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Bitcoin Brokers: The Top 7 Trading Options Compared

Want to Trade Bitcoin? ForexNews RecommmendsPlus500Click Here To Learn More.

Min Account Size

Regulation

Registration

MT4

Leverage

Shorting

Trading Restrictions

US Clients

US Dollar Deposits

Plus500

Any

UK

UK

No

17:1

Yes

Some

No

Yes

Bitstamp

Any

No

UK

No

No

No

No

Yes

Yes

BTC-E

Any

No

Bulgaria

Yes

3:1

Yes

No

Yes

Restricted

AvaTrade

$100

Ireland

Ireland

Yes

20:1

Yes

Yes

No

Yes

FxOpen

$10

New Zealand

New Zealand

Yes

3:1

Yes

No

No

Yes

BTC.SX

0.01 btc

No

Dual

No

10:1

Yes

Yes

Yes

No

EToro

$50

Cyprus

Cyprus

No

No

No

Yes

No

Yes

Plus500

Plus 500 Bitcoin Broker

Trade Bitcoin With Plus500

Plus500.com  has a bitcoin CFD based on BTC-E’s price feed. The spread usually ranges around $7 or 1.43%. No minimum deposit is required to open an account, plus the company currently has an offer for $25 free, no deposit required. Plus500 doesn’t have a MetaTrader 4 option. The current maximum leverage for opening a bitcoin position is 17:1. After opening, the required margin to keep that position open is 3% or around 33:1. You can read the rest of the terms for Plus500 Bitcoin CFD here.

The conditions for the CFD on offer are subject to change. During the massive bitcoin rally in November 2013, the company lowered the maximum leverage from 20:1 all the way down to 1:1. The move wasn’t that unusual for the time period as the exploding volatility caused several other forex brokers with bitcoin CFDs to implemented similar restrictions in a bid to lower their increased risk exposure. If you decide to gain exposure to bitcoin through a CFD, keep in mind that the provider of the instrument may change the terms at any time.

Plus500 is well regulated by UK’s FCA (Financial Conduct Authority) and Australia’s ASIC (Australian Securities and Investments Commission). No US clients are allowed, USD deposits are accepted.

BitStamp

Bitstamp Bitcoin Broker

Trade Bitcoin With Bitstamp

BitStamp is currently the bitcoin exchange with the largest trading volume, according to BitcoinCharts. You can buy bitcoins for US Dollars (USD) or sell your bitcoins and get USD. At BitStamp, you can only trade the BTC/USD; the exchange doesn’t offer any other cryptocurrency pairs. If you deposit Euros, for example, the funds will be converted into USD before being deposited to your BitStamp account. There is no minimum account size and no leverage is offered. There is no shorting capability. US clients are accepted and the exchange does accept wire transfers in US Dollars.

BitStamp isn’t regulated. For bitcoin only businesses this isn’t uncommon, as the industry is still very new and regulations have yet to be drawn up by the relevant authorities. The company is registered in the United Kingdom and complies with UK Anti-Money Laundering and Know Your Customer Laws.

BTC-E

BTC-E is likely based in Bulgaria, although no proof of registration has been offered by the anonymous owners. While the exchange is somewhat of a black hole, it does seem to be working, for now, without any major problems. It is currently the second bitcoin exchange by trading volume, according to BitcoinCharts. BTC-E offers two types of accounts; a main exchange account and a MetaTrader 4 (MT4) account. The main exchange account offers no leverage and no shorting capabilities. The MT4 account is a lot more versatile. In order to fund your MT4 account, you have to use US Dollars. If you own bitcoins or other cryptocurrency, you first have to sell it for USD on your exchange account and then use the dollars to fund your MT4 account.

In addition to bitcoin trading, BTC-E also offers three other virtual currencies in its MetaTrader Option: Litecoin, Namecoin and Peercoin. The fiat currencies on offer are USD, EUR, and RUB. The cross-mixing of these six currencies leads to a total of 11 cryptocurrency pairs on offer.

Bitcoin Broker Prices

Bitcoin Price Quotes

All pairs can be shorted and a maximum of three to one leverage is offered, although you can opt-out for a smaller risk profile when creating your MT4 account.

