Trading crypto CFDs can be an easy way to profit from the cryptocurrency price. However, not all brokers provide the best spreads for it.
In recent years, there has been a host of low-spread forex and CFD brokers that have begun to offer cryptocurrency CFDs to their traders. The offer was especially popular in 2017 when there was a huge crypto bull market. It has since continued to be attractive to traders and brokers alike. As such, it has become a staple offering among financial instruments.
Trading cryptocurrencies via CFDs might be ideal for traders who merely want to speculate on price movements without actually owning a specific digital currency. Such traders will then leverage their positions which will allow them to only pay a fraction of the total cost upfront while gaining exposure to several cryptos from one trading account.
One major factor that separates crypto trading from regular forex trading is that the crypto markets are continuously open for 24 hours each day and 7 days each week while for the forex market, there is no trading activity on weekends as the markets are closed during such periods.
However, for practical reasons, many low-spread brokers that offer crypto CFDs have chosen to adopt virtually the same trading hours as the forex market. This is why it is rare for crypto CFD trading to occur on weekends.
Let us now examine six low-spread brokers that are ideal for trading crypto CFDs.
This is the most ideal choice for traders looking to trade crypto CFDs via the MetaTrader 5 platform. It was established in 2007 and has been the leading Australian online broker that is mainly focused on forex trading but also offers traders the opportunity to trade crypto CFDs. IC Markets has a range of trading platforms for traders to choose from which include MetaTrader 4, MetaTrader 5, and cTrader while traders can also enjoy the benefit of true ECN execution.
See Also: How to Trade Crypto CFD on IC Markets
IC Markets operates in compliance with strict regulations as upheld by two of the most reputable financial regulatory bodies in the world which are the ASIC and CySEC. Being regulated by these two bodies enables the broker to operate in large markets such as Australia and Europe. IC Markets is a true ECN CFD broker due to its pool of 25 top-notch liquidity providers. This enables the broker to make true ECN pricing available with no dealing desk order execution and no requotes on its MetaTrader 5 platform.
IC Markets puts no restrictions on limit orders while there are no limits on trade sizes. Clients can also use hedging on their positions while using the MT5 software. There are 18 cryptocurrencies and counting that IC Markets make available for CFD trading, all of which are paired with the USD. Some of the most notable ones are Bitcoin, Bitcoin Cash, Dogecoin, Ethereum, and Ripple.
Trading is available 24/5 with no commissions and a maximum leverage of 1:5. The minimum spread offered by the broker is 8.710 pips for BTC/USD trading and 2.210 pips for BCH/USD.
IC Markets is an online forex broker operating under the company of International Capital Markets Pty Ltd. Traders under the Australian jurisdiction are provided with the trading service of IC Markets AU that is headquartered in Australia and licensed by the Australian Securities and Investments Commission (ASIC).
On the other hand, non-Australian traders who open an account in this broker are registered under IC Markets SEY that is based in Seychelles, and regulated under the Seychelles Financial Services Authority (SFSA). The dual operation is a result of the relatively new rules from ASIC that prohibit their regulated broker to offer trading services outside Australia.
Classified as an ECN broker, IC Markets provide clients with MetaTrader 4, MetaTrader 5, cTrader as platform trading options. This broker also follows market trends to include Cryptocurrencies as one of its products, enriching its already wide selection of trading assets that include Currencies, Indices, Metals, Energies, Softs, Stocks, as well as Bonds.
The minimum deposit in IC Markets is in the middle range compared to other ASIC-regulated brokers, as it reaches $200 for every client. Market analysis materials are also prepared regularly for trading insights on IC Markets's official website, proving their competence to serve their traders with important contents created by market experts that work specifically for them.
For payment methods, IC Markets allows funding and withdrawal via wire transfer, credit card, PayPal, Skrill, Neteller, FasaPay, UnionPay, as well as Bitcoin via BitPay. The more interesting aspect from this broker is its multi-base currencies that include USD, AUD, EUR, GBP, SGD, NZD, JPY, CHF, HKD, and CAD.
