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Best Brokers For Trading Cryptocurrencies in 2022

Are you looking for the best way to trade cryptocurrencies? What if you could trade crypto using the same platform where you can also trade forex, stocks, indices and commodities? It probably sounds like magic, but it is very much possible thanks to the contracts for difference, simply known as CFDs.

Many of the leading forex brokers today support crypto trading. The best thing is that you won’t even have to worry about storing cryptocurrencies on crypto wallets. But, how exactly does it work, and is it any good?

CFD trading is a popular way to start cryptocurrency trading without doing a month’s worth of research and due diligence on unregulated exchanges. Instead, you can use regulated brokers already used by hundreds of thousands of forex traders. Crypto CFDs can be traded using platforms forex traders are already familiar with.

Article Summary:

While many forex brokers offer traders access to crypto-assets, not all of them are equally good for crypto trading. For example, some brokers have extremely wide spreads, high commissions, excessive overnight fees and poor execution, despite being highly competitive when it comes to forex.

To help you find the best Forex brokers for crypto trading, we did extensive research and managed to find four great options. In most cases, these Forex brokers offer traders crypto CFDs, which is an easier way of trading. 

So, without further ado, let’s get into it and find the best brokers for cryptocurrency trading.

Top 4 Brokers For Crypto Trading

These FX brokers are the following: 

  • IC Markets
  • FP Markets
  • Pepperstone
  • AvaTrade

But, what makes these four brokers better than others? We will discuss the benefits of trading cryptocurrencies with each of these brokers below.

Trade Crypto With IC Markets

IC Markets is one of the largest forex brokers worldwide, with reported trading volumes exceeding $1 trillion per month. Operating since 2007, this Australian broker has always been very active in terms of offering their clients innovative products and new services. 

You can trade over 18 cryptocurrencies at IC Markets using CFDs, which allows you to go long and short and use leverage to profit from the market price fluctuations. By trading CFDs, you are not buying or selling cryptocurrencies directly. Rather, you are speculating on the possible price movements in the market. 

Here are the highlights you should know about cryptocurrency trading with IC Markets: 

  • Over 18 available cryptocurrencies
  • 24/7 trading on MetaTrader 4 and MetaTrader 5
  • Leverage up to 1:5
  • Spreads from 0 pips; average BTC/USD spread is 42.036
  • No commissions on cryptocurrency transactions

IC Markets offers traders the opportunity to trade cryptocurrencies seven days a week using MetaTrader 4 and MetaTrader 5 trading platforms. As a forex trader, you should already be familiar with these platforms.

Among the cryptocurrencies that you can trade at IC Markets are Bitcoin, Ethereum, Dash, Litecoin, Ripple, Dogecoin, and many others.

ic markets
Broker TypeECN
RegulationsASIC
Min Deposit$200.00
Account Base CurrencyUSD, AUD, EUR, GBP, CAD, JPY, NZD,CHF, SGD, HKD
Max Leverage 500:1
Trading PlatformsMetatrader 4/5, cTrader, Webtrader, API Trading, MAM / PAMM

Trade Crypto With FP Markets 

Launched in 2005, FP Markets is another Australian forex broker that is well-known for its competitive cryptocurrency offerings. The company has managed to grow and become one of the largest and most established brokerages in the industry, and it should not come as a surprise that it is a good choice for crypto trading as well.

Like the previously discussed forex broker, FP Markets offers traders crypto CFDs through the MetaTrader 5 trading platform. 

This platform is a great fit for traders in various markets. MT5 offers a customisable interface, one-click trading, expert advisors, and many others. With FP Markets, you can trade cryptocurrencies using iOS and Android mobile devices and on Windows desktop.

