The product range as part of the crypto broker test
Bitcoin, Litecoin, Ethereum & more – how well is the crypto broker positioned to offer a range of currencies?
When it comes to the choice of digital currencies, there may be huge differences between individual brokers. For example, some providers offer only a few currencies or limit themselves to Bitcoin, while other platforms in this area have already increased their offerings considerably to provide more variety. Often Litecoin, Dash, Ethereum, Bitcoin Cash, Monero and other virtual currencies are available as well.
Cryptocurrencies have developed rapidly in recent years. Bitcoin hit the market in 2009, attracting significant investor interest. Initially developed as an alternative payment method, digital currencies have evolved into a large investment market within a very short time. There are now more than 1,000 cryptocurrencies available, but most people are aware of only the top 20 or so coins. Forex and CFD brokers have also recognised that digital currencies are becoming an increasingly attractive option. Unlike with crypto exchanges, you do not buy virtual currencies directly from brokers. Usually they are available as currency pairs or are traded as CFDs.
Crypto trading costs – costs and fees in focus
A very important factor in any broker comparison is of course the costs you are likely to incur. A crypto broker comparison will reveal what fees you can expect to pay. As with Forex trading, you will encounter a spread that may be either fixed or variable. With cryptocurrencies, the spread is usually variable. The obvious reason for this is that digital currencies are very volatile and prices can fluctuate considerably. Find out if there are commissions as well – but with crypto brokers this is the exception rather than the norm.
Considering additional costs for a comparison
Trading fees are the most crucial cost to look at, but additional fees might add up and should therefore also be taken into account. Look closely at any costs associated with the trading account. In addition to the minimum deposit, look for possible account maintenance fees, which are rare but may be charged by a few brokers. Fees may also be levied when a trader is no longer actively trading. These inactivity fees are usually found in the terms & conditions, so it is advisable to take a close look. They should be clearly listed on the website.
Account models with a crypto broker
To start trading with a crypto broker, you first need to open a trading account. Often, you have the option of choosing between several account models. With some brokers, the type of account also depends on how high your deposit is or how active you are. However, some brokers also differentiate between an entry-level, advanced and/or VIP account. There may be differences in the conditions and benefits, which you should explore well in advance. For example, the potential leverage may vary, and different trading tools or better customer support may be available with a higher priced account. Ultimately, it is up to you to decide which services you need.
Minimum deposit can vary
If you want to trade actively with a crypto broker, a minimum deposit may be required to open your account. This means you can’t start trading until you have funded your trading account. The required amount can vary greatly and may depend on the account model you select.
Focus on trading platforms and mobile trading options
Trading cryptocurrencies requires an excellent overview of the market and also of one’s own trading activities. The software used for this is at the heart of your trading strategy and should therefore have all the necessary functions. It is the basis for:
- The compilation of a personal strategy
- An overview of open trades
- An overview of closed trades
- A market overview
A broker comparison is about examining which trading platforms are available and how they are equipped. Most brokers make a distinction between proprietary software and third-party platforms. Our experience shows that there are more and more proprietary platforms, and these are often based on popular software solutions. Nevertheless, many traders like to use proven platforms such as MetaTrader. Over the years, and due to more experience with traders’ requirements, most crypto brokers have learned that mobile trading is essential. Rapid changes in volatile cryptocurrency rates often require a speedy response, wherever you may be. As a result, most brokers offer apps and other mobile commerce solutions.
Ease of use and clarity of the website
The best crypto broker for you will be a provider whose Internet presence is strong, and of course available in a language that you understand. A broker’s website should be well-designed and easy to navigate. Strictly speaking, it can be considered part of their customer service, as it is the first point of contact for a trader. A broker who wants to assert himself as the best crypto provider should make the most important information easily available to customers. Traders should be able to easily find everything that matters to them. Above all, this includes:
- Trade offer and costs
- Terms & Conditions and other legal data on regulation etc
- Contact options
In addition to the trading opportunities and fees for the trade itself, you should be able to easily find out how and when you can reach the broker or customer service staff, which authority is responsible for the provider, if there is deposit insurance and what the terms are for opening an account. You should also ensure that the website is available in your language, and that it is correct and easy to understand.
Customer Support – contacting the service
For a full comparison of several brokers, customer support should also be considered. Contacting support staff tends to only be necessary in an emergency. Often, the platforms include a FAQ section where the broker summarises the most important and commonly asked questions and answers. However, questions or problems that require contact with employees can still occur. Therefore, it is advisable to inform yourself in advance about the support provided and its availability.
When assessing who is the best crypto broker in the field of customer service, the first consideration is the range of contact options. In general, you have the option to contact customer support by e-mail and/or contact form. However, an increasing number of brokers provide a live chat option or a hotline where support can be accessed – usually at specific times. As with the website, you should find out if the support staff speak your language so that communication is as smooth as possible. The evaluation should also include whether there is a contact person during the most important times and whether questions are answered competently.