As the trading technology in IC Markets is highly equipped with co-located servers and extremely low latency (especially on cTrader), the broker is widely known for its capability in hosting traders with the special needs for high-frequency trading as well as scalping.
To sum up, IC Markets is a fitting destination for active traders looking for a well-regulated broker. IC Markets is also flexible in terms of base currency and payment methods, signaling their commitment to welcome traders beyond their home country. As of late 2019, IC Markets provided their website in 18 international languages including English, Korean, Indonesian, French, Spanish, Italian, Malay, German, and Chinese.
FP Markets is one of the best brokers for crypto CFD trading using MetaTrader 4 because it optimizes the features of the platform for crypto CFD trading. The broker also offers ECN trading conditions which makes it more favorable for traders. FP Markets was established in 2005 and has grown into one of the most reputable online brokers in the world that has adopted an ECN pricing model. This broker is regulated by CySEC which allows it to operate across Europe and ASIC which enables it to operate in Australia.
With the ECN model adopted by this broker, it makes it possible to deliver tight spreads even on its cryptocurrency CFDs. There are 11 cryptocurrencies available for CFD trading at the time of this writing with a maximum leverage of 1:2. The minimum spread FP Markets offers on Bitcoin is 4.5 pips. For other cryptocurrencies, this broker can even provide spreads as low as 0.0010 pips.
FP Markets streams price data directly from its deep pool of liquidity providers which enables the broker to ensure that its clients get the highest level of price transparency. It also allows the broker to offer ultra-low spreads across its product list of CFDs along with incredible order execution with little or no slippage.
Clients of FP Markets have access to institutional-grade liquidity which will allow them to make the most of no dealing desk execution along with an absence of requotes on the MetaTrader 4 platform of the broker. Due to the location of the broker's MT4 server in the Equinix NY4 data center, FP Markets can provide ultra-low latency and a high speed of order execution at 37ms for its clients. Even though FP Markets offers a limited number of cryptocurrencies for CFD trading at 11 (Bitcoin, Litecoin, Bitcoin Cash, Ethereum, Ripple, Cardano, Stellar, Chainlink, EOS, Polkadot, and Dogecoin), it is still the best broker for crypto investors that are looking to engage in low-spread crypto CFD trading.
AvaTrade is a leading global forex and CFD broker with authorization and regulation to operate across five continents by some of the most reputable financial bodies. It also has one of the largest numbers of cryptocurrency offerings with 17 available while also providing competitive fixed spreads for crypto CFDs.
CFD trading can be carried out on their digital currencies 24/7 which makes it the only broker on this list that offers weekend cryptocurrency trading. Also, there are no bank fees or commissions on transactions. One major advantage of AvaTrade over other CFD brokers is that the crypto CFDs are presented with a maximum leverage of 1:25.
The cryptocurrency CFD product list offered by AvaTrade includes Bitcoin and it is structured in such a way that it can be traded against three different fiat currencies namely: Euro, US dollar, and Japanese Yen, in which:
- Bitcoin/Euro (BTC/EUR) – spread of 0.30% over-market, leverage at 1:20
- Bitcoin/US dollar (BTC/USD) – spread of 0.20% over-market with leverage of 1:25
- Bitcoin/Japanese Yen (BTC/JPY) – spread of 0.30% over-market with leverage of 1:20
The remaining list of cryptocurrencies offered by AvaTrade includes Ethereum, Ripple, Dash, Bitcoin Cash, Stellar, NEO, EOS, Bitcoin Gold, Litecoin, etc. There is also a cryptocurrency index known as the Crypto 10 index that increases the exposure of clients to the cryptocurrency market.
Avatrade can be called one of the most well-rounded brokers that support almost all trading styles. Not only allowing hedging, scalping, and expert advisor (EA), Avatrade also completes their service with One-cancels-the-other order (OCO) and AutoTrading in many variants of automated trading systems.
AvaTrade was founded in 2006, with the primary mission to empower people to trade with confidence. If traders are still confused about what is the best broker for supporting trader's trading, AvaTrade perchance option of traders, because it has been evaluated and honored for some of the industry's most remarkable financial and technological achievements that it provided to clients.