Here are the highlights you should know about cryptocurrency trading with FP Markets: 

  • 4 major cryptocurrencies available to trade
  • Leverage up to 1:30
  • Spreads from 3.3 pips; average BTC/USD spread is 7.66
  • Trading is not supported on weekends

FP Markets offers traders major cryptocurrencies Bitcoin, Ethereum, Bitcoin Cash, and Litecoin with low spreads. Paired with years of experience in the market, these points make FP Markets a great option for traders.

fpmarkets logo
Broker TypeECN, DMA
RegulationsASIC, CySEC
Min Deposit$100.00 USD
Account Base CurrencyAUD, CAD, CHF, EUR, GBP, HKD, CNY, NZD, SGD, USD
Max Leverage1:500
Trading PlatformsIRESS, Metatrader 4 and 5, MAM, PAMM

Crypto Trading With Pepperstone

Founded in 2010, Pepperstone is one of the most popular Forex brokers around the world. Over the past decade, the broker has always been one of the biggest innovators in the market. The team behind Pepperstone is full of experience and commitment towards the trading market and aims to help the further development of the online trading industry. 

Numerous cryptocurrency CFDs can be traded with Pepperstone, allowing traders to decide according to their personal interests in the trading market. 

This broker is also a good option for traders looking for cryptos. You can find CFDs on coins such as Bitcoin, Bitcoin Cash, Litecoin, Ethereum, Ripple, and many others on Pepperstone. 

Here are the major things you should know about Pepperstone: 

  • Over 12 cryptocurrencies and 3 crypto indices are available 
  • Leverage up to 1:10 for professional clients and 1:2 for retail clients
  • Spreads from 0.02; average BTC/USD spread is 31.39

The broker also offers traders frequent updates about the crypto trading market, which can help you stay connected to the ongoing events in the market at all times. The spreads for crypto trading are also quite competitive at Pepperstone. 

One of the best things about Pepperstone is that it is one of the most trustworthy forex brokers in the industry. Pepperstone is regulated by agencies such as ASIC, BaFin, CMA, CySEC, DFSA, FCA, and SCB.

pepperstone
Broker TypeECN
RegulationsASIC
Min Deposit$200.00
Account Base CurrencyUSD, AUD, EUR, GBP, CAD, JPY, NZD,CHF, SGD, HKD
Max Leverage 500:1
Trading PlatformsMetatrader 4/5, cTrader, Webtrader, API Trading, MAM / PAMM

AvaTrade & Crytpo Trading

AvaTrade is an award-winning Forex broker that is very well-known around the world. Similar to other brokers that we have discussed above, AvaTrade offers the opportunity to trade cryptocurrencies as CFDs. Many things make AvaTrade a great option for crypto trading. 

First of all, the broker is very safe and secure and has been in the market for some time now. The broker offers its clients unparalleled safety and security standards and is regulated in numerous jurisdictions globally. Another great thing about AvaTrade is that it offers clients numerous resources that you can use to trade more successfully. 

For example, by accessing the Trading Central, AvaSocial, and Guardian Angel Add-ons, crypto traders at AvaTrade can connect with others, exchange ideas, and find the best trading conditions in the market. 

Here are the major things you should know about AvaTrade: 

  • 14 cryptocurrencies available
  • Trade bitcoin in multiple quote currencies; BTC/USD, BTC/EUR/, BTC/JPY
  • Leverage up to 1:25 for non-EU residents and 1:2 for EU residents
  • Spreads from 0.25%
  • 24/7 crypto trading on various platforms

If you are not sure whether the crypto trading market is a good choice for you or not, AvaTrade also offers you a paper trading account, which you can use to practice and learn more about trading cryptocurrencies.

You can trade all of the available cryptocurrencies at AvaTrade on every platform offered by the broker. Among them are MT5, AvaTradeGo, and WebTrader.

avatrade
Broker TypeMarket Maker
RegulationsASIC, B.V.I, FSA, FFAJ, FSCA, IIROC
Min Deposit$100.00
Account Base CurrencyUSD EUR GBP AUD
Max Leverage400:1 / 30:1 EU Clients
Trading PlatformsMetatrade 4, AvaTradeAct, Web trading, AvaOptions AvaTradeGO, Mobile trading

Is It Worth Trading Cryptos With Forex Brokers?

