Best Bitcoin CFD Trading Brokers 2019
Bitcoin has been a real success story in trading. Ever since it first arrived it has been traded heavily. Its price has risen massively too. While much of the trading in Bitcoin happens on specialist exchanges, online brokers allow traders to speculate on price movements of the crypto assets, rather than having to buy the underlying asset, which as we all know can be risky. Cryptos are volatile and expensive to purchase which is why this crypto trading market has developed to become a success story.
When we want to choose Bitcoin brokers to work with we must look in particular at a few factors. One of these is the security and transparency of the broker, ideally the broker will be regulated. We also look at efficient customer support, cutting edge technology and features such as narrower spreads.
Our in house research team have conducted in depth work in looking at the user experience of each Bitcoin broker. The brokers you see on the list below can all be considered some of the leading brokers in their field.
The brokers below represent the best Bitcoin trading features
|Broker||Rating||Official Site||Regulations||Min Deposit||Max Leverage||Trading Platforms||Foundation Year||Publicly Traded||Trading Desk Type||Currencies||Commodities||Indices||Stocks||Crypto||Commission on trades||Fixed spreads||offers promotions||Official Site|
By 33 User Reviews
76% of retail investor accounts lose money
ASIC, CySEC, FCA
cTrader, Currenex, eToro Platform, Keystone, Marketspulse, Mirror Trader, MT4, MT5, Tradologic, Zulutrade
Market Maker, No dealing desk, STP
76% of retail investor accounts lose money
By 43 User Reviews
ECN, No dealing desk, STP
By 24 User Reviews
cTrader, MT4, MT5
By 28 User Reviews
90% of retail CFD accounts lose money
CySEC, FCA, FSC
90% of retail CFD accounts lose money
By 26 User Reviews
80.6% of retail CFD accounts lose money
CySEC, FSCA, VFSC
80.6% of retail CFD accounts lose money
By 56 User Reviews
ASIC, BVI, CBI, FSCA
ActTrader, MT4, MT5, Proprietary, Zulutrade
Dealing Desk, Market Maker
Pro Tip: Most of these brokers offer free demo accounts so you can test the brokers and their platforms with virtual money. Give it a try with some play money before using your own cash.
Here’s a list of Best Bitcoin CFD Trading Brokers
Regulated By:ASIC, CySEC, FCA
Headquarters:Kanika International Business Center 7th Floor, 4 Profiti Ilia Street Germasogeia, Limassol, Cyprus
76% of retail investor accounts lose money76% of retail investor accounts lose money
A social trading platform to copy other traders and self trading platform to trade alone across cryptocurrencies, stocks, ETFs, currencies, indices and commodities. A good selection of cryptocurrencies pushes this pioneering broker into our top list of recommended brokers. eToro offers copying of portfolios, funds and traders.
FBS offers a regulated CySEC arm for European traders and regulated Belize arm for traders outside of Europe. Global regulated arm offers bonuses and high leverage of up to 3000 times. MT4 is the only platform available, although it is accessible over web, desktop and mobile.
OctaFX is a Forex ECN broker registered in St.Vincent and the Grenadines offering trading of Forex, Indices, Metals and Cryptocurrencies through CFDs. In cryptocurrencies trade Bitcoin, Litecoin and Ethereum with as little as $100 to get started. They give access to the MetaTrader and cTrader platforms as well as their own OctaFX Trading App.
This company was established in 2011 and is now present in many regions. It is regulated by FCA in the UK and by CySEC in Cyprus and offers over 250 assets including 50 currencies, 5 metals, 3 commodities, 180 share CFD’s, 5 indices and 3 cryptocurrencies. The broker gives traders access to both the MT4 and MT5 platforms.
FXPrimus established in 2013 are based in Cyprus and regulated by CySEC. They offer trading across Currencies, Commodities, Indices, Stocks, Cryptos and Futures. 7 cryptocurrencies to trade against the USD makes this one of the best Bitcoin brokers to trade with. They also offer free deposits and withdrawals and access to the MT4 platform.
One of the grandaddy’s of the online Forex trading industry, AvaTrade has a truly global presence. They are regulated in 6 different jurisdictions and have offices across 5 continents. AvaTrade offer both dealing desk and non Dealing desk access to trading across Currencies, Commodities, Indices, Stocks, Bonds, Cryptos and Futures through its mobile, web, and desktop trading platforms.