In 2019, the Dublin-based broker got achievement from Daytrading.com as The Best Forex Broker 2019. Besides, the company is honored as Best Forex Broker, Best Bitcoin CFD Trading Provider of the year, and Best Affiliation Programme in the European area.
Furthermore, for traders who have high mobility, AvaTrade provides many platforms that allow traders to trade using laptops and mobile phones. The availability of the free Autochartist tool in the platforms is the best support for both novice and experienced traders because it makes it easier for them to find trading opportunities without the need to glance at charts all day.
The Autochartist free signal is provided in Gold Account, Platinum Account, and AVA Select. By opening an account in AvaTrade, traders don't have to pay for getting a full Autochartist service. Autochartist itself is a market scanner tool that can detect trading signals from various technical perspectives.
Traders can access AvaTrade in many variants of platforms, such as AvaTradeGO, MetaTrader 4, MetaTrader 5, Automated Trading, Mac Trading, Web Trading, Mobile Trading, and AvaOptions.
In terms of regulation, AvaTrade is regarded as a superior broker because it has a lot of credible licenses. That way, even with deposits of up to ten thousand dollars, security can be guaranteed. Applying the Segregated Account system, AvaTrade is regulated by the Central Bank of Ireland (No.C53877), ASIC Australia (No.406684), JFSA Japan (No.1662), and South Africa (FSP 45984).
Can traders lose more than their deposit abruptly in the event of high volatility? AvaTrade explicitly answers no, as traders have negative balance protection.
With a minimum deposit of USD100, AvaTrade offers various leverage depending on the trading instruments; whether it is forex (starts from 30:1), indices (starts from 20:1), commodities (starts from 5:1), ETFs (starts from 5:1), or cryptocurrencies (starts from 2:1).
AvaTrade has committed to a set of values in relation to customers. Therefore, the company provides the best trading experience, offering multilingual customer service and the most sophisticated and user-friendly trading platform.
New traders can also learn forex trading in the Education tab on AvaTrade's official website. Traders will find a wide collection of articles, video tutorials, and more tools that will assist them every step of the way. It is an important requirement as the forex market might be a bit overwhelming and even scary at times, so traders need to make sure that they are fully prepared to begin trading in the real account.
There are many types of account types provided by AvaTrade. There is also an Islamic Trading Account, which is uniquely provided for Muslim Traders. Islamic account type is similar to a regular one with one key difference; it is not subject to any special fees or interests (swap-free), which sits well with the finance principles of Sharia Law.
If traders have felt confident for forex trading, traders can choose AvaTrade as an ideal choice. The minimum deposit and various platforms offered to make it a suitable destination for even beginners who would like to try forex trading for the first time.
This broker is based in Australia and is a leading cryptocurrency trading platform providing CFD trading on the 19 biggest cryptocurrencies in the world. There are narrow spreads on Bitcoin along with minimum trade size increments without additional commission fees. The broker is regulated by some of the most reputable financial regulatory bodies in the world such as FCA, ASIC, and CySEC.
Pepperstone enables trading cryptocurrency CFD on three of the most popular platforms: cTrader, MT4, and MT5. The cryptocurrencies offered by Pepperstone include Bitcoin, Dash, Ethereum, Litecoin, and Bitcoin Cash along with variations on crypto pairs and indexes.
To engage in crypto CFD trading, clients do not need a cryptocurrency exchange or a crypto wallet as they only need to speculate on the price movements. Pepperstone also adopts the ECN model which allows it to provide fast order speeds and interbank spreads.
In terms of the cost, the clients of Pepperstone are charged a minimum spread of 30 pips on Bitcoin and a commission rate of $3.5 (limited to Pepperstone Razor account).
Overall, Pepperstone is a top-notch CFD broker for cryptocurrency trading with a highly-rated software solution, ultra-low fees, fast execution speeds of 30ms, and innovative crypto products. There is a demo account available and it is unlimited thus allowing clients to take their time to test out their strategies in crypto CFD trading.
