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Best Ethereum Brokers

Last updated 13th May 2022
Disclosure

Ethereum (ETH) is one of the most popular cryptocurrencies in the world, ranking just behind Bitcoin in terms of market capitalization.

Unlike before, there are now plenty of brokerages to choose from when it comes to buying ETH. Picking the right one can be a difficult task given all the options.

In this guide, we look at what brokerages are as well as all the important factors to consider when making a decision. Read on to find out more.

Best Ethereum Brokers in 2022

We have listed the top-beginner friendly platforms below to help you get started right away.

1
eToro
Minimum Deposit
$200
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.
2
Atani
Minimum Deposit
$100
Exclusive Promotion
User Score
9
Popular among traders
Fast system for trading
Popular for beginners
3
Coinmama
Minimum Deposit
$100
Exclusive Promotion
User Score
9
Easy to use tool
High profit potential
Offers Phone Support
4
Coinbase
Minimum Deposit
$50
Exclusive Promotion
User Score
6
Trade and invest in over 25 cryptocurrencies
Extremely simple user interface
Over 68 million customers
5
Paybis
Minimum Deposit
$50
Exclusive Promotion
User Score
5
First transaction fee free
24/7 customer service
Instant payouts

What Is a Broker?

A broker is a firm that acts as an intermediary between an individual and the cryptocurrency markets. Put simply, brokers provide financial services for users who want to buy or sell digital assets. In turn, brokers charge a fee on top of the price for this convenience.

How Do Brokerages Work?

Brokerages help their clients by finding a match for the other side of the trade and extracting a fee for this service.

For example, if someone wants to buy Ethereum, a broker will find someone who wants to sell Ethereum and they will settle the trade and charge a fee on top of the price for facilitating the transaction.

Unlike exchanges, brokers determine the liquidity and not the market itself.

What Is the Difference Between a Broker and an Exchange?

There are a number of differences between cryptocurrency brokers and exchanges. Here are some of the main ones:

  • Brokerages tend to be more beginner-friendly as the buying and selling process is simplified.

  • Brokerages accept more payment methods than exchanges. On top of credit/debit cards and bank transfers, brokerages also tend to offer support for PayPal, Skrill, and Neteller.

  • Brokerages set the price of the assets offered on their platforms whereas price is determined by the market on exchanges.

What are CFD brokers?

Contract for Difference (CFD) trading is where you agree to exchange the price difference of a cryptocurrency from when you first opened the position to when you closed it. In essence, CFDs are derivative products that allow users to speculate on the price of an asset, without owning the underlying asset. This enables traders to make money in both directions of price movement.

If you believe the price is going to go up, you will open a long position. If you think the price will go down, you can short the market and get paid if the price falls.

Advantages and Disadvantages of Using a Broker?

Here are some factors to consider when deciding on a platform to use:

Advantages

  • Easy to use interface

  • Help to avoid the technical side of crypto such as setting up wallets

  • Many payment methods accepted

  • Simple set up process

  • Tend to offer better customer service and protection

Disadvantages

  • Prices may be higher than on exchanges

  • Lower variety of coins

How Do I Get Started with an Ethereum Broker?

Here’s a step-by-step guide on how to get started using a cryptocurrency broker:

  1. Go to an official brokerage website such as eToro and register for an account

  2. Enter your details and provide ID for verification purposes

  3. Select your desired payment method and deposit some money into your account by following the onscreen instructions

  4. Using the search bar, search for the Ethereum (ETH) markets

  5. Here, you will enter the number of coins you wish to purchase and confirm the transaction

  6. You will now have an open position in Ethereum which you can close at any time.

The Best Ethereum Trading Platforms

There are many crypto brokers to choose from. Here’s our guide to help you choose:

For Beginners

eToro

eToro is a brokerage platform that offers trading services for numerous financial markets including stocks, crypto, forex, and more.

Key Features

  • Low fees

  • Easy sign-up

  • Beginner-friendly interface

For Day Traders

Plus500

Plus500 is a leading provider of CFDs, delivering trading services for shares, commodities, crypto, and more.

Key Features

  • Many coins supported

  • Demo account

  • Advanced charting tools

What to Look For in an Ethereum Broker?

In this section, we have listed a number of different factors to take into consideration when deciding on a platform to use.

  • Design and Ease of Use: Make sure the platform is easy to navigate and user-friendly. You can use YouTube and Google to help you make up your mind.

  • Fees and Commissions: It is worth doing some research to find the platform that offers the best rates for the services you require. Through this, you can get better value for your money.

  • Reputation: Read online reviews of the website to gauge whether or not it has a good reputation. This can help you avoid wasting your time.

  • Cryptocurrency Pairs Available: Before signing up, make sure the platform offers the coin you want. Fortunately, Ethereum is a very popular coin and will likely be offered on all platforms.

  • Security Features: Check to see whether 2-factor authentication is offered by the website. This is a crucial feature that can boost the security of your account.

  • Regulation: Stick to regulated platforms. These platforms will have to adhere to strict safety features that can protect your money.

What Are the Alternatives to Ethereum Brokers?

Apart from brokerages, you can buy Ethereum on a number of other platform types.

These include:

  • Cryptocurrency exchanges

  • Decentralized exchanges

  • Peer-to-peer (P2P) exchanges

Final Thoughts on Ethereum Brokers

All in all, cryptocurrency brokerages offer a great way for newcomers to buy cryptocurrencies such as Ethereum. They offer an easy sign-up process, straightforward buying, and selling as well as many charting tools to help users make more informed decisions.

Remember not to reuse the same passwords from other websites when signing up and to activate 2-factor authentication as soon as you register. As always, only invest with money you can afford to lose.

FAQs

Do I Have to Verify My Identity?
Can I Buy Cryptocurrencies Other Than Ethereum?
Do I Need a Wallet to Use an Ethereum Broker?
How Do You Safely Store Ethereum?
Are Ethereum Brokers Anonymous?
Can I Deposit / Withdraw Money to PayPal Using an Ethereum Broker?
Is Ethereum Available 24/7?
Can I Use Multiple Ethereum Brokers?
Are Ethereum Brokers Anonymous?
Are Ethereum Brokers Regulated?

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.