Since launching 12 years ago, Bankless Times has brought unbiased news and leading comparison in the crypto & financial markets. Our articles and guides are based on high quality, fact checked research with our readers best interests at heart, and we seek to apply our vigorous journalistic standards to all of our efforts.
BanklessTimes.com is dedicated to helping customers learn more about trading, investing and the future of finance. We accept commission from some of the providers on our site, and this may affect where they are positioned on our lists. This affiliate advertising model allows us to continue providing content to our readers for free. Our reviews are not influenced by this and are impartial. You can find out more about our business model here.
5 Best Bitcoin CFD Brokers to Use in 2024
CFD brokers provide access to cryptocurrency derivatives, which are suitable for day trading and margin trading strategies. To access crypto CFDs, you will need to find a broker that supports this type of trading and offers high liquidity so that you can enter and exit trades with ease.
In this guide, you’ll learn more about Bitcoin, CFD trading, and the best platforms for trading Bitcoin. We’ll take a closer look at the best Bitcoin CFD brokers to determine which options are the best to consider in 2024.
Here’s Our List of Top Bitcoin CFD Brokers in 2024
When trading Bitcoin, you’ll find plenty of different Bitcoin brokers online. However, not all brokers will support CFD trading. To save you time comparing and contrasting, we’ve put together a list of the best providers below:
- Plus500: The best CFD broker for beginners who want to trade Bitcoin as well as stocks and forex.
- eToro: One of the most reputable Bitcoin CFD brokers with a native crypto wallet, copy trading and demo account.
- Oanda: Fully regulated crypto CFD broker that is compatible with TradingView.
- AvaTrade: Popular CFD trading platform for Bitcoin, forex and stock CFDs.
- PepperStone: The best Bitcoin CFD broker for advanced traders who want to implement complex trading strategies.
What Are Bitcoin CFD Trading Brokers?
CFD trading brokers are online brokers that allow you to speculate on the performance of assets, in this case, cryptocurrencies. The broker acts as an intermediary between you and the crypto market which makes it possible to trade with leverage (funds that are borrowed from brokers).
These platforms are similar to cryptocurrency exchanges. However, it is usually possible to access multiple markets such as stocks, commodities and forex, as well as cryptocurrency.
What Is CFD Trading?
CFD trading is an advanced trading strategy that allows you to speculate on the price of assets without owning the underlying asset.
Instead of purchasing the asset directly, you purchase a contract for difference (CFD). This is a type of derivative product that represents an agreement between a broker and a trader. If you think that the price of a crypto will go up, you purchase a ‘buy’ contract. Whereas, if you think that the price of a crypto will go down, you purchase a ‘sell’ contract. Your profits are determined by the price change of the underlying asset.
CFD trading is suitable for day trading strategies because contracts can be bought and sold very quickly.
How Do Bitcoin CFD Brokers Work?
When using broker platforms, you don’t take ownership of the assets.
Instead of owning an asset, you take out a contract with the platform at a set rate. Then, the platform pays out the difference when you decide to sell. For example, if you buy a CFD for £2,000 worth of bitcoin or gold, and its value rises 25%, you can sell your CFD asset for £2,500.
Why We Chose The Best Crypto CFD Brokers
Now that you know a little more about what Bitcoin CFD trading is, let’s take a closer look at the 5 platforms that made our list of the best CFD brokers to use for crypto trading.
1. Plu500: Leading CFD broker that offers over 2800 financial instruments including crypto
Plus500 made it to the top of our list for several reasons. Firstly, the platform offers a free demo trading account which allows you to familiarize yourself with CFD trading before putting any money at risk. This is ideal for new CFD traders.
Secondly, Plus500 has an excellent reputation and is known for its seamless trading experience. You can also access over 2800 financial instruments, including 10 different cryptocurrencies.
The broker doesn’t charge any fees for deposits or withdrawals. According to under reviews, the fees charged for CFD trading are average (these vary depending on the asset and size of the trade).
2. eToro: The best CFD trading platform for new traders
CFD trading is a relatively complex strategy that is typically used by experienced traders. For this reason, a lot of CFD brokers can seem tricky to use.
However, eToro is a reputable multi-market exchange that offers a user-friendly interface, excellent customer support and a good range of educational materials. You can use eToro to trade cryptocurrencies, stocks, commodities and forex all in one place.
