Trading Bitcoin CFDs is the art of profiting from Bitcoin’s fluctuating price movements without actually owning the digital asset. And while it may be a relatively new online investment product, there is no shortage of Bitcoin CFD brokers. These provide you with the platform and tools necessary to execute a Bitcoin CFD trade. Some will even allow you to trade Bitcoin CFDs on margin and provide you with research and educational materials. They will also give you a free demo account to perfect your strategies.
In this bitcoin CFD brokers comparison guide, we will be sampling some of the best bitcoin CFD brokers 2021, looking into how they work, their trading platforms, types and extent of trading fees, as well as supported payment methods. We will also gloss over what the FCA- UK crypto CFD ban means to the industry. The guide will also highlight what to look for in a Bitcoin CFD broker and the pros and cons of trading this Bitcoin derivative.
Capital At Risk
78.77% of retail cfd accounts lose money
72% of retail cfd accounts lose money
Capital At Risk
Capital At Risk
Capital At Risk
Let us start by understanding Bitcoin CFDs
Bitcoin CFD trading is a form of derivative trading that lets you buy and sell contracts whose value is pegged to the price of bitcoin. You don’t need to own the actual bitcoins as you are only speculating on whether its price will rise or fall.
This type of trading allows you to profit when bitcoin takes any market direction by going long when it is bullish or short when its price momentum reverses. Therefore, bitcoin CFD brokers are persons or companies that provide you with a platform where you can buy and sell bitcoin CFDs.
Bitcoin CFD brokers facilitate your trades by connecting you to the CFDs market or acting as the CFD seller or buyer. The best crypto CFD broker will also provide you with all the tools necessary for facilitating the trade. Some will also present you with the needed market research and analysis (both fundamental and technical) tools to help you make informed decisions when trading.
Some brokers will also make it possible for their clients to margin trade bitcoin CFDs. They earn by imposing trading fees, margin-trading fees, trading commissions, and spreads on each trade executed on their platform. Most will also offer customer support services and educate beginner traders.
Leverage is a credit facility availed to a trader to help them take on larger trades and get more exposure to the market. It allows you to enter into a large trade even when you commit significantly little cash to a trade. When leverage trading, you are only required to deposit a fraction of the trading equity to your account–known as margin.
The broker will then loan you the additional funds needed to increase your exposure to the market. Financial regulatory policies and other factors at the broker’s discretion determines how much they lend you. For instance, before FCA (UK) banned Crypto CFDs in the country, the maximum leverage was 1:2. In the EU, ESMA has also capped the maximum crypto CFD trading leverage for retail traders at 1:2.
Example of a leveraged trade:
Broker A has its maximum leverage limit for Bitcoin CFD trading set at 1:2. If you deposited $200 into your trading account, the broker could allow you to open $4000 (200*2=400) Bitcoin CFD trade.
The FCA (UK) recently published new policies that ban crypto CFD trading for retail traders in the United Kingdom. The policies took effect on 6 January 2021, implying that all CFD brokers and exchanges operating in the country no longer offer bitcoin CFD trades. Additionally, traders can no longer access leveraged bitcoin trades.
You can only trade real bitcoin cryptocurrencies, whereby you own and control the bitcoin private key. Owing to the policy change, you might want to start looking for a good bitcoin wallet. You will also want to register with exchanges that facilitate the sale of actual Bitcoins. We recommend that you consider registering with eToro because they offer you an all-around bitcoin trading solution. Their platform features a bitcoin exchange, and they will also give you a free and ultra-secure bitcoin wallet.
There is a wide range of universal and proprietary trading platforms that CFD brokers use in bitcoin CFD trading. Some of the most popular include:
MetaTrader4 is arguably the most popular CFD trading platform. It was developed by MetaQuotes Software Company and launched in 2005. It is rich in free technical indicators and trade analysis tools and is available both as a desktop and mobile app for all popular operating systems. MT4 also embraces a proprietary scripting language – MQL4 – that you can use to create expert advisors (robot traders) for the on-platform trade automation.
