Finding a provider that will convince you as the best crypto broker is not always easy, as more and more brokers are adding virtual currency to their portfolios – you may be spoiled for a choice. In order to make the best possible decision regarding product range, trading costs and other services, it is recommended to use a crypto broker comparison. This gives you a very good overview of the most important aspects. Hereunder we’ll show you the criteria we use to evaluate brokers and which you might like to apply.
Cryptocurrencies have developed strongly in recent years. Bitcoin hit the market in 2009, attracting investor interest. What was meant initially as an alternative payment method has 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 only of the top 20 coins among them. Forex and CFD brokers have also recognized that digital currencies are becoming increasingly attractive to investors. 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.
Bitcoin, Litecoin, Ethereum & Co. – how well is the crypto broker positioned?
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 considerably to provide more variety – not infrequently Litecoin, Dash, Ethereum, Bitcoin Cash, Monero and other virtual currencies are available as well.
A very important factor in a broker comparison are of course the costs you are likely to incur. A crypto broker comparison will reveal quickly what fees to expect. 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 may fluctuate widely. Find out if there are commissions as well – but with crypto brokers this is the exception rather than the norm.
Trading fees are the most crucial criterion, but additional fees might add up and should therefore also be taken into account. This begins with costs for the trading account. In addition to the minimum deposit, a look at possible account maintenance fees is recommended, even if in most cases there are none. Besides, fees might be due when a trader is no longer actively trading. These inactivity fees are usually found in the terms and conditions, so it is advisable to inform yourself thoroughly beyond the usual price list on the website.
To start trading with a crypto broker, you first need a trading account. Often you have the option of choosing between several account models when opening an account. With some brokers, the type of account also depends on how high your deposit was or how active you are. However, some brokers also differentiate between an entry-level, advanced and/or VIP account. Here, there may be differences in the conditions and benefits, which you should inform yourself about well in advance. For example, the potential leverage may vary, different tools or better customer support may be available from a higher priced account. Ultimately, it is up to you to decide which services you need.
If you want to trade actively with a crypto broker, a minimum deposit may be required for opening an account. This means you can’t start trading until you have credit on the trading account. The required amount can vary greatly and may also depend on the selected account model.
When comparing brokers, the above points are relevant for the trading account:
Trading cryptocurrencies require an excellent overview of the market and one’s own activities. The software used is at the heart of trading and should, therefore, have all the important functions. It is the basis for:
The comparison is about examining which trading platforms are available and how they are equipped. Basically, a distinction is made between proprietary software and third-party platforms. Experience shows that there are more and more proprietary platforms and these are often based on popular software solutions – or at least they are in no way inferior to them. Nevertheless, many traders like to use proven platforms such as the MetaTrader. Over the years and due to most crypto brokers experience with traders’ requirements they have learned to take into account that mobile trading plays an important role. Rapid changes in volatile cryptocurrency rates quite often require a speedy response. But one doesn’t always have a computer at hand. As a result, most brokers offer apps and other mobile commerce solutions.
The best crypto broker for you should be a provider whose Internet presence is available in a language that you can understand. A broker’s website is an important aspect. Strictly speaking it may be considered part of the 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. Here traders should find everything that matters to them. This includes above all:
In addition to the trading opportunities and fees for the trade itself, you should be able to easily find out how and when you reach the broker or customer service staff, which authority is responsible for the provider, if there is a deposit insurance and what are the terms for opening an account. If the website is available in English you should ensure that it is correct and easy to understand.
For an efficient comparison of several brokers the customer support should also be scrutinized. Contacting the support staff tends to be necessary only in an emergency. Often, the platforms are organized in such a way that there is an FAQ section where the broker summarizes the most important questions and answers. Questions or problems that require contact with employees may still occur. Therefore, it is advisable to inform yourself in advance about the support and its availability.
When asked who can convince as the best crypto broker in the field of customer service, the first consideration is for contact options. In general, you have the option to contact the support by e-mail and / or contact form. However, more and more brokers are now also providing a live chat or a hotline where the support may be contacted, usually at certain times. As with the website, you should find out if the support speaks you 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.
