Cryptocurrencies have been on quite the ride since being introduced, with some early investors seeing sizable gains, while those who bought at the peak are yet to fully recover from their losses. The digital coins have sparked much debate in the investment industry about their investment merits and viability, with legendary investors such as Warren Buffett saying cryptocurrencies are essentially worthless.
Recent years have seen a wave of both positive and negative news for the crypto industry. Crypto exchange FTX collapsed and top executives were charged with crimes, while other exchanges including Binance and Coinbase faced charges from the Securities and Exchange Commission. Still, the SEC approved several spot Bitcoin ETFs in early 2024, giving traders a simple structure to buy and sell the largest cryptocurrency in the world.
While some traders like to own the currency directly, others turn to the futures market. Futures may be an even more attractive way to play the volatility of digital currencies such as Bitcoin, because they allow traders to use leverage to magnify their gains (but also magnify losses). But futures involve a lot more risk in exchange for that potentially higher reward.
Where you can buy and sell cryptocurrencies
- Traditional brokers: Brokers typically don’t offer direct trading in Bitcoin, only futures, but you will have access to a wide selection of other securities and can often buy Bitcoin ETFs commission-free.
- Crypto exchanges: Specialized crypto exchanges offer the widest array of cryptocurrencies beyond Bitcoin and the other most popular coins. You’ll also be able to own the currencies directly.
- Payment services: Some payment services, such as Cash App and PayPal, also allow users to buy and sell the most popular cryptocurrencies.
Here are the best brokers for cryptocurrency trading, including traditional online brokers, as well as new specialized cryptocurrency exchanges. You might also want to check out which brokers offer the best bonuses for opening an account to determine where you can get a little extra.
Overview: Best brokers for cryptocurrency trading in September 2024
Robinhood
Robinhood is a great option for buying cryptocurrency directly. You’ll also get to take advantage of Robinhood’s wildly popular trading commissions: $0 per trade, or commission-free, though you’ll still be paying a built-in spread markup on any trades. And if you’re into more than just cryptocurrency, you can stick around for stock and ETF trades for the same low price. Robinhood’s slick app makes trading so easy, though those looking for a full-featured trading experience will be disappointed.
- Commission: $0, but built-in spread markup
- Account minimum: $0
Interactive Brokers
Interactive Brokers lets you trade four cryptocurrencies through Paxos Trust Company and Zero Hash, including Bitcoin and Ethereum, for one of the lowest commissions in the market. Customers can also access 24/7 crypto trading through an associated app with Paxos. Plus, IB allows you to buy Bitcoin and Ethereum futures rather than owning the currencies directly. And in this broker’s case, you can buy Bitcoin futures on the Chicago Mercantile Exchange, with contracts costing $5 at five coins per contract or Ethereum contracts for $3 at 50 coins per contract. In addition, Interactive Brokers brings its full suite of investment offerings, so you can buy almost anything that trades on an exchange.
- Commission: 0.12-0.18 percent of trade value; $5 per Bitcoin futures contract
- Account minimum: $0
Webull
Though Webull may be less known than its rival commission-free trading app Robinhood, it provides investors with a solid offering that includes cryptocurrency trading. While you won’t pay commissions on crypto trades (or stocks and ETFs), Webull does charge a spread markup of 100 basis points (1 percent of the price) on either side of a trade. Several cryptocurrencies are available for trading, including Bitcoin, Ethereum and Dogecoin. Charting tools and an impressive mobile app make Webull a broker worth considering.
- Commission: $0, but built-in spread markup of 1 percent
- Account minimum: $1 to trade crypto
Binance.US
Binance is a specialized trading platform that allows you to buy and sell digital currencies, including the largest such as Bitcoin and Ethereum, but also hundreds of other much smaller coins, too. In total, you’ll have access to more than 300 cryptocurrencies. The commission structure at Binance is low and only gets cheaper the more you trade. Trading fees start at 0.57 percent of your trade value (i.e., $57 for every $10,000 traded) and fall from there, depending on your trading volume over the prior 30 days. However, Bitcoin trading is free here.
Binance’s finances came under scrutiny in 2023 after the collapse of FTX. The accounting firm used by Binance to verify its reserves paused its work for all crypto clients and the Securities and Exchange Commission (SEC) said investors should be wary of crypto firm audits. None of the big four accounting firms are willing to work with Binance, according to the Wall Street Journal.
The SEC sued Binance in June 2023, alleging that it had illegally operated as an exchange, broker-dealer and clearing agency and offered and sold unregistered securities. The lawsuit also accused Binance and its founder, Changpeng Zhao, of misusing customer funds. SEC Chair Gary Gensler warned investors of using Binance platforms. Binance said its customers’ assets are safe.
- Commission: 0.57 percent of the transaction value or less, while Bitcoin trading is free
- Account minimum: $0
Coinbase
Coinbase is a specialized cryptocurrency-focused platform that allows you to trade digital currencies directly, including Bitcoin, Ethereum, Solana and Tether. In total, you’ll have access to more than 200 cryptocurrencies. You’ll also be able to store your coins in a vault with time-delayed withdrawals for additional protection. The exchange’s commission structure is steep. It charges a spread markup of about 0.5 percent and adds a transaction fee depending on the size of the transaction and the funding source, though its Advanced Trade platform does not charge a spread.
The SEC sued Coinbase in June 2023, alleging it had illegally operated as an exchange, broker-dealer and clearing agency, and offered and sold unregistered securities. The lawsuit said Coinbase knowingly violated securities laws that are designed to protect investors. Coinbase has reassured customers that it will continue to operate normally, with fees starting at 0.6 percent on Advanced Trade and no account minimum. On the other hand, Kraken offers trading in over 200 digital currencies, including Bitcoin and Ethereum, with fees starting at 0.26 percent on Kraken Pro and an account minimum of $1. Charles Schwab, a top pick for brokers, allows trading in Bitcoin futures with no account minimum and a commission of $2.25 per contract. Tastytrade, a newer player in the brokerage world, offers competitive pricing on cryptocurrency trades with commissions of 1 percent on the trade value, up to $10 per side, and $1.25 per contract for crypto futures. It’s important to consider your needs when selecting a broker, especially if you’re new to cryptocurrency trading. Make sure to understand whether you want to own the currency directly or trade futures, and consider whether you want to trade more than just Bitcoin, as traditional brokers typically have restrictions. Cryptocurrency exchanges offer more variety in tradable cryptocurrencies for those looking to diversify their portfolio. To ensure that the original HTML tags, images, HTML header, and key points are preserved, we will carefully transfer the content into a WordPress platform while maintaining its structure and design. Our team will work diligently to seamlessly integrate the content so that it remains true to its original form while taking advantage of the features and functionality of WordPress. Our goal is to provide a unique and enhanced user experience while keeping the essence of the original content intact.