MT5 is an equally popular and powerful trading platform by MetaWQuotes. It is a multi-function trading platform that is best suited for the professional Bitcoin CFD trader. You can look at it as the improved version of MT4. It features virtually all of the indicators and trading tools available on MT4 and some more. MT5 is also available as a free desktop and mobile app for all popular operating systems.
cTrader is a favorite for most brokers and individual traders who enjoy its premium charting and trading tools. Some of its key features include a copy trader option, trader solution, open API for app development, and the FIX API for interface integration. It is available in both web and mobile app versions.
PMTC is a relatively new bitcoin CFD trading platform developed and popularized by PSOFT Company. Its key features include pro charting tools, a highly customizable user interface, a wide array of advanced technical indicators, intelligent drawing tools, and price alert systems. It is available both as a desktop and mobile app.
In addition to integrating some of the popular trading platforms, some bitcoin CFD brokers have gone ahead and come up with proprietary trading platforms. eToro, for instance, has its own proprietary trading platform where all its trades are executed. While all these proprietary platforms have their sights set on user-friendliness and efficiency, they integrate rather diverse features.
A swap is a derivative trading instrument or a contract in which two parties agree to exchange cash flows or the price movement of two assets. When trading bitcoin CFDs on leverage, swap refers to the interest that you pay or receive for holding onto margin funds for more than a day. It is the roll-over interest fee that you pay/receive for holding onto a position overnight.
How does it work?
Well, say you enter into a buy position for bitcoin CFDs on leverage. This implies that you have borrowed funds to enter into the trade. If you sell the trade before the end of the day, you don’t have to pay swap fees. But if you hold onto the trade – which is essentially borrowed funds – overnight, you will have to pay the swap (interest) fee.
On the other hand, when you short a leveraged Bitcoin CFD position, it simply means you are lending funds to the CFD broker. You will, therefore, earn swap interest on the capital amounts you inject into the trade. But also pay interest on the leveraged funds. The swap fee/earning for the short trader will be the net of interest earned and interest paid.
Note that there is no industry standard for swap fees. Different brokers impose different swap fee rates. You need to consider these rates when choosing a broker as they tend to eat into your profit.
Here are some of the factors that you must consider when you compare bitcoin CFD brokers:
Look at the nature and number of supported trading platforms. Check out such factors as their user-friendliness. Further, the number and sophistication of the integrated trading tools and indicators. Check also if these platforms have demo accounts and if they support trade automation.
How much does the broker charge in both trading and non-trading fees? Familiarize yourself with all the fees imposed by the broker. Then, assess the impact they have on your trades and profitability.
The best Bitcoin CFD broker should also provide you with adequate educational materials and research tools. These range from guides to help the trader navigate the platform to fundamental indicators for market research.
Any of the CFD brokers should also put measures that help you protect your deposits and bottom line. Your preferred broker should put in place such advanced risk management tools as stop-loss, trailing stop, take profit, and limit orders.
How safe is your preferred broker? What is their reputation? Do they release funds in time, do they close trader accounts arbitrarily, do they ensure client deposits, and have they put in place adequate measures to protect your user account? The answers to these questions should be enough to tell you if the broker is safe.
Capital At Risk
eToro’s biggest selling point as a bitcoin CFD broker lies in the intuitiveness and innovativeness of their trading platform. It has integrated the most advanced tools and analytics and has a relatively straightforward onboarding process. Importantly, it is one of the most regulated bitcoin CFD brokers as it is licensed by FCA (UK), CySEC (Cyprus), ESMA (Europe), ASIC (Australia), and FinCEN (USA). These regulatory bodies endear the platform to crypto traders in Europe who have continually up-voted it on any bitcoin CFD broker comparison list. The broker offers the following Bitcoin CFD crosses BTCUSD, BTCEUR, BTCGBP, BTCAUD, BTCCHF, BTCJPY, BTCNZD, BTCCAD, ETHBTC, BTCEOS, BTCXLM & GoldBTC.
But what is the process of buying Bitcoin CFDs on the platform? What are the Bitcoin CFD trading fees and supported payment methods? We look at these below. First, though, we address the pros and cons.
Unlike some of the best Bitcoin CFD brokers that rely on universal platforms like MT4/M5, eToro runs its own trading platform. It does not integrate any third-party trading platforms. Their proprietary platform is free and has won several awards– like the Red Herring Award for the most innovative startup. The recognition was in appreciation of eToro’s role in championing innovativeness and technology in online investments.