Pepperstone was founded in 2010 by a team of experienced traders with a shared commitment to improve the world of online trading. Based in Melbourne, Australia, they grew to become one of the largest forex brokers in the world. If traders want to find a broker that provides low spreads, fast execution, and award-winning support, then the answer is Pepperstone.
Pepperstone has a strong legality guarantee because it has been licensed by the Australian regulator ASIC and FCA. Traders' funds can be deposited in segregated accounts at top Australian banks, one of which is the National Australia Bank (NAB). Therefore, the safety of funds is not a concern if a trader chooses to open an account in Pepperstone .
They succeeded in collaborating with 23 top banks to bring Bid to investors instantly via optical fiber. This allows all orders to be executed 100 percent automatically with low latency up to 0.05 milliseconds, without dealing desk intervention and requotes, as well as with super low trading costs.
Trusted by over 73,000 traders around the world, Pepperstone processes an average of USD12.55 billion of trading volumes every day. Because of that, they have many awards such as:
- The Best Global Forex ECN Broker 2019 and Best Forex Trading Support-Europe
- Best Australian Broker and Best Trading Platform 2018 by Compareforexbrokers.com
- Best Forex ECN Broker, Best Forex Trading Support, and Best Forex Trading Conditions by UK Forex Awards 2018
With the many rewards gained, Pepperstone hopes to attract more and more traders from all over the world. The rising performance of Pepperstone is not only due to the super-tight spreads and fast execution that it provides, but also because many traders are interested in trading with deposits in currencies other than US Dollars.
For this reason, Pepperstone is one of the most market-responsive brokers because it is willing to accept deposits in 10 currencies, which include AUD, USD, EUR, CAD, GBP, CHF, JPY, NZD, SGD, and HKD.
Trading in Pepperstone would allow traders to choose between 11 trading platforms: MT4 for desktop, MT4 Mac, MT4 iPhone, MT4 Android, MT4 iPad/Tablet, MT5, WebTrader, cTrader WebTrader, cTrader cAlgo, and cTrader Mobile. The choice of trading platforms may seem confusing to novice traders, but actually, it is very useful because it has fast execution.
When trading forex, traders can enjoy raw spreads from 0.0 pips on Razor accounts, over 61 currency pairs, and commission-free account funding on a wide range of deposit options. In addition to currency pairs, Pepperstone provides many types of trading instruments, including CFDs for indices and shares, commodities, and cryptocurrencies.
Instruments in commodity trading are pretty much diversified. Not only metal, gold, and silver, but traders can also trade with soft commodities such as cotton, sugar, coffee, cocoa, and orange juice. Pepperstone also provides trading on energy (oil and gas).
There are two types of accounts provided by Pepperstone, namely Razor accounts, and Standard accounts. If you area beginner, it is recommended to choose a Standard account with an average EUR/USD spread of 1.0-1.3 pips and free commission.
Those with particular trading styles such as scalpers and algorithmic traders may enjoy the lower cost setup traditionally seen in a Razor account, with a commission from AUD7 round turn of 100k traded. The initial deposit starts at USD200 with a minimum lot of 0.01 (micro) and 1:500 leverage.
As a Pepperstone client, a trader can fund and withdraw with alternative methods including Visa, Mastercard, POLi internet banking, bank transfer, BPay, PayPal, Neteller, Skrill, and Union Pay.
If you are new to trading or looking to practice your trading strategies in a risk-free environment, you can create Demo Account in Pepperstone. But if you are an experienced trader or prefer to learn by doing, Pepperstone provides a Live Account that allows you to trade with live executions and pricing.
Traders can also follow and copy strategies from popular traders using third-party services while learning how to improve their trading abilities. Pepperstone has partnered with a range of social trading platforms that traders can choose from, such as Myfxbook, ZuluTrade, Mirror Trader, MetaTrader signals, and Duplitrade.
This is a broker that offers a huge amount of educational resources that are useful to beginners. IG has an immense reputation as a forex and CFD online broker and it is regulated across ten jurisdictions in the world including the FCA in the UK, ASIC in Australia, and CFTC in the United States.
