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- 1. Compare the best Australian cryptocurrency brokers
- 2. What are the best crypto brokers in Australia?
- 3. What is a cryptocurrency broker?
- 4. The best trading platforms for beginners, traders, and long-term investors
- 5. What should I look for in an online trading platform?
- 6. Quick answers to key questions
- 7. Should I use brokers to buy and sell cryptocurrency?
- 8. FAQs
Compare the best Australian cryptocurrency brokers
A crypto broker is your means to buy and sell cryptocurrency. In this beginner-friendly guide, compare the best Australian crypto brokers and find examples of the features you should look for before you sign up to one.
What are the best crypto brokers in Australia?Copy link to section
We have found the brokers below to be the best options out there right now. Sign up by following one of the links in the table or keep reading to find out more about each platform.
What is a cryptocurrency broker?Copy link to section
A crypto broker is an online trading platform that functions as a middleman for buying and selling cryptocurrencies. There are two different varieties of crypto brokers: simple platforms that offer coins at set prices, and more complex apps that allow you to trade a wide variety of cryptocurrencies in real time.
How do brokerage services work?Copy link to section
On the most basic level, brokers work by matching up buyers and sellers in order to execute trades. If someone is looking for a specific cryptocurrency, for example Ethereum, then a broker will take the price at which they’re willing to pay and match them with someone happy to sell at that rate. In some instances the broker itself is on the other side of the trade, and in others it will be another individual using the platform.
Like a bureau de change at an airport, most of the time the broker sets rates for each coin and allows you to exchange at this price instantly. The broker will apply fees for this convenience, but these platforms are often the best bet whether you want to trade crypto by buying and selling coins rapidly, or you want to own a large number of coins or tokens – say more than A$50,000 worth.
What’s the difference between a crypto broker and a crypto exchange?Copy link to section
The main point of distinction between brokers and exchanges is that the latter work on a peer-to-peer basis. That means that while brokers position themselves as a middleman for transactions and charge trading fees for doing so, crypto exchanges are more open platforms that set prices with a constantly updating order book.
On an exchange, thousands of users trade with each other directly in real time, trading coins in currency pairs (e.g. BTC/ETH) at rates governed by the supply and demand of other users on the platform. It is this activity on exchanges that helps set the price of different cryptocurrencies.
How do I use a cryptocurrency broker?Copy link to section
Using one is a straightforward and easy process. You simply need to sign up, fund your account, and then you can get the coins you’re interested in at the price given by the platform.
If your chosen broker is also a trading platform, then to start making trades as the market fluctuates you simply need to head to the trading interface of their website or app. From here you will be able to see all the relevant crypto price charts and start to trade cryptocurrencies right away.
The best trading platforms for beginners, traders, and long-term investorsCopy link to section
Which platform is right for you will depend mainly on your level of experience and your investment strategy. To help you select the best broker, we’ve come up with these recommendations for different user profiles.
The top broker for beginners in AustraliaCopy link to section
When you’re just starting out with cryptocurrency, you want to prioritise ease of use and customer support. You might end up paying slightly more for your coins, but it’s worth it to avoid making costly mistakes. Here is our favourite broker for beginners.
The top platform for Australian day-tradersCopy link to section
For those looking to make frequent moves, it’s essential to register for a broker that offers low trading fees and a variety of charting and analysis tools. Here is the top broker for day-traders.
The top app for long-term buyers in AustraliaCopy link to section
Long term investors need to be most concerned about using a secure platform on which they can keep their coins safe. This strategy is for people who believe certain cryptocurrencies will rise in price over time and want to hold them in pursuit of profits. Here is the best long term investment broker.
What should I look for in an online trading platform?Copy link to section
There are a number of different factors to consider when choosing a broker, from how intuitive the platform is to use, to more trading-related concerns such as how many coins you can trade and the fees involved for doing so. Here’s a quick summary of all the key considerations when using an online platform.
Design and ease of useCopy link to section
It’s always best to ensure you find a platform easy to navigate before using it to place trades. The point of using a broker is to make the trading process simpler, so don’t settle for an app you find confusing.
PriceCopy link to section
You don’t want to pay too much above the market rate. Generally with brokers there will be trading fees and commissions included in the quoted price on the website, so compare different brokers and make sure you’re getting a good deal.
Payment chargesCopy link to section
Different brokers will accept different methods of payment – and charge a range of fees for doing so. It’s common to find debit card payments accepted across most crypto broker platforms, but if you’re looking to pay for your coins using other methods such as credit cards or online wallets like PayPal there can be fees applied.
ReputationCopy link to section
Whenever you’re trusting an online platform or app with your money, you want to be sure the service is reliable. To compare crypto brokers it’s best to have a look through various user review sites, and also to check out in-depth reviews of each brokerage.
Variety of coinsCopy link to section
It’s no use finding a platform that you like if it doesn’t allow you to trade the specific coin(s) you’re looking for. Every broker will offer Bitcoin, but not all will support less frequently traded cryptos such as Theta and Algorand.
Trading optionsCopy link to section
If you’re looking to trade cryptocurrencies, rather than holding coins for the long term, then make sure the cryptocurrency trading platform you’re using has the capabilities you’re looking for. This could involve being able to trade cryptocurrency with leverage or to sell different coins short. Techniques like this come with increased risk and we only recommend experienced traders undertake them.