It is rich in trading tools and indicators and is perhaps most popular for its social trading tool. It allows for on-platform engagement between expert and beginner Bitcoin CFD traders and mentorship. Beginner traders also get the chance to copy the Bitcoin CFD trading strategies of the pro traders and earn as they learn.
When you create a real trader account on eToro, you will also get a free demo account that has a $100,000 deposit in virtual funds. Beginner traders can use the account to familiarize themselves with the trading platform. Expert traders can, on the other hand, use it to develop and perfect a trading strategy.
You can open a Bitcoin CFD trade on eToro for as low as $25. The relatively low trade size is highly affordable and also attractive to most retail crypto CFD brokers. However, note that the minimum trade size for copied trades is $200 and $1 for each copied position.
On eToro, Bitcoin CFDs are a leveraged financial trading instrument. The platform users (retail) in the EU get to access the maximum leverage of 1:2 set by the European Securities and Markets Authority (ESMA). To access higher leverages, you will want to apply for certification as a professional trader. eToro has adopted the EU leverage caps to all its markets around the world.
You can also trade Bitcoin CFDs on the move when you install the eToro app for your Android or iOS device. The app mirrors all the trading features of the eToro web trader and integrates an equally large number of indicators and trading tools.
Trading Bitcoin CFDs on eToro is relatively easy. They have simplified the process and reduced it to a few steps. Most importantly, eToro has made it possible for you to copy both individual bitcoin CFD trade strategies and bitcoin CFD portfolios.
The trading and risk management tools will come in handy in managing your trade. The technical indicators, research articles, opinion pieces, and fundamental indicators infused on the platform will, on the other hand, help you make informed buy/sell decisions. Here is the step-by-step guide on Bitcoin CFD trading on eToro.
There are two types of Bitcoin CFD trading fees on eToro – the transaction costs and the swap/roll-over fees for leveraged Bitcoin CFD trades.
The trading fees are fixed and currently set at 0.75% of the transaction amounts. The roll-over/swap fees are, on the other hand, calculated on a monthly basis and updated at 00.00 EST on the first Monday of the month. Currently, the roll-over fee for both short and long Bitcoin CFD trades is $ -7.863702.
Note: eToro doesn’t charge broker commission for Bitcoin CFD trades. Plus, the overnight fees kick in at 17.00hrs EST.
eToro is hailed for its versatility when it comes to the number of payment methods supported n the platform. These include:
Yes, eToro has put in place several measures that guarantee the safety of your account and deposited funds. It first ensures that all its platform users verify their identity. The broker also ensures that you create a strong multi-character password for your account and activate two-factor authentication for withdrawals.
Your data on the platform is also highly encrypted. More importantly, your funds are held in a segregated bank account – away from broker funds and are insured for up to $20,000 by the Cyprus Deposit Protection Fund (For eToro’s EU clients).
78.77% of retail cfd accounts lose money
One of Capital.com’s greatest selling points is its artificial-intelligence-powered trading platform. It has also drawn a lot of attention for its commitment to CFD trader education and the platform’s intuitiveness. All these have bolstered the popularity of the relatively new platform as it now serves more than 788,000 individual and institutional clients. But how do you trade Bitcoin CFDs on Capital.com, and what are the associated fees?
Capital.com refers to its proprietary web and app trader as the “first AI-Powered trading platform.” It uses the effectiveness of AI technology to tailor your trading experience. It, for instance, presents you with a comprehensive dashboard that helps you track the performance of your Bitcoin CFDs and other ‘hot’ assets. It also monitors your trading activity to tailor your newsfeed – only showing news and crypto calendar events that align with your trading interests.
The platform also boasts of the fastest trade execution speeds and competitive spreads. In 2019, Capital.com trading platform was named the Best Online Trading Platform during the Shares Awards UK.
Capital.com integrates 75+ of the most advanced technical indicators. These include multiple types of highly customized charts, extensive drawing tools, and updated financial articles. And they all come in handy in helping you perform an in-depth financial analysis of an asset before opening a position. These are complemented by smart risk management tools like stop loss, take profit, and negative balance protection.
