Choosing a Crypto Broker

All traders use a crypto broker to handle their transactions. Trader makes a decision on which transaction to make, then places an order with a crypto broker who then executes the order for them and earns money by charging a commission or a fee called 'the spread' for their services.

Crypto brokers are associated with large financial institutions such as banks in order to provide the funds and liquidity necessary for margin trading. Banks are known as liquidity providers. Banks are also the ones that provide the interbank exchange rate to the brokers. Bitcoin trading is traded through a network of banks known as 'interbank network'. Cryptocurrency Brokers gain access to the inter-bank network through banks, & then provide this access to retail traders.

A good crypto broker should be signed up with a well known regulatory authority such as CFTC, NFA, CYSEC, FCA, ASIC and FSP these authorities serve as protection measure against fraud & abusive trade practices.

Before you begin you need to set up an account. You might feel overwhelmed by the number of firms that offer these services online.

Deciding on a good company requires a bit of research on your part, but the time spent researching will give you insight into the services provided & fees charged.

The best recommendation is word-of-mouth advice, & this is just as valid in bitcoin trading as it's for any other type of business.

You also want to find a broker who executes orders quickly with minimum slippage & should offer automatic/instant execution & have clear policies regarding slippage.

Next you want to find out the fees involved i.e. Spread. If spread charged is fixed or variable. Are there other charges like commissions per lot transacted?

Margin trading is what Bitcoin is about, so be sure you understand the margin terms requirements before setting up an account. You need to know the margin requirements and how the margin is calculated.

Does the margin change according to the bitcoin traded? Is it the same every day of the week or does it vary? Some brokers may also offer different margin requirements for mini & standard bitcoin accounts. Some may also change their margin requirements during the weekends. Do not select those that changes their margin requirement during the weekends as this might mean your open position are likely to be closed over the weekend because of the changing margin requirement during the weekend. Always choose the one which has fixed margin requirement at all times.

The software is also very important to a bitcoin trader. You can get a feel of the trading platform options which are available by trying out demos from a couple of firms online. Above all, you are looking for reliability and the ability to execute transactions in fast-moving markets.

To make sure that you get fast execution from your crypto broker make sure that you trade with big Bitcoin companies that have enough liquidity required to execute orders quickly. The big companies have multiple liquidity providers and these many liquidity providers ensure that the company that you choose can execute as many trades as possible at any given time in a very fast and efficient manner, that way your orders don't get re-quoted.

Factors to Consider When Comparing

Before comparing brokers we recommend that you do not open a trading account with a USA based company, regulation by the CFTC & NFA imposes excessive and over-bearing regulations that have been imposed on USA based firms. These include reduced bitcoin leverage levels, no hedging rule & the FIFO (first-in-first-out) rule which affects the way you trade. FIFO rule states that the first trade you open must be the first one you close, and keeping track of your orders especially if you open many of them might be difficult for you.

The following are the factors you should consider:

Regulation

Regulation is an important factor to consider when comparing, regulation is carried out by financial regulatory authorities like FSA, NFA, CySEC & others. You should always open an choose a company that's regulated.

Deposit & Withdrawal

In depositing and withdrawing money from your trading account, you should consider the following:

What is the minimum deposit required?

How long does it take to withdraw money?

Is there any deposit or withdraw fee?

It's also crucial that you find out what payment or money transfer methods are available for use with for example Wire Transfer, Credit Card, Debit Card, Pay Pal & others that are suitable for you.

Minimum Deposit Requirements

How much money do you need to deposit so that to open a trading account? - The minimum for many is $100 dollars but for some its less. This is important to consider when comparing 2 or more.

Software

The platform provided can be used for comparison and trader can choose the best type of software. Most popular software is the MT4.

MT4 is the best platform with powerful technical tools and charts that is why most if not all brokers offer the MetaTrader 4. If you're a newbie select one that offers you MT4 that way if you decide to move to another one you'll still find the MT4 platform that way you do not have to re-learn a new software every time you decide to try a new one.

Charting is very important and you need a powerful crypto charting software with good charts and indicators so that to make the right decisions. The best choice is a one that offers good quality charting software such as the MT4.

Order Execution

Consider if execution, is instant, is it that of an STP. Best model is STP model, with high liquidity to guarantee order execution.

Bitcoin Leverage & margin

Should give you the option to choose bitcoin trading leverage 1:50, 1:100 1:200 or 1:500 for the risk takers. However anything above 1:200 is too high 1:100 is the optimum cryptocurrency trading leverage.

Account Types

Should offer micro, mini & standard cryptocurrency trading accounts for a trader to select the one which they want.

Customer Support

Should provide customer and technical support during the btcusd trading market hours, either via E-Mail, phone or online chat.

Before choosing a company to open an account with you might want to check the customer support and professionalism & compare this between different one.

What to Consider for Comparison

The fact is that genuine & regulated firms come with a guarantee of being genuine.

The company you select should be suitable for all trader types whether it is scalping, day, swing or position trading. Most will not accept scalping: these aren't recommended even for non-scalpers. Those that do not allow scalping may be because they do not have enough financial liquidity to guarantee trade execution of your orders. This is bad even for others traders because your orders might not be filled at the correct point and you might get re-quotes.

A good broker will be suitable for the traders of all levels of expertise. Beginner Traders should find the trading conditions to be quite flexible & the platform easy to use, while professional traders should benefit from high liquidity & instant execution of orders.

The factors below should be used when comparing, visit their website look at the information provided & use your judgment to make a choice if they are is best for you.

MetaTrader 4 software
Up to 1:200 bitcoin trading leverage
Funding through WebMoney, Liberty Reserve, PayPal, Money Brokers, bank wire, credit card, debit card & other payment options
Minimum deposit $100 dollars
Bonuses on deposits
In addition to bitcoin, other trading instruments such oil, bitcoin and silver and stock indices
Instant execution of orders, no re quotes
STP
Professional customer support
Well regulated by a financial authority

Recommended broker is one that will ensure you trade better by offering you the best tools and support for trading analysis.

Bitcoin trading means the exchanging of one financial instrument for another in the bitcoin market. Cryptocurrency market is one of the largest market in the world. With the objective to earn substantial profits, new investors are jumping into the btcusd trading market everyday.

Investors, who take time to know the basic knowledge & information, definitely earn high returns on their investment than those who don’t.

However there are times, when investors fail to do anything right in the btcusd trading market because of lack of enough information and awareness regarding bitcoin trading. Thus, it is recommended to select one before investing in the btcusd trading market. A good broker can improve an traders result by providing the best execution of transactions, there are many companies out there that trader can select from but not all are good. One thing to look out for is to choose one that's regulated.

While selecting, make sure that they are the best for you. It isn't a tiresome task to find a trading broker having a long list of customers. But it is not enough for you. You should look for a one that is regulated. Also look at their terms & conditions this will help you know about their workings.

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