Best Ethereum Brokers

Ethereum (ETH) is one of the largest cryptocurrency tokens by market capitalization, second only to Bitcoin. It’s a popular choice for people getting started with investing in cryptocurrencies. Ethereum can be purchased through brokers and this guide will highlight some of our top picks along with other vital considerations. 

Best Ethereum Brokers in 2021

Our selection of the best Ethereum brokerages is based on their level of service, the fees, availability of Ethereum tokens, as well as liquidity. 

1
Minimum Deposit
$50
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
CopyPortfolios: Innovative, fully managed investment strategies
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
2
Minimum Deposit
$50
Exclusive Promotion
User Score
7.5
Trade and invest in over 25 cryptocurrencies
Extremely simple user interface
Over 68 million customers
3
Minimum Deposit
$50
Exclusive Promotion
User Score
6
Hot wallets include insurance to protect your assets from theft and hacking attempts
4
Minimum Deposit
$50
Exclusive Promotion
User Score
4.5
First transaction fee free
24/7 customer service
Instant payouts

What Is an Ethereum Broker?

A cryptocurrency brokerage is a company that fills the role of connecting you with the cryptocurrency market. This is intended to help facilitate the purchasing as well as the selling portion of cryptocurrency tokens. Brokerages are the middleman standing between you and the cryptocurrency exchange. The brokerage can also buy up a large quantity of Ethereum, for example, and offer ETH on their own platform.

How Do Ethereum Brokerages Work?

Brokerages can be more flexible when it comes to the settlement of assets, which is their main benefit. They allow traders to lock in a trade at a specific price point, even if they are unable to pay for the assets at a given point in time. This is useful for traders who want to carry out trades instantly.

Liquidity is determined by the brokerage and not the traders within the market meaning that once the brokerage accepts an order, the trader is able to fully execute the transaction. Essentially, the brokerage makes money just by charging a spread. This means that the price they are willing to sell at is typically higher than the price they are willing to buy Ethereum for.

What’s the Difference Between a Broker and an Exchange?

There are a few main differences between cryptocurrency brokerages and exchanges:

In terms of brokerages, here’s what you need to know:

  • Once you purchase Ethereum from a brokerage, you aren’t required to have any previous knowledge as the process is extremely streamlined.
  • You will be able to use easy payment methods, such as credit cards, debit cards, your PayPal account, and more.
  • Additionally, brokerages also provide you with a higher level of customer support as well as a higher level of security.

In terms of exchanges, here’s what you need to know:

  • The cryptocurrency exchange asset price is determined by the market instead of the exchange itself.
  • Exchanges require at least two traders willing to take opposite sides of a similar trade in order to execute an order.
  • The exchange makes money by charging a fee to traders once they are matched before the order executes.

What are CFD Brokers?

CFD trading otherwise referred to as CFD contract, is a contract through which you agree to exchange the difference in the price of a cryptocurrency, from when you first open the position to when you close it. Here, you are speculating on the price of the market rather than taking ownership of the cryptocurrency itself. These are derivative financial products that enable traders to speculate on the rise as well as the fall in the price of the digital currency in question, without the need to own it directly.

Advantages and Disadvantages of Ethereum Brokers

There are things to consider when deciding to enlist a brokerage:

Advantages of Ethereum Brokers

  • Brokerages provide an easy setup process alongside a simple-to-use interface.
  • Brokerages provide you with a high level of customer support.
  • Brokerages are relatively better regulated.
  • Brokerages provide you with quicker trading when it comes to cryptocurrencies.

Disadvantages of Ethereum Brokers

  • Brokerages require customers to complete know-your-customer (KYC) verification and hand over personal information.
  • Brokerages typically have higher fees when compared to exchanges where you are trading directly with other parties.

How Do I Get Started with an Ethereum Broker?

Getting started with an Ethereum broker is actually quite a simple process and only requires a few steps. Note that this process is slightly different depending on the cryptocurrency brokerages you are creating an account for. 

Step 1: Open an Ethereum Brokerage Account

Go to the website of the brokerage in question that you have selected to sign up for and click on the specific “Sign Up” or “Join Now” button. Once you visit the account creation screen, you will be asked and required to enter some general information, such as your username, password, and email. Keep in mind that many cryptocurrency brokerages that support Ethereum as a cryptocurrency token will typically require you to complete a know-your-customer (KYC) verification form.

Step 2: Open the WebApp or Download the Mobile Application

Once you complete the account creation process, browse through the application, whether it be via the web app or a mobile application. The web app can be accessed by any modern web browser. With the mobile app, each brokerage would have its own version that you can download from the Google PlayStore or the Apple App Store.

Step 3: Make your Initial Deposit

There are multiple ways to make your first deposit.

For one, you can use FIAT currencies and deposit using a credit card, debit card, or any e-wallet which is supported, or even a direct bank transfer. If you have cryptocurrency tokens already within a wallet, you can make a crypto deposit and exchange those for Ethereum. Keep in mind that some cryptocurrency exchanges will have a minimum amount of money that you need to deposit in order to use them, and this will usually be in USD. So a brokerage might require you, for example, to deposit $200 or $200 worth of cryptocurrencies before you can use it.

Step 4: Buy Ethereum

You will need to navigate through the website and find a search bar, where you will type Ethereum or its ticker, ETH, to find the token. You should then seek out a button that says “Buy” or “Trade.” In the buy section, enter the amount of ETH you want to buy in either ETH or USD. It automatically converts and shows you how much you will be getting. Confirm the purchase, and you will see your new Ethereum balance within the cryptocurrency brokerage’s balance on the exchange wallet bound to your account. Alternatively, you can withdraw Ethereum to your own private cryptocurrency wallet that supports Ethereum as a cryptocurrency token.