You will also receive a free demo account with up to $100,000 virtual cash upon creating an account on Capital.com. You can use this to practice and perfect a new Bitcoin CFD trading strategy. Beginners can also use it to learn their way around the AI-powered platform. Beginner traders can also practice trading here.
Capital.com has one of its key strengths as mobility – made possible by their android/iOS mobile apps. The app is also AI-powered and mirrors the intuitiveness, powerful dashboard, advanced trading tools, and all other features of the web trader.
Trading Bitcoin CFDs on Capital.com is relatively easy. The process is straightforward and has been narrowed down to just a few simple steps. However, you will need first to create a user account and verify your identity before you can start trading.
As we have already mentioned, you can only use the Capital.com trading platform. The broker does not support third-party trading platforms. Here is the step-by-step process of trading Bitcoin CFDs on the platform.
When trading Bitcoin CFDs on Capital.com, you will only have to worry about two types of fees. The highly variable spreads depending on the BTC pair and transaction volume or the equally variable swap fees.
For instance, the dynamic spread for the BTC/EUR pair currently stands at 30 pips, while that of the BTC/USD pair is 34 pips. The spread isn’t static but is constantly changing throughout the day.
The overnight fees are rather static and are currently set at -0.05% for long positions and +0.014% for short positions.
Note: Overnight fees kick in at 0100hrs CET.
Capital.com supports three deposit and withdrawal methods. There are:
The minimum deposit for retail traders in the EU region is $25 or 100PLN. The minimum deposit for bank wire is, however, set at $250.
Yes, Capital.com broker has taken up several measures aimed at making their trading platform as safe as possible. These include seeking regulation and licensing from multiple financial regulatory agencies, including FCA (UK), CySEC (Cyprus), and ESMA (Europe).
It also stores client funds in segregated accounts with the best banks in Europe and ensures that all your data is highly encrypted. Your deposits are also insured with the Investor Compensation Fund (ICF). Plus, retail clients enjoy negative balance protection.
72% of retail cfd accounts lose money
Some of the factors endearing the platform to Bitcoin CFD traders in Europe include its highly intuitive and full-featured trading platform. Others point out its highly competitive trading fees, commission-free trades, and solid risk management measures. We must mention that Plus500 was the first online CFD broker to offer the Bitcoin CFD trades in 2013. It also has a rather straightforward onboarding process and allows traders to open relatively low trade sizes. Here is everything you need to know about trading Bitcoin CFDs on Plus500:
Plus500 does not support CFD trading on third-party trading platforms like MT4/MT5. You are limited to using their proprietary trading platform. We’ve also mentioned that it doesn’t offer advanced trading tools, like support for expert traders.
It is relatively easier to use and more beginner-friendly. However, pro traders tend to lose out on the advanced features offered by MT4/MT5 and cTrader.
While Plus500 may not integrate the most advanced tools, it is one of the most accessible trading platforms. It is available as a web trader (via all the popular browsers), a Windows 10 desktop app, an android app, and iPhone/iPad app. You can also synchronize your trading activity on multiple devices. This ensures that you get to monitor the performance of your Bitcoin CFD trades in real-time while on the move.
Plus500 operates both retail and professional trader accounts. The process of qualifying to be a professional trader is relatively easy. You only need to have placed ‘sizeable’ trades in one quarter, maintain an investment portfolio of $500,000+, or have worked in the financial sector in a ‘Relevant role’ for 12+ months. The upside to applying for a professional trader account is that you get access to higher bitcoin CFD leverages – up to 1:20, tighter spreads, and cash rebates. The downside is that you fall off the negative balance protection threshold.
When you create a Plus500 account, you will also get access to a free demo account. It is available on both the web and desktop/mobile apps and is stocked with $20,000 in virtual cash that doesn’t expire. Beginner bitcoin traders can use it to practice trading, while pro traders use it to perfect their trading strategies.
As we have mentioned, Plus500 is one of the most regulated Bitcoin CFD brokers. It‘s regulated and licensed by CySEC(Cyprus), FCA(UK), ASIC(Australia), MAS(Singapore), FMA(New Zealand), FSB(South Africa), and ESMA(Europe). In most of these jurisdictions, like South Africa and Australia, Plus500 has established semi-autonomous subsidiaries.