Bitcoin trading, How to trade Bitcoin (BTC)?
With the price of Bitcoin exceeding the price of gold, more and more people are getting intrigued by the possibility of making a windfall on trading this virtual currency. Unfortunately due to the high price of Bitcoin, only wealthy investors are able to afford this type of trading. The alternative for the average investor is to trade Bitcoin using futures. However with Bitcoin futures trading, the investor is essentially entering into an agreement to purchase a specific amount of Bitcoin at a future date, at a specific price. When the futures contract matures, the investor will be required to take physical delivery of the Bitcoin. However, the trend for most futures investors is to sell their contracts before the due date in order to avoid physical delivery.
A better way for investors to trade in Bitcoin will be through a “Contract for Difference” (CFD) whereby the investors can avoid having to physically accept the delivery of Bitcoin. With CFD trading, the investor merely speculates on the differences in prices as opposed to having to physically deal with the delivery of Bitcoin when the contract matures. In other words, CFDs allow investors to tap into the price movements of Bitcoin without the hassles and cost of having to deal with the physical asset. Other benefits of trading with Bitcoin CFDs include:
- Not having to deal with the hassle of opening a Bitcoin wallet
- Not having to worry about security problems that are associated with trading on exchanges
- Trades can made as short trades or long trades.
Another method of trading Bitcoin is through Binary Options. Here the trader will speculate on whether the price of the Bitcoin will go up or down by a set expiry time. If the user thinks that the price of Bitcoin will go up by the end of the option he will press PUT on his platform. Conversely if the user thinks the price will go down, he will place a CALL option. If his trade is correct he stands to make around 80% ROI.
So here are all the factors that you need to consider before choosing Bitcoin as a payment method:
- What is Bitcoin?
- Bitcoin Mining
- Bitcoin Wallet
- Where to buy Bitcoin online?
- How to buy and sell Bitcoin online?
- Buy Bitcoin with Credit Card and Paypal
- Bitcoin Trading Sites
- Brokers & Software
What is Bitcoin?
Bitcoin is a form of digital currency or cryptocurrency that was invented in 2008 by an individual or a group of individuals that used the pseudonym Satoshi Nakamoto. Bitcoin uses a peer to peer system based on the blockchain technology. Transactions between Bitcoin users are done directly without the involvement of an intermediary such as a bank or the Federal Reserve. These transactions are then verified and recorded on a public ledger. The entire Bitcoin ecosystem works without a central administrator or governing body hence making it the world’s first decentralized electronic currency.
The foundation of the Bitcoin cryptocurrency is the blockchain public ledger. This ledger records all the transactions that occur within the Bitcoin ecosystem and is distributed publicly. The ledger is maintained by a network of nodes running the Bitcoin software. Each time a transaction occurs, it is broadcast to the nodes network which in turn will validate the transactions, add the new transactions to the node’s copy of the ledger and then broadcast the updated ledger to other nodes.
The process by which the ledger is verified and updated and then broadcast is known as “mining”. The new broadcasted transactions are then grouped into a block with each block containing a cryptographic hash of the block before it and thus linking the new block with the previous block. The term “blockchain” is actually derived from this linking relationship of the blocks of transactions.
Since Bitcoin is a digital currency with no physical form, users of Bitcoin will require a wallet to store all the information that is required to transact Bitcoin. A more accurate description of a Bitcoin wallet would be a place where users of Bitcoin can store their Bitcoin holdings. They hold the cryptographic keys which allow users to access and spend the Bitcoins which they own. Bitcoin wallets can be divided into 2 main types, software wallets and online wallets provided by third party services providers.
Where to buy Bitcoin online?
There are two ways to go about buying bitcoins online namely through exchanges and online wallets. The bulk of exchanges and online wallets have a store of bitcoins which they will sell to interested parties. However it should be noted that most online wallets have limited buying and selling capabilities unlike full-blown exchanges which have the capability to cater to institutional traders. If your intention is to trade bitcoins regularly and as a speculator, your best option would be through the exchanges. While Bitcoin transactions offer users the benefit of anonymity, setting up a trading account for bitcoins will still require you to register for the account as well as providing detailed contact info.
How to buy and sell Bitcoin online?
