The Best Regulated And Trusted Bitcoin Brokers
On this page you find the best Bitcoin brokers that are regulated by state securities regulators and can therefore offer the highest degree of security regarding your funds, compared to other cryptocurrency brokers or exchange platforms.
11 major coins
- Fiat Money
Yes/No Security: Government-regulated Pro:
- Demo accounts
- High liquidity
- Mobile app
- No crypto deposits
- Difficult navigation
- Limited geo-availability
10 major coins
- Fiat Money, BTC
spread Security: Government-regulated Pro:
- Demo accounts
- 2 trading platforms
- Regulated and highly secure
- more products could be available
- Fiat Money
Yes Security: Government-regulated Pro:
- Real crypto trading + CFD trading
- Top customer support
- Major altcoins supported
- No crypto deposits / withdrawals
- Only CFD trading
- Relatively high fees
USD, EUR, GBP, RUB, JPY
- Fiat Money
Yes Security: Government-regulated Pro:
- many payment methods
- great trading interface
- experienced broker
- support not 24/7
- high fees
- only basic order types
Regulation and Licensing:
Established in 2010, this London and Melbourne based company aims to provide quick and easy access to a range of CFDs markets, including commodities, indices, futures, equities, and crypto. Thinkmarkets offer a combination of the latest technology ecosystem, fast execution speeds, and greater funds protection for customers that exceed FSCS Insurance. The company is currently regulated and licensed in:
- Australia: Licensed by ASIC (Australian Investments and Security Commissions), and all clients have segregated bank accounts
- UK: Licensed by FCA under FRN 629628 (all clients under UK have 1 million $ fund protection)
- South Africa: Licensed by SA FSCA (South Africa Financial Sector Conduct Authority)
eToro is one of the most known and advertised trading platforms that focus on CFD trading. The company was established in 2007 with the aim to disrupt the current world of trading, making it accessible to anyone, everywhere. By using eToro, you will be able to trade not only crypto CFDs but also commodities, stocks, currencies, indices, and more. The company is currently regulated and licensed in:
- Cyprus: eToro Europe is licensed by CySEC (yprus Securities & Exchange Commission), License Number 109/10
- UK: eToro UK is regulated by FCA (Financial Conduct Authority), reference number 583263
- Both eToro Europe & eToro UK underly and comply with the MiFID (Markets in Financial Instruments Directive ).
- Australia: eToro Australia (eToro AUS Capital Pty Ltd.) is licensed by ASIC (Australian Securities and Investments Commission)
All details are stated on https://www.etoro.com/de/customer-service/regulation-license/.
Plus500 is reliable and simple to use web and mobile CFDs trading platform with a wide range of supported markets. As a customer, you will be able to freely trade cryptocurrencies, indices, forex, commodities, stock, shares, and more. The company is currently regulated and licensed in:
- Cyprus: Regulated by CySEC, license 250/14
- UK: Licensed by the FCA (#509909)
- Australia: Licensed by ASIC (AFSL # 417727)
- New Zealand: Licensed by FMA (FSP # 486026)
- South Africa: Plus500 is “Authorised Financial Services Provider” (FSP # 47546)
- Singapore: Licensed by IE Singapore (#PLUS/CBL/2018) and the MAS (#CMS100648-1)
Launched in 2018, FXOpen is a more sophisticated platform that offers ECN accounts consisting of a network of banks, centralized exchanges, brokers, and private investors. Because of that, customers using this service can expect faster order executions and tightest possible spreads. FXOpen enables you to trade not only forex but also cryptocurrency and commodities. The company is currently regulated and licensed in:
- Australia: licensed and regulated by ASIC (number 412871)
- London: regulated by the FCA (reference number 579202)
- Russia: The director of FXOpen is member of several Russian regulatory institutions. Also, they are member of the Financial Commission.
Bitcoin Leverage: Why It’s Smaller With Regulated Brokers
Because of the nature of the cryptocurrency, the amount of leverage will depend on how the bitcoin is classified, as well as how it is regulated, based on the place of operations of the market maker and the client citizenship. A fully regulated bitcoin CFDs platform can be limited to a range of x2, x5 for CFS stocks, up to x30 for major currency pairs.
On the other hand, crypto-space if still new and unregulated in many jurisdictions. Companies use this to offer up to x200 leverage without any consequences. Does it mean that unregulated exchange operates illegally and is unsafe to use? Of course not, but as long as the proper regulations won’t be implemented, trading with such high leverage will be possible.
What are the biggest differences between regulated and unregulated brokers?
One of the biggest and most noticeable differences between regulated and unregulated brokers is ease of use. On unregulated exchange can start trading bitcoin within minutes - all you need to do is verify email, deposit some funds, and you are ready to go.
On the other hand, if you use the regulated exchange, your account will be able to accept deposits only after you perform a full KYC/AML process by submitting documents and all required information and successful verification that might take up to 24 hours.
The differences are visible also with the deposits themselves. If you use an unregulated platform, you will be able to deposit the only cryptocurrency as collateral. On the other hand, a fully regulated exchange will not be able to accept crypto. Still, on the other hand, you will be able to deposit fiat and use it to trade cryptocurrency within the platform itself.
Last but not least, every trader using an unregulated platform is taking a major risk with their deposits. Because a given company is not regulated, there are no regulations in place, preventing it from committing fraud or paying back in case of going bankrupt. Companies like that might claim that they are self-regulated and insured, but such claims are based only on trust and past performance. But then, customers using regulated exchanges are fully insured, up to the level required.