Plus500 will only support their proprietary trading platform. But, we like that the platform is very beginner-friendly and highly intuitive. To trade Bitcoins on the platform, you need to start by registering a user account with Plus500.
The onboarding process is also relatively straightforward – but involves identity verification. Like most other Bitcoin CFD trading platforms, Plus500 has narrowed down the process of trading crypto CFDs into a few simple steps.
Like most other online Bitcoin CFD brokers around the world, Plus500 has abolished broker commissions on all its trades. Crypto CFD traders on the platform only have to pay the spreads for the trade and overnight fees for leveraged trades that remain open overnight or over the weekend.
The Bitcoin CFD spreads are highly variable and currently average $49.80. On the other hand, the swap fees are quite static and currently capped at -0.0508% for long positions and -0.00279% for short positions. The overnight fee kicks in at 01.00hrs CET.
Plus500 supports more deposit and withdrawal methods than virtually any other best crypto brokerage on this list. These include:
Deposits using any of these methods are free and instantaneous – save for Bank transfer that takes up to 5 days. Your first five withdrawals via any method are also free. Additional withdrawals and requests below the $100 minimum will be charged a $10 transaction fee. Bank withdrawals attract a fixed $6 fee.
Note: Minimum deposit to Plus500 is $100 and $500 for bank transfers. The maximum deposit for card and PayPal are $36,000, Trustly is $15,000, and unlimited for bank transfer
Note: You can only withdraw using the payment method used to make a deposit. And they must bear names similar to your trading account. Minimum withdrawal for PayPal is $50 and $100 for credit and bank wire.
Yes, Plus500 keeps your account and deposits safe by putting in place several security safeguards. These include such smart risk management tools as stop loss, stop limit, and trailing loss, guaranteed stop loss, and negative balance protection.
The account is secured with a solid multi-character password, and your data highly encrypted. You also have the option of enabling two-factor authentication for login and withdrawal of funds. Your deposits with the broker are insured by the Investor Insurance Fund (ICF).
Capital At Risk
Skilling’s biggest selling points are its transparency, accessibility, and solid reputation. You don’t have to worry about hidden fees or unclear swap fees for margined trades. You will also note that unlike most of the other leading brokerages that opt to exclude third-party exchanges, Skilling welcomes both cTrader and MT4.
More importantly, the brokerage has established a solid reputation for reliability and trustability. This can be attributed to the fact that it is a highly regulated brokerage. Trade execution speeds are ultra-fast and rarely do their platforms suffer downtimes. We break these strengths down and look at everything else you need to know about Bitcoin CFD trading on Skilling here.
Skilling is available in three powerful trading platforms – the proprietary Skilling platform, MT4 trading platform, and cTrader Platform. They are all highly sophisticated and integrate a wide range of tools to help with your Bitcoin CFD trades. The unique features of the Skilling trading platform include a highly intuitive user interface, ultra-fast order execution, a wide range of indicators and trading tools, as well as an economic calendar.
The cTrader platform, on the other hand, boasts of merging the CFD trading needs of both beginner and professional traders. It has a highly intuitive user interface, infuses a wide range of analytics and advanced order management tools. It is also rich in risk management tools. However, its greatest feature is the algorithmic trader that is freely available to all platform users.
The MT4 platform is arguably the oldest and most popular Bitcoin CFD trading platform. It is highly versatile and appeals to both novice and professional traders. It integrates the broadest range of indicators and trade analysis tools. The trading platform also makes it possible for users to create and experiment on expert advisers using the platform’s proprietary MQL4 coding language.
Note: All these trading platforms are available as desktop and mobile trading apps. Skilling is also available as a web trader.
All the trading platforms supported by Skilling have one thing in common – integrating as many trading tools as possible. The Skilling proprietary trading platform, for instance, presents you with 70+ advanced technical indicators. It also integrates basic fundamental indicators like crypto industry news and an event calendar.
Most platforms supported by online bitcoin CFD brokerages have integrated the price alert feature. Skilling, however, takes this a notch higher by introducing the market news notification. This is an alert mechanism that pushes notifications about impactful crypto and general market news and events.
