Regulated brokers were cautious in their approach to offering cryptocurrencies when in 2017, we witnessed one of the biggest rallies in financial market history.

The word bubble was thrown around a lot to describe the cryptocurrency market but since the rally and then the significant sell off, the crypto market has stabalised and now moves in a similar fashion to traditional markets.

More and more brokers and beginning to offer cryptocurrencies as an asset on their platform due to the high demand from investors and traders, unsurprisingly considering the volatility that is showed.

Originally you could only buy cryptocurrencies like bitcoin and ethereum on cryptocurrency exchanges, where you needed a wallet to actually store the coins. Brokers have created a CFD market for these coins now, meaning that you can you can leverage your position and also don’t need to own a wallet.

Best Crypto Brokers

Lots of brokers are still reluctant to offer cryptocurrencies because they feel it exposes them to too much capital risk considering the volatility. However, there are more and more brokers beginning to offer it. Below are 10 of the best brokers that allow you to buy bitcoin and other cryptocurrencies

BrokerRegulatedFeaturesCryptocurrencies AvailableMin DepositVisit
Tick
- Social Trading Platform
- User Friendly Platform
12
£200
Tick
- Award Winning CFD Platform
- Low Commissions
6
£100
Tick
- Volatility Protection Tools
- Good Education Section
5
£200
Tick
- Social Trading Signals
- Competitive Commission Structure
4
£200
Tick
- High FCA Regulatory Status
- Excellent Trading Platform
5
£0
Tick
- Highly Regarded Broker
- Pioneer in offering CFDs
8
£250
Tick
- Wide Range of Markets
- Great Phone Support
13
£250
Tick
- Guaranteed Stop Loss Orders
- Good Trading Platform
7
£100
Tick
- Part of GAIN
- Long Serving Clients
5
£100
Tick
- User Friendly Account
- Great Customer Service
4
£0

Choosing a Crypto Broker

Choosing a crypto broker is different to choosing a Forex broker. There are different things to consider, especially because the market is so new, lots of these brokers are still working things out themselves. So if a broker is excellent when it comes to offering Forex or commodity assets, they may not be up to speed in the cryptocurrency market.

What to look for:

  • Number of coins – Whilst this does not sound that important, it actually is because if you are looking to trade cryptocurrencies, then you shouldn’t be confined to just trading one or two. You should have a choice. The crypto world changes very fast at the moment and different coins are moving on fundamental news, if your broker does not offer that coin then you simply won’t have the opportunity to buy that market. Brokers are still reluctant to offer the top 20 in market cap but the likes of eToro are always adding new coins to their selection.
  • Spread – The spread on cryptocurrencies between brokers changes a lot. Spreads are now calculated using technology but the preset conditions are put in manually (by the broker), they will widen and shorten depending on market volatility. And because they’re taking prices from different exchanges, the volatility may change between broker. The spread will always be difficult to judge but there are certainly brokers that are worse than others.
  • Pricing – As mentioned, brokers take their prices from exchanges and therefore can offer different prices to other brokers. Find out which exchange each broker takes their prices and do your research about the exchange, this will give you a good insight into whether you can trust the exchanges cryptocurrency pricing. This is actually something arbitrage traders look out for.

For more information about choosing a cryptocurrency exchange, see opencryptoexchanges.