Best online brokers for buying and selling cryptocurrency in September 2022
Even if great investors like Warren Buffett believe cryptocurrencies like Bitcoin are worthless or close to it, they have proven to be a popular trading vehicle in recent years, notably Bitcoin. The price swings that allow traders to profit from bitcoin can be attributed, at least in part, to the fact that cryptocurrencies are notoriously volatile.
For instance, the price of Bitcoin surpassed the $1,000 threshold for the first time ever in the beginning of 2017. By the end of the year, the value of the digital currency had almost reached $20,000 in total. After over a year had passed, the price of a Bitcoin was approximately $3,200. However, it began to show signs of life again in 2019, shooting up to more than $10,000 and then substantially higher, passing the threshold of $60,000 at the beginning of 2021. In November 2021, it reached an all-time high of more than $68,000, but ever since then, it has been under heavy pressure.
This type of price volatility has attracted traders who are hoping to profit by riding the waves in order to make a profit. While there are traders who prefer to own the currency they trade directly, there are also traders who utilise the futures market. Futures may be an even more appealing method to play the volatility of digital currencies such as Bitcoin since they allow traders to utilise leverage to magnify their gains. This might make futures an even more tempting way to play the volatility of digital currencies (but also magnify losses). However, in exchange for the possibility of a greater reward, futures come with a significantly higher level of risk.
Where cryptocurrency can be bought and sold by individuals.
Traditional brokers have the advantage of providing clients with access to a diverse range of investable products; however, clients often are only able to trade Bitcoin futures rather than the cryptocurrency itself. In the meantime, cryptocurrency exchanges are restricted to digital currencies only; nevertheless, you are able to directly possess the currencies and can frequently acquire several of them, rather than only Bitcoin or Bitcoin futures as you would with a traditional broker. In addition, firms such as Cash App and PayPal have joined the fray, making it possible for consumers in the United States to purchase and sell cryptocurrencies.
The following is a list of the most reputable brokers for trading cryptocurrencies, which includes both conventional online brokers and a brand-new exchange that focuses specifically on cryptocurrencies. To find out where you can get a little bit more, you might also want to check out which brokers give the best incentives for opening an account.
An Overview of the Best Brokers Available for Trading Cryptocurrencies in September 2022
When it comes to purchasing cryptocurrencies in a straightforward manner, Robinhood is an excellent choice. You’ll also have the opportunity to take advantage of the massively popular trading commissions that Robinhood offers, which are $0 per trade, often known as commission-free trading, even though you’ll still be responsible for paying a built-in spread markup on any trades you make. You can also continue to trade stocks and exchange-traded funds (ETFs) for the same cheap price if you are interested in more than simply cryptocurrencies. Trading is made ridiculously simple with the attractive interface offered by Robinhood; nonetheless, anybody expecting a comprehensive trading experience will be sorely disappointed.
Commission: 0 Dollars
Account minimum: $0
IC Markets and Interactive Brokers
You may trade directly in four different cryptocurrencies with Interactive Brokers, including Bitcoin and Ethereum, for one of the most competitively low fee rates on the market. Additionally, it gives you the ability to purchase Bitcoin and Ethereum futures rather than actually owning the cryptocurrencies themselves. And in the instance of this broker, you are able to buy Bitcoin futures on the Chicago Mercantile Exchange with contracts costing $11.02 at five coins per contract or Ethereum futures contracts costing $9.02 at 50 coins per contract. Both of these prices are in US dollars. You are also able to buy practically anything that is traded on an exchange thanks to the comprehensive range of financial offerings that Interactive Brokers brings to the table.
Commission: 0.12-0.18 percent of trade value; $10.02 per futures contract
Account minimum: $0
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Even if great investors like Warren Buffett believe cryptocurrencies like Bitcoin are worthless or close to it, they have proven to be a popular trading vehicle in recent years, notably Bitcoin. The price swings that allow traders to profit from bitcoin can be attributed, at least in part, to the fact that cryptocurrencies are notoriously volatile.
For instance, the price of Bitcoin surpassed the $1,000 threshold for the first time ever in the beginning of 2017. By the end of the year, the value of the digital currency had almost reached $20,000 in total. After over a year had passed, the price of a Bitcoin was approximately $3,200. In spite of this, it began to show signs of life again in 2019, shooting up to more than $10,000 and then substantially higher, passing the $60,000 threshold in the early stages of 2021. In November 2021, it reached an all-time high of more than $68,000, but ever since then, it has been under heavy pressure.
