Crypto CFD trading is growing rapidly, and exchanges worldwide are in a race to attract more CFD traders onto their platforms. Because of this, the crypto space is now filling up with some unsafe and fraudulent brokers as well.
The line is very thin between a trustworthy, safe broker and an unreliable one, but don’t worry we will emphasize the line and tell you about the best Crypto CFD Brokers in this article. Who are safe, trustworthy, and reliable.
So, let us first look at the enlisted brokers.
Best Crypto CFD Broker In 2022
Now, let us understand these CFD brokers in-depth, one by one.
1. Prime XBT
First on the list is Prime XBT, a well-known trading platform launched in 2018 from Seychelles. The company has grown tremendously since 2019 and is a go-to platform for many crypto traders.
It offers trading in cryptos, forex market, major stock indices, commodities, various products, and order types to trade in and high leverage of up to 200x leverage. It is one of the leading bitcoin CFD brokers as well as forex CFD brokers in the world.
Fees on Prime XBT start from 0.0001% for the crypto market. However, suppose a position lasts for more than a trading day (00:00 UTC to 23:59 UTC). An additional fee is charged in that case for long trades depending on the commodity you are trading in. So keep this in mind.
It charges fixed spreads from 0 with no minimum deposit or entry fee for margin and no overnight financing.
Security is among the primary concerns when choosing a platform, and Prime XBT takes care of that pretty well. With two-factor authentication provided by Google authenticator, Mandatory address whitelisting for Bitcoin, the broker keeps the majority of the digital assets in cold storage.
The platform also executes a full risk check assessment after the placement of every order. All the passwords are cryptographically hashed, while all other sensitive data is encrypted.
User interface and other features
PrimeXBT is available for all your devices with an intuitively easy-to-understand and powerful charting interface. With a quick signup process and a minimum deposit of 0.001 BTC, users can introduce themselves to the features and options provided on the platform.
Start by signing up with an email, confirming, and then logging into the platform. Then fund your retail CFD accounts with any deposit methods and start trading; it’s that simple. The website is available in 16 international languages with readily available forex pairs.
Prime XBT allows Limit, Stop, OCO, and Market order types with no minimum deposit for margin trading. They also allow a customizable layout, with a variety of payment options including a digital currency alternative.
If you have any inquiries or you get stuck, you can always refer to the FAQ section. In addition to that, they have excellent and robust customer support available via email and support chat, available 24×7.
Their Twitter handle is also pretty approachable where you can get all the useful and latest information that they publish. Their customer support team is always reachable via their Live chat system and is glad to answer your queries.
Second on the list is Margex, one of the best cryptocurrency trading platforms launched in 2020 in Seychelles. It is an excellent choice for trading CFDs; offering 100x leverage and is an intuitive platform for new and experienced traders. Let us see the key features provided by this platform.
The trading fee on Margex is based on a maker/taker model; you can refer to the table below for a detailed view.
The minimum leverage offered for any pair is 5x, and the maximum is 100x, with a minimum order size of $1.
With 2FA, SSL encryption, AML policies, and account activity alert on the registered email ID, Margex takes care of your security needs limiting frauds and hacks to a great extent. You can also recover your passwords via your email ID by entering the six-digit code.
They keep most of the funds in a cold wallet, and the withdrawals are processed only once a day by their treasury department. Margex takes care of the fundamental right; not to disclose your personal information, and hence, users are not required to pass through KYC.
User interface and other features
The UI of Margex is quite appealing with all the toolsets available for trading cryptocurrency including Bitcoin CFDs and other products. Register yourself using your email ID and a secure password to start trading and confirm that you aren’t a resident of any of the restricted countries.
Confirm the link sent to your email, and you are free to start depositing funds. You can also enjoy the benefits of participating in a referral program and earn a flat 40% discount on trading commissions.
There is 24×7 customer support available via Live Chat and Email. They are also available via helpline number with pretty decent user reviews.
Simple FX is one of the most trusted Forex and crypto CFD broker out there, operational since 2014 and headquartered in St. Vincent and the Grenadines. It supports Forex trading, Bitcoin CFDs, Litecoin, Indices, precious metals, crypto pairs, energy as well as Fiat currencies with 60 currency pairs!!
They are available in 150+ countries and allow up to 500x leverage.
This cryptocurrency broker charges no commission and charges a spread of 1.3 pips for major indices, EUR/USD 0.9 pips, and gold 0.9 pips.
Their trading fees are based on a maker/taker fee model, where each maker gets paid to trade with -0.025%, and the taker fee is 0.075%. The platform charges no withdrawal or deposit fees, but a network fee will be charged and paid to the miner.
