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Best Ethereum Trading Brokers 2021

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In this article, we will look at how to trade Ethereum simply online as a CFD. When you trade Ethereum with a CFD broker you can use it as a leveraged product, just like Forex. You can open a trading account with a recommended broker within just a couple of minutes and start trading immediately. When you trade Ethereum, rather than buying it outright you are actually speculating on the price, rather than buying the underlying stock. Let’s explore the benefits inside.

The brokers below represent the best Ethereum Trading Brokers.

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BrokerRatingOfficial SiteRegulationsMin DepositMax LeverageTrading PlatformsFoundation YearPublicly TradedTrading Desk TypeCurrenciesCommoditiesIndicesStocksCryptoCommission on tradesFixed spreadsoffers promotionsOfficial Site
AvaTrade
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71% of retail investor accounts lose money when trading CFDs with this provider

ASIC, BVI, CBI, CySEC, FSA(JP), FSC, FSCA

$100

1:30

AvaOptions, AvaSocial, AvaTradeGo, MT4, MT5, Proprietary, WebTrader

2006

Market Maker

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71% of retail investor accounts lose money when trading CFDs with this provider

Forex TB Ltd
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78.15% of CFD retail clients lose

CySEC

$250

1:400

MT4, WebTrader

2015

STP

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78.15% of CFD retail clients lose

IC Markets
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Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

ASIC, CySEC, FSA(SC)

$200

1:500

cTrader, MT4, MT5

2007

ECN, No dealing desk

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Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

First Prudential Markets Pty Ltd
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Your capital is at risk

ASIC, CySEC

$100

1:500

IRESS, MT4, MT5, WebTrader

2005

No dealing desk

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Your capital is at risk

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.
Note: Not all Forex brokers accept US clients. For your convenience we specified those that accept US Forex traders as clients.

AvaTrade

Regulated By:ASIC, BVI, CBI, CySEC, FSA(JP), FSC, FSCA

Foundation Year:2006

Headquarters:Five Lamps Place, 77-80 Amiens Street, Dublin 1, DO1A742, Dublin, Ireland

Min Deposit:$100

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71% of retail investor accounts lose money when trading CFDs with this provider

AvaTrade was founded in 2006 and is authorised and regulated across all six continents it operates including by the CBI, BVI FSC, ASIC, FSCA, FSA and ADGM. It is one of the oldest online forex and CFD brokers with a well-established reputation for customer support, competitive fees and spreads – all in addition to offering a large range of financial instruments, even including ETFs and FX options for those who like to diversify across assets.

Users can choose to open several different account types – Retail, Professional, Spread betting and Options. The differences are discussed in the account opening section below. Retail, professional accounts offer access to over 1,250+ financial instruments across the AvaTrade propriety web-based platform, MetaTrader 4 and MetaTrader 5. Additional platforms include DupliTrade, AvaTradeGo, AvaOptions and AvaSocial, all of which are discussed further down this review.

AvaTrade also offers an array of research and market commentary from basic to expert trading videos, Online Trading Strategies, News, Market Analysis, Economic Calendars, as well as access to Trading Central which offers users market insights and intelligence through WebTrader and AvaTradeGO.

Pros: Cons:
  • Global regulation – CBI, BVI FSC, ASIC, FSCA, FSA and ADGM.
  • A wide selection of platforms for every type of trader including MT4/MT5.
  • Competitive spreads and fees.
  • Multilingual customer support.
  • Not available to residents in the USA and Iran.

ForexTB

Regulated By:CySEC

Foundation Year:2015

Headquarters:Kleanthis Tower, Lemesou Avenue 71, 2nd Floor, 2121, Aglantzia, Nicosia, Cyprus

Min Deposit:$250

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78.15% of CFD retail clients lose

ForexTB Ltd, which operates the ForexTB website, was founded in 2015 and is authorised and regulated by the Cyprus Securities and Exchange Commission (CySEC).

FXTB offers 4 different account types: Basic, Gold, Platinum and VIP. Each account type has different specifications on deposits and trading costs, and offers different additional services such as live webinars, access to Trading Central education, 0% trading commissions and more.