Quick answers to key questionsCopy link to section
Do brokers charge commissions or fees for buying cryptocurrency?Copy link to section
Yes, most brokers charge some sort of fee or commission. However, these vary between platforms and might appear in different ways. For instance, a broker might advertise that it charges ‘zero fees,’ but if you look at the price they’re quoting for a coin you’ll realise that it’s above market rate.
This is because the fees are incorporated into the price, so you won’t pay any extra fees but there is still a commission being applied.
Do I have to verify my identity with a cryptocurrency broker?Copy link to section
Yes, you will have to provide evidence of your identity. The top brokers are regulated and as such need users to prove their identity to comply with KYC (Know Your Customer) guidelines. Usually at least one form of photo ID is required, which can be your Australian passport or driving licence.
Can I buy multiple cryptocurrencies through a broker?Copy link to section
Yes, pretty much every broker will offer a range of coins. The amount on offer vary from about 5 on the most basic broker, to thousands on the biggest and most advanced platforms. If you’re looking for altcoins such as Polkadot and Aave, then you will need to find one of the latter.
Do I need a wallet to use a crypto broker?Copy link to section
No, not usually. It can however be a good idea to get one if investing for the long term. Cryptocurrency trading platforms will typically allow you to hold your coins on in your online account or app. This can be convenient for people looking to trade coins frequently, but long term investors might want to consider a secure hardware wallet such as the Ledger Nano S.
Should I use brokers to buy and sell cryptocurrency?Copy link to section
The answer to this question depends on your investment goals. Any of our top 10 crypto brokers offer beginner-friendly trading platforms, but you need to be aware that the convenience provided by brokers comes with additional fees.
The number of cryptocurrencies available on a broker can be limited compared to other investing platforms, like exchanges. A broker is a great option for the most popular coins, like Bitcoin and Ethereum, but it might not be the best choice if you want to trade the latest altcoin trends.
You need to balance your desire for convenience and ease-of-use with cost and the range of trading options. A broker is best for beginners and for low trading fees but for the best coin prices or the widest range of coins, you might want to look elsewhere.
Still undecided?Copy link to section
Before investing in cryptocurrency it’s important to weigh up the key pros and cons. Below are some of the main benefits and drawbacks of trading cryptocurrencies through a broker, along with some additional questions to consider and FAQs at the bottom of the page.
ProsCopy link to section
- Buying cryptocurrencies using a broker is a user-friendly process
- Trading platforms tend to have responsive customer service
- Some brokers allow leveraged trading of cryptocurrencies
- Generally more accessible than cryptocurrency exchanges
Should I buy cryptocurrency now?Copy link to section
If you believe that a particular cryptocurrency is going to perform well and rise in value in the long term, then it’s a good idea to sign up to a broker and hold your coins while the uptrend in price hopefully materialises.
But long term trends aren’t the most important thing for every trading strategy. If your interest is more in becoming a crypto day trader, then it’s more important for you to master the art of analysing cryptocurrency charts and other aspects of technical analysis. Rather than looking into how a coin will perform over months and years, you need to be able to predict how it will perform over days, hours, or even minutes and make trades accordingly.
Whatever the approach you take, one thing that is always essential is to keep up to date with the hottest cryptocurrency news. You can read the most recent features from our experts right here to help you time your trades and work out if now is the right time to invest.
Where can I learn more about cryptocurrency?Copy link to section
You can access a whole host of cryptocurrency courses right here on Invezz. Whether you want to learn the basics of Bitcoin, educate yourself on Ethereum, or teach yourself about Tron, our guides will help you get all the knowledge you need before starting to trade.
FAQsCopy link to section
You may have to pay capital gains tax although it will depend on your own circumstances. It is recommended that you visit the Australian tax office website to find out more information.
No, as they require users to provide ID when registering. Usually at least one piece of photo ID (e.g. a passport or driving license) is required in order for the broker to comply with legislation to prevent illegal money laundering.
When people describe ‘peer-to-peer’ exchanges they’re talking about the relationship between the two people trading coins. Each user of an exchange is equal with all others (they are ‘peers’) and trades between them are conducted directly (so peer-to-peer). The exchange merely functions as an open market to connect them.
Only if it accepts PayPal as a method of payment. Crypto brokers that accept PayPal are increasingly common, but it is still not a service offered by every trading platform so be sure to check before registering with a broker.
Yes. Crypto markets are open at all hours and brokers will therefore allow you to make moves at any time you wish.
No, not usually. Brokers typically accept fiat payments (e.g. AUD) for cryptocurrencies rather than allowing you to use other cryptocurrencies as a payment method. Some brokers do allow trades between different cryptos, but in general you’re better off using an exchange if you’re looking for this option.
Yes, there is nothing stopping you from having accounts with multiple different brokers. It is generally more simple to choose your favourite broker and make all your trades using that platform, but in the instances where your preferred broker doesn’t offer a specific coin it might be necessary to use another service.
Yes, they are legal in Australia. However, they are not always fully regulated by the ASIC, which means there are fewer investor protections than if you use a financial broker to trade stocks.
Use the broker’s registration number to search for it on the ASIC register and the website will tell you whether the platform is permitted to operate in the Australia.
Not all are regulated, no. The best ones tend to be regulated by recognised financial bodies like the ASIC, but you’ll need to check each broker’s regulatory status before signing up.
Yes, you can usually hold your coins in an account. If you’re using a platform that doesn’t, or you’re just concerned about the safety of your coins, you might want to get your own wallet.
Yes, by navigating to the relevant section of your broker’s app you’ll be able to see a full list of all the trades you’ve made on the platform.
Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >