Best Forex Brokers for Bitcoin and Crypto Trading in 2020

Cryptocurrency trading is on the rise and in great demand, as both traders and providers are now confident that this trend is here to stay. As cryptos consolidate their position and become more widespread, it is natural that cryptocurrency trading is also flourishing and new market providers keep emerging every month, promising to give access to all interested individuals across the globe, allowing them to jump on the bandwagon of cryptos and promising trading success and hefty profits.

However, as all types of trading, cryptocurrency trading is a risky affair, perhaps even riskier and trickier than other forms of trading. This is not highlighted in an attempt to put you off, but as a reminder that you need to tread carefully and select who you will trade through with due care and as a result of smart and wise thinking. Unfortunately, the cryptocurrency trading market experiences higher levels of scammers than other trading market niches, and there are plenty of shady marketplaces or providers, who set up clever and rigorous marketing campaigns, with the only aim of taking your money and disappearing. Others do operate in good faith, but prove unable to cover all eventualities and remain vulnerable to hackers, whose attacks may mean that you lose your money in the end!

In order to mitigate these very real risks, those interested in trading in cryptocurrencies should choose their providers carefully and after factoring-in many parameters, while also resorting to diversification to minimize their exposure. This kind of diversification is achieved by choosing to trade cryptos through a combination of multiple methods, or maintaining accounts and portfolios with multiple trading brokers. Ideally, the underlying asset, e.g. Bitcoin, should be held passively as a longer-term investment, while for active trading one should choose crypto CFDs.

Finding the best forex broker for crypto trading

In an attempt to help steer you in the right direction when it comes to your crypto trading endeavors, we shall today be discussing the option of doing so via forex brokers, trying to discern how to identify the best forex brokers for crypto trading as things stand currently.

Truth be told is that most forex brokers have expanded their offering to cater for the trading of cryptos as well, in one form or another. However, very few forex brokers offer the actual underlying asset for trading, with the majority of forex brokers offering Bitcoin and other altcoins as a CFD, with even fewer also offering exchange-traded crypto-related products or futures contracts for crypto.

Forex brokers are nonetheless a very convenient place to cover your crypto trading needs, so let us explore which characteristics you should look out for, which will help you discern which is the best forex broker for buying bitcoins and trading in crypto, for you. 

Top notch forex brokers for crypto trading

Perhaps the first issue to examine is what type of crypto trading is offered by each broker you are considering, to know your options, but also, in case you are looking to diversify your portfolio or have a specific preference which better suits your own needs, to direct your custom towards a specific direction. Thus, you should identify whether a forex broker offers physical cryptocurrency trading, or just crypto CFDs and also if exchange trading is available. Another factor to take into account, is how many digital asset pairs are available to trade through each forex broker. As to this aspect, our team which keeps evaluating all forex brokers to be able to advise and guide you, is pretty confident that eToro comfortably tops the list, boasting nearly 100 different digital asset pairs, which are hard to find elsewhere.

Other considerations to examine would be how flexible the crypto trading offered is, how flexible are the margin requirements set by the broker and whether weekend trading is also available. Obviously competitive pricing would count as a plus for a forex broker offering crypto trading services, but since crypto currency trading is highly volatile and perhaps more complex for newbies to grasp, an excellent level of customer service should also be on your must-have list when shopping for a forex broker to trade crypto through.

Besides the crypto-related aspects that you need to take into consideration, when deciding which forex broker you should choose for your crypto trading needs, remember that there is no such thing as the best forex broker, but rather the best forex broker for you, depending on your own specific trading preferences and needs. Our myth busting article on how to choose the best forex broker contains useful tips and insightful guidance on the matter, and if you haven’t already consulted it, we would recommend that you check it out now, before committing with a forex broker for your crypto trading needs.

Is trading cryptocurrency risky?

Trading all cryptocurrencies, including Bitcoin, is indeed a risky endeavor, much like all trading, but even more due to the high volatility often experienced by cryptocurrency markets. As with all trading attempts, all traders are strongly advised only to trade using capital they can afford to lose and not keep all their eggs in one basket. Moreover, exactly due to the high risks associated with cryptocurrency trading, carefully choosing where you will trade through becomes even more important and begs for more caution and careful research before deciding to commit your funds.

With the inherent risks in mind, and though cryptocurrency exchanges are now available in an abundance worldwide, the truth is that most remain highly vulnerable to hacking and thus their customers’ assets are often in grave danger of vanishing due to cyberthreats. Moreover, many crypto exchanges come under fire by regulators and often violate AML and KYC requirements, rendering them potentially unreliable and dangerous, especially for novice crypto traders.

