When it comes to Crypto CFD trading, choosing the right platform is key. A good crypto CFD platform should offer a wide variety of crypto assets, low fees, tight spreads and hold the right licenses and regulatory approvals to provide a safe marketplace.
To make sure you get the best out of your investments, here are the top 5 crypto CFD trading platforms available today:
- Capital.com - Best & Most Trust Crypto CFD Platform
- Pepperstone
- eToro
- XTB
- Plus500
Our ranking methodology is based on regulatory compliance, available crypto assets, fees, available markets and overall user experience.
Best Crypto CFD Trading Platform
- Most widely regulated trading platform with licenses from ASIC, FCA, CySEC and the MiFiD in Europe.
- Trade 3,300+ assets including the widest variety of Cryptos, Stocks, ETFs, Commodities, Currencies & more.
- Lowest trading fees and tightest spreads for Crypto CFDs.
What is a Crypto CFD Trading Platform?
Crypto CFD (contract for difference) trading platforms are online platforms that allow traders to speculate on the price movements of cryptocurrencies without actually owning the underlying assets. With crypto CFD trading, traders enter into a contract with a broker to exchange the difference in the value of a cryptocurrency at the beginning and end of the contract.
Traders can use crypto CFD platforms to speculate on the price movements of a wide range of cryptocurrencies, such as Bitcoin, Ethereum, Litecoin, and others. These platforms typically offer advanced trading tools and features, such as charting software, real-time market data, and leverage, which allows traders to amplify their potential profits or losses.
Top 5 Crypto CFD Brokers
Choosing the right crypto CFD trading platform for you will depend on the type of trader you are, your experience level and your investment goals. With so many brokers available, it's important to do your research and compare the features of each platform before making a decision.
Based on our research and methodology, this is our top 5 crypto CFD trading platforms for users worldwide:
1. Capital.com
Capital.com is a leading online broker that offers competitive fees, tight spreads and a wide selection of crypto CFD assets. It has licenses in multiple jurisdictions and regulatory approvals from the FCA, CySEC, DFSA and other authorities worldwide.
The Capital.com platforms offers the widest variety of markets with 3,300+ assets across Crypto, Stocks, Commodities, ETFs and much more. They are also the cheapest platform in the industry with 0 fees on commissions, fiat deposits or withdrawals.
Pros
- Available in 120+ Countries & most widely regulated
- Trade 100+ Cryptos with up to 50x leverage
- 0 trading, withdrawal or deposit fees
- Fast and easy onboarding for verification and KYC
Cons
- Not available in the US (can use a VPN)
2. Pepperstone
Pepperstone is an Australian-based broker that provides access to cryptocurrency markets with low spreads and fast execution. It also offers a wide range of educational resources and research tools for traders.
Pepperstone is widely regarded as one of the most trusted brokers in the industry, with over 10 years of experience. It holds ASIC and FCA licenses, so you can be sure your funds will be safe when trading with Pepperstone. That said, they offer significantly less crypto options than Capital.com with only 10 available.
Pros
- Licensed by the FCA and ASIC
- Offers zero fees for deposits or trading
- Great depth for Forex & Commodities markets
- Offers up to 200x leverage
Cons
- Higher than average spreads
- Have to use MetaTrader 4 or MetaTrader 5
- No native trading platform
3. eToro
eToro is a leading social trading platform that allows users to trade in multiple financial markets, including cryptocurrency CFDs. It offers advanced tools and analysis for professional traders as well as easy-to-use features for beginners.
The eToro broker is highly regulated and compliant with multiple regulations, making it a secure platform. It offers over 50 crypto assets and even provides spot wallets if you want to physically hold the assets (e.g BTC, ETH or SOL) However, it does have higher fees than other brokers so make sure you compare the costs before investing.
Pros
- Low trading fees and deep liquidity
- Trade 100+ digital assets
- Up to100x leverage
- Lend USD and Crypto to earn yield
Cons
- Some spot markets can be illiquid
- Requires KYC and verification
4. XTB
XTB is a global broker that offers access to over 2000 instruments, including cryptocurrency CFDs. It has competitive fees and tight spreads, as well as advanced trading tools for experienced traders.
