Compare the best Ethereum brokers
What are the best Ethereum trading platforms?
We’ve compared all the most well-known Ethereum investment platforms and compiled the best of the best in the table right here. If you’re ready to invest your money in Ethereum now then simply follow one of the links below; if you need more information, then just scroll past and keep reading.
What is an Ethereum broker?
An Ethereum broker is an online platform that functions as a middleman for buying and selling ether (the native cryptocurrency of the Ethereum blockchain). There are two different types of Ethereum brokers: simple platforms that allow you to buy and sell ether at a fixed rate, and more complex trading platforms which let users trade in real time.
How do brokerages work?
The essential function of a broker is to match up buyers and sellers. If you come to a broker and are looking to buy Ethereum at a certain rate, the broker will try and find a seller willing to match that price and complete the transaction. Sometimes the buyer/seller is the broker itself, depending on the type of broker you’re using.
More simple Ethereum investing sites will advertise a fixed price for Ethereum on their website. This is a ‘take it or leave it’ rate that the broker itself will buy or sell you ether. These sorts of platforms can be thought of as similar to a bureau de change – except they trade fiat for cryptocurrencies rather than different fiat currencies for each other.
The other type of Ethereum broker is better thought of as a comprehensive trading platform. These sites allow you to trade Ethereum using CFDs, which opens up the ability to open and close positions quickly and trade with leverage. CFD stands for “contract for difference” and represents a position taken on the price of an asset. With an Ethereum CFD you don’t actually own any ether, but are able to trade against the coin’s value as it fluctuates.
What’s the difference between an Ethereum broker and an exchange?
The main difference is who you are trading with. With a cryptocurrency broker you’re usually buying/selling Ethereum or trading directly with the trading platform, whereas with an exchange you’re making peer-to-peer trades with other people.
An exchange is a fully open marketplace where people can trade cryptocurrencies between each other, whereas brokers buy and sell Ethereum and other cryptocurrencies based on the value determined by exchanges and allow users to speculate on price movements using CFDs.
How do I use an Ethereum broker?
To use an Ethereum broker all you have to do is follow a few simple steps. First choose the trading platform you want to use, then sign up, check the current price the broker is buying and selling ether for, and click “buy” if it’s an amount you’re willing to pay. This will then direct you to the payment page of the broker where you’ll be able to fund your transaction.
If the Ethereum investing site you’ve chosen also supports CFD trading, then all you need to do is fund your account and navigate to the trading interface on the platform’s website or app. From here you’ll be able to trade CFDs on a range of cryptos including Ethereum.
The best Ethereum trading platforms for beginners, traders, and long-term investors
Which Ethereum broker is right for you will depend in large part on your experience with trading cryptocurrency and what your trading horizon is. For beginners and investors looking to buy Ethereum for the long term, simple bureau de change-type brokers tend to be best, weheras day traders will want a CFD platform. Here’s a quick breakdown.
The top broker for beginners
For those who are new to Ethereum investing, it’s best to go with a platform that makes the process of buying ether as simple as possible. These brokers tend to charge a small premium for the convenience they offer, but it prevents you making costly mistakes when you’re new to the game.
The top platform for day-traders
Day traders will want a UK Ethereum trading platform that supports CFD trading and applies low fees and commissions. This is particularly important as even small fees can rack up if you’re making frequent trades.
The top app for long-term buyers
If you believe that the price of Ethereum is going to rise in the long term, then your best option is to choose a reliable investment platform which will allow you to make large purchases and hold your ether for a while.
What should I look for in an Ethereum investment platform?
In order to help you choose between the best Ethereum trading sites, here is a quick run down of all the key considerations that go into selecting a broker.
Design and ease of use
The purpose of using an Ethereum broker is to make the process of buying ether as quick and user-friendly as possible. For this reason it’s essential to make sure that your chosen platform doesn’t make the process difficult ot have a confusingly laid out website or trading app.
You don’t want to get ripped off, so check the price that different brokers are quoting for Ethereum before buying. The fees charged by most brokers are hidden in the amount they charge for the coins. While this means you don’t get stung by hidden fees after being attracted by a low rate, it also means prices vary between brokers.
Certain payment methods might attract additional charges with Ethereum trading platforms. This is often most true of credit cards, but it’s important to check that you can pay in the way you desire without being hit with additional fees for the privilege.
You want to ensure you’re using a broker that has a strong track record, as this will reassure you that the platform can be trusted. The best way to check this is to look at any online user reviews, and also checking out our in-depth broker reviews on this site.
Variety of coins
It might be the case that right now you’re only looking to purchase Ethereum – but that doesn’t mean you won’t want to buy other cryptocurrencies in the future. The best Ethereum brokers will usually offer a range of coins, from prominent names such as Bitcoin and Litecoin, to up-and-comers such as Aave and Polkadot.
If you’re looking to trade Ethereum rather than just buy and hold the coins for the long term, then you want to ensure your chosen broker offers the trading capabilities you’re after. This could include leveraged trading or the option to short sell ether – complex and risky strategies that we only recommend experienced traders undertake.
Quick answers to key questions
Do brokers charge commissions or fees for buying Ethereum?
Yes, brokers will typically charge fees and commissions when buying and selling Ethereum. With CFD trading platforms it’s common to find overnight fees along with commissions applied to trades. Whereas with more simple brokerages watch out for any platform concealing the fees they charge in the price they quote for Ethereum and the spread between the bid (buy) and ask (sell) price.