Skilling is also out to create the most beginner-friendly platform available today. They have introduced the trade assistant feature that introduces you to online markets and help you make your first trade. They also have the Skilling academy section on their website that teaches newbies everything they need to know about online CFD investments. The free and no-expiry demo account then provides you with the perfect practice environment.
You can open a Bitcoin CFD position on any of the platforms supported by Skilling brokerage. The order processing speeds on all platforms are quite fast, but you first need to create a user account on Skilling, pass the KYC/AML procedures, and verify your identity. Thankfully, the broker maintains a relatively straightforward onboarding process.
Here is the step-by-step on how to open a Bitcoin CFD trade on Skilling’s proprietary trading platform.
Skilling does not charge a commission on Bitcoin CFD trades. You only have to pay the transaction fee in the form of a variable spread and the swap fee for leveraged trades that remain open overnight.
The spread for buying BTC using USD today averages $38.60. On the other hand, swap fees for both long and short positions are $-25.9718. The swap takes effect at 01.00hrs CET.
Skilling supports a wide range of depot and withdrawal methods, including:
The brokerage does not impose deposit or withdrawal charges for any of the supported payment methods. The minimum deposit for most payment methods is $50, but the maximum varies drastically from one method to another.
Note: It may take up to 5 days before the funds reflect in your trader account. The minimum you can deposit into a USD account is $50, while the maximum is set at $100,000.
Yes, the brokerage has put in place adequate measures to keep both your account and deposits safe. They all start by ensuring that every user account holder verifies their identity. They also hold your funds in segregated accounts with the leading banks in Europe.
Their website is also SSL secured, and client data is highly encrypted and maintained in an ultra-secure environment. Moreover, Skilling traders in the EU have their deposits protected by the Investor Compensation Fund (ICF).
Capital At Risk
It has sought regulation from some top-tier online CFD brokerage regulators like FCA (UK), ASIC (Australia), and CySEC (Cyprus). Markets.com, therefore, makes it to our list of best Bitcoin CFD brokers because of its innovativeness and a solid reputation accumulated in over two decades.
The innovativeness is evidenced by the fact that the online CFD broker has gone one and created two proprietary trading platforms. It also supports the all-popular MetaTrader platforms, making their platform as accessible as possible.
The brokerage has also been hailed for maintaining a transparent fee structure and responsive customer support team. We look at its pros and cons and the process of trading Bitcoin CFDs on this platform below.
We have already mentioned that Markets.com supports five different trading platforms. These include MarketsX, Marketsi, and mobile app – all proprietary platforms operated and maintained by Markets.com and MT4 and MT5.
MarketsX appeals to both professionals and beginners with its range of advanced tools fitted in a highly intuitive interface. The broker even refers to it as their ‘most advanced multi-asset trading platform.’ It boasts of hosting highly effective technical and fundamental market indicators and trader sentiment tools. Its users also have access to regularly updated expert analysis articles.
Marketsi: According to Markets.com, Marketsi trading platform targets individuals looking to have more control over their trades. The greatest feature is the innovative investment strategy-building tool. It comes in handy to help you build and perfect long-term, short-term, and medium investment strategies for your crypto CFD portfolio. You also have access to VIP-level customer support on the phone and via live chat. Platform users, however, get to pay variable but low commissions after three months of use.
MT4 AND MT5: MetaTrader 4 and 5 are by far the most popular universal trading platforms. They are a favorite for most Bitcoin CFD traders because they integrate a wide range of highly advanced trading tools. They are rich in indicators and charting tools. More importantly, they make it possible for traders to create expert advisors and automate their Bitcoin CFD trades.
Markets.com also boasts of having a feature-rich and highly intuitive mobile trading platform. It is available for both iOS and Android devices and is built on their native designs for maximum efficiency. Some of its winning features include seamless integration with the Marketsx platform and speedy order execution. It also lets you monitor active trades, open and close others while on the move.
The markets.com website is the most expansive knowledge center. Here, you get access to a wide range of crypto news, real-time industry, and even happenings. You also get answers to all your questions about CFD trading and the Markets.com brokerage.
Markets.com will also provide each of its clients with a free demo account. It helps beginner CFD traders familiarize themselves with the platform and the art of CFD trading. Expert Bitcoin CFD traders, on the other hand, use it to create new and perfect trading strategies.