IG offers crypto traders the opportunity to either trade 12 individual cryptocurrencies (including Bitcoin, Ripple, Ethereum, EOS, and Litecoin) or gets wide exposure through the Crypto 10 index. The margin requirements for retail clients on all crypto CFDs stand at 50% although larger positions might need a higher margin as determined by the margin tier system of IG. As for the minimum spread, traders can trade Bitcoin on this broker with spreads starting from 36 pips.
IG Markets is an online trading provider with decades of experience in the financial market. Founded in 1974, the world-leading company has gathered more than 178,000 clients worldwide with over 16,000 markets reached as of 2019. IG Markets is authorized and regulated by the Australian Securities and Investment Commission (ASIC). It is also important to note that being established in 1974 makes IG Markets one of the forefront online CFD brokers. Their service has expanded to 15 countries across five continents.
Aside from famous for its reliable experience, IG Markets is also known for its truly broad range of trading instruments. In fact, the broker has long been regarded as one of the most accomplished companies in offering the most trading assets to clients. The wide choice of instruments includes forex pairs, 26 indices, over 12,000 shares, hard and soft commodities, cryptocurrencies, as well as other markets such as bonds, rates, and options.
Forex trading in IG Markets is provided in two ways: CFD and DMA (Direct). Here are the conditions for each type of trading:
- Minimum spread: 0.6 pips
- Commission: None
- Platforms: Web, mobile apps, MT4, ProRealTime, L2 Dealer, terminals and APIs
- Trading size: Contracts
- Demo account: Yes
- Minimum spread: No details
- Commission: from $10 per $1 million traded
- Platforms: Web, mobiles apps, L2 Dealer, terminals, and APIs
- Trading size: Lots
- Demo account: No
Both ways of trading are available for all clients. However, DMA does not enable trading in MetaTrader 4. Clients are also not allowed to trade in a demo account for virtual trading. It is essentially a type of trading reserved for experienced traders with high necessity for the best pricing in the market, as DMA offers market depth from a range of exchanges (including full market depth from the LSE).
Trading platforms in IG Markets are accessible via web, mobile app, and desktop. They are offered with 2 main varieties: Core Platforms and Specialist Platforms. The core platform is meant for all types of trading with the add-ons of DMA, ProRealTime access, and Forex Direct. Meanwhile, Specialist Platforms consist of L2 Dealer, ProRealTime, and MetaTrader 4.
The first two platforms charge fees that include minimum $2000 balance and monthly fees for shares data and level 2 prices (for L2 Dealer), as well as platform fees amounting to $40 per month and monthly fee for shares data (for ProRealTime).
IG Markets does not require a minimum balance to open an account. It also provides a swap-free account that frees clients for any interest, rollover, or swap charges on overnight positions. Yet, All costs and charges are built into the spread. This account suits well with long-term traders who need to keep their positions open for days or even weeks.
For beginners, IG Markets builds an IG Academy that gives interactive education and online trading courses. This way, clients can get a grip on the financial markets with the essentials of trading provided in infographics, video explainers, and end-of-course quizzes. Even better, the IG Academy is already integrated into its mobile app so clients can always learn about financial markets in much more efficient ways.
In conclusion, IG Markets is a client-friendly broker with more than 40 years of experience to back up its credibility. Their efforts and commitments to provide the best varieties of trading platforms are proven in the unique Core and Specialist Platforms.
Traders with little experience can apply to Forex CFD account in either Core Platforms or MetaTrader 4, while professionals can achieve the best experience in the financial market with IG Market's DMA trading and L2 Dealer or ProRealTime platforms.
Plus500 has a reputation as a top CFD broker and was also recognized as having one of the best cryptocurrency trading platforms with a wide range of digital coins available for trading. It is regulated by top-tier financial bodies such as FCA in the United Kingdom, CySEC in Europe, and ASIC in Australia.
Plus500 offers a highly competitive range of cryptocurrencies as traders can trade 19 cryptocurrency CFDs along with a crypto index with a maximum leverage of 1:30. Under the negative balance protection policy of this broker, retail investor accounts cannot incur losses that exceed the initial amount deposited when trading CFDs. The spread offered by this broker on crypto CFDs varies depending on a specific digital coin. For Bitcoin, the spread starts from 49.66 pips.
