Compare the best bitcoin brokers
What are the best Bitcoin trading platforms?
You can find a list of the top platforms for trading Bitcoin right here. We have reviewed all the best and most reliable Bitcoin brokers out there to help you buy Bitcoin. The table below displays the best of the best – have a read through our reviews and see what you think. If you’re not ready just yet, scroll down and continue reading to learn more.
What is a Bitcoin broker?
A Bitcoin brokerage is a middleman for buying and selling Bitcoin. Also known as Bitcoin trading platforms, they come in two varieties: services that allow you to buy and sell Bitcoin at a fixed price, and comprehensive trading interfaces on which you can trade Bitcoin in real-time.
How do brokerages work?
Brokers work by matching up buyers and sellers in order to complete Bitcoin transactions. Sometimes the buyer/seller is the broker itself, and sometimes the broker merely facilitates trades in an open marketplace.
Brokers in the former category function similarly to a bureau de change: buying and selling Bitcoin at an advertised price that reflects the current market rate with a slight mark up. These platforms are one of your only options for buying a very large amount of Bitcoin at a time (for instance if you want to invest £50,000 or more).
The latter are more complex trading platforms that allow users to trade against the value of Bitcoin in real-time using CFDs. Contracts for Difference (CFDs) let traders buy and sell Bitcoin without ever taking ownership of the coins. This means trades can be placed faster and also enables leveraged trading.
What’s the difference between a Bitcoin broker and an exchange?
On a Bitcoin exchange you trade Bitcoin directly with other people, it’s peer-2-peer. Whereas with a broker you’re either buying coins at a rate determined by the platform or making trades against the current value of Bitcoin. The definition of peer-to-peer is covered in more depth in the FAQs at the bottom of this page.
Exchanges are generally more complicated to use as they have cryptocurrency price charts and constantly refreshing order lists, rather than simply advertising the current price at which you can buy and sell Bitcoin.
How do I use a Bitcoin broker?
It’s easy. Just go to the broker site and it will have the current rate at which they’re selling Bitcoin displayed. If you’re happy with the Bitcoin price then set up an account, select how much you want to buy, then enter your payment details and pay.
If your chosen broker also offers a real-time Bitcoin trading platform, then you’ll be able to navigate to the trading interface and start buying and selling CFDs as the price of Bitcoin fluctuates.
The best Bitcoin trading platforms for beginners, traders, and long-term investors
Your choice of broker will often depend on your level of crypto experience and how you’re looking to profit from Bitcoin. Here’s a quick run-down of the best services depending on these criteria.
The top broker for beginners
If you’re just starting out with cryptocurrency investing, then you’ll want to prioritise finding a platform that makes the process of buying Bitcoin as simple as possible.
The top platform for day-traders
There are Bitcoin platforms that are tailored for those wishing to trade Bitcoin rather than just buy and sell at a fixed rate. If you’re a budding trader then you should make sure to find a platform with great trading features.
The top app for long-term buyers
Some investors find the best way to generate profits with Bitcoin is to buy and hold coins for the long term. If this is what you’re planning to do, then it’s best to look at finding a Bitcoin app that charges low fees and offers secure storage for your coins.
What should I look for in a trading platform?
There are a variety of differences between online Bitcoin brokers, so it’s important to find one that suits your needs. Some brokers will be more beginner-friendly, but charge higher fees; some will accept payment methods such as PayPal, but have a limited range of coins; some will have well-designed mobile apps, but low transfer limits. Here’s a quick run-through of the factors to consider when choosing a broker.
Design and ease of use
The purpose of a broker is to make the process of buying Bitcoin easier. You want to make sure the Bitcoin broker is designed in such a way as to make it as simple as possible for you to navigate through and make your BTC purchases.
Different Bitcoin brokers will charge a different amount for buying Bitcoin. This is because any commission charged by a platform will be included in the advertised price, referred to as spread. To find the best rate it’s a good idea to compare multiple platforms.
You want to make sure you’re getting a good deal on your purchase. Depending on the platform and your chosen payment method, there could be fees of 0% to 5% of your purchase amount, with credit cards typically being the most expensive option.
You will want to be sure you are sending your money to a company that will not disappear with your cash. In the UK, brokers must be regulated so look out for this when reading reviews. There are many platforms that have been around for a while and have good reputations. Some of the common options you should consider include eToro and Coinmama.
Variety of coins
If you want to buy more than just Bitcoin, you can find brokers with a range of cryptos. It is common for brokers to buy and sell the top-performing cryptocurrencies (such as Bitcoin and Ethereum), but if you’re looking for more niche coins then be sure to choose a broker that can help you with this.
If you’re looking to trade Bitcoin in the short-term, then you should look for a broker that offers a great array of tools and features. These could range from allowing you to short sell Bitcoin or to trade with leverage. We only recommend that experienced traders use these techniques.
Quick answers to key questions
Do brokers charge commissions or fees for buying Bitcoin?
Yes, but these are typically included in the BTC price displayed. The price advertised is the price you pay, without any percentage commission being added when you’re entering your details. The only additional fees charged by basic platforms will be fees for specific payment methods (e.g. credit cards).
When using a Bitcoin trading platform you will have to watch out for other fees, with the most common being overnight fees and spreads. The spread is the difference between the bid and ask (buy and sell) price of Bitcoin and represents the cut that the broker is taking in the form of fees on trades.
Do I have to verify my identity with a Bitcoin broker?
Yes, you usually have to verify your identity to register with a Bitcoin broker. Usually you’ll have to provide proof of your ID (such as a passport and a driving license) and address (such as a utility bill or bank statement). Typically you’ll have to provide a selfie of you holding your photo ID to prove it’s yours.
Can I buy multiple cryptocurrencies through a broker?