Since each trader prefers different methods of payment, brokers usually have several options available. While some investors are concerned with security, other traders prefer that a transaction proceed as fast as possible. Mostly you have the following payment options:
Credit cards have been an important means of payment online for years. The money is in the account within a few minutes and the credit card is considered comparatively safe. Very flexible is payment via online payment services such as Skrill or Neteller. These types of deposits are being used more and more frequently. A classic is the transfer. However, it is not used too often as bank transfers take too much time. The evaluation of the criterion payment methods is therefore completely subjective. What matters is with which variant you feel most comfortable.
Ask if there are any fees for deposits or withdrawals, whether there is a minimum deposit or withdrawal limits. Also keep in mind that withdrawals often have to be made the same way as deposits.
To become the best crypto broker it needs more than just a good range of tradable products. Some providers, for example, count on numerous opportunities for further education, which at best appeal to both beginners and more experienced traders. Thus more and more brokers offer seminars or webinars, but economic calendars, market prospects, blog posts and tips on the strategies are not uncommon either.
Especially if it’s your first crypto broker experience, a CFD demo account may be useful to get you started trading – as cryptocurrencies are mostly traded through brokers specializing in CFDs, you should inform yourself whether cryptocurrencies are available in the test account as well. When comparing the various offers, it is also relevant how long the account is available and how much virtual credit you can use. Some brokers provide a time unlimited 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, for example, to test new strategies without risking one’s own money.
Anyone transferring their money to a brokerage account for trading will want to make sure that this is a reputable provider. Whether you’re dealing with a reputable crypto broker can never be stated beyond doubt. But there are several things providing clues which you can check out when comparing brokers. At the top of the list is the issue of regulation. It is not possible to discern crypto broker fraud at first glance, but a valid license 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 as with brokers operating within the EU. Often brokers operating in several countries are registered with various licensing and regulatory bodies.
During a provider comparison it is also advisable to check the deposit insurance. Only a provider who keeps your funds separate from the company assets and protects your deposits up to a certain amount should be considered the best crypto broker. If you subject the broker to a test, you will find that some providers are members of a voluntary fund in addition to the statutory deposit insurance.
If you are conducting a CFD broker comparison to find a suitable broker for trading cryptocurrencies via CFD, you might also consult various media. Reviews in the trade press play an important role. The trade press regards crypto brokers ambiguously. Beside the reputability press reviews also deal with the offers and experiences traders have already made with the broker in question. Thus, the opinions of the trade press can be considered as very helpful. It is recommended to take a look at the latest news. But even older articles can help to form an impression of the broker. In some cases, links to the current articles are provided directly 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 support. Experts regularly give an award and they can certainly contribute to your rating. Forums or blog posts by other traders should be approached with caution, because opinions may be subjective.
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 money. The price development, however, has gone up sharply. Especially the Bitcoin has gained enormously and investors who were active from the beginning made very high profits. Basically, digital currencies are very volatile. Prices change within a short time. This may benefit certain investors but at the same time trading comes with a high risk that traders should not underestimate. As the market for cryptocurrencies is always changing, a market outlook is difficult.
The market has developed strongly and there are new changes every day, especially as this is an unregulated market, something that comes into focus more and more. The past few years have also shown initial problems and uncertainties. A look at expert opinions can, therefore, be very informative. Although it is unlikely that the market of cryptocurrencies will be completely closed in the near future, investors should keep an eye on trends and be up to date on developments.
If you are looking for a suitable provider for trading digital currencies trading company, you can take a look at the AskTraders crypto broker test to learn more about the offer and get a first impression. In our broker reviews, the focus is on the criteria presented above – all of which you can also take into account in your considerations. In any case, you should inform yourself about important aspects such as the possibilities for deposit and withdrawal, customer service and, of course, the trade offer and regulation. A particularly important factor is the trading platform. In our award area, you can check out which broker other users rate particularly positively. To find out who convinces you as the best crypto broker, you might also open a free demo account with many providers and try trading and the platform first. You are welcome to share your personal experiences in the community and give reviews on the respective brokers.