Cryptocurrency, particularly Bitcoin has proven beyond doubt to be a popular trading vehicle, even legendary investors such as Warren Buffett think it’s as good as worthless. Part of cryptocurrency’s popularity is due to its volatility since these swings allow traders to make money on the price moves.
For instance, from the onset of 2017, the price of Bitcoin broke through the $1,000 barrier. By the end of the year, the digital currency had reached nearly $20,000. Almost a year later, Bitcoin was hovering around $3,200. But it sprung back to life in 2019, rising to more than $10,000 and then significantly higher — crossing the $60,000 level in early 2021.
It reached an all-time above $68000 in November 2021, but has since been under pressure and is calming around $47000 or thereabout.
It’s this kind of price manipulation that has made traders look to ride on the waves of profits while some others prefer to own the currency and turn it into the future market which may turn out to be great money for them while at the same time this may bring a big loss too. But futures involve a lot more risk in exchange for that potentially higher reward.
Traditional brokers have the advantage of offering a wide selection of investible securities, though typically you cant trade bitcoin directly, only future. Although crypto exchanges are limited to digital currencies, you can own the currencies directly or you can as well buy some other, rather than simply Bitcoin or Bitcoin futures, as you would with a general broker. And services like Cash App and PayPal have also gotten in on the act, allowing U.S. users to buy and sell cryptocurrencies.
Below are the best brokers for cryptocurrency trading, including local online brokers, as well as a new specialized cryptocurrency exchange. You might also want to check out which brokers offer the best and nice bonuses for opening an account to determine where you can get a settled place.
Overview: Best brokers for cryptocurrency trading in April 2022
Robinhood is a great option for buying cryptocurrency directly. You’ll also get to take advantage of Robinhood’s wildly popular trading commissions: $0 per trade, or commission-free, though you’ll still be paying a built-in spread markup on any trades. And if you’re into more than just cryptocurrency, you can stick around for stock and ETF trades for the same low price. Robinhood’s slick app makes trading so easy, though those looking for a full-featured trading experience will be disappointed.
Account minimum: $0
In this, they allow you to trade four cryptocurrencies directly, including Bitcoin and Ethereum, for one of the lowest commissions in the market. Also, it allows you to buy Bitcoin and Ethereum futures other than owning the currencies directly. And in this broker’s case, you can buy Bitcoin futures on the Chicago Mercantile Exchange, with contracts costing $11.02 at five coins per contract or Ethereum contracts for $9.02 at 50 coins per contract. In addition, Interactive Brokers brings its full suite of investment offerings, so you can buy almost anything that trades on an exchange.
Commission: 0.12-0.18 percent of trade value; $10.02 per futures contract
Account minimum: $0
Though Webull may be less known than its rival commission-free trading app Robinhood, it provides investors with a concrete offering that includes cryptocurrency on crypto trades ( or stocks and ETFs ), Webull does not charge a spread markup of 100 basis points (1% of purchase price) on both sides of a trade. Many cryptocurrencies are available for trading, including Bitcoin, Ethereum, and Cardano. Charting tools and an impressive mobile app make the bull a broker worth considering.
Account minimum: $1 to trade crypto
Traders have a couple of options at this broker, which has rolled out direct currency trading via TradeStation Crypto, with commission-based pricing for traders. Pricing is based on your account balance with the broker and whether your order is directly marketable. Normally pricing ranges from 0.05 percent of your order to 0.3 percent. Traders can also buy and sell Bitcoin futures as well as take advantage of substantial volume trading discounts.
Commission: 0.05-0.3 percent
Account minimum: $0, but futures margin depends on contract
This platform allows you to buy and sell digital currencies, including the largest such as Bitcoin and Ethereum but also dozens of other much smaller coins, too.
Today, you will have access to almost 60 cryptocurrencies. The commission structure at Binance is low and only gets lesser the more you trade. Trading fees start at 0.1% of your trade value ( i.e $10 of every $10000 traded) and fall there, depending on your trading volume over the previous days.
Commission: 0.1 percent of the transaction value or less
Account minimum: $0
Coinbase is a specialized cryptocurrency-focused platform that allows you to trade digital currencies directly, including Bitcoin Ethereum, Solana, and Tether.
In total, you’ll have access to more than 100 cryptocurrencies. You’ll also be able to store your coins in a vault with time-delayed withdrawals for additional protection. The exchange’s commission structure is steep. It charges a spread markup of about 0.5 percent and adds a transaction fee depending on the size of the transaction and the funding source, though its Pro platform is cheaper.
Commission: At least 1.99 percent of the transaction value
Account minimum: $0
eToro offers cryptocurrency trading commission-free, but like many other brokers, it charges a spread based on the cryptocurrency being traded. You’ll pay a markup of 75 basis points for Bitcoin, but more obscure cryptocurrencies can run closer to 500 basis points, or 5 percent. One prominent feature at eToro is CopyTrader, which allows you to follow and identify other top traders on the platform and copy their trades. Be sure to do your research before committing to this strategy.
Commission: $0 plus a spread markup based on cryptocurrency being traded
Account minimum: $50
Charles Schwab is routinely one of Bankrate’s picks for the top broker, and this investor-friendly company offers to trade in Bitcoin futures. Schwab also has no account minimum, but any futures contracts you trade will require some minimum margin to hold them open. Schwab offers an attractive commission of $1.50 per contract, and if you’re able to bring big money to the table, you’ll receive a welcome bonus, too.
Commission: $1.50 per contract
Account minimum: $0, futures margin depends on contract
TD Ameritrade is one of the top full-service brokers on the market, and not only does it offer access to traditional products such as stocks and bonds, but it’s expanded its offering to include Bitcoin futures. However, TD Ameritrade does not allow trading directly in the digital currency. You’ll need to meet the account minimum to get started with Bitcoin futures. (Charles Schwab has purchased TD Ameritrade, and will eventually integrate the two companies.)
Commission: $2.25 per contract
Account minimum: $25,000 for futures
This is a cryptocurrency exchange that allows you to trade in dozen of different digital currencies which include Bitcoin and Ethereum, as well as emerging ones such as Cardano and Solana. You will pay a 1.5% fee, or 0.9% fee for stablecoins, plus the additional fees if you use a card and fund through a bank. More active traders can benefit from a premium tier called Kraken pro, where there is a reduction in the fee range from 0.16% to 0.26%. as of now, this platform is not yet available to the people of New York and Washington state.
Commission: 1.5 percent, or 0.9 percent for stablecoins (lower with Kraken Pro)
Account minimum: $1
Any time you have decided to select a trading platform, it is ideal to put into consideration all of your needs. And for new cryptocurrency traders, you will want to figure out whether you want to own the virtual currency directly or whether you want to do future trade, which will offer you higher rewards and at the same time higher risk.
Also, you will have to put into consideration whether you want to trade more than Bitcoin, which is what the majority of local brokers restrict you to. If not you may want to turn to a cryptocurrency exchange, since they offer more choices in cryptocurrency trading.