Our Top Picks for the Best Bitcoin CFD Brokers
If you’re looking for the best Bitcoin CFD brokers, it can feel overwhelming.
A Bitcoin CFD broker lets you invest in Bitcoin without ever actually owning any of the cryptocurrency, meaning you can just open an account with the broker, deposit some money, and start trading. Of course, it’s not quite that simple, which is why we’ve put together our favorite platforms for you to help you make the best decision for your needs.
Our Favorite Overall CFD Broker: eToro
eToro is a great option if you want to copy the trades of other successful traders. This is called social trading, and it’s a great way to learn from the best.
eToro also has a very user-friendly platform that is perfect for beginners. They offer a demo account so that you can practice trading before you start investing your own money, plus they are regulated.
One of the downsides, however, is that they only offer leverage as high as 5x, which is considerably low compared to the competition.
For more information, check out our detailed eToro review.
Social trading platform where you can trade crypto alongside stocks and assets.
Our Favorite CFD Broker for Beginners: Plus500
If you’re new to investing in Bitcoin, Plus500 is a great place to start. They have a very user-friendly platform that is perfect for beginners. They also offer a demo account so that you can practice trading before you start investing your own money.
They are one of the few brokers that lets you trade Bitcoin with leverage as high as 300x for some instruments. Leverage means that you can control more money than you have in your account.
Plus500 is also a regulated broker, which means that your money is safe, plus they are also listed on the London Stock Exchange, so you can be sure that they are a reputable company.
One potential dealbreaker is that they don’t accept US customers due to CFD trading restrictions in the U.S. Also, while the platform features intuitive functionality, advanced traders will find it hard to incorporate third-party analytical tools.
A CFD trading platform offering crypto price exposure without ownership.
Other Top CFD Brokers
There are plenty of good CFD brokers to choose from. Check out some of our picks for these best options for trading CFDs:
AvaTrade – Best for experienced traders
If you’re an experienced trader, AvaTrade is a great choice. Apart from Bitcoin CFDs, they offer a broad variety of tradeable instruments including stocks, commodities, and indices.
This forex and CFD broker features different tools and functions that cater to different types of traders. They also offer a demo account so that you can practice trading before you start investing your own money, as well as social trading features to help you launch your trading journey.
The downside is they are not regulated by FCA, as is the case with most brokers on this list. Another issue is that, even though they offer negative account balance protection, the amount of leverage they offer is not as high as some of the other brokers.
Pros
- An impressive list of educational resources
- Features social trading
- Comes with no commission trading for professional traders
- Offers a broad variety of tradable assets
- Features support for automated trading
Cons
- Not regulated by FCA
- Unavailable in the U.S
- Retail traders can pay hefty fees
SimpleFX – Best for Bitcoin CFD Trading
SimpleFX is a great platform if you want to trade Bitcoin CFDs. They offer leverage as high as 500x, which is more than most other brokers on this list.
Another plus is that they have very low spreads and feature some of the most intuitive CFD trading tools you can find. Whether you are just getting started or are an advanced trader, SimpleFX makes a great fit, especially with their demo accounts that let you practice with zero risk.
However, while they offer leverage as high as 500x on some instruments, Bitcoin CFD is only offered 2x maximum leverage. What’s more, you are required to place a 50% initial margin for cryptocurrency leverage. So, if you are looking for a high leverage broker that exclusively trades Bitcoin CFDs, SimpleFX is not the best choice.
Pros
- Offers high leverage on some instruments
- Has low spreads with low fees
- Features intuitive trading tools
- Demo account available
- Available in 160 countries
Cons
- Not regulated by major financial authorities
Moneta Markets
Moneta Markets is another contender for trading Bitcoin CFDs. They offer high leverage, low fees, and a user-friendly platform. Founded in 2020 and a subsidiary of Vantage International Group (a company that has been operating since 2009), Moneta is a regulated forex and CFD trading platform.
One of the best aspects is that they don’t charge any funding fee for deposits and you can deposit funds with a variety of options, including Bitcoin. The platform also features support for multiple languages with round the clock customer support.
Pros
- Wide range of trading instruments
- Straightforward funding process
- Offers plenty of research support
- Features MT4 and MT5 platforms
- Offers competitive fees on ECV accounts
Cons
- Not available in the U.S
- minimum deposit requirement is high
How to Choose the Best Bitcoin CFD Broker
It is important to choose a broker that is regulated by a major financial authority such as the FCA, SEC, or ASIC. This will ensure that your broker is operating legally and that your funds are safe.
Another thing to look for is the range of tradable assets offered by the broker. The more assets offered, the better. This gives you more flexibility in terms of choosing which markets to trade.
The fees charged by the broker are also important. Some brokers charge a commission, while others only make money from the spread. Make sure to compare the fees charged by different brokers before making a decision.
Lastly, choose a broker with a user-friendly platform that is fast to learn and has all the features you need to trade effectively.
What are Bitcoin CFDs?
Bitcoin CFDs are contracts for difference, which let you speculate on the price of Bitcoin without actually owning the underlying asset.
CFDs are a popular choice for traders because they offer high leverage, which means you can speculate on a large position with a small amount of capital.
For example, if you wanted to buy $10,000 worth of Bitcoin, you would only need to deposit $100 with a broker that offers 1:100 leverage.
CFDs also have other advantages such as the ability to go short (sell) as well as long (buy), which gives you more flexibility in your trading.
What Are the Risks of Trading Bitcoin CFDs?
Bitcoin CFDs are a leveraged product, which means you can lose more money than you have deposited in your margin account. It is important to use stop-loss orders to limit your losses.
Another risk to consider is the potential for gaps in the market. This could happen if there is a sudden drop in the price of Bitcoin.
Finally, it is important to remember that CFDs are speculative products, and there is always the risk of losing all your capital.
What Are the Benefits of Trading Bitcoin CFDs?
Bitcoin CFDs offer many benefits, including high leverage, the ability to go short as well as long, and the ability to trade on a wide range of assets.
CFDs are also a flexible product, which means you can tailor your trading strategy to suit your individual needs.
What’s the Difference Between Bitcoin CFDs and Buying BTC?
The main difference between trading Bitcoin CFDs and buying Bitcoin is that with a CFD you never actually own the underlying asset.
This means that you don’t have to worry about storing or safeguarding your Bitcoin. It also means that you can trade on the price of Bitcoin without actually owning any of the cryptocurrency.
Another key difference is that with a CFD you can go short as well as long. This means you can profit from both rising and falling prices.
However, it is important to remember that Bitcoin CFDs are a leveraged product, which means you can lose more money than you have deposited in your margin account.
Is it Legal to Trade Bitcoin CFDs?
Yes, it is legal to trade Bitcoin CFDs in most countries. However, it is important to check the regulations in your country before you start trading. For instance, in the United States, CFD trading is only available to clients of OTC brokers.
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