Licensed bitcoin brokers with the lowest fees have become the preferred choice for lots of crypto traders. Here are some of the best.

While Bitcoin's legal status as a currency faces various challenges to this day, governments around the world are willing to recognize Bitcoin as a commodity. This peculiar situation gave birth to many licensed Bitcoin brokers that facilitate its trading without accepting fund deposits and withdrawals in Bitcoin.

Licensed Bitcoin Brokers With Lowest Fees

Wannabe Bitcoin traders will have to deal with comparatively more expensive fees than their forex and stock counterparts while navigating the fine lines under the laws governing financial transactions. Regardless, Bitcoin is still a popular trading instrument and brokers are racing against each other to provide the best trading environments.

The following is the list of licensed Bitcoin brokers with the lowest fees:

 

eToro

  • Licenses: SEC and FINRA (USA), CySEC (Cyprus)
  • Minimum deposits: USD50
  • Commission: USD0

e-Toro offers the advantage of CopyTrader which is rarely available in other licensed Bitcoin brokers. It allows you to track and identify other top traders on the platform, as well as imitate their trades.

eToro does not charge commissions for cryptocurrency trading, although it does charge a spread dependent on the cryptocurrency being traded -- as do many other brokers. Bitcoin has a 75 basis point markup (0.75%), while more exotic cryptocurrencies can have a markup of up to 500 basis points (5%). Additional fees may apply if you wish to use CopyTrader facilities.

 

IC Markets

  • Licenses: ASIC (Australia)
  • Minimum deposits: USD50
  • Commission: USD0

IC Markets facilitates CFD Bitcoin as opposed to direct trading that is provided by other licensed Bitcoin brokers in this list. Nevertheless, they are suitable for beginners who are looking to take advantage of short-term price fluctuations.

IC Markets offers some of the industry's tightest spreads, 1:5 leverage, outstanding execution, and raw pricing from tier-1 institutions. IC Markets' cryptocurrency CFD products also enable traders to go long or short without actually owning the coin. As such, traders can buy/sell cryptocurrencies without having to worry about the security concerns of storing them or the exchange's counterparty risk.

 

Kraken

  • Licenses: FinCEN (USA), FINTRAC (Canada), FCA (UK), and AUSTRAC (Australia)
  • Minimum deposits: USD1
  • Commission: 1.5% (lower with KrakenPro)

Kraken is a cryptocurrency-specific exchange that allows you to trade in dozens of different digital currencies rather than mere bitcoin trading. Kraken deserves to stay on this list as it is one of the cheapest crypto exchanges nowadays.

Kraken will charge a 1.5 percent fee, or 0.9 percent for stablecoins, with extra fees if you use a card and fund with a bank. A premium tier dubbed Kraken Pro is available for more active traders, with fees ranging from 0.16 percent to 0.26 percent.

 

Robinhood

  • Licenses: SEC and FINRA (USA)
  • Minimum deposits: USD0
  • Commission: USD0

When it comes to buying cryptocurrencies directly, Robinhood is a fantastic alternative. You'll also be able to benefit from Robinhood's user-friendly interface and commission-free scheme. If you're looking to build a diverse portfolio, you may also trade stocks and ETFs for the same cheap price on the same platform. However, any deals will still be subject to a built-in spread markup.

 

Webull

  • Licenses: SEC and FINRA (USA), FCA (UK), SFC (Hong Kong)
  • Minimum deposits: USD1
  • Commission: USD0

Webull charges a spread markup of 100 basis points (1 percent of the price) on both sides of a trade, but there are no commissions on crypto trades (or equities and ETFs). Bitcoin, Ethereum, and Cardano are among the cryptocurrencies that can be traded here. Webull is also an excellent choice if you are looking for licensed Bitcoin brokers with the lowest fees, advanced charting features, and a great mobile app.

These five options will be perfect for beginners and experienced Bitcoin traders alike. Visit their respective website to learn further about the features you're interested in or check other crypto broker reviews to see various exciting alternatives.