Best Bitcoin Brokers – Learn 2 Trade Full 2021 Guide!

Best Bitcoin Brokers – Learn 2 Trade Full 2021 Guide!

Bitcoin Brokers, looking to join the cryptocurrency revolution by buying some Bitcoin of your own? If so, the easiest and most-effective way of doing this is through a Bitcoin broker.

In a nutshell, the best Bitcoin brokers allow you to quickly open an account, deposit funds with a debit or credit card – and then buy as much or as little Bitcoin as you like.

With that said, there are hundreds of platforms active in the market, so knowing which broker to sign up with is no easy feat. As such, we would suggest reading our guide on the Best Bitcoin Brokers.

Not only do we unravel our top 5 Bitcoin broker picks of 2021, but we also explain why opting for Bitcoin CFDs is the safest, cheapest, and most convenient way of making an investment.

Note: The most important metric to look for when searching for a Bitcoin broker is regulation. Ultimately, if the broker is unlicensed, you should avoid it.

Table of Content

     

    eToro - Buy and Invest in Assets Commissions-Free

    Our Rating

    • Buy over 2,400 stocks, 16 cryptocurrencies, and 250 ETFs without paying any commissions
    • Trade thousands of CFDs
    • Deposit funds with a debit/credit card, e-wallet, or bank account and PayPal
    • Perfect for newbie traders and heavily regulated

     

    What are Bitcoin Brokers?

    A Bitcoin broker is simply an online trading platform that allows you to buy and sell cryptocurrencies. Much like a traditional online stockbroker, the process requires you to open an account, deposit funds, and then decide how much Bitcoin you wish to buy. Brokers typically allow you to use everyday payment methods like a debit/credit card, bank account, or e-wallet, which makes the buying process super-easy.

    In return, Bitcoin brokers will charge you a fee. This can come in a range of shapes and sizes, so your costs will depend on the broker that you use. For example, while popular Bitcoin brokers like Coinbase charge fees to deposit funds and make a purchase – platforms like Crypto Rocket and eToro do not. As such, you need to understand the broker’s fee structure prior to taking the plunge.

    With that being said – there are two types of Bitcoin brokers active in the online space – so the one that you opt for will depend on your long-term investment goals. Crucially, this will either be a broker that requires you to store your Bitcoin in a private wallet, or a broker that facilitates your investment via a regulated CFD.

    Types of Bitcoin Brokers

    It’s  super-important for you to understand how your choice of broker can have a major say on the make-up of your Bitcoin purchase, so we explain this in more detail in the sections below.

    ✔️ Buying ‘Actual’ Bitcoin

    Bitcoin is a decentralized currency – meaning that it is not controlled by any single person or authority. As such, those holding Bitcoin in a private wallet are 100% responsible for keeping it safe. In other words, if your Bitcoin wallet was hacked – or you transferred funds to an invalid address, your Bitcoin would be lost forever.

    Unlike a traditional investment, you would not be able to pick up the telephone and ask the broker to investigate the loss. On the contrary, this is the risk of buying ‘actual’ Bitcoin, as you need to ensure that you keep it safe at all times.

    Now, this isn’t necessarily an issuer per-say if you know how cryptocurrency wallets work. However, if you’re a complete newbie entering the Bitcoin space for the first time, the thoughts of having to store your own coins is nothing short of petrifying – especially if large amounts of capital are involved.

    Nevertheless, if you do want to own ‘actual’ Bitcoin, the broker in question will facilitate your order via an everyday payment method. Once the coins have been purchased, you will then need to withdraw them to a private wallet. Some platforms allow you to store the coins within the broker’s ‘web wallet’ – albeit, this is extremely risky.

    ✔️ Buying Bitcoin CFDs

    So that leaves us with option 2 – buying Bitcoin CFDs. For those unaware, a CFD (Contract-for-Difference) is a financial instrument that allows you to invest in an asset without you taking ownership. Instead, you are simply speculating on whether the price of the asset will go up or down.

    Not only does this include assets like Bitcoin, but literally any financial instrument that is traded in the traditional markets. Think along the lines of gold, oil, stocks, indices, gas, wheat, and ETFs. On the one hand, buying a Bitcoin CFD will mean that you do not actually own the underlying asset.

    However, does that really matter? Essentially, if you are looking to buy Bitcoin because you think its value will increase in the future, then CFDs can facilitate this. For example, if you buy a Bitcoin CFD when it is valued at $6,000 – and sell it two years later at a price of $10,000 – you still make the very same profit that you would have done by owning ‘actual’ Bitcoin’.

