So, you’ve decided you want to get invested in these “digital currencies”, but confused for Best CFD broker for Bitcoin, Litecoin? Good for you! Now, it’s time to figure out how and where you want to trade them. Below, I will go through the different aspects and features of five of the top bitcoin brokers: Plus500, InstaForex, FXOpen, AvaTrade, and eToro.
Note : If you are looking forward to buy some bitcoins for long term then consider our previous guides to buy bitcoin with PayPal or buy bitcoin with Credit Card, Debit Card. If you are seriously interesting in trading bitcoins for profit then go through CFD Trading route, but consider our previous guides to learn basics of bitcoin cfd trading and an introduction to CFD Trading for newbies.
Compare 5 Best Bitcoin CFD Brokers – CFD Platforms
Plus500 offers differing amounts of leverage differs depending on the asset being traded. Stocks can be traded with 1:20 leverage. Commodities can be traded with leverage of 1:152. Forex pairs can be traded with 1:200 leverage. Lastly, Exchange-traded funds (ETFs) offers leverage of 1:100.
In conjunction with most other CFD brokers, Plus500 does not charge commission on trades, instead making a profit from a bid/ask spread. They will either charge or credit an “overnight premium” (overnight fee) on long or short positions held overnight. Plus500 also charges an inactivity fee of $5 for accounts that remain inactive for 3 months.
Plus 500 Guide : How To Trade Bitcoin, Litecoin With Plus500
While there is a minimum account balance, it is fairly low at $100; which shouldn’t be a problem for most people. Plus500 makes up for it by offering one of the more diverse assortments of investments to choose from. As their name suggests, you can choose from 500 different contracts for difference through their site.
You can trade literally hundreds of different currency pairs, stocks, indices, and commodities through Plus500. These include popular as well as less liquid forex pairs, core commodities such as oil and gold as well as coffee soybeans and many others, various ETFs from around the world, stocks from 20 different countries, and stock indices from around the world.
InstaForex offers up to 1:1,000 leverage. In contrast to Plus500, this same amount of leverage is offered on all investments, rather than having different levels offered depending on the volatility of the security. While this can be a very good thing in a successful trade, it also offers significantly more opportunity for a beginning trader to make a fatal mistake on an overleveraged trade and lose all of their capital.
InstaForex offers more than 20 different methods to withdraw, all with different withdraw fees. There is way too many to list in this article, but you can find them here. One interesting option for withdrawals that many CFD brokers have not yet implemented is bitcoin.
There are, also, more than 20 methods of depositing funds. The minimum deposit for these methods varies: $1 for electronic payments systems, $50 for credit cards, and $100 for wire transfers. InstaForex may charge a deposit fee on some methods of deposit, depending usually on whether or not they are charged for the transfers. Here is a list of the different methods of deposits with their associated fees.
Like Plus500, InstaForex offers a wide range of securities to invest in. These include investments in forex pairs, metals and other commodites, options trading, futures and indices CFDs, and bitcoin trading.
FXOpen offers a specific type of account for its cryptocurrency traders called a crypto accounts. With only a $10 minimum deposit, this account lets you trade bitcoin, litecoin, namecoin, and peercoin against the U.S. Dollar, Euro, and Russian Ruble. Unlike the other platforms, these are not contracts for difference. You actually buy and sell these different currencies through this account.
Crypto accounts are seperated from FXOpen’s other offerings. This means that you will not be able to trade the other forex pairs or commodities through the crypto account; you will have to open either an STP, micro, or ECN account to trade in these markets.
Citing the high volatitlity inherent in cryptocurrency markets, they offer one of the most conservative amounts of leverage at only 1:3. While it is lower than most other brokers, 1:3 leverage is probably a good amount for all but the least risk-sensitive traders.
Because FXOpen trades actual currency pairs instead of CFDs, they must charge a commission to make a profit. In this case. they will charge a 0.25% fee on each individual trade. They will also charge a $10 “inactive account maintenance fee,” as well as a $50 “account re-activation fee.”
AvaTrade offers Bitcoin and Litecoin trading alongside a wider arrangement of forex pairs and commodity, ETF, Indices, stocks, and options investments. They offer two different ways to trade Bitcoin and Litecoin; weekly and mini. Weekly positions are automatically closed at the end of each trading week while mini positions never expire. There are also differences between the amount of leverage on these two options: 20:1 for bitcoin weekly. 10:1 for litecoin weekly, 2:1 for bitcoin mini, and 1:1 for litecoin mini. Most other securities can be traded with up to 400:1 leverage.
AvaTrade has different interest charges for overnight fees depending on whether you are long or short on a cryptocurrency position. For both mini and weekly, long positions are charged roughly 5.84% a night and short positions are charged roughly 6.15%.
AvaTrade states in its Terms of Service specifying that there may be an inactivity fee on accounts in areas where it is legal to do so. Depending on how you funded your account, the fee can either be $25, €20, or £20.
Keeping basically in-line with the rest of the industry, AvaTrade has a minimum deposit of $100. Lot sizes for bitcoin weekly are 1 bitcoin minimum (including leverage) and one-tenth of a bitcoin (0.10 BTC) minimum for bitcoin mini positions. Similarly, litecoin positions are 10 litecoin minimum for weekly positions and 1 litecoin minimum for litecoin mini.
eToro bills itself as an “investment social network.” Along with making trades, you can also follow the trades of others and interact with the community on eToro.com. EToro also offers copy trading, an investment strategy where you literally copy the trades of another investor.
eToro accepts USD, EUR, and GBP deposits, with a $50 minimum deposit. Deposits can be made through PayPal, Visa and MasterCard credit and debit cards, Western Union, and bank transfers. There is no charge to deposit but there is a withdrawal fee.
eToro offers anywhere from 2:1 on bitcoin to a lofty 400:1 leverage on forex pairs. Depending on your risk profile and self-discipline, leverage could be either a good or bad things for you.
Overall, eToro will probably best serve new traders. With its plethora of social features and opportunities to learn from others, the social networking aspect of the site is probably the most important for most beginning traders. After you get some experience, you may wish to move on to a platform that offers more investments, such as AvaTrade or Plus500.