Finding a legitimate forex broker offering cryptocurrency can be like navigating a minefield.
There are many inexperienced forex brokers that trade crypto as well as plenty of scammers who just want to take your money. On top of that, when you finally find a legitimate broker, you may end up disappointed with their service, professionalism or just their lack of trading options.
But it doesn’t have to be that way.
There are a number of reputable forex brokers out there that are the real thing and know how to handle cryptocurrency.
(This post is part of the best forex platform series)
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Top 10 Best Cryptocurrency Brokers 2020 (Forex Brokers offering Crypto)
Here are our top 10 best forex brokers for cryptocurrency trades.
What is a crypto asset?
When you are considering trading cryptocurrency, you should be aware that there are actually several types of what are termed “Crypto assets”. These can fall into three main categories as follows.
- Cryptocurrencies: This means directly buying and trading a particular crypto at the prices offered, similar to as you would through a crypto exchange.
- Cross-Crypto: These assets are where you trade one asset in a pair with another, for example BTC/ETH. This is just as you would trade with forex currency pairs. These can also be known as Crypto/Crypto Pairs.
- Crypto-Fiat: This is trading cryptocurrency in pairs with regular forex currency. This usually means Crypto on USD, but depending on the broker, more fiat currencies (such as GBP, EUR, and more) may be available.
- Cryptos-Commodities. Trading cryptocurrency in pairs with a commodity (like BTC/XAU)
Trading Cryptocurrencies CFDs
Trading cryptocurrency CFDs is just like trading CFDs on other asset types. With CFDs trading, you will not own the underlying asset, in this case, the cryptocurrency. This is typically one of the two options offered by most forex brokers dealing in crypto. You will likely have the chance to trade them as “real” too. This would mean you own the asset. If you are trading with leverage though, you typically have to trade cryptocurrency as a CFD.
How to deposit Cryptos
The first point to note here is that depositing in cryptocurrency to trade cryptocurrencies with a forex broker is not mandatory. You can also trade crypto from your standard account balance in fiat currency like USD, EUR, GBP, or others.
Some brokers do offer crypto deposits though. In that case, these will typically be quite cheap with few fees charged due to the decentralized nature of cryptocurrency and the ability to minimize fees. It will take a little longer though. Bitcoin and others can sometimes take up to 6 hours and this can vary, not really depending on the broker, but the blockchain.
The one thing you have to be very precise about when depositing crypto with your forex broker is to use the correct wallet address. This can be obtained as part of the account opening process, and if you need to verify policy or information, you should definitely double check with the broker customer support first, as any crypto sent to the wrong wallet address can be very difficult to retrieve.