    In fact, the benefits of using Bitcoin brokers that specialize in CFDs are four-fold – as we explain below.

    1. Fees are Much Lower

    One of the most popular Bitcoin brokers in the online space is that of Coinbase. The overarching reason for this is that the platform makes it super-easy to buy Bitcoin with an everyday debit or credit card. However, Coinbase charges handsomely for its services.

    For example, you need to pay 3.99% to deposit with a debit/credit card, and then a further 1.5% every time you buy or sell Bitcoin. These fees are huge in comparison to Bitcoin brokers that specialize in CFDs.

    In fact, most of the Bitcoin brokers that we recommend on this page not only allow you to deposit funds for free – but you can trade Bitcoin without paying any commissions.

    2. CFD Brokers are Heavily Regulated

    Much of the wider cryptocurrency broker space operates in an unregulated manner. This is mainly due to the fact that very few countries have yet to install crypto-specific legislation – meaning that platforms are able to trade without holding a license.

    On the contrary, the CFD broker space is heavily regulated – which means that your funds remain safe at all times. For example, all of the top-rated Bitcoin brokers listed on this page hold a tier-one regulatory license. This includes bodies such as the UK’s FCA, Australia’s ASIC, or Cyprus’s CySEC.

    3. Storage and Selling is Seamless

    As we briefly noted earlier, buying ‘actual’ Bitocin is a logistical nightmare. For example, you are required to withdraw the coins out of your chosen broker, and then keep them safe in a private wallet. When it comes to offloading your Bitcoin investment, you then need to transfer the coins back into an online broker, and exchange them for cash. This is a highly cumbersome process that is fraught with risk.

    With that said, by using a Bitcoin broker that specializes in CFDs, you do not need to worry about storage at all. This is because CFDs merely track the underlying asset – meaning the financial instrument does not exist. As such, there is no fear of your Bitcoin being lost or stolen!

    Furthermore, this also makes it a breeze when it comes to cashing your investment out. As your Bitcoin is stored at the broker via a CFD instrument, you simply need to place a sell order to exit your trade. As soon as you do, you can then withdraw the funds back to your debit/credit card, bank account, or e-wallet.

    4. Ability to Apply Leverage and Short-Sell

    Unlike a conventional Bitcoin broker, those offering cryptocurrencies in the form of CFDs allow you to apply leverage. For those unaware, this means that you will have the option of trading more than you have in your account.

    In the UK, for example, investors are able to apply leverage of up to 2x when trading Bitcoin, meaning that a £500 investment would allow you to buy £1,000 worth. In other regions, you can trade well up to 100x – meaning a £500 balance would allow you to trade with £50,000!

    Similarly, CFD brokers hosting cryptocurrencies also allow you to short-sell Bitcoin. This means that you can make gains in the event Bitcoin goes down in value.

    Payments at Bitcoin Brokers

    So now that you know the two types of Bitcoin brokers currently active in the market, we are now going to discuss payments. After all, you will be buying Bitcoin with real-world money – so you need to think about how you intend getting funds in and out of the broker.

    Payment Methods

    Most Bitcoin brokers allow you to deposit and withdraw funds with a range of payment methods. This might include:

    • Debit Cards
    • Credit Cards
    • Local Bank Transfer
    • International Bank Wire
    • Paypal
    • Skrill
    • Neteller
    • Western Union

    It’s best to check whether or not your preferred payment method is supported prior to opening an account with the broker.

    Deposit/Withdrawl Fees

    In some cases, Bitcoin brokers will charge you a fee to deposit and/or withdraw funds. As we discussed earlier, the likes of Coinbase charge a whopping 3.99% on debit/credit card deposits.

    This means that a £1,000 deposit would cost you £39.99 in fees. At the other end of the spectrum, the likes of eToro charge nothing on deposits, and a mere $5 on withdrawals.

    Bitcoin Broker Fees

    Bitcoin brokers are in the business of making money, so you need to have a firm grasp of the platform’s fee structure. This can include:

    Trading Commissions

    This is a commission charged by the broker every time you place a trade. This includes a fee when you buy Bitcoin, as well as when you sell it. If a trading commission is charged, then you will pay a percentage of the amount you wish to buy.

    For example, let’s say that the broker charges a fee of 1.5%, and you wish to buy £2,000 worth of Bitcoin. This would translate to an initial fee of £30. However, when it comes to selling your Bitcoin you will also need to pay a commission.