Overall, this broker empowers its clients that have a significant interest in crypto trading through favorable trading conditions. There is also a demo account where clients can test-drive trading CFDs and see how their strategies fit.
Plus500 is a UK-based company with its main offices located in the city of London. The company is authorized and regulated by FCA. For traders who are looking for a broker with top-tier regulators, Plus500 can be the right choice.
Plus500 offers 2,000 instruments to over a million clients. List of instruments available for trading with their CFD service include forex currency pairs, indices, cryptocurrencies, commodities, shares, and ETFs. Traders can choose instruments suitable for their needs.
Regardless, beginners should be extremely cautious while choosing their assets, as it can get daunting, confusing, and inherently risky.
When traders open an account, Plus500 will hold traders' funds on a segregated basis, following FCA's client money rules. Traders do not need to worry about Plus500 using their funds for hedging, as it is strictly prohibited to use clients' funds for this purpose.
Other advantages when trading in Plus500 are tight spreads and no commissions. The company only offers a single type of account, but traders can update the account from Retail to Professional by following some standards.
To apply Professional Accounts, traders have to fulfill at least 2 of the following 3 criteria eligible, such as sufficient trading activity in the last 12 months, financial instrument portfolio of over 500,000 Euro, and relevant experience in the financial services sector.
Plus500 is well-regarded for its services through the market spread, leverage up to of 1:30 for Retail Accounts, and leverage up to of 1:300 for Professional Accounts. Plus500 tries to give a sensible choice of leverage, which not only controls the risk but also helps novice traders to exercise more control over their trading emotions.
Founded in 2008, Plus500 provides almost the same features to both Retail and Professional account, including clients' money protection, negative balance protection, best execution for orders, clear and transparent information, as well as financial services compensation scheme. Still, Professional account is more advanced as it has access to FOS.
Based on the statistics, 76.4% of Retail account owners in Plus500 lose money when trading CFDs. Because of that, Plus500 always warns traders to consider their understanding of how CFDs work and their affordability to take high risk of losing money, before starting a trade in Live Account.
Even so, Plus500 has gained the trust of traders throughout the world. They have around 39 million positions opened, 304,000 active customers, and billions of volume trading processed by their system.
Plus500 always tries to give the best services to their clients. One of the ways to reach their goals is by making clients feel confident in their trading activity. They have a simple and easy-to-use trading platform, with an especially well-designed mobile platform. Traders can access the Plus500 platform via web-trader, iPhone/iPad, and Mobile App.
In their platform, traders will get advanced tools such as stop limit, guaranteed stop, free email and push notifications on market events, and alerts on price movements. All of these tools can help traders to navigate the market with better understanding.
As for payment methods, Plus500 provides various choices like Visa or MasterCard, electronic wallets (PayPal and Skrill), and bank transfer (direct bank to bank funds transfer).
For any concerns, troubles, or trading issues, traders can contact Plus500's customer service that is available 24 hours a day and 7 days a week. The official website of Plus500 can be accessed in 24 languages.
Overall, Plus500 has some advantages and disadvantages. As it has a license from an elite regulator, traders can feel safe when trading in Plus500. It also provides a 24/7 support team to help traders. But, offering leverages up to 1:300 is not suitable for high-risk traders, such as scalpers, who indulge in high-frequency trading that holds positions in the market for a brief period and typically use high leverage.
The article has examined six different low-spread CFD brokers that offer crypto trading and their specific features. This does not mean they are the only brokers that offer such services as there are more such brokers in the market. It is up to prospective traders to carry out further research and decide the broker that suits them the most and will give them the most favorable conditions to maximize profit.
In the end, what you always need to remember is that there is a high risk of quickly incurring losses when trading CFD accounts, especially when leverage is involved. This is why it is advisable for traders with little to no experience to adopt strict money management and maximize the whole range of risk management tools to protect their positions. This is even more needed for the cryptocurrency market due to its extreme volatility.