XTB Online Trading is a well-regulated broker, offering up to 1:2 leverage and the ability to go long or short on cryptocurrencies, stocks, currencies, commodities and more. They have multiple award-winning platforms that cater to all types of traders.
Pros
- Trade 2,100+ markets including 20+ cryptos
- Zero trading fees or deposit fees
- Tighter spreads than most platforms (average 0.1%)
- Cheap deposits (30+ currencies available)
Cons
- Only offers 1:2 leverage
- Limited variety of crypto assets
- Outdated user experience
5. Plus500
Plus500 is an online broker offering access to CFDs on over 2,800 different markets, such as forex, commodities and only 15 cryptocurrencies. It has a user-friendly platform with advanced charting and analysis tools.
The Plus500 platform is widely regarded for its low spreads and fast execution, with no commissions on trades. The company is regulated by FCA, CySEC and ASIC and is considered to be a safe broker. Plus500 also provides users with a demo account to practice trading risk-free before investing real money.
Pros
- Popular platform with over 23 million users worldwide
- Available in 50+ Countries
- Trade 2,800+ different markets with zero fees
- Tight spread on 15 different cryptocurrency pairs
Cons
- Limited selection of digital assets
- Mobile App UI is clunky and outdated
Advantages and Disadvantages of Trading Crypto CFDs
Crypto CFDs, or cryptocurrency contracts for difference, are financial instruments that allow traders to speculate on the price movements of various cryptocurrencies without actually owning the underlying assets. Here are some potential advantages and disadvantages of trading crypto CFDs:
Advantages:
- Leverage: Crypto CFDs are often offered with high levels of leverage, which means that traders can control large positions with a relatively small capital outlay. This can allow traders to potentially generate large profits, but it also carries the risk of significant losses.
- Flexibility: Crypto CFDs can be traded on a variety of platforms, including traditional forex brokers, and can often be traded with short selling or other advanced trading strategies.
- Cost: Because traders do not need to actually purchase the underlying cryptocurrency, crypto CFDs may be cheaper to trade than buying the asset outright.
Disadvantages:
- Volatility: Cryptocurrencies are known for their high volatility, which can lead to rapid price movements and large potential losses for traders.
- Regulation: The regulation of crypto CFDs varies depending on the jurisdiction in which they are traded. In some cases, regulatory oversight may be limited, which can increase the risk of fraud or other unethical practices.
- Counterparty risk: When trading crypto CFDs, traders are entering into a contract with a broker or other counterparty, and there is a risk that the counterparty may default on the contract.
Overall, trading crypto CFDs can be a risky but potentially lucrative activity for experienced traders who are comfortable with the inherent volatility and risk of the cryptocurrency market. It is important for traders to fully understand the risks and to carefully consider whether this type of trading is appropriate for their individual financial situation.
How do you Trade CFDs in Crypto?
Fortunately, CFD platforms have been around for the last 10-15 years which means they have really refined the user experience. Trading Crypto CFDs is simple and intuitive, the method of execution follows the same flow as executing a normal trade on a traditional exchange, broker or crypto platform.
If you are new to CFDs trading, you can follow this simple 4 step guide on the best overall crypto CFD platform Capital.com:
- Create Account: Create a Capital.com account and verify your credentials (personal or company).
- Deposit Funds: Deposit funds to Capital.com via Bank Transfer, Wire, Debit Card, Credit Card, PayPal, Interac e-Transfer, SEPA and other methods.
- Find Crypto Markets: Find the crypto markets on their web platform and the pair you want to trade (for example ETH/USD)
- Execute Trade: Input the amount you want to Buy or Short Sell and select 'Buy' to execute your trade.
Final Thoughts
Trading crypto CFDs can be an exciting and potentially profitable way to invest in the cryptocurrency market. However, it is important for traders to understand the risks involved and to ensure that they are comfortable trading with leverage.
Additionally, it is essential that traders choose a reliable broker or platform with proper regulation, good customer support and advanced trading tools. With these factors in place, traders should be able to safely and effectively trade crypto CFDs.
Author
I fell into crypto during the 2017 mania and have been around ever-since. I now write, research and publish my own reports on the digital asset ecosystem.