    For example, let’s say that your £2,000 Bitcoin investment is now worth £3,000. This means that you will pay 1.5% on the current market value of £3,000 – which equates to £45. As noted earlier, most of the Bitcoin brokers that we recommend on this page charge no trading commissions at all.

    Spreads

    All Bitcoin brokers will charge a spread. Much like the traditional investment space, this is the difference between the ‘buy’ and ‘sell’ price of the asset.

    For example, let’s say that Bitcoin has a ‘buy’ price of $6,000, and a ‘sell’ price of $6,060. By calculating the difference between the two prices, we get a spread of 1%. This means that you need your Bitcoin investment to increase by at least 1% just to break even.

    There is often a trade-off between the spreads and commissions charged by Bitcoin brokers, so you need to check this before signing up. For example, while a broker might not charge any commissions, you might find that its spreads are somewhat uncompetitive.

    How do Bitcoin Brokers Work?

    Still confused how the investment process works at a Bitcoin broker? If so, you’ll find a simple step-by-step guide outlined below. This unravels the end-to-end process of opening an account, depositing funds, buying Bitcoin, and crucially – cashing out your investment.

    Step 1: Find a Bitcoin Broker

    To get the ball rolling, you’ll need to find a Bitcoin broker that meets your needs. If you like the sound of investing in Bitcoin via CFDs, you’ll find our top-five picks listed towards the bottom of this page.

    If you want to own ‘actual’ Bitcoin, it might be worth using eToro. This is because the platform is regulated, it accepts heaps of payment methods, and ultimately – you don’t need to withdraw your coins out.

    eToro - Buy and Invest in Assets Commissions-Free

    Our Rating

    • Buy over 2,400 stocks, 16 cryptocurrencies, and 250 ETFs without paying any commissions
    • Trade thousands of CFDs
    • Deposit funds with a debit/credit card, e-wallet, or bank account and PayPal
    • Perfect for newbie traders and heavily regulated

     

    Alternatively, if you want to perform some research of your own, scroll down to our section on how to choose a Bitcoin broker?

    Step 2: Open an Account

    In order to buy Bitcoin with a regulated broker, you’ll need to open an account. Don’t worry – the process rarely takes more than 5-10 minutes, and once you are set up you are free to buy and sell Bitcoin as you please.

    To get the process underway, you’ll need to provide the following information:

    • Full Name
    • Date of Birth
    • Home Address
    • Nationality
    • Contact Details

    You’ll also need to choose a username and a strong password. Furthermore – and perhaps most importantly, regulated brokers are required to verify your identity before you can deposit funds.

    Once again, the process takes minutes. All you need to do is upload a clear copy of your passport or driver’s license, and the platform should be able to validate the document instantly.

    Step 3: Deposit Funds

    You will now need to add some funds to your newly created Bitcoin broker account. As we discussed earlier, this is likely to include the choice of a debit/credit card, bank account, or e-wallet.

    Before proceeding, check to see what the broker’s minimum deposit amount is. You should also check whether or not the broker will charge you a fee on your chosen deposit method.

    Step 4: Buy Bitcoin

    Once your account has been funded, you are ready to buy Bitcoin. This will require you to set up a buy order, so be sure to follow the steps outlined below.

    • Select a ‘buy’ order
    • Enter the amount of Bitcoin you wish to buy in your local currency
    • Choose a market order to take the next available price
    • If you want to apply leverage, select your multiple
    • Set up a stop-loss order if you wish to close your trade at a certain price if the markets go against you

    Once you confirm the buy order, your purchase you should be executed within a couple of seconds.

    Step 5: Cashing Your Investment Out

    If you have purchased Bitcoin with a CFD broker (or outright with eToro), you don’t need to do anything further. Well, not until you decide to sell your Bitcoin – hopefully at a higher price than you paid.

    If you do, you simply need to log back into your Bitcoin broker account, and then place a sell order. A few seconds later, you will no longer be holding Bitcoin, and the proceeds will be added to your cash balance.

    You can then withdraw the money back to the same payment method that you used to deposit!

    Finding the Best Bitcoin Brokers

    There is no such thing as a ‘best Bitcoin broker’ per-say, as no-two platforms are the same. For example, while one broker might offer super-tight spreads and low commissions, it might not support your preferred payment method. Similarly, the broker might hold heaps of regulatory licenses, but it won’t be any good if deposit and withdrawal fees are sky-high.

    As such, we would suggest reading through the guidelines below in your hunt for the best Bitcoin brokers of 2021.