Trading Bitcoin CFDs on any of the trading platforms supported by Markets.com is a very straightforward process. These platforms have broken down the trade process into just a few steps and made it as beginner-friendly as possible.
Retail Bitcoin CFD traders also get to enjoy ultra-fast order processing speeds. Importantly, they are able to access margins for their trades – up to 1:2 for EU traders and as much as 1:5. Here is the step-by-step guide to opening a Bitcoin CFD trade on marketsX
You won’t be charged a broker commission for opening Bitcoin CFD trades on any of the Markets.com supported platforms. You only have to pay the transaction fees (spread) and swap fees for holding on to leveraged positions overnight.
The transaction fee spread for trading the BTC/USD pairs on Markets.com currently averages 0.4%. On the other hand, the swap fees for a long position are -0.0490% and +0.0380% for a short position.
Markets.com supports such deposit and withdrawal methods as:
Markets.com does not charge for deposits or withdrawals. You will, however, pay an inactivity fee of $10 after three months of inactivity.
Note: The minimum initial deposit when using a credit card is $250, while the maximum deposit limit is set at $100,000.
Capital At Risk
AvaTrade is arguably the most accessible and one of the most regulated crypto CFD trading brokerages. It is regulated and licensed by eight of the leading financial regulatory agencies in the world. Today, it has established operations in 100+ countries. It also supports the broadest range of highly intuitive and powerful trading platforms – both proprietary and third-party. All these factors have helped it rank highly on our Bitcoin CFD brokers comparison list.
In Europe, the broker operates under the trade name Ava Trade EU Ltd and is regulated by the Central Bank of Ireland. Some of the factors that make it one of the best bitcoin CFD brokerages is a deep embrace of technology and innovativeness. It, for instance, was among the first online CFD brokerages to embrace Bitcoin CFD. More importantly, AvaTrade has integrated highly advanced and innovative trading tools – like its support for expert advisors and social trading.
One of the most popular crypto CFD traded on the brokerage is the bitcoin CFD. In this AvaTrade guide, we look at everything you need to know about Bitcoin trading on the platform.
We cannot overemphasize AvaTrade’s versatility when it comes to the number of supported trading platforms. These include AvaOptions, AvaTrade Go, MT4, MT5, DupliTrader, and ZuluTrade.
AvaOptions: AvaOptions trading platform is specially designed to serve option traders. Some of its key features include visual and intuitive charts, it is highly customizable, integrates advanced risk management tools, and provides you 13+ free options trading strategies.
AvaTrade Go: AvaTrade Go is a highly innovative and intuitive mobile app designed to help AvaTrade clients manage orders while on the move. It is available for both Android and iOS mobile devices. Its unique features include an oversimplified trading process, support for 1000+ financial instruments (including Bitcoin CFD), and a highly intuitive user interface. It also presents you with live feeds about the different markets, superior indicators, and smart risk management tools.
MT4 &MT5: AvaTrade also supports the oldest, perhaps the most popular trading platforms. They introduce the broker’s clients to some of the most advanced trading tools, indicators, and risk management options. They also present you with one of the most customizable trading platforms. It even allows you to create or seamlessly integrate auto-trading robots. On the MetaTrader platform, you can custom-build personalized indicators for your Bitcoin CFD trades.
DupliTrade: AvaTrade also supports the Duplitrade platform, whose biggest selling points are trade automation and copy trading. When using DupliTrade, you get to interact with numerous Bitcoin CFD traders that allow you to copy their winning trading strategies. It also hosts the bot trader that allows you to automate your CFD trades. The platform also hosts the trade simulator that lets you back-test the performance of the trading strategies listed here.
ZuluTrade: AvaTrade supports the equally innovative social trading platform – ZuluTrade. Here, beginner Bitcoin CFD traders get to interact with other pro-traders by learning how to trade from them and copying their trading strategies. It ranks traders based on their ROI, and only the most successful can have their trade strategies copied by the beginner and intermediate traders.
AvaTrade ensures that their clients access their clients on the move and virtually all the possible devices. Most of the broker’s trading platforms are available in desktop apps (Windows, Linux, and macOS), mobile apps (Android, iOS, and Windows), and web traders.
