We can define a broker as a kind of retailer which is responsible for making the world of investments more accessible, in this case we will tell you about the crypto broker. There are all types of brokers in the market, from those that focus on financial or physical assets to those of real estate.
Here we will talk about a specific type of broker, the one that focuses mainly on the world of cryptocurrencies. And we must remember that the growth of these is practically exponential since they have not only increased in value, they have also increased in use.
➡What is a crypto broker? ✨
consider. Here we will tell you the 5 most important to consider, which will directly influence your experience of using the platform and the results generated.
As we already told you, A broker is an institution that allows you to make investments in different assets. In the case of crypto brokers, they offer the option of making investments in digital currencies such as Bitcoin or Ethereum, this through their platform.
In a nutshell, it is a broker that allows you to invest and trade with digital currencies, that is, cryptocurrencies. Of course, you should know that some concepts change here such as leverage compared to Forex, for example. This is because currencies are much more volatile and unstable.
➡Points you should take when looking for a broker✨
If you are thinking of looking for a broker for cryptocurrencies, you should know that there are points to take
- Regulations: Regulations are a very important point when looking for a crypto broker, this for two reasons. First, lThe regulations establish the rules of the game to be followed. Secondly, They are in charge of providing you protection and security by keeping the broker operating under the law.
- Variety of cryptocurrencies: Today there are a large number of currencies, we have Bitcoin, for example, and Ethereum, which concentrate the majority of operations. Secondly, we have smaller virtual currencies with less than 1% of the trades. Taking variety into account is very important.
- Operating costs: The operating costs refer to the commissions and spreads charged when carrying out a transaction. Ideally, find platforms that are cost-effective. Although we must also take into account the cost benefit ratio.
- Demo account: A tool that today should be essential when investing are demo accounts. These allow us to practice without putting our money at risk, since they are basically trial accounts with virtual money.
If you want a good broker, this must have a demo account.
- Services: Finally, You must take into account the services offered by the Broker, as these can vary between platforms. Not only do you look for brokers with good customer service in your language, you also look for them to offer many trading tools, as well as additional options to invest.
➡How do we evaluate the crypto brokers in this ranking? ✨
Ranking might sound easy, but it actually involves a great deal of research and comparison work. To find the 10 best brokers we use the following evaluation criteria which we will explain to you one by one.
➡Operational and platform characteristics
- Amount of cryptocurrencies offered: The first thing we took into account was the amount of cryptocurrencies offered by the platform. The more the merrier, as they say colloquially.
- Leverage: While the leverage in this category is much lower, it was also taken into account as a criterion. We take into account the market average and what is offered by the platforms.
- Demo account: In addition, We evaluate if the broker offers a demo account to be able to trade easily.
➡Security and seriousness of the broker
- Regulation: It is very important to take into account the regulations and if the broker is registered under the law, as this provides certainty and security.
- Customer service: Take into account if the broker has support in your language, as well as the experience of other users in customer service.
- Broker type: Do not forget to verify the type of broker, since there are platforms of all kinds such as Market Maker, ECN, STP or Non Dealing Desk.
- Maintenance: Most, if not all, brokers do not charge this commission, as it is discounted from the spread costs.
- Spreads: It is the commission charged on a transaction, it is calculated on the difference between the purchase and sale price of the cryptocurrency, that is, of the profit generated by the transaction.
- Other commissions: Pay attention here, since there are brokers that handle hidden commissions on withdrawals, for example, to overcharge you. We recommend that you thoroughly review the commissions to avoid hidden surprises in the contract.
- XTB: This broker offers you the option to invest in Bitcoin, Bitcoin Cash, Ethereum, EOS, Dash, Miota, Ripple, and Litcoin. You will have 25 pairs of cryptos to invest, xStation + MT4 platform, as well as it is regulated by the CNMV. The annual cost, in addition, is 0 euros.
- Plus500: Like XTB, here you have the option to invest in Bitcoin, Bitcoin Cash, Ethereum, EOS, Dash, IOTA, Ripple, and Litcoin through a very easy-to-use platform. In addition to having a demo account, the option to trade with leverage, low spreads plus zero commissions and an annual cost of 0 euros is offered.
- eTorus: This new platform, with relatively little time in the market, came with the option of investing in 16 cryptocurrencies plus pairs. It gives you the option to make copies to traders, as well as portfolios, too it has accessible commissions and is considered one of the best social trading platforms.