Against this backdrop, well established forex brokerages offering crypto trading emerged as the preferred option for performing your Bitcoin purchase or crypto pair trading transactions, but the risks of dealing with digital assets remain and finding the right and most suitable forex broker for crypto trading is still challenging and trading costs, liquidity and product availability need to be factored in at every instance. Moreover, as explained in our guide for buying Bitcoin, every time you invest in crypto you are also faced with the challenge of the digital currency’s safe keeping and the increased complexity and risk of safeguarding your private keys to your crypto wallet.

Where can I best trade Bitcoin and what will it cost?

Forex brokers which offer competitive spreads and are able to execute large orders are your best venues for active bitcoin trading, while others are best if you want to actually purchase the underlying physical bitcoin digital asset. If you can want to engage in speculation that the bitcoin price will decrease, then head for a brokerage which allows the selling of bitcoin as a contract for difference (CFD). However, bear in mind that CFDs are not ideal for holding long term due to volatility and the leverage involved, thus if you want to hold a position long term then you should prefer to buy the underlying actual physical Bitcoin.

In terms of the fees for buying bitcoin, be aware that these vary considerably across brokers and can often be quite high across platforms. Moreover, and besides the Bitcoin purchasing fee, when trading crypto via a forex broker the costs will consist of any commissions charged per trade, as well as the spread, i.e. the difference between the bid and ask price. Obviously, when comparing brokers, go for those asking for lower commissions and offering tighter spreads.

How to choose the best forex broker for crypto trading

The actual selection of a forex broker to trade cryptocurrencies, i.e. deciding which one is the best for YOU, depends not only on your location and the services available in your locality, but also largely on your own trading style, your trading goals and of course on any specific needs and requirements you may have as a crypto trader, for example in relation to margin or other variables of a trading transaction.

The different available methods for trading cryptocurrencies, i.e. buying the actual physical cryptocurrency, trading crypto as CFD, trading crypto as an off-exchange derivative, or trading it as an on-exchange listed security, futures, or options contract, differ significantly and each has its pros and cons, while each being better suited to different trader’s needs. Therefore, to make the best possible choice, you first must identify your own needs and then match those with the right broker, offering the right crypto trading methods.

Are regulated crypto brokers better?

Many will argue that regulated forex and crypto brokers are indeed better and that your choice should largely be guided by this factor alone. At start-business-online we dare to differ on this standpoint and have extensively discussed and explored why and how the offshore Vs onshore and unregulated Vs regulated brokers are often false dilemmas. We believe that the dichotomy is not as straightforward as one would think. In short, not all regulated forex and crypto brokers are good, just as not all unregulated ones are bad. In fact, the best crypto or forex broker for your own particular needs, may well be an unregulated one, provided it still operates transparently and can prove it deserves your trust, your preference and your custom.

Parting thoughts – so who is the best?

Having concisely explored the conundrum of discerning how to go about choosing the right forex broker to trade cryptocurrencies through, our resident team, who rigorously monitor, test, review, evaluate and compare several forex brokers as part of their daily routine, can confidently suggest that one particular forex broker may well be a very appealing option for your crypto trading needs. You don’t have to take our team’s word and jump in with your eyes closed, but you can at least try it out and decide for yourself.

Our own chosen forex broker for the trading of cryptocurrencies is OspreyFX, a dynamic and innovative brokerage, which offers 24/7 Crypto Trading on over 30 different crypto currencies, ranging from Bitcoin, to Litecoin, Ethereum and many other popular altcoins. Flexible and progressive, Osprey has introduced mandatory two-factor authentication on all its accounts and offers 1:500 leverage with full STP execution on all assets traded. Moreover, when it comes specifically to the trading of cryptos on OspreyFX, there are numerous advantages to be had for traders, especially novices, since you can start trading for as little as $10, while enjoying low commissions and tight spreads. More experienced crypto traders will appreciate that both hedging and sculpting are allowed, as well being able to either go short or long on positions, while having multiple positions open at the same time.

In our view, OspreyFX is a prime example of a well established and respected broker which allows the average, as well as the pro-trader, the confidence and opportunity to reap the benefits of crypto trading and become part of the digital currency revolution.

Frequently Asked Questions (FAQ) - Topic-related Questions

Which broker is the best forex broker for beginners

Beginner traders need time to learn and a stable, safer and smooth trading environment if their trading adventure is to have a happy end and stand a decent chance to end in profit. Finding the best, most suitable and most appropriate forex brokers to best serve the needs and requirements of novice traders is a conundrum for newbies and the complexity of the task may even act as a deterrent to actually start trading. To simplify the process, our concise guide puts everything in perspective and greatly facilitates the process of discerning the best forex broker for beginners through valuable advice, tips and facts.

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