Yes, most brokers sell a variety of cryptocurrencies, including the major coins such as Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and Ripple. There are brokers that trade hundreds, or even thousands more cryptos than these, so if you’re looking for a specific coin then make sure to choose a broker that offers it.
Do I need a wallet to use a Bitcoin broker?
Not usually. It is commonplace for users to set up an account with a broker when buying coins, and this account will also include a digital wallet that can store your coins for you once you have purchased them. Some brokers do not offer this, however, and to use these you’ll have to set up your own wallet and give its address for your Bitcoin to be sent to.
If you’re trading Bitcoin using CFDs then you won’t need a wallet as you don’t ever need to take ownership of the coins. This means you can open and close trades quickly and don’t have to worry about the security of your coins.
Should I use brokers to buy and sell Bitcoin?
It depends on why you’re buying or selling Bitcoin. If you want an easy and seamless way to capitalise on the growth and price fluctuations of Bitcoin, then brokers offer the simplest option. Generally, this convenience comes at the cost of slightly higher fees than you’ll find on an exchange, though.
If you’re a beginner crypto investor, then we would recommend using a Bitcoin broker to make your trades, as exchanges are more complex, harder to navigate, and don’t offer options such as using CFDs and trading with leverage.
If you need more information before using a broker to buy Bitcoin, then we can help. Below is a quick run-through of the pros and cons of investing in Bitcoin this way, along with some things you might want to consider before making your investment.
- Brokers make buying Bitcoin easier, particularly for new investors
- They offer more protection from short term fluctuations in the value of Bitcoin
- Simpler to use than Bitcoin exchanges
- Brokers usually have helpful customer service
- Some brokers allow you to trade Bitcoin CFDs with leverage
- Some brokers aren’t regulated
- Prices are likely to be (nominally) higher than on exchanges because they include spread fees
Should I buy Bitcoin now?
This depends on what your investment goals are, and how well you think Bitcoin is going to perform in the coming months or years. If you believe that Bitcoin’s price is going to rise over time, and you don’t mind having some of your money tied up in the cryptocurrency for a while, then it is likely a good move for you to invest your money.
If your plan is to trade Bitcoin in the short term, then its current value and future projections are of less importance than your knowledge of technical analysis. Study Bitcoin’s price charts to see if you can identify patterns that can help you generate profits and sign up to a broker that offers CFD trading.
Either way, it’s helpful to keep on top of current analysis around the price of Bitcoin so you can time your investment just right. Here’s some of our most recent Bitcoin analysis to help you determine if now is the right time to buy Bitcoin.
Bitcoin (BTC) price analysis for 2021 as crypto adoption ramps up
Here’s why Bitcoin (BTC) price is struggling this week as Ethereum (ETH) hits new highs
Bitcoin (BTC) price analysis as Central Bank of Turkey bans crypto payments
Where can I learn more about Bitcoin?
Right here on Invezz. If you’re looking for more information about Bitcoin and cryptocurrency in general before making your investment, then we have a wide range of resources to help. Our quick and easy-to-understand Bitcoin course will take you through everything you need to know in order to be a confident crypto investor. Alternatively, read more in our guides about buying Bitcoin and trading Bitcoin.
In the UK cryptocurrencies are classed as an asset, more info here. This means you have to pay capital gains tax of between 10 and 20% (depending on your income) on any money made over £11,700 a year. In other countries this varies, especially depending on whether Bitcoin is legal or not. Check the tax requirements of Bitcoin in your country before initiating any transaction.
With regards to any tax that might be due on your investments, please consult the law in your country and contact a tax specialist if necessary.
No, Bitcoin brokers are typically not anonymous. With the majority of platforms you will have to register for an account and provide ID before being able to buy or sell coins.
When talking about cryptocurrency exchanges, peer-to-peer means that you’re buying Bitcoin from, and selling Bitcoin to, other people in real time. The exchange simply acts as a platform to connect users who wish to buy and sell Bitcoin, and the current price is determined by trading activity on the exchange.
Prices therefore move up and down quickly on exchanges as people complete trades. This is different to brokers, which set a price at which you can buy Bitcoin from them. This price incorporates fees and changes less frequently.
Yes, however you must first sell your BTC value back to fiat such as GBP or USD. Many top Bitcoin brokers allow payments to and from PayPal – so check this before deciding which one to sign up for.
You can also now buy bitcoin using PayPal.
Yes, you’ll be able to buy Bitcoin through a brokerage at any time through their website. However, customer service may be limited to office hours. Check the platform and learn about their working hours.
No, this isn’t usually possible. Some platforms may accept cryptocurrency as a form of payment, but most currently accept fiat currency such as GBP or USD.
You can do that using an exchange.
Yes, you can – it’s your choice. Some people do this as a method to spread risk, or because some Bitcoin brokers have different benefits versus one another.
Yes, in the UK Bitcoin brokers are legal. However, this may not be the case in all countries, so check the legal status of platforms in your home country before buying Bitcoin through one.
Not all of them, no. Only go with the reputable and regulated brokerages that we have reviewed to ensure you’re using reliable platforms.
Usually yes. Brokers such as Coinbase or Etoro usually have an integrated wallet where you can keep your coins, but that’s not the case with all brokers out there.
Yes, you’ll be able to see all the transactions you have made through your account. You will see the completed orders, and pending ones if you have any waiting on price fluctuations.
- 1. Compare the best bitcoin brokers
- 2. What are the best Bitcoin trading platforms?
- 3. What is a Bitcoin broker?
- 4. The best Bitcoin trading platforms for beginners, traders, and long-term investors
- 5. What should I look for in a trading platform?
- 6. Quick answers to key questions
- 7. Should I use brokers to buy and sell Bitcoin?
- 8. FAQs