    ✔️ Regulation

    This particular point is non-negotiable. Crucially, you must ensure that your chosen Bitcoin broker is regulated. If it isn’t, avoid it. We prefer Bitcoin brokers that are regulated by tier-one bodies like the FCA, ASIC, or CySEC. This will ensure that you are able to buy and sell Bitcoin is a safe and secure environment.

    ✔️ Payment Methods

    Check to see what payment methods the Bitcoin broker supports. We prefer brokers that offer fee-free deposits via debit/credit cards and e-wallets, not least because your account will be credited instantly. Alternatively, most Bitcoin brokers allow you to deposit funds with a bank account. You will, however, need to wait a few days for the funds to clear.

    ✔️ Spreads and Commissions

    You are going to need to pay a fee of some sort when using a Bitcoin broker, so be sure to find out what this amounts to prior to signing up. In an ideal world, you should use a broker that allows you to trade Bitcoin on a commission-free basis, alongside tight spreads.

    ✔️ CFDs or ‘Actual Bitcoin’

    It is important that you understand the underlying make-up of your Bitcoin investment. For example, if you want to buy ‘actual’ Bitcoin, in the vast majority of cases you will need to withdraw the coins to a private wallet. If you opt for CFDs, you won’t own the underlying asset. But, you will be able to apply leverage and short-sell Bitcoin, and the CFD broker will need to be heavily regulated.

    ✔️ Education and Research

    If you’re just starting out in the world of cryptocurrencies, then it might be worth using a Bitcoin broker that offers a wealth of educational resources. This might include handy videos, step-by-step guides, and even webinars.

    At the other end of the spectrum, if you’re an experienced investor, stick with Bitcoin brokers that offer advanced charting tools, technical indicators, and real-time fundamental news.

    ✔️ Customer Support

    Don’t forget to explore what customer service channels are offered – such as live chat, email, and telephone support. Further, check to see whether the support team’s opening hours mirror that of your local timezone.

    5 Best Bitcoin Brokers of 2021 – Our Top Picks

    Ready to buy Bitcoin right now, but don’t have time to research a broker on a DIY basis? If so, below you will find our top five Bitcoin brokers in 2021.

    Before you read through each of our five top picks, it is important to note that all of our recommended platforms meet the following criteria:

    • Regulated by a tier-one licensing body
    • Low fees, spreads, and commissions
    • Support everyday payment methods
    • Top-notch customer service team
    • Offer leverage and short-selling

    1. eToro – Best Bitcoin Broker for Beginners

    If you're a complete newbie in the world of Bitcoin of online investments, we would suggest eToro. The platform is regulated by three tier-one bodies. This includes the FCA, ASIC, and CySEC. As such, your funds are safe at all times. There are no fees to deposit money, and supported payment methods include debit/credit cards, e-wallets, and a bank transfer.

    Once you've got funds into eToro, the buying process takes just minutes. In fact, eToro is one of the few brokers that gives you the option of buying 'actual' Bitcoin, or investing via CFDs. If you opt for the former, you won't be able to apply leverage or go short. Instead, you'll need to invest through a CFD.

    Nevertheless, eToro does not charge any trading commissions -regardless of whether you are buying 'actual' Bitcoin or trading CFDs. We also like eToro for its Copy Trading offering. This allows you to mirror the trades of other crypto investors, so it's perfect if you have little to no knowledge of the space..

    Our Rating

    • Supports all debit/credit card types
    • No trading fees other than the spread
    • Fast registration and KYC process
    • Accounts are denominated in USD only
    75% of retail investors lose money when trading CFDs with this provider

    2. EightCap – Trade Over 200+ Assets Commission-Free

    EightCap is an online forex broker that is fully compatible with MT4. You can trade over 200 financial instruments at this popular platform and there are two account types to choose from.

    One account permits commission-free trading with spreads starting at just 1 pip. Or, you can trade from 0 pips at a flat commission of $3.50 per slide. In terms of markets, EightCap covers everything from forex and shares to indices and commodities.

    Not only can you get started with this broker for just $100, but you can trade for free via the demo account facility. Most importantly, this broker is regulated by tier-one body ASIC..

    LT2 Rating

    • ASIC regulated broker
    • Trade over 200+ assets commission-free
    • Very tight spreads
    Your capital is at risk of loss when trading CFDs at this platform

    3. Capital.com – Zero Commissions and Ultra-Low Spreads

    Capital.com is an FCA-regulated online broker that offers heaps of financial instruments. All in the form of CFDs - this covers stocks, indices, commodities, and even cryptocurrencies. You will not pay a single penny in commission, and spreads are super-tight. Leverage facilities are also on offer - fully in-line with ESMA limits.