With ForexTB, users can trade on more than 300+ financial CFD instruments covering Forex, Stocks, Commodities, Indices and Cryptos. The broker offers the globally recognised MetaTrader 4 trading platform as well as its own simple to use web platform and various research and education tools.

Pros: Cons:
  • CySEC regulated.
  • 300+ markets to trade on.
  • Can trade on MetaTrader 4 platform.
  • 24-hour customer support 5 days a week

*The Company does not offer and/or promote and/or distribute CFDs on Virtual Currencies (Cryptocurrencies) for the residents of the United Kingdom.

IC Markets

Regulated By:ASIC, CySEC, FSA(SC)

Foundation Year:2007

Headquarters:International Capital Markets Pty Ltd Level 6 309 Kent Street Sydney NSW 2000, Australia

Min Deposit:$200

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Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

IC Markets was founded in Sydney, Australia, in 2007 and is regulated by the Australian Securities and Investments Commission (ASIC), the Cyprus Securities and Exchange Commission (CySEC), as well as the Seychelles Financial Services Authority (FSA).

The broker offers three core trading accounts called Raw Spread (cTrader), Raw Spread (MetaTrader) and a Standard Account (MetaTrader). Spreads start from zero pips on the Raw Spread accounts with commission-payable. The Standard Account offers commission-free trading with spreads from just one pip. The broker also offers demo trading accounts and Islamic swap-free accounts.

Pros: Cons:
  • Raw spread accounts with institutional grade liquidity available.
  • Commission-free trading available.
  • MetaTrader and cTrader available on desktop, web and mobile.
  • Wide range of tradable products with 24/7 customer support.
  • Impressive library of educational material and videos.
  • Beginner traders may be overwhelmed by the choice of markets and platforms.

FP Markets

Regulated By:ASIC, CySEC

Foundation Year:2005

Headquarters:Level 5, Exchange House 10 Bridge St Sydney NSW 2000, Australia

Min Deposit:$100

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Your capital is at risk

This brokerage offers a massive range of tradable assets through Forex, CFD, and share trading accounts. FP Markets supports the MT4, MT5, and IRESS platforms and offers leverage up to 500:1. You can trade 45 currency pairs with competitive spread or commission pricing.

FP Markets was founded in 2005 and is headquartered in Sydney, Australia. It is regulated by by the ASIC in Australia. Demo accounts are available. While it is suitable for beginners, education resources are limited. 

Pros: Cons:
  • 10,000+ tradable assets
  • Choose between 3 trading platforms
  • Competitive spread pricing on raw account
  • High spreads on the standard account
  • A range of possible additional fees
  • AU $200 minimum opening balance

What is Ethereum?

Many people often confuse Ethereum with Ether. Ethereum is the network, and Ether (ETH) is the cryptocurrency. However, we will use the term interchangeably in order to carry beginners along.

Ethereum is a platform on which smart contracts can be designed, stored and transacted on between two or more parties, without intervention by a central agency. These transactions are stored in blockchain (which is a decentralized ledger) and are available for everyone to see, giving it a peer-to-peer status. These transactions require a digital currency to run on, and Ether tokens are the currency that powers this platform.

Ether can be defined as the cryptocurrency of the Ethereum network. Ether and Ethereum were created by Russian programmer Vitalik Buterin in 2013 as an improvement on the Bitcoin technology. Buterin himself has been a Bitcoin programmer and in creating Ethereum, the following improvements were made:

  1. The ability to add on blocks of transactions was made easier, enabling them to be added more quickly than is the case with Bitcoin. The thinking is that this makes Ethereum more efficient as a cryptocurrency.
  2. The Ethereum technology also supports the operation of various computer applications in addition to that of Ether. Therefore, other application such as decentralized cloud storage activities could be performed.
  3. Ethereum was also built to support a number of apps.
  4. Lately, Ethereum is being used as the network to support Initial Coin Offerings (ICOs), which are mostly crowdfunding efforts by companies who create solutions for all manner of functions within the cryptocurrency space. Ether tokens (and not equity are allocated to those who contribute funds towards the ICOs.

Ether is now the 2nd most valuable cryptocurrency after Bitcoin. It has gained a massive 2,300% in 2017 alone. This massive surge in price has tickled the interests of traders all over the world, and Ether is now available for trading as a cryptocurrency.

Ethereum Trading Explained

Information available from reliable sources such as Etherscan indicates that nearly 5.3 million Ether wallets exist. These wallets hold the Ethereum currency for individuals and entities. This number indicates a 450% increase from the 1.6 million wallets that were available in May.

What does this indicate? Interest in trading Ether has increased substantially. This followed the steady climb of Ether from March 2017 till date. The price rise in Ether has come as a result of the following:

  1. Renewed spikes in the price of Bitcoin, which fuelled a general interest in cryptocurrencies.
  2. High profile institutional from large companies such as Intel, JP Morgan and Microsoft. Vladimir Putin’s high profile meeting with Buterik also spurred rumors of institutional backing from the Russian government.

Ether can be obtained either by purchasing it at the exchanges or by “mining” it. Mining, which is a process of solving complex Mathematical problems in order to add a block to the existing blockchain and opening a channel for Ether to be added to the wallet, gets more difficult as more mining is done. Besides, not everyone is a Maths genius. So most people get their Ether from a source considered more accessible to the public: the Ethereum wallet exchanges.

Interest in trading of Ethereum has spurred the growth of another industry; the crypto CFD industry. This is the trading of cryptocurrency contracts as Contracts-for-Difference (CFD) assets. Trading Ether as a CFD is available on selected forex platforms, where Ether (ETH) is listed as a tradable asset in pairings with the US Dollar, Euro and British Pound.

Trading of ETH CFDs has its peculiar advantages over buying of ETH on exchanges. These advantages are listed below:

  1. Trading ETH on exchanges can only produce profits when the trader sells his ETH holdings at a much higher price than when they were bought. In contrast, trading ETH as a CFD asset allows the trader to profit from rising and falling prices.
  2. Those who buy ETH on exchanges are prone to be caught out by sudden price movements on either side because they are essentially trading blind. There are no charts to show possible areas where price will hit support or resistance. However, those who trade ETH as CFD assets usually have access to charts and tools that can enable them to pinpoint areas of support and resistance, thus targeting exact entries and exits.
  3. All transactions on crypto CFDs, including the ETH CFD contract, are executed and settled instantly. This is in contrast to buying ETH on exchanges where there is a time lag as transactions get cross-checked and approved by the peer-to-peer network.
  4. Platform-traded ETH CFD contracts can be traded using an expert advisor. Better still, these EAs can be plugged into remote computers (forex virtual private servers) for round the clock trading, whether the host computer is on or off.
  5. Ethereum CFDs are usually leveraged, so you can control large positions with a smaller amount of your own capital. This can be an advantage if used responsibly.

How to Buy and Sell Ethereum Online

Ether is like any other cryptocurrency you will find. They feature largely anonymous trading which is secure against fraudulent activities. When it comes buying and selling Ether, you can do so using the following means:

  1. Exchange your ETH as payment for goods and services either on the Ethereum network or on a handful of online shops. Some of these shops also accept Ether-based Mastercard and Visa “cards”.
  2. You can use your Ether tokens to invest in ICOs of companies that will operate in the cryptocurrency space, or companies that provide support services to cryptocurrency networks. Companies such as Intel, AMD and Nvidia, which supply Graphics Processing Units on which cryptocurrency mining is largely dependent, have already seen their share prices rocket upwards in the last one year due to a surge in demand for their graphics cards by cryptocurrency miners.
  3. You can decide to store your ETH in online wallets. This strategy depends on being able to buy your ETH at a lower price, then holding them until their value appreciates, before selling off at a higher price to another user.