Does it mean that unregulated brokers always result in worse user experience? Not necessary. A company can be unregulated and still provide great customer support, educational materials, and have a fund in place that will be used in case of bankruptcy. What is more, an unregulated exchange still might request you to perform a full KYC/AML verification, if it decides to self-regulate.
Client's Funds Insurance
In UK individual client’s funds are protected up to $1 million (insured with Lloyd’s of London).
In South Africa all clients are protected with up to $1 million fund protection.
Clients’ funds of eToro UK may be covered up to £50,000 by the FSCS (Financial Services Compensation Scheme) - the FSCS is an institution covering business conducted by companies authorised by the FCA.
Up to €30,000 may be provided by the Investor Compensation Fund of Cryprus for clients of "eToro Europe".
Clients’ funds of Plus500 UK would be covered up to £50,000 by the FSCS.
Clients’ funds of Plus500CY Ltd would be covered up to €20,000 by the ICF (Investor Compensation Fund of Cyprus).
Read more in http://www.plus500.com/Docs/Plus500CY/InvestorCompensationFund.pdf
Clients’ funds would be covered up to £50,000 by the FSCS.
Our Recommendations for choosing a Regulated Cryptocurrency Broker
Before opening a cryptocurrency trading account, you can ensure that the broker is regulated by a serious institution such as FCA and PRA organizations in the UK, the SEC the United States, APRA in Australia and diverse national authorities in European countries. The strict regulations of the financial regulators are there for the safety of your funds.
When taking about state-regulated brokers, so far we mainly mean traditional Forex or stock brokers on which crypto currencies can now usually also be traded in the form of contracts for difference. In that case the underlying asset is not bought or sold, only the price is traded. Cryptocurrency exchanges on which crypto coins are actually bought or exchanged are not yet subject to the same rules as traditional Forex or stock brokers.
Unlike other financial instruments, contracts for differences are treated broker "dealing desk" and not in a centralized exchange. Therefore, it is possible to see price differences between brokers, but also brokers who are not able to meet their obligations. Therefore, it is important to check the regulations.
A CFD provider acts as a counterparty in a transaction, therefore it makes sense to choose a CFD broker regulated by a recognized body.
It is also useful to examine account opening forms to verify the broker CFD gives sufficient information about the risks associated with trading CFDs. This can give you an idea of how the broker conducts his business and whether it is a brokerage firm that is serious about having a lasting relationship with its clients.
Check if the Broker is really registered with the Authorities
Another point to a broker, it is easy to argue that he is registered, you should always check with the regulator if the broker has registered and that there were no unresolved complaints against the company.
CFD brokers are registered with the serious regulatory agencies in the countries in which they operate and which comply with the laws and regulations of the authorities.
The majority opt European operator for brokers who are regulated in the United Kingdom by the FCA in France by the ACP (Prudential Control Authority) or by a European body after the MiFID (Markets in Financial Instruments Directive), In addition to the French, the broker must be approved by the AMF.
Here are some of the main licensing institutions where company licenses can be checked:
What is the CFD Broker's Policy on the Use of Clients' Money?
The law sets out the requirements on how CFD brokers may deal with their clients' money. CFD brokers do not use all clients' money in the same way. Some offer more protection than others, including separate accounts, so make sure you know the broker's policy before opening an account.
Trusted Brokers invest in Training and Education of their Clients
Do you want to find a reliable broker who has a good reputation in the trading industry?
Regulation puts the power of the law on your side, but you should also check the financial soundness and reputation of the broker.
It may also be interesting to see if the broker invests significant resources for the training and education of his clients. Again, this is an indication of their long-term commitment.
Check for References
For example, you can look for references from satisfied customers in investment forums, but I am taking to filter out suspicious messages such as enthusiastic reviews can be falsified or generated by friends and distributor relationships (otherwise it is also possible that negative comments are created by competitors). Comments must be capable beings supported by facts or trust sources.
Many brokers are honest and work to establish and maintain their reputation. Unfortunately on the Internet, there are always crooks in all areas related to money.
Regulated Cryptocurrency Brokers Listed on Our Site
Brokers present on our comparison site have been selected for their reliability and the quality of their services. We do our best not to list any scams. All of the regulated brokers on our site have been approved by state institutions in the countries where they are operating, they are also legally authorized to accept customers from many countries where they don’t have headquarters. You can compare the different trading conditions (brokerage fees, spread, minimum deposit, type of orders, regulations, etc...) in our comparison of regulated brokers.
Advantages of Regulated Cryptocurrency Brokers
Customer deposits are booked and stored separately from company assets. Also, customer funds are subject to deposit protection. The amount of deposit protection may vary from provider to provider.
Deposit Protection / Client's Funds Insurance
An important point in CFD trading is the security of customer funds in the event of the CFD broker's insolvency. CFD providers who belong to a protection scheme are considered to be relatively stable. Deposits are thus hedged up to a certain amount in the event of insolvency. However, it is up to each broker to decide how he wants to secure his customer deposits.
There are considerable differences here, even though most brokers are based in an EU member state. With regard to deposit protection, there are two different situations. If a broker becomes insolvent, customers can have two different types of claims against him. First, claims arising from balances on customer accounts that were not involved in open transactions. Second, receivables from open transactions.
Disadvantages of Regulated Cryptocurrency Brokers
Compared to other Bitcoin Brokers, the registration process is more complex. You have to provide a lot of personal information and of course you have to verify your identity. This is the only way to get permission to make deposits and actively trade with real money. You cannot open a customer account in 1 minute by just entering an email address and a password, as is often the case with unregulated crypto trading sites.