By using a CFD broker for your tron trading, you can profit from your buy and sell trades without having to deal with the hassle of keeping your cryptocurrency safe from hackers. We’ve reviewed all the leading CFD options for you.
Where can I find the best tron trading brokers?
You can find the best Tron brokers and trading platforms right here. We’ve researched and reviewed all the leading options available to help you choose the right online platform for your Tron trading.
What are tron brokers?
Tron brokers are CFD trading platforms, which are services that utilise a method of buying and selling tron based on market prices. CFD stands for ‘Contract for Difference’ and is essentially a bet on the difference in the price of tron. Don’t let the word ‘contract’ scare you, CFD trading doesn’t involve having to sit down and sign a typed out agreement or anything. The entire process can be done with the click of a button. Keep reading and we’ll take you through how it works.
How do tron trading platforms work?
When you take out a ‘contract’ with a tron CFD platform, you are effectively ‘buying’ tron at a certain price, with the understanding that when you close a position (i.e. when you cash out of the CFD) you will get paid what the amount of tron you bought is worth at that point.
For instance, if you took out a £1000 tron CFD, and since then the price of tron has gone up by 10%, you could sell your contract for £1,100 – a profit of 100 pounds. Alternatively, if the price of tron falls by 10%, you could only sell for £900 – a loss of £100.
Furthermore, some cryptocurrency brokers allow you to place trades with leverage, meaning that for every increase or decrease in the price of tron, your potential profit or exposure is multiplied by the leverage. Let’s build on the previous example above by imagining that you are taking out the same contract, only with a 2:1 leverage; your £1000 is now £2000. If the price of tron went up 10%, your profit would be £200. However, if the price goes down by 10%, you would lose £200. Most crypto CFD platforms don’t offer leverage of more than 2:1 because of the volatility of cryptocurrencies such as tron; however some do allow experienced traders 10:1 or even 100:1. Trading with a leverage is a good way to make more money faster, but you could lose money just as fast.
With CFDs, you never have to take ownership of the coins you trade against. This removes the hassle of having to store your tron in a wallet.
So I don’t technically own the coins I’m trading on a CFD broker?
No, you don’t technically own the coins you’re trading on a CFD platform. What you are doing is agreeing to trade over the fluctuations in the price value of tron. As mentioned above, you are effectively taking a bet on the value of tron to take advantage of future changes in tron’s price. That’s what Tron trading is, a calculated bet.
Think of putting a bet on a sports team to win or lose a game. You’re just betting on the result of the game, as opposed to actually playing in it. This is similar to how CFDs work – you can take a long or a short position depending on whether you expect the price of tron to go up or down, without having to own the coins itself.
What should I look for in a tron trading broker?
Find a regulated platform
Tron CFD trading is regulated by the FCA in the UK. However, since the UK is a part of the EU, any EU-licensed regulators can also provide for UK regulation. Regulation is often tricky when it comes to cryptocurrency investments, but because CFD trading is a commonly used trading tool and doesn’t involve actually handling tron, it’s the most securely regulated form of tron trading. Make sure you’re using a properly regulated platform. Here at Invezz, we will only recommend trustworthy platforms for you to trade with confidence.
Variety of payment methods
Make sure you select a CFD platform that allows you to deposit and withdraw in a payment method that suits you. Platforms will typically take deposits through a variety of payment methods (card payment, bank transfer, PayPal etc.). It is not common to find CFD platforms that take deposits in cryptocurrency. If you want to deposit cryptocurrencies, you might be more interested in other methods of cryptocurrency trading.
Suitable deposit and withdrawal limits
Deposit and withdrawal limits will vary, so make sure you’re selecting a CFD platform that suits the level of trading you want to do, whether it’s large or small. First time minimum deposits tend to be in the region of £200, and often there’ll be a minimum withdrawal amount and a flat fee (eToro has a minimum of $50 and a fixed fee of $25 on all withdrawals).
Tron trading has been available for a while now, so there are many with a good history of providing good service. Our reviews will provide you with a platform that’s trustworthy and reputable to use.