Where to Buy and Sell Ethereum

Where can Ethereum be bought and sold? As mentioned earlier, you can buy and sell Ethereum on exchanges as well as trading platforms (CFD contracts on ETH).

  1. Exchanges

In order to buy or sell Ethereum on cryptocurrency exchanges, one needs to have a wallet with a unique wallet address. Think of these two items as a bank and a bank account number. You can get your wallet and unique wallet address from the particular exchange you want to use, or you can download a unique wallet from any of the app stores, and link this wallet to the exchange where you want to trade on.

On these exchanges, Ether can be traded using fiat currency or use digital currency. Using fiat currency means you use everyday legal tender such US Dollars, Euros or your local currency to purchase Ether from verified sellers. You can also use digital payment methods such as Skrill, Neteller, WebMoney, etc. You can equally purchase ETH with Bitcoin, and resell ETH for BTC.

Exchanges usually have a list of verified sellers who will post how much they are selling Ether for the various fiat and digital currencies. This allows the buyer to choose from a list of prices and to select the price that will be favorable for the transaction.

  1. Trading Platforms

Ether contracts can be traded as CFDs on several trading platforms. These platforms basically list the various contracts that feature Ether as a paired asset.

If you are using a trading platform which supports the programming and use ofEAs, then, by all means, you can use your EA to trade any of the Ether pairs. It is important to note that majority of these platforms are owned by market makers. So traders should observe the rules of using market maker platforms, one of which is that not many of them allow EAs or scalping techniques.

Payment Methods for Ethereum Trading

To be able to trade Ether CFD assets, you need to open a trading account with a broker that supports this activity, after which the trader is expected to fund the account using acceptable payment methods. You can buy Ethereum using the following payment methods:

  • Credit/debit cards
  • Paypal
  • Skrill
  • Neteller
  • Bank wires (SWIFT and SEPA)
  • PayCash
  • OKPay
  • PerfectMoney

Ethereum Trading Sites, Brokers, and Software

An Ethereum trading exchange is a marketplace where Ethereum can be bought or sold in exchange for fiat currency, other digital currencies or other cryptocurrencies. The strategy is to purchase at lower prices, hold for appreciation of price and resell for a profit. The trader can decide to reinvest the initial investment and profit into further trading cycles or may pull the profit and continue investment with the initial sum.

Ethereum Trading

Ethereum Trading Advantages

  • Transactions are not leveraged, which allows the trader purchased Ether in quantities they can truly afford and at risk levels, they can manage.
  • Transaction costs are lower than in ETH CFD trading.
  • Get pricing of Ethereum from several sources. This gives you a choice of what prices will benefit you the most. Some sellers simply want money desperately and can sell to you at cheap prices you will not get on CFD platforms.

A major advantage of using exchanges is that many of them now offer mobile apps that can be downloaded from the iOS Store or from the Google Play store.

Conclusion

In conclusion, we would like to present our preferred list of the best Ethereum trading brokers for 2017. Definitely, there are traders who would prefer to exclusively on exchanges, and others who would like to stick solely to the trading platforms to trade Ether CFDs. However, you can get the best of both worlds, because the insight you get from the technical analysis tools on the CFD platforms can be used for more informed investments on the Ethereum exchanges. So you would have a double advantage when you use both avenues.

For Ethereum CFD trading, we selected brokers with:

  • sound regulation. Not regulation in the sense that the assets they offer are regulated, but regulation in terms of having a body look at their trade practices and product offerings to see if they are within the boundaries of the rules.
  • Brokers with transparent pricing practices.
  • Brokers whose platforms permit the use of the automated trading software.

For Ethereum exchange trading, we selected exchanges that offered the following:

  • A system of verification to bounce scammers off their exchanges
  • A track record of traders being able to fund and withdraw money from their accounts. This prevents a repeat of the Mt.Gox experience.
  • Exchanges that offered a good variety of payment channels so that any trader anywhere in the world would be able to buy or sell Ethereum in their local currencies or at least currencies/digital payment systems that could be purchased with their local currencies.

Read More:

Trade With A Regulated Broker