When trading cryptocurrencies with Forex brokers, it is more likely to trade them as CFDs, as we have already discovered above. But is it worth trading cryptocurrencies as CFDs? 

CFDs, or contracts for the difference, are types of contracts or agreements made between a trader and a broker. The agreement is about the changes in the cryptocurrency’s price. If you predict correctly, you will make a profit. If your prediction is wrong, you will lose your position. 

When you are trading CFDs, you are not buying cryptocurrencies directly. You are simply speculating on the price movements in the crypto trading market. CFDs take away the need to worry about storing cryptocurrencies and what to do with your assets, which is a great advantage.

https://www.investopedia.com/terms/c/contractfordifferences.asp 

This is a very different activity when compared to actual crypto trading. Crypto trading envisages buying and selling the actual digital coins, and it is conducted on a crypto exchange. The actual crypto trading market is very different from CFD trading, and it can be quite hard for Forex traders to get started with. 

This is why so many traders choose to trade cryptos as CFDs. It is simply easier and much more familiar. At the end of the day, it is very much worth it for traders to use Forex brokers for crypto trading.

Exchange Trading Vs CFD Crypto Trading

There are several advantages CFD trading has over actual crypto trading with crypto exchanges. 

CFDs offer crypto traders the ability to use higher leverage, which you can use to increase profits in the crypto market. Also, there is no need for using the wallet, as there are no actual assets that need storing. 

In addition, CFD trading usually comes with lower fees and commissions. Another advantage of CFD crypto trading is that it is associated with lower hack risks. Previously, hackers have aimed at some of the largest crypto exchanges, such as Binance, for example. In 2019, as much as 7,000 bitcoins, worth over $40 million at the time, were stolen from Binance.

https://www.wired.com/story/hack-binance-cryptocurrency-exchange/ 

On the other hand, CFD trading does have some disadvantages. For example, CFDs incur swaps or overnight fees. The longer a contract is held, the more you’ll pay every day. 

You don’t have to worry about time limitations when trading cryptocurrencies on exchanges, as you can hold your assets for as long as you want to. However, you do have to think about storing the cryptocurrencies that you have bought. 

Buying and selling cryptocurrencies is possible by using crypto exchanges.

Overview Of Popular Crypto Exchanges

Binance and Kraken are some of the most popular crypto exchanges in the market today.

Binance is currently the largest crypto exchange globally in terms of daily trading volume. Established in 2017, it has become a global leader very quickly.

Traders can buy, sell, and hold over 50 cryptocurrencies on Binance, including Bitcoin, Ethereum, and Litecoin, among others.

Kraken is also a very popular crypto exchange with one of the largest lists of supported digital coins. With over 50 available cryptos, you can trade anything from Dogecoin to Bitcoin or Litecoin on Kraken.

Final Thoughts On Best Crypto Brokers 2022

Many traders are attracted to trading cryptocurrencies because of the volatility found in the market. Volatility can present trading opportunities to experience traders. Besides knowing how to trade cryptocurrency profitably, you need to understand how you will trade.

Almost all of the forex brokers in the market offer cryptocurrencies in the form of CFDs. Before deciding whether you should trade cryptos with forex brokers or not, think about if you want to trade with CFD instruments or buy real cryptocurrency assets.

Due to their high security and safety standards, IC Markets, FP Markets, Pepperstone, and AvaTrade can be great options for crypto traders around the world. These brokers also offer crypto traders access to leverage, which can further increase your profits.

About This Article

Author: Mark Prosz

Sources of information and credits for this post include:

https://www.investopedia.com/terms/c/contractfordifferences.asp

https://www.wired.com/story/hack-binance-cryptocurrency-exchange/