Cryptocurrency brokers – How to select the best company

Vast amounts of CFD brokers offer cryptocurrency trading. But even in an environment with tough competition, there are only a very few good brokers worth choosing. Choosing a good broker right from the beginning of your trading journey is very important as it can save you not only some money but also your nerves if you were to choose a shady company. There are already many good websites about cryptocurrencies that compare the best cryptocurrency brokers on the market. We could approach the post exactly the same and put the most popular regulated cryptocurrency brokers side by side. We, however, chose a different path and we will just point out which features you should look for from your cryptocurrency broker. By doing so, we will not give any company an edge, making this article completely objective.

Choose cryptocurrency broker with license

With so many scam brokers out there, you do not want to fall into a trap. Before you even consider trading with a cryptocurrency broker, check whether it is regulated. In Europe, we recognise the CySEC license, in Australia the ASIC and in the UK the FCA. When a company is regulated, they are overseen by a regulatory body that basically prohibits them from doing any unethical activities. If a broker would operate in a bad faith, the regulator would immediately slap them with a heavy penalty. Surprise, surprise, brokers do not like paying them, so they do their best to avoid them.

Fees – Key factor when selecting crypto broker

No matter how annoying fees are, there is no way to escape them. CFD cryptocurrency brokers tend to have at least two fees. The first one which has any broker is a spread. To calculate this fee, basically deduct the bid price from the ask price and you get the spread. So, if the bid price is $6,580 for one BTC and the ask price is $6,500, the spread is $80. If you purchase a smaller portion of Bitcoin, the fee is of course smaller. The second fee that some CFD crypto brokers charge is called an overnight fee. As the name suggests, this fee applies whenever you stay in a position overnight. Cryptocurrency traders and investors who want to let their position open for a number of days or months should definitely choose a broker that does not have the overnight fee.

Trading platforms – Huge differences

Many traders use outside sources for technical and fundamental analysis. If you are, however, one of the traders who like to have everything in one place, you should choose a trading platform accordingly. To stand out from the competition, brokers try to provide the best possible trading experience with ultimate trading platforms. These platforms usually have advanced technical analysis tools, historical quotes and frequently some social features so you could talk with traders alike. Occasionally you can find on the market even brokers that have a social trading platform that allows copying trades of the top perming traders and investors on the platform.

Minimum deposit – Can be as small as $10

Most CFD cryptocurrency brokers have a minimum deposit around 100 or 200 dollars. Whilst most crypto enthusiasts invest significantly more, you should choose a broker in accordance with your financial situation. Is a $100 minimum deposit issue for you? No worries. Today are on the market even brokers where you can start trading with real money even with as little as 10 dollars.

Demo account for cryptocurrency trading

Unlike crypto exchanges, crypto brokers offer a free practice demo account so you could try trading without risking losing funds. With the usage of a demo account, you can freely trade and invest as you would do so on a real account, with one slight difference which is that you are managing imaginary chips. This will not only allow you to get the grasp on CFD crypto trading but also to test the trading platform of your broker. If it will not meet your requirements you can decide to switch your broker and trade elsewhere.

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