (online) or cold (offline) self-hosted wallet. Keep in mind that storing cryptocurrencies in your own self-custody wallet comes with its own set of risks and responsibilities. It must be properly secured, just like cash in your pocket.
Personally, I use Blockchain.com for a hot wallet (online, internet-connected), which has both a mobile and web-based version. I use Ledger for cold storage, which is a hardware device that allows you to keep your bitcoin private key offline.
When you keep your private key offline, you’ll need to create a written backup recovery phrase — a critical step to safeguard your bitcoin in the event that you lose your hardware device.