With all the news surrounding Bitcoin, I thought I would compare some brokers offering bitcoin and what conditions they offer. The results of my research were really surprising with some brokers tripling their spreads as bitcoin approached $10,000. Now let’s get into the nitty gritty – the data.
The brokers I chose offer (or offered when I was testing, as you’ll see below) CFD Bitcoin.
- FXCHOICE (on MT4 bitcoin trading is disabled)
- FXPrimus (on MT4)
- Ava Trade
- com (on their web trader bitcoin trading is disabled)
- Plus500 (using their web trader)
- IG (“Buy” is not available)
Spreads on Bitcoin
Most people care about their bottom line and one thing that cuts into that is a brokers’ spread. Of course, there is a whole argument regarding fixed vs. variable spreads but we aren’t going to open that can of worms. At the moment due to bitcoin’s volatility, fixed spreads are our friend, especially if they are low. Let’s take a look at what my roster of brokers offer:
- XM – variable starting from 14
- FXCHOICE – variable starting from 10 but BTC trading is disabled on MT4
- FXPrimus – variable starting from 40
- Ava Trade – variable starting from 77
- com – fixed spreads 40 but BTC trading is disabled
- Plus500 – variable starting from 60
- Pepperstone – variable starting from 22 BTC trading page is 404 at the moment
- IG – variable starting from 40 but BTC “buy” is disabled
- ICMarkets – variable starting from 40
- eToro – variable currently at 118!
- easyMarkets – Fixed: web trader – 35 MT4 – 25
So, it seems that the most competitive fixed spreads when trading BTC seems to be easyMarkets, and since they’re fixed that means that they won’t change because of market volatility, like the majority of the brokers’ spreads do that I tested. The standout variable spread broker though has to be eToro, which tripled their spreads as BTC inched towards the 10,000 mark, reaching 118 at points.
If bitcoin keeps moving up and more people continue trading it, these variable spreads are likely to continue increasing too as they have done up to now. Not that fixed spreads are the best thing since sliced bread, but at the moment when trading bitcoin it’s probably the ‘safest’ bet.
So, I took a few of the lowest variable and the lowest fixed spread brokers – and compared reviews they had on Trustpilot, a review website. Honestly easyMarkets seems to have more positive reviews on this platform. I won’t go into details or anything I’ll let you take a look for yourself: easyMarkets review, XM.com reviews, Pepperstone reviews.
Digging a little more deeply into the company’s news, I found that some company news announcements warning their clients of adjusting trading conditions because of market volatility. Here are a few examples I found where XM and Pepperstone adjusted their trading conditions due to potential market volatility Japanese election, German election, EU Referendum, UK Referendum. easyMarkets on the other hand seems to keep their trading conditions unchanged during market volatility here are some examples: Japanese elections, US elections and the UK elections.
Trading Bitcoin can be exciting, especially as it looks like it will never stop going up! Choosing a broker to work with though – at least for me – was overwhelming and a lot of the information was buried. So hopefully this helps someone else out there figure out who to trade with.