Do I have to verify my identity with an Ethereum broker?
Yes, top Ethereum trading platforms require you to provide ID before you can start trading. The exact requirements differ from broker to broker, but often include a form of photo identification. This is so that the platforms can be compliant with KYC (Know Your Customer) and AML (Anti Money Laundering) legislation.
Can I buy multiple cryptocurrencies through a broker?
Yes, Ethereum brokers support the trading of other cryptocurrencies. Exactly how many other cryptos you can trade will depend on the broker you choose, with some offering a handful whereas others supporting 1000s of different coins.
Do I need a wallet to use an Ethereum broker?
No, but it can sometimes be useful to have one. Ethereum brokerage platforms will usually allow you to store your ether (and other cryptos) within your account and this practice is largely safe nowadays.
However, if you’re using an Ethereum investment site because you intend to hold a lot of ether for the long term, then getting a secure wallet to hold your coins can be a good idea. Two popular hardware wallets are the Trezor One and Ledger Nano S.
Should I use brokers to buy and sell Ethereum?
It depends on your investment goals and how you want to trade Ethereum. Brokers are useful on the one hand as a simple way to buy and sell ether at a fixed price, and on the other as fully-fledged trading platforms that facilitate CFD trading and leveraged trading of cryptocurrencies.
These approaches both have their benefits, but the former tends to come at a premium price and the latter allows you to speculate on price movements but means you don’t own your ether outright. For this reason some people prefer to trade Ethereum using exchanges rather than brokers.
If you’re still weighing up whether to sign up to a top Ethereum investment site, then have a read through these quick pros and cons, along with the information and FAQs below.
- Ethereum brokers tend to be more user-friendly than exchanges
- CFD trading brokers give access to leveraged crypto trading
- Many brokers have strong reputations for customer service
- Brokerages are a quick and easy way to buy ether at a fixed price
- Some trading platforms offer ‘social trading’ capabilities
- Buying Ethereum through brokers can attract high fees
- Leveraged trading comes with hugely increased risk
- Not all crypto brokers are regulated
Should I buy Ethereum now?
There are two ways to look at this question, and which one suits you will depend on your approach to investing in Ethereum. If you’re in it for the long term as you believe that the price of Ethereum will rise in the future, then it’s a good idea to sign up to a broker and buy some ether now so you can capitalise on that growth if it materialises.
If, however, your aim is to trade ether using CFDs then the overall prospects of the coin aren’t as relevant as your understanding of cryptocurrency charts and technical analysis. When trading Ethereum in the short term, your skill at recognising and anticipating patterns in price movements is more important than the Ethereum blockchain’s long term ambitions.
For either approach, it is useful to keep on top of all the latest Ethereum news and analysis. Here is the latest from our experts.
Ethereum could advance even more in the ongoing bull market. Here are the next targets for buyers
Here’s why Bitcoin (BTC) price is struggling this week as Ethereum (ETH) hits new highs
Ethereum (ETH) price analysis after printing a fresh record high
Where can I learn more about Ethereum?
You can learn more about investing in Ethereum, or just about the coin in general right here on Invezz. Our Ethereum 101 course will get you grounded in the basics so you can feel confident when using an Ethereum trading platform.
Yes, in the UK you have to pay tax on profits made through cryptocurrency trading. This is because cryptos like Ethereum are classed as assets, and therefore attract between 10% and 20% in capital gains tax for profits over £11,700 (depending on your income). Tax rules in other countries will vary so check the law where you are.
No, when you sign up for an Ethereum broker you will need to provide evidence of your identity, usually including a photo ID such as a passport or driving license.
It simply means that two people are trading with each other on an equal basis (as peers). Ethereum exchanges allow users to trade ether, with the platform functioning merely as the marketplace that brings them together.
It depends on your broker. If your chosen Ethereum investing platform supports PayPal as a withdrawal method, then yes you can withdraw funds straight into your account – but this isn’t offered universally. Also bear in mind that PayPal can only hold fiat currencies (such as GBP and USD) so you’ll have to sell your ether first.
Not usually, no. Typically Ethereum brokers only accept payments in fiat currency, If you want to trade between different cryptocurrencies, then it’s best to use an exchange.
Yes, there is nothing stopping you from signing up to and using multiple cryptocurrency brokers.
Yes, in the UK Ethereum brokers are legally allowed to operate. This might not be the case in other countries though so check the law where you are.
Not all of them, but the best Ethereum brokers are regulated by recognised financial bodies. This gives you protection in the instance of theft and fraud. It is generally very risky to use an unregulated broker.
Yes, usually you can store your Ethereum (and other cryptos) within your broker account. If you feel security conscious and would rather have full control then you can buy a hardware wallet, but it isn’t necessary to trade Ethereum.
Yes, within your Ethereum trading account you’ll be able to view your entire trading history by navigating to the relevant section of the platform from the dashboard.
- 1. Compare the best Ethereum brokers
- 2. What are the best Ethereum trading platforms?
- 3. What is an Ethereum broker?
- 4. The best Ethereum trading platforms for beginners, traders, and long-term investors
- 5. What should I look for in an Ethereum investment platform?
- 6. Quick answers to key questions
- 7. Should I use brokers to buy and sell Ethereum?
- 8. FAQs