- The Main Differences Between Forex and Crypto Trading
- Best Forex Brokers for Crypto Trading
- Similarities between cryptocurrency trading and Forex trading
- Buying Bitcoin, Cryptocurrency Risks
- Best Forex Brokers to Buy Bitcoin in 2020
- What is a Cryptocurrency?
- How to Trade Crypto and Forex! Most wont tell you this........
- Final Thoughts
- Best Forex Brokers for Crypto Trading
- Read Next
- Recommended Forex Posts:
- Forex Risk Disclaimer
The ForexBrokers.com annual forex broker review (three years running) is the most cited in the industry.
With over 60,000 words of research across the site, we spend hundreds of hours testing forex brokers each year. How we test.
The Main Differences Between Forex and Crypto Trading
Among the 30 forex brokers reviewed for the ForexBrokers.com 2020 Annual Review, nearly all offer cryptocurrency trading in one form or another (for a breakdown of how to trade cryptos, read our cryptocurrency guide).
While only a few brokers in our 2020 Review offer the underlying, the majority offer bitcoin as a CFD, and a handful of brokers with exchange-traded offerings offer crypto-related exchange-traded products or futures contracts.
Best Forex Brokers for Crypto Trading
Based on over 100 different variables, here are the best forex brokers to buy cryptocurrency, such as Bitcoin.
- eToro - Best overall for crypto trading
- Swissquote - Trusted global brand, CFDs and underlying
- IG - Flexible trading, Crypto 10 Index
- XTB - Excellent customer service
- FOREX.com - Competitive pricing on crypto CFDs
5 Stars, Best Overall - Visit Site
eToro, best known for its easy to use copy trading platform, offers CFDs as well as physical cryptocurrency trading.
In addition to launching its own fully-functional crypto wallet, eToro open-sourced its proprietary code for decentralized exchange (DEX) trading, as part of the Lira project from eToroX Labs. Overall, with nearly 100 digital asset pairs available to trade, eToro is our top pick for 2020.
(75% of retail CFD accounts lose money.) Read full review
Best overall for crypto trading - Visit Site
Swissquote enables crypto enthusiasts to trade the underlying tokens (non-CFDs) of the largest cryptocurrencies, including Bitcoin.
Similarities between cryptocurrency trading and Forex trading
Publicly-traded and regulated in some of the largest market centers around the globe, Swissquote even acts as a custodian for its clients by holding equivalent crypto at Bitstamp (79% of retail CFD accounts lose money.) Read full review
Flexible trading, Crypto 10 Index - Visit Site
IG’s crypto offering includes eight CFD crypto pairs alongside favorable contract specifications, weekend trading, and flexible margin requirements.
IG also offers what it calls the Crypto 10 Index, a CFD that represents the performance of the ten largest tokens by market cap (think Bitcoin, Ethereum, etc.).
The Crypto 10 Index enables passive investors to invest in the future of crypto without having to trade individual token pairs. (68% of retail CFD accounts lose money.) Read full review
Excellent customer service - Visit Site
With 16 digital asset pairs available, competitive pricing, and weekend trading available, XTB has a respectable cryptocurrency offering for CFD traders.
XTB also provides excellent customer service. (75% of retail CFD accounts lose money.) Read full review
Competitive pricing on crypto CFDs - Visit Site
With eight top crypto assets on offer, FOREX.com provides competitive pricing in terms of its spreads and overnight financing costs across large-cap crypto assets such as Bitcoin.
(69% of retail CFD accounts lose money.) Read full review
Buying Bitcoin, Cryptocurrency Risks
While it can be hard not to be tempted to trade with one of the hundreds of new cryptocurrency exchanges that have popped up across the web, these websites often have been hacked, leading to the theft of customers’ assets.
Best Forex Brokers to Buy Bitcoin in 2020
In some other cases they have faced regulatory scrutiny for operating without a license, and/or potential AML/KYC violations.
Even with the expanding number of well-established fx brokers offering cryptocurrency trading, finding the right cryptocurrency broker to buy bitcoin with can be daunting.
Liquidity, trading costs, regulation, and product availability are just a sampling of the challenges and risks you might confront when dealing with digital assets.
Indicative prices for illustration purposes.
Indicative prices; current market price is shown on the eToro trading platform.
Especially challenging is the method used to keep your cryptocurrency in safe custody, as it is a bearer instrument, and protecting the private key comes with numerous levels of complexity and risk. For such reasons, even the few forex brokers that offer the underlying trading of cryptocurrencies have not yet fully launched a crypto wallet that would permit withdrawing the actual tokens (similar to the Crypto Exchange Circle, where a user must first sell his or her tokens and then withdraw US dollars).
What is a Cryptocurrency?
In other words, sometimes the greatest risks are the ones you don’t even realize you are taking. This is why here on ForexBrokers.com we focus on reviewing forex brokers that are regulated and have been in operation, in some cases, for decades.
How to Trade Crypto and Forex! Most wont tell you this........
We also include a Trust Score rating for each broker, making it easy to determine how trustworthy a firm is.
IG web platform crytocurrency.
That said, not all stand-alone crypto exchanges are bad. For example, while Coinbase was not included in our annual review because it does not offer leveraged retail forex trading, it’s worth noting that the company has become a market leader, with over 10 million customer accounts opened.
Several final thoughts to keep in mind: selecting a forex broker to trade crypto will depend on where you are located, the services available in your region, your trading style, and any specific needs (e.g., margin).
Whether you are trading crypto as a Contract for Difference (CFD), other off-exchange derivative, or trading an on-exchange listed security, futures, or options contract, or even trading the actual underlying physical cryptocurrency, there can be advantages and disadvantages to each method.
These differences can be thought of as trade-offs, and whether they are better or worse depends on your needs as an investor or trader.
Best Forex Brokers for Crypto Trading
For example, some brokers do not permit weekend trading of their cryptocurrency CFD contracts.
Swissquote crypto holdings ETP.
To diversify cryptocurrency exposure, some traders may opt to trade cryptos using multiple methods or maintain portfolios with multiple brokers, holding the underlying passively (as an investment) alongside actively trading crypto CFDs.
Regardless of which approach you take, be sure to proceed with caution.
Cryptocurrency trading is risky, and new market providers are emerging each month.
Some marketplaces are designed as scams from day one, launching with clever marketing campaigns designed to prey on unsuspecting investors. Meanwhile, other projects may be bona fide, yet succumb to vulnerabilities exploited by hackers, where end-users ultimately pay the price.
For these reasons, choosing a well-established provider and diversifying are important.
XTB xStation5 watchlist with bitcoin weekly expiry.
All in all, cryptocurrency trading is here to stay. Use a trusted broker, and never risk what you aren't willing to lose. Hopefully, this guide will help steer you in the right direction.
For our 2019 Forex Broker Review we assessed, rated, and ranked 28 international forex brokers.
Each broker was graded on 81 different variables and, in total, over 60,000 words of research were produced.
While encouraged, broker participation was optional.
Each broker had the opportunity to complete an in-depth data profile and provide executive time (live in person or over the web) for an annual update meeting.
All data submitted by brokers is hand-checked for accuracy.
Recommended Forex Posts:
Ultimately, our rigorous data validation process yields an error rate of less than .1% each year, providing site visitors quality data they can trust. Learn more about how we test.
Forex Risk Disclaimer
"There is a very high degree of risk involved in trading securities.
With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or related instrument. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses." Learn more.