Simple FX is a commission-free platform; however, these are the spreads offered for crypto CFD trade LTCUSD-0.003, DJI-3, USDJPY- 0.009, GBPUSD- 0.00012, BTCUSD-4.05. It also charges an inactivity fee of 3%.
There is no regulatory license, but the platform has adequate solutions to fill the gap. With two-factor authentication and negative balance protection, the platform does a spectacular job of protecting its clients from fraud and cyber attacks.
The platform also doesn’t require you to go through KYC procedures.
User Interface and other features
With buy/sell options and order books easily accessible on the front page itself, no doubt the interface is quite remarkable. The application is available for all your devices and works seamlessly. It also offers a demo account to help learn and experiment.
The exchange has been awarded The Best Trading Platform Cryptocurrency 2022, Best Mobile App 2020, The Best Trading Platform 2019, and Best Cryptocurrency Trading Platform 2018. The account opening process is quite simple. Like the other platforms previously mentioned, enter your Email ID, a secure password and you have complete access to trade in this crypto broker.
The platform is responsive in solving customer issues; they also have a third-party review system with an accommodating, supportive community. As well as a comprehensive and wide FAQ section to help beginners grow in the field.
It is one of the oldest platforms on the list, established in 2008 in Israel, where you can publicly trade Bitcoin CFDs and many other cryptocurrency CFDs and crypto pairs plus forex pairs. It is a Financial Conduct Authority, (FCA) -approved and regulated broker listed on the London stock exchange.
A credit card or Skrill account can be used to fund your account, which allows up to 300x leverage. Plus500 also allows opening a Demo account; during the registration process, you can select ‘Demo Mode’ in the ‘Select Account Mode’ window.
Plus 500 doesn’t charge any commission on trading; however, they mainly compensate for its services through the ‘market spread’ when trading in EUR/USD, depending on the buying and selling rate. It also adds overnight funding depending on the instruments you are selling.
Plus 500 also adds a currency conversion fee of 0.7% and an inactive fee of up to USD 10 per month if you do not log in to your trading account for at least three months and charges a spread of 0.00006.
As it is listed on the London Stock Exchange, security is nothing to worry about. They are among the safest, regulated crypto and forex brokers authorized by four tier-1 and four tier-2 regulators.
Plus 500 has 2-factor authentication, and AML policies are followed on the platform. KYC is a must; one needs to be verified by submitting a valid ID and residential proof in order to trade.
User Interface and other features
Plus500 crypto exchange has a user-friendly UI with transparent fee reporting and is available in 25 international languages. It has a very easy and to the point search function that works like a charm and makes finding asset information easy. There are five order types:
- Trailing Stop
- Guaranteed Stop
A guaranteed stop can close the position at a predetermined level, even during significant market movement.
With a 24/7 availability via Email, WhatsApp, and live chat, which have been rated extremely good by users, customer service is quite helpful.
Launched in 2007 in Israel was initially named Retail FX as an online forex broker and later changed its name to eToro as we know it today. Then started offering commodities, indices, and stocks in 2010 and are among the leading cryptocurrency trading platforms in the cryptocurrency market.
It was in 2018 when eToro entered the Crypto market and started to offer full-fledged support in trading CFDs and margin trading with over 40+ cryptocurrencies. eToro allows up to 30x leverage.
A flat 1% fee is charged for buying or selling crypto assets. While dealing in CFD trading, the cost depends on the spread, USD price, and the number of units. An overnight fee is charged every night Monday to Friday at 17:00 EST for open CFD positions, and on the weekend fee is x3.
eToro doesn’t charge any commission and provides a free account opening. It doesn’t even charge any management fees and they also credit a $100,000 demo amount in the account of the users who open a demo account.
eToro inhabits a cutting-edge security system that by default provides two-factor authentication and masking technology. The cash funds deposited into the trading account are held in regulated and licensed US banks and are FDIC-insured up to $250,000.
They are regulated by Cyprus Securities and Exchange Commission as well as by Financial Services Authority so you know they have a pretty robust security system.
User Interface and other features
eToro is available on all your devices via a web portal and mobile application. Both long and short modes are available on an easy-to-use yet subtle interface and powerful engine and allow deposit by debit cards or bank accounts.
To open an eToro account, enter a username, password, and email address. Once your email address is verified, you are ready to trade.
The customer Service of eToro is highly reputed with assistance via support tickets that are responsive and provide optimum aid.
Ava Trade is a privately owned cryptocurrency broker founded in 2006 as Ava FX and is headquartered in Dublin. AvaTrade can be used to develop a trading skillset in the individuals who have just begun their journey and trying to familiarise themselves with trading platforms.