    Once again, this stands at 1:30 on majors and 1:20 on minors and exotics. If you are based outside of Europe or you are deemed to be a professional client, you will get even higher limits. Getting money into Capital.com is also a breeze - as the platform supports debit/credit cards, e-wallets, and bank account transfers. Best of all, you can get started with just 20 £/$.

    Our Rating

    • Zero commissions on all assets
    • Super-tight spreads
    • FCA regulated
    82.61% of retail investors lose money when trading CFDs with this provider

    4. AVATrade – 2 x $200 Forex Welcome Bonuses

    The team at AVATrade are now offering a huge 20% forex bonus of up to $10,000. This means that you will need to deposit $50,000 to get the maximum bonus allocation. Take note, you'll need to deposit a minimum of $100 to get the bonus, and your account needs to be verified before the funds are credited. In terms of withdrawing the bonus out, you'll get $1 for every 0.1 lot that you trade.

    Our Rating

    • 20% welcome bonus of upto $10,000
    • Minimum deposit $100
    • Verify your account before the bonus is credited
    75% of retail investors lose money when trading CFDs with this provider

    5. EuropeFX – Great Fees and Several FX Trading Platforms

    As the name suggests, EuropeFX is a specialist forex broker. With that said, the platform also supports CFDs in the form of shares, indices, cryptocurrencies, and commodities. You will be able to trade via MT4, so you can choose from desktop software, or a mobile/tablet application. If you want to trade via your standard web browser, the broker also offers its own native platform - EuroTrader 2.0. In terms of fees, EuropeFX offers super-tight spreads on major pairs. Your money is safe at all times, not least because the broker is authorized and licensed by CySEC.

    Our Rating

    • MT4 and native trading platforms
    • Super-low spreads
    • Great reputation and licensed by CySEC
    • Premium account has a minimum deposit of 1,000 EUR

    82.61% of retail investors lose money when trading CFDs with this provider

    Conclusion

    In conclusion, the online trading space is now jam-packed with Bitcoin brokers. As such, not only do you need to spend time assessing whether you are buying ‘actual’ Bitcoin or CFDs, but you then need to look at a range of other factors – such as regulation, fees, commissions, and payments.

    If you don’t have time to perform research – and you instead want to buy Bitcoin right now, we have listed our top five rated brokers of 2021. These pre-vetted brokers allow you to buy Bitcoin in a safe, cost-effective, and seamless manner – so the end-to-end investment process should take no more than 10 minutes!

    LonghornFX – Best Forex Trading Platform

    Our Rating

    • Deposit as little as $10 to start trading
    • Super-low commissions and tight spreads
    • Trade forex, crypto, commodities, and indices
    • Fully supported by MetaTrader 4

     

    FAQs

    How do I buy Bitcoin online ?

    By signing up with one of our recommended brokers, you can buy Bitcoin with a debit or credit card. Other options include a bank wire or e-wallet.

    What is the minimum amount of Bitcoin I can buy at an online broker?

    This depends on the Bitcoin broker you sign up with. Not only do you need to check the minimum deposit amount, but also the minimum trade size. In most cases, you can get started with an investment of around £50.

    Why do I need to upload ID when using a Bitcoin broker?

    As we only recommend Bitcoin brokers that are regulated by tier-one licensing bodies, you will need to upload a copy of your ID. This is to ensure the broker remains compliant with domestic and regional anti-money laundering laws.

    What deposit fees do I need to pay when using a debit/credit card to buy Bitcoin?

    Once again, this varies depending on the broker. For example, while eToro allows you to deposit funds with a debit/credit card for free, Coinbase charges 3.99%.

    How do I sell my Bitcoin investment?

    If you used a regulated CFD broker to buy Bitcoin, you simply need to place a sell order. When you do, the cash will be added to your account balance for withdrawal.

    Do I need to store my Bitcoin investment in a wallet?

    Not if you are using a CFD broker, as the underlying asset that does exist.

    Can I short Bitcoin?

    Yes, you can short Bitcoin by using a regulated CFD broker. In doing so, you can also apply leverage.

     

     

    Author : Samantha Forlow

    Samantha Forlow

    Samantha is a UK-based researcher and writer that specializes in all-things finance. This covers everything from traditional equity and fund investments, to forex and CFD trading. Samantha has been writing financial-based content for several years and has a variety of publications in the online domain. Crucially, she is able to explain complex financial subjects in a newbie-friendly manner.