Cryptocurrencies have been with us for more than a decade, and their popularity has grown enormously over that period. To invest in this phenomenon, however, a trader needs to have either a broker or a crypto exchange as a business partner.
Trading cryptocurrencies is an exciting phenomenon that has overtaken the investment community in recent years. Crypto assets tend to be very volatile, implying a high degree of risk, but there are ways to profit from this market. Choosing a broker is the first step and making a comparison of features for your final decision is highly advised. We have a tool for performing this comparison. Choosing a qualified and reputable crypto broker in the UK can at first appear to be an overwhelming task, but we are here to assist you in that effort. We have reviewed the crypto landscape and produced a list of the best crypto brokers in the UK for your consideration.
Depending upon your individual needs as an investor or trader, one of these top-ranked entities can surely provide the level of performance that you expect in this new market experience. So, whether you need help with opening an account in the UK or you want to learn more about key information such as crypto broker fees, our guide is here to help you. Use it wisely and enjoy your crypto journey.
Risk Warning: Trading financial products on margin carries a high degree of risk and is not suitable for all investors. Losses can exceed the initial investment. Please ensure you fully understand the risks and take appropriate care to manage your risk.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
78.8% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
RISK WARNING: Derivatives are complex instruments and come with a high risk of losing money rapidly due to leverage. A high percentage of retail investor accounts lose money when trading derivatives with this provider. You should consider whether you understand how derivatives work and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. UK: 68.61%, EU: 77.99% of retail investor accounts lose money when spread betting or trading CFDs with OvalX. You should consider whether you understand how spread bets or CFDs work and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can result in losses larger than your initial stake or deposit.
Trading Derivatives carries a high level of risk to your capital, and you should only trade with money you can afford to lose. 75% of retail investor accounts lose money when trading CFDs with this provider. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary.
The safest way to buy bitcoin today is through an exchange or broker that will store your coins in what is called ‘cold storage’. This service is like an electronic wallet, which you can buy separately, but you do not need to worry about storing your address credentials, known as ‘private keys’. If you lose your ‘keys’, however, you will lose access to your crypto assets – ‘No keys, no coins’ is a common lament.
The steps to buy bitcoin are straightforward with most brokers:
Many global brokers today have chosen to offer an alternative method for trading crypto that involves the use of a derivative. With these brokers, investors and traders have chosen to trade in contracts for difference (CFDs) to avoid these ownership issues. A crypto CFD does not require ownership of the underlying crypto asset. CFDs are a wager between you and your broker over the direction that a specific asset or security might take in the future.
Unfortunately, the Financial Conduct Authority (FCA) in the UK has banned the trading of crypto derivatives such as CFDs as of January 2021. In mid-2021, the FCA also banned Binance, the world’s largest crypto exchange, from operating in the UK in a crackdown on the crypto community due to high casualty rates and non-compliance with anti-money laundering (AML) statutes.
Traditional buying and selling are not banned, but UK investors have been surveying offshore brokers as an alternative. Using an offshore broker can be a very risky proposition, unless you choose a reputable broker that is regulated by a major regulatory agency. Several brokers in the above list conduct operations across the globe, and in some cases may permit UK citizens to trade CFDs from an offshore account.
Opening a crypto account in the UK is a straightforward process. Your chosen broker will list the AML and Know Your Customer (KYC) documentation, which must be submitted to verify your identity and address. Approval can occur quickly or in one to three days if there is a problem. At this stage, you might be wondering, what should I ask my crypto broker?
Here are a few areas where you may want additional details:
Choosing a crypto broker can take as much time as you are willing to invest in the task. The long approach involves gathering information on the industry, selecting candidates, evaluating your alternatives, opening and funding an account, and then trading. A number of key items factor into this process, such as regulation, fees, crypto portfolio offerings, customer service, safeguarding approach, a good trading platform, mobile app, and tools and features.
Gathering information on the crypto community of brokers and exchanges can be a time-intensive exercise, but we have shortened this process for you by providing a list of highly rated prospects in the table above. We also have comparison tools to assist in your assessment of your final candidates.
Crypto fees primarily come in three varieties: trading spreads, deposit or withdrawal fees, and interest charges on margin accounts. Trading spreads in the UK can range from as low as 0.06% to as high as 1.49%, when canvassing the top dozen brokers and exchanges. The average is roughly 0.50%. Deposits are typically free, but withdrawals may vary to cover banking costs. Margin interest rates are typically disclosed on the broker’s website.
How to become a crypto broker in the UK
A prospective crypto broker, assuming that the correct experience, credentials and funding are in place, will need a licence from the FCA to operate, a safe and secure trading platform and website, and relationships with other brokers, exchanges and liquidity providers. Banking relationships are a necessity, as well as being overly tested before going live.
What is a crypto broker?
A crypto broker is a market maker in the crypto coin you wish to trade, which can be handled in two ways. The traditional method is to buy and own the asset. The second way is to buy a CFD from your broker, which does not require actual ownership of the underlying asset. Selling short is much easier with a CFD. CFDs also minimise security issues tied to crypto ownership.
Can you trade crypto on forex?
You do not need a specialised trading platform to trade cryptocurrencies. They are very similar to trading forex, in that they come as a pair, typically versus the USD or EUR, but often versus other crypto tokens. Trading platforms, technical analysis, charts and indicators behave similarly, except for the fact that crypto tends to be more volatile.
How does a crypto broker work?
A crypto broker can sell you an asset directly or sell you a derivative, which does not require transferring title to the underlying crypto. In this case, the trader is speculating on the direction that prices might take in the market over time. These crypto derivatives can include CFDs, options and futures. The FCA currently bans CFD trading in the UK.
Not a Fee, But ‘Long-Term Payment’ — How Crypto Exchanges List Tokens (cointelegraph.com)