Accepted payment methods
Since each trader has a preferred method of payment, brokers usually have several options available. While some investors are concerned with security, other traders are more concerned with the speed of their transactions. Usually you will have the following payment options:
- Credit card
- Bank transfer
- Neteller, Skrill, Paypal
Credit cards have been an important means of payment online for many years. Using this method, money can be in the account within a few minutes and credit card payments are considered comparatively safe. Payment via online payment services, such as Skrill or Neteller, are very flexible options, so these types of deposits are being used more and more frequently. Bank transfers are usually available – however, they are not used my many traders as they often take several days. Your evaluation of the payment methods is therefore completely subjective. What matters is that the option you feel most comfortable with is available.
Ask if there are any fees for deposits or withdrawals, and whether there is a minimum deposit or a withdrawal limit. Also keep in mind that withdrawals often have to be made the same way as deposits.
Start risk-free trading with a demo account
If this is your first crypto broker experience, a CFD demo account may be useful to get you started with trading. As cryptocurrencies are mostly traded through brokers specialising in CFDs, you should check that cryptocurrencies are available in the test account as well.
When comparing the various offers, it is important to ascertain how long the account is available and how much virtual credit you can use. Some brokers provide an unlimited-time demo account and sometimes the credit is rechargeable. While the main focus should not be on the demo account, it does have some real advantages and allows you, for example, to test new strategies without risking your own money.
Additional offers for crypto trading
Becoming the best crypto broker requires more than just a good range of tradable products. Some providers, for example, offer numerous opportunities for further education, which may appeal to both beginners and more experienced traders. More and more brokers offer not only seminars or webinars, but also economic calendars, market prospects, blog posts and tips on trading strategies.
A broker‘s regulation and deposit insurance
Anyone transferring their money to a brokerage account for trading will want to make sure that they have picked a reputable provider. It is hard to be absolutely positive that you’re dealing with a reputable crypto broker, but there are several things to look out for when comparing brokers.
At the top of the list is the issue of regulation. It is not always possible to spot crypto broker fraud at first glance, but a valid licence and the knowledge that regular checks are carried out enhances trust. European authorities have a particularly good reputation. So-called ‘offshore’ providers should be treated with caution, since their guidelines do not always meet the strictest standards – whereas brokers operating within the EU do. Often, brokers operating in several countries are registered with various licensing and regulatory bodies in those locations.
During a provider comparison it is also advisable to check on deposit insurance and general security. The best crypto brokers will keep your funds separate from company assets and protect your deposits up to a certain amount. If you look at their details, you will find that some providers are also members of a voluntary fund to help them compensate clients in the event of financial difficulties, in addition to providing the statutory deposit insurance.
Opinions of the trade press and awards of the broker
When conducting a comparison to find a suitable broker for trading cryptocurrencies via CFDs, you might want to consult various financial media. Pay attention to reviews in the trade press. The trade press has mixed feelings about crypto brokers, so positive reviews are an indication they think highly of a particular broker. Press reviews will cover trading offers and may include the experiences traders have already had with the broker in question, so they can be very helpful. Take a look at the latest news, but older articles can also help to form an impression of the broker. In some cases, links to current articles and reviews will be provided on the crypto broker’s website.
Awards such as ‘Best Crypto Broker’ should be viewed critically. Find out if the title refers to a specific service, such as the trading platform or customer support. Experts regularly give awards and they can certainly be relevant to your assessment. Forums or blog posts by other traders should be approached with caution, because opinions may be subjective.
Cryptocurrencies put to the test: market overview and market outlook
Digital currencies are interesting financial instruments and the market has developed strongly in recent years. The original idea behind cryptocurrencies was to create an alternative that could serve as a means of payment instead of fiat currency. The value of many digital currencies, however, has gone up sharply. Bitcoin in particular, has risen significantly in value, and investors who were active from the beginning have made very high profits. Remember that digital currencies are very volatile. Prices can change by a wide margin within a very short time. This may benefit certain investors, but it also means that trading comes with a high risk that should not be underestimated. As the market for cryptocurrencies is always changing, it is hard to predict price movement in this regard.
Further development of digital currencies
The market has developed quickly and there are new changes every day. However, as this is an unregulated market, it continues to come under increased scrutiny in the financial world. Recent years have also been noted for their problems and uncertainties, meaning that a look at expert opinions can be very informative. Although it’s unlikely that the crypto currency market will close anytime in the near future, investors should keep an eye on its trends and keep up to date with the latest developments.
Using comparisons and crypto broker reviews
If you are looking for a suitable provider for trading digital currencies, try the AskTraders crypto broker test to learn more about our offers. Our broker reviews focus on the aforementioned criteria – all of which you should take into account in your assessment. Familiarise yourself with the important factors – such as the possibilities for deposits and withdrawals, customer service and, of course, the trade offer and regulation.
A particularly important factor to consider is the trading platform. Navigate to our award area to discover which brokers have been rated positively by other users. To find the best crypto broker for you, try trading with a free demo account. You are welcome to share your personal experiences in the community and give reviews of the respective brokers on the platform.