Low Spread Brokers for Crypto CFDs

The cryptocurrency market is known for its volatility and potential for significant gains. It is these traits that have attracted millions of traders worldwide, leading to an increase in the number of brokerage firms offering cryptocurrency CFDs (Contract for Difference). These contracts allow traders to speculate on the price of cryptocurrencies without actually owning them, making it a more accessible and less complicated form of investment. This article explores some of the low spread brokers ideal for trading crypto CFDs.

Understanding Low Spread Brokers for Crypto CFDs

In essence, low spread brokers for crypto CFDs are platforms that offer traders the opportunity to speculate on price movements of cryptocurrencies. These brokers work similarly to traditional forex trading platforms, except that instead of trading currency pairs, you are trading cryptocurrency contracts.

One distinguishing characteristic of the crypto market is its 24/7 operation, unlike the forex market, which is closed on weekends. However, for practical reasons, many low-spread brokers that offer crypto CFDs maintain similar trading hours to the forex market, rarely offering crypto CFD trading over the weekends.

To help navigate the world of crypto CFDs, let’s delve into six low-spread brokers ideal for trading in this market.

Low-Spread Brokers for Crypto CFDs

1. IC Markets

IC Markets, established in 2007, is a leading Australian online broker primarily focused on forex trading. Still, it also offers traders the opportunity to trade crypto CFDs. IC Markets operates under the regulations of the Australian Securities and Investments Commission (ASIC) and the Cyprus Securities and Exchange Commission (CySEC). This broker offers ECN execution, enabling traders to leverage up to 1:5, with 18 cryptocurrencies currently available for CFD trading. The minimum spread offered by the broker is 8.710 pips for BTC/USD trading and 2.210 pips for BCH/USD.

Go to IC Markets’ Official Website

2. FP Markets

FP Markets, established in 2005, is renowned for adopting an ECN pricing model, resulting in tight spreads on its cryptocurrency CFDs. It offers 11 cryptocurrencies for CFD trading with a maximum leverage of 1:2. The minimum spread FP Markets offers on Bitcoin is 4.5 pips.

Go to FP Markets’ Official Website

3. AvaTrade

Regulated across five continents, AvaTrade stands out for its large offering of 17 cryptocurrencies and competitive fixed spreads for crypto CFDs. Trading can be carried out 24/7, making it the only broker on this list that offers weekend cryptocurrency trading. AvaTrade also presents crypto CFDs with a maximum leverage of 1:25.

Go to AvaTrade’s Official Website

4. Pepperstone

Pepperstone is an Australian-based broker providing CFD trading on the world’s 19 largest cryptocurrencies. Regulated by the Financial Conduct Authority (FCA), ASIC, and CySEC, Pepperstone offers ECN model trading, fast order speeds, and interbank spreads. The minimum spread on Bitcoin is 30 pips, and there are no additional commission fees.

5. IG

IG is a broker that offers a wealth of educational resources helpful for beginners. Regulated across ten jurisdictions, IG offers 12 individual cryptocurrencies or wide exposure through the Crypto 10 index. The minimum spread on Bitcoin starts from 36 pips.

6. Plus500

Regulated by the FCA, CySEC, and ASIC, Plus500 offers a competitive range of 19 cryptocurrency CFDs and a crypto index with a maximum leverage of 1:30. The spread on Bitcoin starts from 49.66 pips. Plus500 also offers a demo account where clients can practice trading CFDs.

Conclusion

While the six brokers outlined in this article offer low spreads and an excellent platform for trading crypto CFDs, they represent just a fraction of the available options. Prospective traders should conduct extensive research to find a broker that suits their specific needs and offers the most favorable conditions for profit maximization.

However, it’s important to remember that trading CFD accounts, especially when leverage is involved, carries a high risk of quickly incurring losses. New and inexperienced traders should adopt strict money management and maximize the full range of risk management tools to protect their positions. This precaution is even more critical for the cryptocurrency market due to its extreme volatility.