Design and ease of use
No one wants a complicated interface when using any tron trading platform. The friendlier and easy to use the website design is, the better. Especially if you’re new to trading, finding a platform that makes the whole process clear and easy is essential.
Variety of coins
If you’re interested in investing in cryptocurrencies other than tron, then you can find CFD platforms that allow you to trade a range of coins. The cryptocurrencies you can take out CFDs for are listed in our reviews of each platform.
Will I have to verify my CFD broker account?
Yes. As CFD trading is a regulated industry, in order to comply with regulations you must verify your account to trade tron. Verification will usually involve you providing proof of identity (a passport, driver’s license, or government-issued ID) and proof of address (a utility bill, bank statement, or council tax form). Sometimes, you may even be asked to provide a selfie of yourself holding the relevant document/s and a piece of paper stating the date the selfie was taken to provide additional proof of who you are.
Is online tron trading secure?
Yes, tron trading platforms are very secure. Because you never technically ‘own’ the coins you take a contract on, you do not have to deal with the risk of having your coins stolen by hackers. Furthermore, the platforms that we list and recommend are all operating under a license by financial regulators, which means you can be confident in their security. In the event that a licensed platform collapses, you will usually be entitled to compensation by a financial regulator.
What if I forget my password?
Just like any other online platform or website, CFD platforms will provide you with ways to reset your account password in the event you forget it. These usually involve you answering recovery questions or accessing your email account to open an activation link that will allow you to reset your password. We recommend that you choose a secure password – one with a combination of special characters, numbers, and letters (lower and upper case) as you don’t want your account to be compromised.
Can I trade multiple cryptocurrencies with CFD platforms?
Yes, but not as much as you’d be able to trade with using exchanges such as Bittrex and Binance. Most tron CFD trading platforms will allow you to trade all the well-known coins, such as Ripple/XRP, Ethereum, Bitcoin, Bitcoin Cash, Monero, Cardano and Litecoin. If you’re looking to invest in a variety of smaller altcoins, currently the best place to look is an exchange.
Do CFD trading brokers charge fees for trades?
It depends on the individual CFD. Some CFDs charge a trading fee for when you intend to close your position (cash out of your contract), and some of them incorporate their commission into the initial price offered on contracts. Additionally, although not directly incurred when trading, most CFD platforms will also charge deposit and withdrawal fees depending on the payment method you use.
Do I need to have a tron wallet to use a trading platform?
No. You don’t need a wallet to use a tron CFD platform, as you don’t ever have to take ownership of the coins.
And what are the drawbacks?
The primary disadvantage of CFD trading is not owning the tron itself. If you want to own and spend your tron coins, you’ll need to use a an exchange. You can’t spend the trons you trade on a tron CFD platform, as you are effectively betting on the future price value of tron – best you can do is earn the profit, then withdraw the GBP/USD/EUR. Furthermore, if you are a beginner trader, then CFD trading interfaces might also appear a bit confusing and scary in the beginning.
What are the advantages of using a CFD Platform?
A great advantage of online trading is being able to move quickly to capitalise on market fluctuations. While you don’t own the tron yourself, this means you can buy and sell faster. Tron CFD trading platforms are the best to use if you’re looking to trade against the short term price fluctuations of tron without having to manage or store your coins. This allows you to react faster to any trades you intend on making. CFD platforms also incorporate a large variety of trading features and trading tools for advanced traders, such as the use of MetaTrader platform.
Should I use a CFD platform to trade tron?
Yes. If you wish to trade tron quickly and easily, without worrying about keeping your coins safe from hackers, then CFD trading might be a great option for you. Additionally, if you’re an experienced trader, tron CFD platforms might be more beneficial for you as there is a wide variety of trading features that you can use.
However, if you intend on buying tron as a long term investment, or intend on using your tron coins for purchases, you’ll need to use an exchange. Here’s a few additional points:
- CFD platforms allow you to capitalise on the short term fluctuations in tron’s price
- Removes the inconvenience of having to store your tron
- CFD brokers are licensed and regulated
- Improved trading options, such as long and short trades
- CFD platforms require some trading experience to use effectively
- Ultimately, you don’t own the tron that you trade with, and therefore cannot use it for anything other than trade
- Your concerns