In order for you to be able to deal in Bitcoin, you must first have a Bitcoin wallet. These online wallets come with varying levels of security depending on the purpose they are intended for. Some wallets act like an everyday traditional wallet where you can store bitcoins for regular purchases. Some wallets on the other hand act like a vault and come with high level security. Once you have acquired a Bitcoin wallet, the next step would be for you to link your Bitcoin wallet to your bank account.
Although Bitcoin offers its users a cheap way of transferring funds with total anonymity, it is still not widely accepted by the traditional banking sector due to the legal uncertainties surrounding Bitcoin. In most countries, payment processors like banks are required to abide by the strict ‘know your customer’ (KYC) and anti-money laundering (AML) requirements. Because of the reluctance of the banking system to deal in Bitcoin transactions, payment options for Bitcoin purchases are rather limited. Hence when checking out the various exchanges and online wallets that deal with Bitcoin transactions, it is important to look at the payment options that they offer as well as well as the countries which the services are supported by.
Some online wallets, to help facilitate and simplify Bitcoin transactions have provided their clients with a Bitcoin trading app with they can download and install onto their smartphones. Coinbase, one the world’s most popular online wallets, has an app that is optimized for both iOS and Android powered devices.
Buy Bitcoin with Credit Card and Paypal
Despite the fact that credit cards and Paypal are widely accepted methods of paying goods and services, this is not the same case for bitcoins purchases. This is due to the fact that transactions made with credit cards or Paypal can be easily reversed through “Chargebacks”. Given the fact that it is often difficult to prove bitcoins have actually changed hands, most exchanges and private sellers of bitcoins are reluctant to accept credit cards or Paypal payments. Nevertheless for some countries, some Bitcoin wallets are beginning to expand their payment methods to cover credit cards and Paypal. Online wallets such as Bittylicious, Coinbase, CoinCorner and Circle now accept VISA and MasterCard credit and debit cards payments.
Bitcoin Trading Sites
When it comes to trying to find the best Bitcoin trading sites, it is often difficult to do so due to the fact that most of these sites are relatively new. Nevertheless, a good starting point will be to see how secure the website is. In other words, are the transactions carried out the in a transparent manner with high customer satisfactions? Apart from security, look at the range of offering that available. For example, does the exchange offer trading in other major currencies apart from the U.S dollar? Normally, the more established Bitcoin trading sites also accepts fiat currencies as well as alternative cryptocurrencies. If you are new to Bitcoin trading, below is a list of some of the most popular Bitcoin exchanges.
|1||Coinbase||Credit Cards/Bank Transfer||USA|
|4||CEX.IO||Credit Cards/Bank Transfer/Ethereum||UK|
|8||BUY SOME BITCOINS||Credit Cards||UK|
Brokers & Software
As we saw earlier, there are several options for you to participate in Bitcoin trading. Nevertheless due to the legal uncertainties surrounding Bitcoin trading as well as the limited payment options which are available for bitcoins purchases, a better way to get involved with Bitcoin trading would be through either CFD trading (through a forex platform) or binary options. It should be remembered that Bitcoin prices are highly volatile and this makes it a poor storehouse of wealth. With Bitcoin CFD trading, you will have several advantages over trading with the physical asset itself.
CFDs, a highly efficient method of Investment
By trading bitcoins with CFDs through forex brokers, you will be able to monitor your bitcoins investment efficiently with just one platform.
Forex brokers often offer leverage trading facilities on CFDs trading. This means you can maximize your limited investment by just putting down a small amount of capital and still enjoy the profitability of a much larger trade value.
Familiar Trading Platforms
Most forex brokers offer their clients bitcoins trading on familiar trading such as the MetaTrader 4 and the Sirix powered WebTrader. These platforms are popular among forex traders and do not require traders to familiarize themselves with an unknown platform and its functionalities just for the purpose of trading bitcoins.
With Bitcoin trading through binary options you will have the following benefits:
Affordable to Trade
Affordable contracts with a minimum deposit of usually $100, whereas taking physical hold of Bitcoin will cost $2579 at time of writing, for one single Bitcoin
Risk or Reward Upfront
Know how much risk or reward you to are exposed to before you even place a trade.
Simple to Trade
The beauty of binary options for many people is its simplicity. Traders and non traders alike will be able to learn how to buy an option within a couple of minutes literally.
Below we have compiled a list of some of the best brokers that offer Bitcoin trading. They are considered safe and secure, reliable and technologically advanced. Plus their customer support is helpful and fast.