This type of price volatility has attracted traders who are hoping to profit by riding the waves in order to make a profit. While there are traders who prefer to own the currency they trade directly, there are also traders who utilise the futures market. Futures may be an even more appealing method to play the volatility of digital currencies such as Bitcoin since they allow traders to utilise leverage to magnify their gains. This might make futures an even more tempting way to play the volatility of digital currencies (but also magnify losses). However, in exchange for the possibility of a greater reward, futures come with a significantly higher level of risk.
Where cryptocurrency can be bought and sold by individuals.
Traditional brokers have the advantage of providing clients with access to a diverse range of investable products; however, clients often are only able to trade Bitcoin futures rather than the cryptocurrency itself. In the meantime, cryptocurrency exchanges are restricted to digital currencies only; nevertheless, you are able to directly possess the currencies and can frequently acquire several of them, rather than only Bitcoin or Bitcoin futures as you would with a traditional broker. In addition, firms such as Cash App and PayPal have joined the fray, making it possible for consumers in the United States to purchase and sell cryptocurrencies.
The following is a list of the most reputable brokers for trading cryptocurrencies, which includes both conventional online brokers and a brand-new exchange that focuses specifically on cryptocurrencies. To find out where you can get a little bit more, you might also want to check out which brokers give the best incentives for opening an account.
An Overview of the Best Brokers Available for Trading Cryptocurrencies in September 2022
When it comes to purchasing cryptocurrencies in a straightforward manner, Robinhood is an excellent choice. You’ll also have the opportunity to take advantage of the massively popular trading commissions that Robinhood offers, which are $0 per trade, often known as commission-free trading, even though you’ll still be responsible for paying a built-in spread markup on any trades you make. You can also continue to trade stocks and exchange-traded funds (ETFs) for the same cheap price if you are interested in more than simply cryptocurrencies. Trading is made ridiculously simple with the attractive interface offered by Robinhood; nonetheless, anybody expecting a comprehensive trading experience will be sorely disappointed.
Commission: 0 Dollars
Account minimum: $0
IC Markets and Interactive Brokers
You may trade directly in four different cryptocurrencies with Interactive Brokers, including Bitcoin and Ethereum, for one of the most competitively low fee rates on the market. Additionally, it gives you the ability to purchase Bitcoin and Ethereum futures rather than actually owning the cryptocurrencies themselves. And in the instance of this broker, you are able to buy Bitcoin futures on the Chicago Mercantile Exchange with contracts costing $11.02 at five coins per contract or Ethereum futures contracts costing $9.02 at 50 coins per contract. Both of these prices are in US dollars. You are also able to buy practically anything that is traded on an exchange thanks to the comprehensive range of financial offerings that Interactive Brokers brings to the table.
Commission: 0.12-0.18 percent of trade value; $10.02 per futures contract
Account minimum: $0
Webull is a commission-free trading software that provides investors with a great offering that also includes cryptocurrency trading. Despite the fact that it is not as well-known as its competitor, the commission-free trading app Robinhood, Webull provides investors with a solid offering. Webull does charge a spread markup of 100 basis points, which is equal to one percent of the price on each side of a trade. However, you will not be required to pay commissions while trading cryptocurrencies (or equities and ETFs). Bitcoin, Ethereum, and Cardano are just a few of the cryptocurrencies that may be traded, and there are many more. Webull is a broker that should be taken into consideration because it offers charting tools and an impressive mobile interface.
Commission: 0 Dollars
Trading cryptocurrency requires a minimum account size of $1.
Traders who use TradeStation have a couple of options to choose from when working with this broker, which has introduced commission-based pricing for direct currency trading with TradeStation Crypto. Pricing is determined by the amount of money you have in your account with the broker as well as whether or not your order is directly marketable. In most cases, the prices will vary from 0.05 percent to 0.3 percent of the total value of your item. Traders can also buy and sell Bitcoin futures and benefit from significant volume trading discounts. In addition, traders can buy and sell Bitcoin futures.
Commission: 0.05-0.30 percent
Account minimum is zero dollars, but futures margin requirements vary depending on the deal.