With a variety of offers and reasonable spreads, it can be a fundamental tool for both naive and experienced traders. It allows up to 400x leverage.
AvaTrade has comparatively lower CFD trading fees ranging between $0.8 and $6.7. The regulated broker charges no withdrawal fees. However, an inactivity fee of $50 per quarter after three months of inactivity is assessed. If the account remains inactive for 12 months straight, $100 is deducted.
The broker offers negative balance protection by default on the platform; with two-factor and biometric authentication, the platform’s security becomes pretty impenetrable.
User Interface and other features
It offers access to over 1250 financial markets with a pretty easy-to-use interface. It comes with all the tools and features for a hassle-free trading experience. You can use credit cards, wire transfers, e-wallets, Neteller, etc., to fund your account.
Some famous CFDs available on the platform are BTC, BTG, BCH, XLM, LTC, ETH, XRP, IOTA, EOS, etc. It also provides impressive educational offerings and demo accounts where new traders can learn and develop trading skills.
The broker offers 24/7 chat and phone support which is relatively fast and responsive. There is also a comprehensive and wide FAQ section with most of the queries enlisted. So far, AvaTrade’s customer support has received quite good feedback from the users.
What is CFD Trading?
Contract for Difference or CFD trading is a financial contract between the investor and a CFD broker to pay the difference in the settlement price between an asset’s current value and its value at the contract closure time.
CFD allows traders and investors to earn profit from price movement without owning the underlying asset. Trades in a CFD are cash-settled and involve margin, enabling investors to take huge positions by paying a small amount of the contract’s base price.
There is no delivery of security that takes place. It seems similar to a futures contract, but it’s not; the main difference is that in futures contracts, long and short contracts are traded through an order book in a peer-to-peer manner, but in CFDs, it is an over-the-counter trade happening through a broker.
For example, a CFD trader doesn’t buy physical gold; instead, they speculate on the price of gold to go up or down. Suppose the trader speculates that the price will go up, and they offer their holdings for sale. The net difference between the purchase and the sale price is the gain that the trader earns.
Now that you have understood how a traditional CFD works let us know how this applies in the crypto market.
What is Crypto CFD Trading?
CFD trading only some years back was only meant for forex, indices, stocks, etc., but when it entered the crypto market, it exploded and has been growing tremendously ever since.
Cryptocurrency CFD trading is similar to forex trading in CFDs; therefore, anyone who wants to gain from Bitcoin CFD and other crypto CFDs can do it without actually owning them.
While trading in cryptocurrency CFDs, you can go long and short with the added advantage of using margin and leverage to increase further the exposure of the profits attained.
Experts suggest that crypto CFD trading is better than Bitcoin futures contracts when you go long or short. CFD brokers don’t impose so much regulatory hassle with the same benefits as a crypto exchange.
Is Crypto CFD Trading Legit & Safe?
There are many crypto CFD trading brokers available in the market where security regulations are not taken care of; because of this, trading on a reputed platform is the key. And that is why we have listed the list of the best crypto CFD brokers above in this article to make your life easier.
Frauds and cyber-attacks are some of the mishaps that make us have second thoughts while trading but don’t worry. These risks are significantly reduced with the security measures and insurance available on the platforms.
The other risks, such as account close-out, market volatility, holding costs, etc., lead to losing money rapidly, but trading tools like stop loss, negative balance protection, and take profit, help minimize the loss percentage.
Beginners can always start with a demo account to understand the field in-depth and then dive into the real trading world with enough knowledge and trading skills.
Which broker is best for Crypto CFD trading?
Many CFD brokers are available in the crypto market today with different approaches and options available for trading cryptocurrency. Still, when choosing the best of them, we should select a platform that has a perfect balance of all the fundamentals.
And in the list of best cryptocurrency brokers, the best Bitcoin broker with all these features in the perfect balance you need them to be in is Prime XBT. Being perfectly safe with a powerful and capable engine handling substantial trading volumes, Prime XBT is a go option for both beginner and experienced traders.
Prime XBT supports Bitcoin CFD trading and many other cryptocurrency CFDs, including Ethereum and Ripple, with low pricing crypto futures contracts, stock indices, commodities, and forex markets.
Now that we got to know the best CFD broker, it’s time to get to know a well-known cryptocurrency exchange for trading and whether it allows CFD trading.
Is Binance a CFD broker?
Binance is a cryptocurrency exchange that entered the crypto world in 2017. Yes, Binance does offer CFD trading. Binance provides more than 350 cryptocurrencies and various trading products like margin trading, day trading, CFD trading, etc. It is one of the best trading platforms in the crypto space.
They charge withdrawal and deposit fees, which depend on the payment method, between 0% to 4.5%, and $15 for US customers for wire transfers.