It is important to note that not all crypto assets available on eToro are CFDs. CFD assets can be identified by looking for the ‘CFD’ symbol which will appear next to the ticker symbol.
3. Oanda: One of the safest crypto CFD brokers
Oanda is one of the safest crypto CFD brokers that is licensed under the UK’s Financial Conduct Authoirty and provides users in this region with up to £85,000 in asset protection. The broker is also a member of the National Futures Association.
Although it is primarily a forex broker, you can use Oanda to trade 4 cryptocurrencies: Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. This selection is limited compared to the two brokers that we have previously looked at however, it is still possible to diversify across different blockchain networks.
One of the key features of Oanda is leading market insight and expert-driven data, which you can use to make informed decisions. The platform provides a range of excellent tools for analysis and research.
4. AvaTrade: Top Bitcoin CFD broker with low fees and user-friendly mobile app
AvaTrade is a popular CFD trading platform that is known for offering low CFD trading fees. The platform also charges no withdrawal or deposit fees. User reviews claim that AvaTrade is very easy to set up and that the trading experience is seamless.
AvaTrade is available on both mobile and desktop devices, making it possible to manage open trades on the go or conduct thorough analysis.
Just like the other brokers that we have looked at, AvaTrade offers access to forex instruments as well as crypto. You can trade up to 18 coins through the broker, which is significantly more than Oanda.
The main drawback of this platform is the minimum deposit, which stands at $100.
5. Pepperstone: The best crypto CFD broker for advanced traders
Pepperstone is a good option for implementing advanced trading strategies because it is compatible with MT4, MT5, and TradingView.
The CFD broker is known for its market-leading analysis tools and low non-trading fees. As well as CFD trading, you can use the broker for spread-betting and margin trading.
The broker came out on top in the Good Money Awards 2023 for it’s plethora of trading features, which makes it a good option if you want to explore different strategies and trading tools.
Beginners might also like Pepperstone due to it’s user-friendly interface and excellent customer support services which are available around the clock.
Things To Consider When Choosing a Bitcoin CFD Broker
When picking a Bitcoin broker, you need to consider several factors. We’ve listed the most important considerations below:
Regulaion:
Due to the nature of CFD trading, brokers should be regulated by an established financial body. For example,in the UK, the Financial Conduct Authority (FCA) regulates CFD trading.
Make sure you’re using a reputable and regulated site. If you live in another country, look for a platform approved by your local financial commission. You should be able to find this information on the platform’s website.
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. Some platforms will even accept deposits in cryptocurrency, so if this interests you, look for these.
Some payment methods may come with high fees. This is something to be aware of before you sign up to a platform.
Deposit and Withdrawal Limits:
Deposit and withdrawal limits will vary from platform to platform. Make sure you select a CFD platform that suits the level of trading you want to do, whether it’s large or small.
We recommend starting with a platform that requires a low minimum deposit. This will allow you to familiarize yourself with CFD trading before putting a lot of money at risk. eToro is a good option for this.
Platform Reputation:
CFD trading has been around for a while now, so some platforms have been serving customers for long enough to have a decent amount of user reviews. Look for those with more positive reviews and trust your instincts.
Design and Ease of Use:
Using a complicated platform will require a more significant learning curve and stop you from learning what you need to know about trading. Look for a CFD broker with a user-friendly interface.
It is also good to look for a platform that offers a mobile app. Apps allow you to monitor your trades on the go and are often easier to use than desktop trading platforms.Will I Have to Verify My Bitcoin CFD Broker Account?
Yes, CFD trading is a regulated industry. To comply with regulations you must have your account verified to trade. Verification will usually involve providing proof of identity and address, such as a passport and a driver’s license, along with a utility bill. You will often be asked to provide a selfie holding one of your photo IDs. You must make sure that it meets the required standards to pass.
Do CFD Trading Platforms Charge Fees for Trades?
Most platforms will charge trading fees in the form of a spread, which is the difference between the buy and ask price of an asset. Other fees that you may encounter include deposit fees, withdrawal fees, inactivity fees, overnight fees, and account management fees.
What Are the Advantages of Using a CFD Platform?