AvaTrade

Avatrade Bitcoin Broker

Trade Bitcoin With AvaTrade

According to their site, AvaTrade is a forex broker registered in Ireland and regulated by the Central Bank of Ireland. The minimum deposit to open an account is $100.00. You can use the same forex account to trade digital currencies. The company currently offers CFD trading in Bitcoin and Litecoin. AvaTrade offers a maximum of 20 to one leverage for trading these virtual currencies, although the downside of that are the higher spreads. While the broker doesn’t charge a commission like BTC-E, AvaTrade marks up their spreads by $6.00 over the current market price as compensation. Thus, the overall cost to trade is around two to three times higher when trading the BTC/USD pair compared to BTC-E. The CFD, with the 20:1 leverage, expires on Friday. The rolling contract expires monthly and can only be traded with a maximum leverage of 2:1. You can find out more details about their CFD offers here.

One of the main drawbacks of AvaTrade is that you can’t trade on the weekend. All other bitcoin exchanges/brokers are open during this time window. This can lead to missing major moves as trading on all other venues continues unabated. Currently, AvaTrade does not accept US clients. However, deposits in US Dollars are possible.

FxOpen

FX Open Bitcoin Broker

Trade Bitcoin With FX Open

FXOpen is a well-known name in the forex market. The FX broker is registered and regulated in New Zealand. The firm follows standard AML and KYC laws, like most regulated forex brokers. FxOpen offers a variety of different funding and withdrawal options that a lot of the bitcoin only exchanges don’t have. These include debit cards, credit cards, Skrill, Neteller, and Payza. In addition, the company also accepts three cryptocurrencies for deposit and withdrawal; Bitcoin, Litecoin and Namecoin.

FxOpen offers a specialized MT4 Crypto Account. The minimum deposit is $10.00. The fee per side is 0.25% of the base currency. The crypto account is identical to BTC-E’s MT4, which is not surprising considering that the Bulgaria-based exchange partnered with FxOpen a few months ago and used their technology to kick-start their MT4. As an added bonus of opening an account with FxOpen, you can trade 50 forex currency pairs. You can also easily transfer funds before your forex and crypto trading accounts, although this process can take a few hours and carries a charge of $1.00.

BTC.SX

BTC.SX Bitcoin Broker

Trade Bitcion With BTC.SX

BTC.SX is dually registered in Singapore and the United Kingdom. The company is somewhat unique as it is a bitcoin only business; no fiat deposits are possible. The leverage offered is 10 to one. The exchange uses the BitStamp price feed and marks up the spread. You need a deposit of at least 0.01033 of a bitcoin in order to be able to trade at BTC.SX. At current bitcoin prices of $600.00, this amounts to around $6.00.

BTC.SX has restrictions that can make trading with leverage very problematic. For one, the exchange doesn’t allow the stop-loss to be moved after entry. There is a trailing stop-loss option but despite my best efforts, I couldn’t make it work. In addition to this, BTC.SX has a high roll-over fee that makes holding trades ‘’overnight’’ costly. For a 1,000 USD position, expect to pay around $6.00 to $9.00 per day. The good thing about the overnight fee is that it’s charged on a rolling 24-hour basis, not at a specific time of day, allowing for some leeway when exiting the position. No US Dollar deposits are possible at BTC.SX but US clients are accepted.

Etoro.com

Etoro Bitcoin Broker

Trade Bitcoin With Etoro

The minimum deposit to open an account with Etoro is $50 (or $500 is you decide to fund your account by bank wire). Trading bitcoins at Etoro has severe restrictions. The CFD on offer is tied to BitStamp’s price feed but you can only enter and exit the market 4 times per day at fixed times. In addition to this, you can not trade on the weekend as the market hours for the bitcoin CFD are from 0:00 on Monday to 18:00 on Friday. You can only take a long position, no shorts are permitted. Etoro takes a 1% fee for bitcoin trades.

Currently the firm doesn’t accept US clients but deposits in USD are accepted. Etoro is registered in Cyprus and is regulated by the country’s Securities and Exchange Commission (CySEC).

Want to Trade Bitcoin? ForexNews RecommmendsPlus500Click Here To Learn More.