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Bitcoin CFD Brokers

Last updated 22nd Sep 2022
Disclosure

If you’re new to trading Bitcoin, using a cost for difference (CFD) broker is a more user-friendly way to begin than using cryptocurrency exchanges. While you won’t own the coin outright, you’ll have a smaller learning curve and can get your feet wet without needing to take significant risks.

In this guide, you’ll learn more about CFD trading and the best platforms for trading Bitcoin. We’ll also talk about the pros and cons of each trading method and more.

Here’s Our List of Top Bitcoin CFDs in 2022

When trading Bitcoin, you’ll find plenty of different brokers online. However, identifying their differences can be a challenge. To save you time comparing and contrasting, we’ve put together a list of the best providers below:

1
eToro
Minimum Deposit
$10
Exclusive Promotion
User Score
10
More than 3,000 assets, including currencies, stocks, cryptocurrencies, ETFs, indices and commodities
Buy crypto, or trade cryptocurrencies via CFDs
This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.

What Are Bitcoin CFD Trading Brokers?

Trading brokers are platforms that offer assets for you to buy and sell on the market. They allow you to trade various CFD assets, such as currencies and shares in companies.

What Is CFD Trading?

CFD trading is the online trading of assets. You take profit when the asset value rises and incur losses when they fall.

With CFD trading, you have a contract with someone where you pay them a certain amount for your asset. Then, you’re paid the difference between that price and the price of the asset when you eventually sell the contract.

How Do Bitcoin CFD Brokers Work?

When using broker platforms, you don’t take ownership of the assets.

Instead of owning an asset, you take out a contract with the platform at a set rate. Then, the platform pays out the difference when you decide to sell. For example, if you buy a CFD for £2,000 worth of bitcoin or gold, and its value rises 25%, you can sell your CFD asset for £2,500.

Do I Own the Assets on CFD Platforms?

On a technical level, no – you don’t own the assets. This means you don’t have to deal with the hassle of security and worrying about keeping your assets safe. It also means you can trade faster and take advantage of market fluctuations.

What Should I Look for in a Bitcoin Broker Service?

When picking a Bitcoin broker, you need to consider several factors. We’ve listed the most important considerations below:

Regulated Platform:

  • In the UK, the Financial Conduct Authority (FCA) regulates CFD trading. Make sure you’re using a reputable and regulated site. If you live in another country, look for a platform approved by your local financial commission.

Variety of Payment Methods:

  • Make sure you select a CFD platform that allows you to deposit and withdraw in a payment method that suits you. Some platforms will even accept deposits in cryptocurrency, so if this interests you, look for these.

Deposit and Withdrawal Limits:

  • Deposit and withdrawal limits will vary from platform to platform. Make sure you select a CFD platform that suits the level of trading you want to do, whether it’s large or small.

Good Reputation:

  • CFD trading has been around for a while now, so some platforms have been serving customers for long enough to have a decent amount of user reviews. Look for those with more positive reviews and trust your instincts.

Design and Ease of Use:

  • Using a complicated platform will require a more significant learning curve and stop you from learning what you need to know about trading. Look for a CFD broker with a user-friendly interface.

Variety of Coins:

  • If you’re interested in investing in particular assets, look for a platform that offers them and gives you a variety of different assets.

1
eToro
Minimum Deposit
$10
Exclusive Promotion
User Score
10
More than 3,000 assets, including currencies, stocks, cryptocurrencies, ETFs, indices and commodities
Buy crypto, or trade cryptocurrencies via CFDs
This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.

Will I Have to Verify My Bitcoin CFD Broker Account?

Yes, CFD trading is a regulated industry. To comply with regulations you must have your account verified to trade. Verification will usually involve providing proof of identity and address, such as a passport and a driver’s license, along with a utility bill. You will often be asked to provide a selfie holding one of your photo IDs. You must make sure that it meets the required standards to pass.

Can I Trade Multiple Assets With a CFD Broker Platform?

Yes. You can trade several assets on a CFD broker platform because you don’t need technical capabilities and systems to store several different assets.

Do CFD Trading Platforms Charge Fees for Trades?

Not usually. If you hold regular commodity trades, you’ll often have to pay fees for keeping your trades open overnight or on the weekend. But now that the cryptocurrency market is maturing, these fees are slowly becoming irrelevant because they don’t follow market open/closes.

However, you’ll often need to pay withdrawal fees at a flat rate when you withdraw your assets, so keep this in mind.

What Are the Advantages of Using a CFD Platform?

CFD platforms are the best tool to use if you want to make money on assets’ fluctuating prices. But that’s not the only benefit. We’ve listed some of the other reasons to consider trading Bitcoin using a CFD broker below:

  • You don’t need a wallet to store any cryptocurrencies you trade, which a hacker could steal if they breached an exchange’s security systems.

  • CFD platforms are less complicated to use than exchanges, meaning that you won’t have as steep of a learning curve.

  • CFD platforms are regulated and are therefore a safe bet in terms of security (for the most part).

What Are the Drawbacks of Using a CFD Platform?

While CFD platforms are helpful for beginners, there are still a couple of drawbacks in mind. We’ve listed the most significant considerations below:

  • If you want to own and use the coins yourself, you will need to use a brokerage or cryptocurrency exchange, not a CFD broker.

  • To take full advantage of CFD trading, you need to have more technical financial knowledge.

  • Leverages can help you increase your profits, but you need to be careful because they can also increase your losses. You could lose a lot of money if you don’t know what you’re doing.

Should I Use a CFD Trading Platform?

The choice is yours, and you must bear all responsibility if you choose to trade Bitcoin on a CFD platform. If you want to trade Bitcoin or another cryptocurrency without worrying about keeping your assets safe from hackers, it’s a great option. The same is true if you want to trade commodities like oil quickly.

However, if you want to own Bitcoins, you’re better off looking into alternatives.

1
eToro
Minimum Deposit
$10
Exclusive Promotion
User Score
10
More than 3,000 assets, including currencies, stocks, cryptocurrencies, ETFs, indices and commodities
Buy crypto, or trade cryptocurrencies via CFDs
This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.

FAQs

Is online trading secure?
Can I use a CFD platform on my mobile phone?
Is CFD trading the best way to buy and sell Bitcoin?
Is online trading legal?
Can I transfer from a CFD trading account into my PayPal account?
What if my chosen broker platform closes down while I have open trades?
Is using a CFD platform anonymous?
Are there minimum and maximum deposit/withdrawal amounts?
Are there trading limits?
Are there trading limits?
Can I access my entire trading history on a CFD platform?
Is it easy to switch CFD platforms?
Can deposits be made in cryptocurrency or just fiat currencies?
Do I have to pay tax on any profits made through bitcoin CFD trading?
Are CFD platforms regulated?
Is it possible to short on CFD platforms?

Khashayar Abbasi

Khashayar Abbasi

Khashayar discovered Bitcoin back in 2014 and has since spent countless hours researching the different use cases of cryptocurrencies. He has a bachelor's degree in International Relations and has been a writer in the financial services industry for nearly half a decade. In his spare time, Khashayar enjoys photography, cycling, and ice skating.