CFD platforms are the best tool to use if you want to day trade cryptocurrencies by buying derivatives. But that’s not the only benefit. We’ve listed some of the other reasons to consider trading Bitcoin using a CFD broker below:
You don’t need a wallet to store any cryptocurrencies you trade, which a hacker could steal if they breached an exchange’s security systems.
CFD platforms are more user-friendly than exchanges, meaning that you won’t have as steep of a learning curve.
CFD platforms are regulated and are therefore a safe option when trading, in terms of security (for the most part).
What Are the Drawbacks of Using a CFD Platform?
While CFD platforms are ideal for active traders, there are still a couple of drawbacks in mind. We’ve listed the most significant considerations below:
If you want to own and use the coins yourself, you will need to use a brokerage or cryptocurrency exchange, not a CFD broker.
To take full advantage of CFD trading, you need to have more technical financial knowledge.
Leverages can help you increase your profits, but you need to be careful because they can also increase your losses. You could lose a lot of money if you don’t know what you’re doing.
Should I Use a CFD Trading Platform?
The choice is yours, and you must bear all responsibility if you choose to trade Bitcoin on a CFD platform. If you want to trade Bitcoin or another cryptocurrency without worrying about keeping your assets safe from hackers, it’s a great option. The same is true if you want to trade commodities like oil quickly.
However, if you want to own Bitcoins, you’re better off looking into alternative cryptocurrency exchanges or Bitcoin brokers.
Long-term investors would be better off choosing an exchange that offers a native cryptocurrency wallet and allows you to own the underlying assets that you buy.
Final Thoughts
The best Bitcoin CFD brokers to use in 2024 include Plus500, eToro, Oanda, AvaTrade and Pepperstone. Each of these providers offer charting tools and analysis features that are ideal for active traders who want to take advantage of short-time price fluctuations.
In this guide, we have taken a closer look ate each platform to determine why it is a good option to use. After doing your own research, it is a good idea to use a demo account to test out different platforms before putting any money at risk.
FAQs
Is online trading secure?
Yes. This depends on the platform, but your trades will be secure if you’re using a reputable service. Use our reviews to discover the best CFD platforms.
Can I use a CFD platform on my mobile phone?
Yes. Most CFD platforms have mobile apps for iOS and Android devices.
Is CFD trading the best way to buy and sell Bitcoin?
If you’re looking to trade rather than own Bitcoin, then CFD trading is a great option. You can deal quickly and engage in short and long selling to make more profit. But if you want to buy, look at cryptocurrency exchanges instead.
Can I transfer from a CFD trading account into my PayPal account?
Yes. CFD platforms will usually allow deposits and withdrawals to and from PayPal accounts.
Is using a CFD platform anonymous?
No, using a CFD platform is not anonymous. You have to provide proof of ID and address to verify your account.
Are there minimum and maximum deposit/withdrawal amounts?
Minimum deposits and withdrawals tend to be between £25 and £100. Maximum limits depend a lot on the platform and the payment method you are using. For the highest withdrawal limits, consider transferring directly to your bank.
Are there trading limits?
Minimum deposits and withdrawals tend to be between £25 and £100. Maximum limits depend a lot on the platform and the payment method you are using. For the highest withdrawal limits, consider transferring directly to your bank.
Are there trading limits?
Limits on trades depend on the platform you’re using. You would have to find this out for your chosen platform.
Can I access my entire trading history on a CFD platform?
Yes. You’ll typically find this somewhere in your settings.
Is it easy to switch CFD platforms?
Yes. And if you want to, you can use multiple platforms at the same time.
Can deposits be made in cryptocurrency or just fiat currencies?
Some platforms, such as LiteForex and FXChoice, allow you to deposit in cryptocurrencies. More often than not, however, you’ll need to make deposits in fiat currencies – such as the GBP or CAD.
Do I have to pay tax on any profits made through bitcoin CFD trading?
This depends on the country you are living in so check with the relevant tax authorities to ensure you fully understand the taxes you may be responsible for paying.
Are CFD platforms regulated?
Yes. In the UK, the FCA regulates CFD platforms. However, this might vary depending on where you live so check the status beforehand.
Is it possible to short on CFD platforms?
Yes, you can engage in both shorting and longing on CFD platforms to maximize profitability.
Related Bitcoin Trading Content
Contributors
