Summary:While OANDA offers trading in cryptocurrency derivatives like CFDs, it doesn't support direct cryptocurrency purchases. These derivative trades can incur high costs, with fees and spreads potentially exceeding 2%.
Alternatively, eToro provides a more cost-effective and extensive trading platform, offering over 3,000 assets, including real cryptocurrencies, with comparatively lower fees. eToro's adherence to strict regulatory standards makes it a secure choice for those looking to invest in digital assets directly.
- Regulated with tier-1 regulators across Europe and trusted by over 30 million users.
- Buy, sell and trade over 3,000 Cryptocurrencies, Stocks, ETFs, Commodities and Indices.
- Fast multi-currency deposits through Bank Transfer, SEPA, Credit Card and more.
76% of retail CFD accounts lose money.
Can I Buy Crypto with OANDA?
OANDA, a forex trading platform, does not support direct cryptocurrency purchases. It allows trading in cryptocurrency derivatives, specifically CFDs (Contracts for Difference), which mirror the price movements of cryptocurrencies such as Bitcoin and Ethereum. This method offers a way to speculate on crypto prices without owning the assets. However, it's important to note that trading on OANDA can be costly, with fees and spreads potentially exceeding 2% per trade. Traders should be aware of these high costs and the risks involved in CFD trading before participating.
How to Buy Crypto with an OANDA Alternative
For those seeking to buy Bitcoin or other cryptocurrencies, numerous regulated alternatives offer a more comprehensive multi-asset trading experience compared to OANDA. One such standout option is eToro, which provides access to over 3,000 assets, including real crypto assets. eToro is distinguished by its lower fees and competitive spreads, catering to a global user base.
Here's a simple guide to get started:
- Create Account: Sign up on eToro, ensuring you complete the necessary identity verification.
- Deposit Funds: Choose from a range of fiat currencies for your deposit. eToro supports various methods for easy fund transfers.
- Select Market: On eToro, you can engage in different markets, including spot and futures trading.
- Execute Trade: Find the cryptocurrency you wish to buy and execute your trade.
Digital Asset Investing Fees
For investors seeking a more cost-effective alternative to OANDA's 2% fees in the digital asset market, understanding the fee structures of various platforms is crucial. Here's a breakdown of the common fees you might encounter:
- Trading Fees: Leading platforms, such as eToro, typically charge about 1% for buying or selling cryptocurrencies. This is significantly lower than the 2% fees that some other platforms may charge.
- Deposit Charges: These fees vary depending on your chosen payment method. Bank transfers, including SEPA transfers, often have lower fees in comparison to credit or debit card transactions.
- Withdrawal Fees: Withdrawal costs differ among various cryptocurrencies. For instance, Bitcoin withdrawals usually have a fee of around 0.0005 BTC.
eToro stands out as a regulated and secure option for those exploring cryptocurrency investments. It adheres to stringent regulatory standards set by European financial authorities, including CySEC, ensuring a secure trading environment.
About OANDA Crypto
OANDA, in partnership with Paxos Trust Company, offers cryptocurrency trading through its user-friendly mobile app and platform. Users can spot trade popular cryptos like Bitcoin, Ethereum, and others on Paxos's itBit exchange, directly within OANDA. The service boasts no mark-ups on crypto trades, competitive commissions, and easy account funding and withdrawal processes. It's important to note that digital assets with Paxos are not SIPC protected, and Paxos is not regulated by the NFA. The process to start trading involves opening and funding a Paxos account through OANDA.
Final Thoughts
In conclusion, while OANDA offers cryptocurrency trading through derivatives and its partnership with Paxos, it may not be the most cost-effective choice due to high fees and the nature of CFD trading. For those interested in direct crypto purchases, platforms like eToro provide a viable alternative with lower fees, a wide range of assets, and stringent regulatory compliance. Understanding the fee structures and regulatory environments of these platforms is crucial for investors seeking to enter the digital asset market effectively and securely.
Co-Founder & former Investment Banker (Finance MBA) turned Full-Time analyst and Head of Research at Buy Bitcoin Bank. Left traditional finance to pursue my interest in digital assets and decentralized finance.
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