Binance is a specialised trading platform that enables users to purchase and sell digital currencies, including the most prominent ones like Bitcoin and Ethereum as well as dozens of lesser digital coins with significantly lower market value. You will have access to approximately sixty different cryptocoins in total. Binance has a reasonable commission structure, which grows even more cost effective the more you trade there. Trading fees begin at 0.1 percent of your transaction value (that is, $10 for every $10,000 traded) and gradually decrease from there based on the amount of money you have traded in the previous thirty days.
Commission: less than 0.1 percent of the total value of the transaction
Account minimum: $0
Coinbase is a specialised platform that is focused on cryptocurrencies that gives users the ability to trade digital currencies directly. Some of the digital currencies that can be traded directly on Coinbase are Bitcoin, Ethereum, Solana, and Tether. You will have access to more than one hundred different cryptocurrencies in total. You will also have the option to deposit your coins in a vault, which will provide an additional layer of protection in the form of time-delayed withdrawals. The commission structure of the exchange is very expensive. Although its Pro platform is more affordable, it adds a transaction fee on top of the spread markup, which is approximately 0.5 percent, and the amount of the transaction, which varies based on the source of the money.
Commission: a minimum of 1.99 percent of the total value of the transaction
Account minimum: $0
eToro does not charge a commission for trading cryptocurrencies; but, similar to many other brokers, it does charge a spread that is determined by the coin that is being traded. Bitcoin comes with a markup of 75 basis points, but markups for less well-known cryptocurrencies can be closer to 500 basis points, which is equal to 5 percent. CopyTrader is one of the most important features offered by eToro, and it enables users to monitor other successful traders on the platform, identify those traders, and then imitate their trades. Before deciding to go through with this method, you should be sure to conduct the necessary research.
Zero dollars in commission, with a variable spread markup based on the cryptocurrency being traded.
Account minimum: $50
Kraken is a cryptocurrency exchange that gives users the opportunity to trade in dozens of different digital currencies, including established ones like Bitcoin and Ethereum and up-and-coming ones like Cardano and Solana. There is a cost of 1.5 percent, or 0.9 percent for stablecoins; in addition, there will be additional fees incurred if you use a card and fund your account through a bank. Kraken offers a premium tier known as Kraken Pro, which might be beneficial for more active traders because it lowers the fees to a range of 0.16 percent to 0.26 percent. The game Kraken is not currently accessible to people living in the states of New York and Washington.
1.5 percent, or 0.9 percent for stablecoins, is the commission fee (lower with Kraken Pro)
Account minimum: $1
Charles Schwab
Charles Schwab, an investor-friendly company that also facilitates trading in Bitcoin futures, is consistently selected by Bankrate as one of the top brokers in the industry. In addition, there is no minimum required to open an account with Schwab; but, in order to keep any futures contracts that you trade open, a minimum margin amount is required. Schwab provides a generous commission of $1.50 each contract, and in addition, if you are able to bring a significant amount of money to the table, you will be eligible for a welcome bonus.
Commission: $1.50 per contract
Account minimum is zero dollars, and futures margin requirements vary depending on the deal.
TD Ameritrade
TD Ameritrade is one of the leading full-service brokers on the market. Not only does it provide access to traditional goods like equities and bonds, but it has also expanded its offering to include Bitcoin futures. This makes TD Ameritrade one of the most competitive brokers on the market. However, trading in the digital currency itself is not something that can be done through TD Ameritrade. To begin trading Bitcoin futures, you will first need to ensure that your account meets the minimum requirements. (Charles Schwab has completed the acquisition of TD Ameritrade and plans to eventually combine the two businesses.)
Commission: $2.25 per contract
Account minimum: $25,000 for futures
Bottom line
When looking for a broker, it is imperative that you take into consideration all of your requirements. And if you are new to trading cryptocurrencies, you will need to decide whether you want to directly hold the virtual currency or whether you want to trade futures, which have a bigger potential return but also a higher potential loss.
You will also need to evaluate whether you want to trade in cryptocurrencies other than Bitcoin, as this is the only asset that the vast majority of traditional brokers allow you to trade in. In such case, you might want to consider using a cryptocurrency exchange, which typically has a wider variety of tradable cryptocurrencies available for customers to choose from.
