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August 2022’s best online crypto brokers

Even though Warren Buffett thinks cryptocurrency is worthless, Bitcoin is a popular trading vehicle. The volatility of cryptocurrencies allows traders to profit from price swings.

In 2017, Bitcoin surpassed $1,000. By year’s end, digital currency reached nearly $20,000 Bitcoin was around $3,200 a year later. In 2019, it rose above $10,000 and crossed $60,000 in early 2021. It topped $68,000 in November 2021 but has since been under pressure.

This price movement attracts traders looking to profit. Others prefer the futures market to owning currency directly. Futures allow traders to use leverage to magnify their gains when trading volatile digital currencies like Bitcoin (but also magnify losses). Futures are riskier but could pay off more.

Cryptocurrency buying and selling


Traditional brokers offer a variety of investible securities, but you can’t trade Bitcoin directly, only futures. Crypto exchanges are limited to digital currencies, but you can own them directly and buy several, rather than just Bitcoin or Bitcoin futures. Cash App and PayPal let U.S. users buy and sell cryptocurrencies.

Traditional online brokers and a new cryptocurrency exchange are listed here. You may also want to see which brokers offer the best account-opening bonuses.

August 2022’s best crypto brokers


Robinhood


Robinhood lets you buy cryptocurrency directly. You can also take advantage of Robinhood’s $0 per trade commissions, though you’ll still pay a spread markup. You can also trade stocks and ETFs for the same low price if you’re not just into cryptocurrencies. Robinhood’s slick app makes trading easy, but full-featured traders will be disappointed.

ICB


Interactive Brokers offers one of the lowest commissions on Bitcoin and Ethereum trades. You can buy Bitcoin and Ethereum futures instead of the currencies directly. In this broker’s case, Bitcoin futures cost $11.02 for five coins per contract or $9.02 for 50 coins per contract on the CME. Interactive Brokers offers a full suite of investment options, so you can buy almost anything on an exchange.

0.12% of trade value; $10.02 per futures contract

$0 minimum balance

Webull


Webull is less well-known than commission-free trading app Robinhood, but it offers cryptocurrency trading. Webull doesn’t charge commissions on crypto trades (or stocks and ETFs), but it does mark up the spread by 1 percent on either side. Bitcoin, Ethereum, and Cardano can be traded. Webull offers charting tools and a mobile app.

$0.

Crypto trading minimum: $1

TradeStation

Traders have direct currency trading via TradeStation Crypto with commission-based pricing. Pricing depends on your broker account balance and direct marketability. Pricing ranges from 0.5% to 3% of your order. Traders can buy and sell Bitcoin futures and get volume discounts.

0.05-0.30%

Futures margin depends on contract. Account minimum: $0

Binance.

US
Binance is a trading platform for digital currencies, including Bitcoin, Ethereum, and dozens of smaller coins. Around 60 cryptocurrencies are available. Binance’s commissions are low and get cheaper with volume. Trading fees start at 0.1% of your trade value ($10 for every $10,000 traded) and fall based on your 30-day trading volume.

Commission: 0.1% or less

$0 minimum balance

Coinbase


Coinbase allows you to trade Bitcoin, Ethereum, Solana, and Tether directly. Over 100 cryptocurrencies are available. You can also store your coins in a vault with time-delayed withdrawals. Exchange fees are high. It charges a 0.5% spread markup and a transaction fee based on transaction size and funding source, though its Pro platform is cheaper.

Minimum 1.99% commission

$0 minimum balance

eToro offers commission-free cryptocurrency trading, but charges a spread. Bitcoin has a 75-basis-point markup, but obscure cryptocurrencies can cost 5 percent. CopyTrader allows you to follow and copy top traders on eToro. Before implementing this strategy, do your homework.

$0 plus cryptocurrency spread markup

$50 min.

Kraken


Kraken is a cryptocurrency exchange that lets you trade Bitcoin, Ethereum, Cardano, and Solana. You’ll pay 1.5% or 0.9% for stablecoins, plus card and bank fees. Kraken Pro’s fees range from 0.16 percent to 0.26 percent for active traders. New York and Washington don’t have Kraken.

1.5% or 0.9% for stablecoins (lower with Kraken Pro)

Minimum $1.

Schwab


Charles Schwab, a Bankrate top broker, offers Bitcoin futures trading. Schwab has no account minimum, but futures contracts require minimum margin. Schwab offers a $1.50 per contract commission and a welcome bonus for large deposits.

$1.50/contract commission

$0 minimum, futures margin by contract

Fidelity


TD Ameritrade is a top full-service broker that offers stocks, bonds, and Bitcoin futures. TD Ameritrade doesn’t allow cryptocurrency trading. Bitcoin futures require an account minimum. (Charles Schwab bought TD Ameritrade and will merge the companies.)

$2.25/contract commission

Futures: $25,000 minimum

Summary


Consider your needs when choosing a broker. New cryptocurrency traders must decide whether to own the virtual currency directly or trade futures, which offer higher reward but higher risk.

You must also decide if you want to trade more than Bitcoin, which most traditional brokers don’t allow. If not, a cryptocurrency exchange offers more tradable cryptocurrencies.

Ahsan Khan
Ahsan Khan
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