The exchange also charges a commission of 0.10 USD per CFD per side, unlike some brokers we mentioned in the list before. Binance also charges an inactivity fee and an overnight fee of 3.25%.
Trading Fees on Binance follows a maker/taker fee module structure. Maker fees vary between 0.1% to 0.02% and the taker 0.1% to 0.04%, depending on the trading volume level. Binance offers a 25% discount for BNB holders.
Standard trading services charge 0.1% each time you trade. If you hold BNB in your account, the transaction fees will automatically be deducted from your BNB balance. You can even get a 25% discount when you do this.
Binance allows trade of cryptocurrency CFDs, commodities, single stocks, ETFs, ETNs, cash indices, and crude oil with no expiration date. Meaning that you can keep your positions open for as long as you want.
You can go both short and long and trade on leverage of up to 20x and minimize your risk exposure by hedging your investments. Binance has a 500 maximum open order limit and maximum trade size of 1,000 CFDs which is relatively high, with 0.1 CFD being the minimum.
On Binance, trades are not subjected to stamp duty in most countries, and no borrowing cost is associated. Therefore, Binance is a fantastic platform with state-of-the-art trading tools and impenetrable security features.
As we all know, Binance is a reputable exchange represented as a brand in the crypto market. Therefore, you can expect an excellent security standard on the platform, and Binance undoubtedly stands on it.
Let us now try to focus on the advantages that one can get trading in CFDs.
Since we have gone through so many times of the term ‘spread’, let me explain what is it.
What is a Spread?
Spread in CFD is the difference between two prices. Many brokers and markets quote their prices in the form of a spread, as we have seen in the list above. It means that the price to buy the mentioned asset will be higher than the underlying market and the price to sell will be slightly below it by the value of the spread mentioned.
As soon as you open a position you may see a loss in the position in some exchanges, this is due to spread. However the final calculation of the spread is made when you close the position and it is adjusted at that moment, according to the closing price.
And while going through the spread value you would have noticed in some brokers the spread is quoted with the term ‘pip’. Pip is the last digit in a price quote. 1 pip is usually 0.0001.
Advantages of trading CFDs
- Increased Leverage
We know the advantages one can get while trading with leverage. We can magnify the exposure of profits while trading with limited capital, applying that to trading CFDs. The brokers that we enlisted offer anywhere between 20x to 500x leverage; you can imagine how much profits you can generate.
- Access to the Global market
All the crypto brokers that we discussed offer products in all the world’s major markets, allowing 24/7 access to trading. Investors through these platforms can trade in a wide range of global markets.
The brokers act as mediators, link major fiat currencies with trading forex, and aid traders in trading various securities.
- Variety of securities
Brokers offer stock, index, treasury, currency, precious metals, and even oil to trade. Talking about cryptocurrencies, including Bitcoin CFD trading, they offer many other cryptocurrency CFDs and give traders a wide range of options to choose the security they are interested in.
- No Shorting Rules or borrowing stock
Specific markets prohibit shorting, requiring the trader to borrow the instrument or have different margin requirements. In CFD trading, since the trader doesn’t own the underlying asset, they don’t require to pay the borrowing cost and short anytime.
- No Day Trading Requirements
Some markets impose a minimum deposit of capital to trade or place limits or limit the total number of day trades that can be executed in a day within certain accounts. But CFD market is not bound by any of these restrictions, and all the account holders can day trade if they wish.
With these many advantages, let us see if US traders can trade crypto CFDs or not.
Are CFDs legal in the USA?
CFDs being over-the-counter (OTC) products, don’t pass through regulated exchanges. Using leverage allows for magnified losses and hence is the area of concern. Therefore, the Commodity Futures Trading Commission and Securities and Exchange Commission have prohibited US citizens from trading in CFDs.
However, CFD trading can be done in the US using some of the above brokerages. Don’t worry; it’s perfectly safe since other authorities regulate them outside of the USA. And if you are a citizen of the UK or Australia, you can freely trade in US securities.
The Cryptocurrency market is full of trading exchanges and brokers, but only some are reputed and legitimate; this article made you aware of the brokers that are readily available with all the financial instruments and tools needed to trade crypto CFDs.
These brokers are reputed, safe, and have state-of-the-art techs helping them grow in the cryptosphere, performing well. They offer a variety of instruments to CFD trade at lower prices.
Using a reputable broker like these can be a safer way to eliminate the high risk of rapidly losing money because of some scam or cyber security breach. Because they are reputed and regulated, these worries won’t stand in the way of your trading and earning profits.
So go ahead and try one of them before it is too delayed to get into these exchanges.