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Cryptocurrency CFDs - Best forex brokers offering crypto trading

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Crypto trading with leverage

To trade cryptocurrencies, traders can use exchanges such as Bitfinex and Bittrex, but they can also trade crypto CFDs at forex brokers with higher leverage. While trading CFDs, you don't own the coins, but you can profit from higher volatility in the crypto market by guessing the price direction.

The forex brokers will allow you to trade number of cryptocurrencies including Bitcoin, Litecoin and Dash. You might use leverage up to x20.

To find the best forex broker, you have to consider not only the leverage but also regulations and trading conditions. Most brokers are regulated by FCA in the UK and ASIC in Australia, which are two of the most reputable regulators. However, choosing a regulated broker is not always the perfect choice considering the leverage limits.

You should also pay attention to what it will actually cost you when buying and selling a cryptocurrency CFD. Most brokers will ask you to pay only the spread, but others will also charge you swaps for keeping a position for a longer period.

Best crypto brokers

Broker

Platform

Deposit

Spreads

Leverage

Regulated by

Visit Broker

IQ Option

Web, App

$10

6.95%

1:10

N/A

Visit IQ Option

Whaleclub

Web

0.001

0.35%

1:20

N/A

Visit Whaleclub

FP Markets

MT4, IRESS

$200

1:10

ASIC (AU)

Visit FP Markets

iq option crypto trading

IQ Option

IQ Option effectively combines Forex, Options and Cryptocurrency trading on a single platform. You can choose to trade in a web browser or mobile app or download and install the desktop version. On any instrument, trading execution works with lightning speed, so you can open and close contracts instantly. The custom-developed platform provides you with all the important indicators and graphical tools that will help you build your technical analysis.

While trading cryptocurrencies on the IQ Option platform, you can enjoy a large list of available instruments, including Bitcoin, Dash, Ripple, Tron, Qtum and EOS. The broker allows you to multiply your potential profit up to x10 by using the multiplier, which means with a 1% price change you can profit 10% if you decide to use x10 leverage. Traders must remember that the leverage also increases their risk.

To limit your risk, you can use Stop Loss or Trailing Stop, which automatically shifts your loss limit according to the current market price.

IQ Option Disclaimer: Trading CFDs carries a high level of risk.

whaleclub crypto trading

Whaleclub

The Whaleclub.co platform is based on blockchain technology, which means all payments are done via digital wallets. Traders can fund their accounts by using Bitcoin, Ethereum, Litecoin or Dash wallet. The company does not use any fiat currency (U.S. dollars or Euros) in its operations, and because of that, it doesn't require account verifications. Therefore, you just need a valid e-mail address to register and start trading on the platform.

The cryptocurrency list includes BTC/USD, ETH/USD, LTC/USD, DASH/BTC, ETH/BTC and XMR/BTC. Whaleclub allows you to use leverage up to x20 while trading Bitcoin, with a maximum size limit of 40 BTC. The rest of the crypto pairs you can trade with leverage no larger than x5. Trading with leverage might significantly increase your potential profit but does not come cheap, you must also consider the spreads and swaps.

fp markets crypto trading

FP Markets

FP Markets is an ASIC-regulated forex broker, based in Sydney, Australia. This broker provides traders with access to dark pool liquidity via multiple funding methods, including VISA, MasterCard and Neteller. Once your live account is created, you can choose from a number of platforms to manage your portfolio, including MetaTrader 4, WebTrader and IRESS. The web-based platforms are built with efficient HTLM5 code, so you can access your account from any device at any time.

FP Markets does offer Bitcoin trading with leverage up to 1:10 by charging you a wider spread but no execution fees. The company provides trading on over 10,000 products with flexible leverage up to 1:500.

What is Cryptocurrency CFD?

The Contract For Difference (CFD) is an agreement between a broker and a trader. When traders buy and sell cryptocurrency at a forex broker, they don't actually own the currency but instead speculate on the future price direction. If the trader's prediction is correct, he/she can close the contract to receive profit from the broker. If he/she is incorrect, the trader pays the difference to the market maker.

When you Buy a contract, you believe the cryptocurrency price will increase, and when you Sell it, you trust the value will decrease. To let you participate in the game, the broker requires you to have enough margin, which is your real account balance. Some brokers might ask for a deposit as low as $10.

To make it interesting, the brokers offer leverage, which allows retail traders to open larger positions with smaller deposits.

For example, if you have a $1,000 account (margin) with 1:10 leverage, you can open a $10,000 position. At the same time, the current Bitcoin price is $8,000, and you want to Buy 0.1 lots.

In the first scenario, Bitcoin prices rise to $9,000: Your profit is $100 ($1,100 margin)
In the second scenario, Bitcoin prices fall to $7,800: Your loss is $20 ($980 margin)

To automate trading, you use Take profit (TP) and Stop Loss (SL) features, which automatically close your position when it reaches a certain profit or loss. By using TP and SL levels, you manage your risk as you can set a desired risk/reward, which could be 1:2 or even 1:5.

How to choose the best crypto CFD broker

Before you open a real account at any broker, you should consider the trading terms you agree to. Many traders start trading at brokers that offer high leverage without paying attention to execution fees and swaps. However, it is actually important to understand how much it will cost you to trade with high leverage.

Indeed, trading with leverage is a huge advantage. Otherwise, with a $1,000 account you can't profit much. The brokers are happy to offer you high leverage, such as 1:500, but it comes with a cost. Your task is to choose the best trading conditions. The broker might offer lower spreads but higher commissions, or the opposite.

When it comes to trading cryptocurrency CFDs, the financial regulators are very strict; in some countries, the leverage is limited to 1:2. You need to carefully consider the regulations of the broker you choose to trade with.

Some brokers develop their own trading platform, which loads instantly in a web browser and works on a specially designed mobile app. Traders can also choose to download and install trading software, such as MetaTrader or cTrader. Your trading platform choice depends on your skills and computer resources.

How to trade cryptocurrency successfully

Trading Bitcoin and Ethereum at a forex broker could be profitable, considering the high leverage traders can use, but you have to keep in mind that it is also a risky business. Any regulated broker will advise you not to invest money you can't afford to lose, and this is really good advice. Many people complain about losing all their money because of shady brokers when the actual reason is greed.

If you can't keep your emotions in check, you are less likely to be profitable. Next is your understanding of the charts. Following your own logic of what is actually happening in the market is very important. I don't mean how good you are at drawing butterflies and diamonds on the chart, but your actual understanding of the price action. If you don't have any idea about technical analysis and price action, you should follow some of the top traders until you build some knowledge.

As you might note, your entry and exit when you trade crypto CFDs is crucial. You are performing the technical analysis because you want to identify your best entry in the market and your best possible exit so that you maximise profits. Learning the basics in continuation chart patterns and reversal patterns could be a great help in your cryptocurrency trading. As you might have heard in the crypto market, price action trumps everything else.

Now that you know what a cryptocurrency CFD is, you can easily calculate your potential profit considering the daily volatility in the crypto market. Indeed, there is great potential while trading crypto. Some coins’ prices can change 20% in just one day, and with CFDs, you can profit in both directions. However, the risk is also great, and you should carefully consider your investments.