Some of the best online Bitcoin CFD brokers limit your trading options. eToro, for instance, does not support scalping or hedging. AvaTrade is, however, quite versatile and supports both hedging and scalping.
AvaTrade argues that they have ‘invested heavily’ in coming up with some of the best educational resources for beginner and pro traders. On the AvaTrade website’s education section, you get access to rich educational resources to help perfect your trades. These include eBooks, the AvaTrade blog, and tutorial videos. The broker is also hosting regular live webinars.
In all the supported trading platforms, especially the Mt4/5 AND AvaTrade Go, you get to interact with some of the most sophisticated indicators-both technical and fundamental indicators. These added features go a long way in helping you make informed trade decisions.
The trading platforms supported by AvaTrade have all oversimplified the Bitcoin CFD trading process. They have narrowed it to just a few simple steps – regardless of whether you trade manually or copying trade strategies. Account registration process on AvaTrade is also easy and quite straightforward.
Its retail clients in Europe get access to Bitcoin CFD trading leverages of up to 1:2. On the other hand, AvaTrade clients in the rest of the world have access to leverages of 1:5 while professional traders have access to the maximum leverage of 1:20. The minimum trade size is 0.1 BTC (0.01 LOT).
Here is the step-by-step process on how to open a Bitcoin CFD trader on AvaTrade web trader.
AvaTrade doesn’t charge a brokerage commission for Bitcoin CFD trades. When trading on their platforms, you only have to pay the transaction processing fees (variable spread), the swap fees for leveraged trades that remain open overnight, and the copier fees if you are using the social trading platforms.
The spread for Bitcoin CFD trading on the platform averages 0.35% of the trading equity. The daily overnight/swap fee for long positions is -0.0694% and -0.0333% for short positions.
AvaTrade supports many deposit and withdrawal methods including:
Note: The minimum initial deposit you can make into an AvaTrade account is $100.
Note: Your earnings on the platform (200% of the initial deposit) must be withdrawn via the payment method used to make the initial deposit. The broker claims to process your withdrawal requests within 48 hours, but they may take up to 7 days before reflecting on your credit card or bank account.
Yes, AvaTrade has put in place adequate safeguards aimed at
At a small fee, AvaProtect insures your trades from unexpected market downturns for a limited time– you can choose to insure it for a few hours to a few days. Should unexpected market downturns result in loss of funds, AvaTrade will reimburse the equity committed to that trade. Plus, they also have a negative balance protection feature.
When you compare Bitcoin CFD brokers above, you realize that they have played a pivotal role in introducing the crypto asset to retail traders and investors. They have, for instance, oversimplified the trading processes by narrowing it to just a few steps. Importantly, they provide you with all the tools needed to complete a trade. These include highly advanced trading platforms, sophisticated technical and fundamental indicators, and trading margins. The stiff competition between different best online CFD brokers has also played a key in driving down the Bitcoin CFD trading fees.
Virtually all CFD brokers have, for instance, eliminated commission fees. More importantly, most CFD brokers have gone out of their way to introduce tough security measures to protect both your account and funds. Some of the most common protection measures adopted by most brokers include negative balance protection, two-factor authentication, and deposit insurance.
The crypto ban means that CFD brokers can no longer offer Bitcoin CFD trades to UK residents. If you are a UK resident, you will want to turn to exchanges and CFD brokers like eToro that allow you to trade real bitcoins.
You start by identifying the online crypto CFD broekrs that appeal most to you. Register a trader account here and verify your identity. Familiarize yourself with their trading platform using the demo account before depositing cash and making your first trade.
How much leverage you aces largely depends on your country of residence and your trading experience. Retail traders in the EU access maximum leverage of 1:2 while professional traders can access much as 1:5 to professional traders. Outside Europe, most Bitcoin CFD brokers offer retail traders leverage of 1:5 and 1:20 to professional traders.
No. When trading Bitcoin CFDs, you don’t get to own the underlying digital asset. You only trade a contract whose value is pegged to Bitcoin. You don’t own Bitcoin’s private keys and therefore no need for a bitcoin wallet.
Yes, most Bitcoin CFD brokers now process payments from a wide range of processors including credit and debit cards. Note however that even though the broker may not charge deposit fees, your card provider may charge payment-processing fees.