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Use our comparison tables to compare the best Bitcoin brokers authorised and regulated by the FCA. Choose or switch to a broker that offers the most markets, best pricing and client security.
CFD, spread betting and trading Bitcion on leverage carries a high level of risk and can result in losses that exceed your deposits.
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For further information you can read our article how and where to trade bitcoin with a UK broker…
Plus 500 are one of the largest bitcoin brokers in the world. Plus500 Ltd is listed on the AIM section of the London Stock Exchange. Market Cap as of May 2017 is over £1bn. Plus500UK Ltd is authorised and regulated by the Financial Conduct Authority (FRN 509909). Your capital is at risk.
What makes them stand out in a few words? The trading platform is simple and spreads are tight as you would expect you can see a list of spreads and fees here. There is an in-activity if the account isn’t used through.
Pepperstone founded in Melbourne, Australia in 2010 is now one of the largest forex, CFD and MT4 brokers in the world.
There are two accounts on offer the standard and the Razor account which has significantly discount spreads and pricing.
Pepperstone offers two trading platforms, MT4 or EDGE FX. Clients can also trade one of the largest selection of cryptocurrencies including Bitcoin, Dash and Ethereum. Pepperstone also accept Neteller and Skrill as deposit methods.
ETX Capital are one of the oldest bitcoin brokers in the UK. ETX was founded in 1965 as Monecor and remains a member of the London Stock exchange.
They offer tight spreads as low as 0.7 on EuroDollar and 0.9 on other FX pairs.
ETX has won some pretty decent awards including: Money AM Awards 2012 Best Online Charts. Investment Trends Award 2013 Best Value for Money and UK Forex Award 2013 Best Forex Trading Tool & Software.
For new clients they offer free demo account test their Pro, MT4 and Binary trading platforms (more info).
ETX Capital are one of the oldest brokers on this list and at the top of the top five Forex brokers list. They were first founded in 1965 as Monecor and focus on looking after bigger high net worth customers who need a professional trading platforms and dealers. ETX Capital is privately help and employs around 90 people in the UK office The name ETX refers to Electronic Trading, Telephone Trading and EXecutions Services. ETX Capital are also a member of the London Stock Exchange.
ETX offer four platforms to choose from – ETX Trader, ETX Pro, Binary and MT4. ETX Pro is by far the best platform they offer for all round traders. But larger Forex traders may want to also have an MT4 account. MT4 offers some of the tightest FX spreads in the industry as well as some very advanced technical tools for FX pastern recognition.
They offer new clients £500 to switch accounts to drum up new business and offer traditional spread betting as well. You can even set your margin limits to 100% if you want to trade on a non-leveraged basis and just take advantage of the tax breaks.
If you go to ayondo because of the social trading feature you can earn money by getting other traders to follow you or by choosing a winning trader to follow. Obviously picking a winning trader to follow is just as hard as picking a winning stock! Sign up with ayondo here.
One of the fastest growing bitcoin brokers is eToro the social trading network, originally called retail FX when it was founded in 2006.
It now has millions of traders ranked in leagues across the world. eToro website claims to have over 4,500,000 registered traders.
Being a social trading network it is possible to earn money by being a leader or by following a profitable trader. Find out more…
How do you trade in Bitcoin?
The world’s most famous crypto-currency is an obvious target for investors and traders due to its history of rapid gains and falls in value. This volatility makes it both very risky and potentially very lucrative as an investment.
How Bitcoin trading works
The most obvious way to invest in Bitcoin is simply to buy Bitcoins. However, buying Bitcoins limits the investor to betting on an increase in the currency’s value. If you believe that it will decrease in value and you would like to bet on this happening, then you’ll need to acquire a contract for difference (CFD) or place a spread bet.
These two approaches are fairly similar in operation. A contract for difference could specify that if the value of an asset %28in this case, Bitcoin%29 increases above a particular figure %28ask price%29 then the issuer of the contract will pay you the difference between the value and that figure multiplied by your stake. If the value moves in the opposite direction then you will pay the issuer of the contract the difference multiplied by your stake.
Alternatively, the CFD could specify that if the value of Bitcoin declines below a certain price %28bid price%29 then the issuer will pay you the difference multiplied by your stake and you’ll pay them if it moves in the opposite direction. Spread bets are similar except that you are placing a bet with a bookmaker. In the UK spread betting is not subject to Capital Gains Tax, which makes it a popular option.
How to get started
If you are buying Bitcoins then you will require a Bitcoin address. This is a code to which the Bitcoins that you buy will be allocated. You can acquire an address by downloading a Bitcoin client to your computer or setting up an online wallet. Once you have your address you can purchase Bitcoins via an online exchange.
If you are taking out a CFD or placing a spread bet then you’ll need to do so via a broker that offers these services. This will require you to open an account and deposit money. Many traditional foreign exchange brokers now offer the option to trade in Bitcoin. They also generally offer the option of leverage, which is betting using money loaned by the broker.
What to avoid
When using CFDs or placing spread bets it is possible to lose more than your initial stake. This will be amplified if you use leverage. Don’t risk more money than you can afford to lose when you take a position.
Placing stop loss orders which automatically close down your position when Bitcoin hits a particular value are an essential way to limit the risk that you face.
What to look for
The various Bitcoin exchanges and CFD/spread betting companies have different fee structures for their services. Make sure that you’re not being overcharged and that the trading platform on offer is to your liking. As with any investment, the more you know about factors that will impact the price of Bitcoin, the more likely you are to profit.
A trading example
Say that a spread betting company is offering a bid price of 4,300 and and ask price of 4,500. The gambler believes that Bitcoin will increase in value and places a bet of £200 at the ask price. Bitcoin appreciates to 4,550 and the gambler closes their position, taking a payout of £10,000.
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