The Best Ethereum Trading Platforms

There are multiple Ethereum trading platforms out there, and just about any exchange or brokerage will have Ethereum as an option for trading because it is the second-largest cryptocurrency token in terms of market capitalization.

That being said, here are your best options depending on your level of experience.

For Beginners

There are cryptocurrency brokerages and exchanges that have been specifically developed for budding traders. Here are some of the best options:

Coinbase

Coinbase is one of the largest cryptocurrency brokerages based in the U.S.

It allows users to trade cryptocurrency tokens such as Ethereum with ease. However, its fee structure can be difficult to grasp at first. However, the most notable one is Coinbase Pro and has a low minimum in terms of getting into it, which makes it an excellent option for newcomers.

Robinhood

Robinhood provides free cryptocurrency trades, making it one of the easiest brokerages to get into. There are no fees, and the interface is extremely streamlined. 

For Day Traders (eToro, Kraken, Bittrex)

There are cryptocurrency brokerages that live up to the requirements of more advanced day traders:

Etoro

eToro is a cryptocurrency brokerage known for its low trading minimum starting at just $50 and has an innovative feature that lets you mirror some of the best traders out there. The fees range from 0.75% to 2.9%. However, other providers may offer a wider selection of cryptocurrencies. 

Kraken

Kraken is a cryptocurrency brokerage that offers a large number of cryptocurrency tokens through which you can choose from and has a variable fee structure. Its main stand-out feature is its customizable ordering platform as well as the dedicated mobile application it has.

Bittrex

Bittrex has one of the quickest sign-up and verification processes out there and is known for its high level of support as well as security. When it comes to the day trading of Ethereum, it offers advanced financial chart comparison tools as well as research-based analysis on financial markets.

Best for Earning Interest (BlockFi)

Some brokerages specialize in allowing you to earn interest on your Ethereum balance, like BlockFi.

BlockFi

BlockFi offers trades that are commission-free and include low spread rates. BlockFi has no minimum account size requirement and offers instant trades as well as recurring trades features. It is available in a lot of countries, where users can earn up to 7.5% in interest simply by storing cryptocurrency assets such as Ethereum with interest accounts. This account essentially pays out on monthly compounding interest, and BlockFi distributes these payments every first business day of the month.

What to Look For in an Ethereum Broker?

In terms of picking the best Ethereum brokerage, you need to look out for several things. Each of these can bring your experience to the next level, so let’s go over them.

Design and Ease of Use

You want to ensure that the cryptocurrency brokerage in question will not be lagging behind and has a design that speaks to everyone in a simplistic way. This means that you need to be able to get from point A to point B on the brokerage without spending too much time and conduct all of your trades and purchases with ease.

Fees & Commissions

When it comes to this aspect, brokerages typically have larger fees when compared to exchanges. That being said, try to find a brokerage that has a unique fee structure that is tier-based and gets lowered the more monthly circulation your account has.

Reputation

Reputation can also play a major role. Ideally, seek a well-established brokerage with no concerns over security.

Cryptocurrency Pairs 

You might be trading through cryptocurrency pairs, so ensure that the brokerage offers a wide variety of pairs.

Trading Options

Ensure that you find a brokerage that allows you access to as many different trading options as possible. 

Customer Support

Selecting a broker known for good customer service can be beneficial if the need arises.

Should I Use Brokers to Buy and Sell Ethereum?

While there are several avenues to trade Ethereum, one of the main benefits of cryptocurrency brokerages is they will almost always be available for you. This allows you the convenience of always having crypto to buy and having a location to sell them in an instant.

Final Thoughts on Ethereum Broker

Ethereum brokerages will provide you with a higher level of convenience relative to other avenues. While this translates to higher fees, brokerages are well regulated, and secure.

FAQs

Do I Have to Verify My Identity?

You typically need to undergo KYC and AML procedures.

Can I Buy Cryptocurrencies Other Than Ethereum?

Many cryptocurrency brokerages will have plenty of other cryptocurrency tokens for you to pick aside from Ethereum.

Do I Need a Wallet to Use an Ethereum Broker?

Cryptocurrency brokerages will create an on-exchange wallet for you most of the time. However, you are required to have a wallet in any case if you want to transfer the Ethereum from the brokerage’s wallet to your own.

How Do You Safely Store Ethereum?

The safest way for you to store your Ethereum is through the usage of a private, cold storage device known as a hardware wallet.

Are Ethereum Brokers Anonymous?

In order to use an Ethereum brokerage, you need to complete a know-your-customer (KYC) verification process, where you are giving out private information.

Can I Deposit and Withdraw Money to PayPal Using an Ethereum Broker?

This depends on the brokerage you have selected; most cryptocurrency brokerages will have this option.

Is Ethereum Available 24/7?

Ethereum runs on a blockchain, making it available 24/7.

Can I Use Multiple Ethereum Brokers?

You have the freedom to use as many Ethereum brokers as you want to. Keep in mind that this will incur significant fees when transferring between each one of them.

Are Ethereum brokers legal?

This depends on the country you live in. Many countries have made cryptocurrencies legal, while others are still regulating them; check to be sure.

Are Ethereum brokers regulated?

Many cryptocurrency brokers are indeed regulated; however, this usually depends on the brokerage in question.