The Difference Between a Crypto Broker and an Exchange

A cryptocurrency broker is a company or individual that facilitates buying and selling of cryptocurrencies for a fee. They typically offer a more personalized service and may set their own prices. On the other hand, a cryptocurrency exchange is a platform where users can trade cryptocurrencies with each other. Exchanges have order books and allow for more direct trading between users.

Quick Look: The Best Brokers for Crypto Trading in 2024

• Best Broker for Crypto CFDs: Plus500
• Best Bitcoin Broker: Coinbase
• Best for Social Investing: eToro
• Best for Active Traders: Interactive Brokers
• Best for New Crypto Traders: Caleb & Brown
• Best for Copy Trading: AvaTrade
• Best for Buying and Selling Dogecoin: Robinhood
• Best for Crypto Futures Traders: Kraken
• Best for Businesses: ICONOMI
• Best for Auto Trade: Carbon DeFi

GET STARTED

Invest in Gold, Silver and Rare Coins Today!

Gain access to exclusive products available at APMEX.

Table of Contents

• The Difference Between a Crypto Broker and an Exchange
• Best Crypto Brokers
• What Is a Crypto Broker?
• See All 7 Items

Best Crypto Brokers

When choosing a crypto broker, it is important to consider their services and strengths. Some crypto brokers offer social trading platforms and a wider selection of altcoins for trading. The best crypto broker for you will depend on your specific trading or investing style.

1. Best Broker for Crypto CFDs: Plus500

• Read Full ReviewBEST FOR:Crypto CFDGet Started with Plus500 Crypto82% of retail CFD accounts lose money.

Plus500 provides one of the biggest variety of asset classes we’ve seen amongst brokerages with no commissions charged for trades. Their asset classes include CFDs (shares, ETFs, crypto, forex, options, indexes, commodities), Shares, Futures (crypto, agriculture, metals, forex, interest rates, energy, equity index). They also offer futures trading exclusively in the US. Plus500 aims for a non-intimidating crypto trading platform, avoiding complex jargon and advanced technical tools to ensure a simple trading experience on both desktop and mobile apps.

One of Plus500’s best features for beginners is their Trading Academy which provides resources such as eBooks and webinars for traders of all levels. By offering diverse educational materials and expert insights, Plus500 ensures that users can make informed trading decisions, stay updated on market trends, and continuously improve their trading strategies. This comprehensive support enhances user confidence and competence, contributing to a better overall trading experience.

Why We Love It: With its user-friendly platform, competitive pricing, wide range of cryptocurrencies, regulatory compliance and demo account option, Plus500 offers everything you need to succeed in crypto trading.

2. Best Bitcoin Broker: Coinbase

• Read Full ReviewBEST FOR:Active Crypto TradersGet Started with CoinbaseSum of median estimated savings and rewards earned, per user in 2021 across multiple Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the subscription cost), rewards from Coinbase Card, and staking rewards. ³Crypto rewards is an optional Coinbase offer. Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts.

Coinbase is the most popular and one of the best brokers for trading crypto in the U.S. and has served over 100 million users. It is well-known for its security and compliance with regulators. You can trade more than 250 cryptos on the platform with industry-standard trading tools and premier security. Coinbase also gives its users free crypto in a few different ways. 

When you sign up for an account with Coinbase you get a chance to spin a reward wheel for a prize of up to $200 in Bitcoin or USD. Coinbase also has a great program called Coinbase Learn where you can earn a small amount of crypto by just reading about a token and taking a very short quiz. There is usually only about $20-$30 worth of crypto to earn from this, but it’s much better than nothing. You can also stake your cryptos on the platform with ease to earn passive income on your tokens.

Why We Love It: Coinbase offers a user-friendly interface, strong security measures and reputation for reliability, which makes it a solid choice for anyone looking to get started in the world of Bitcoin trading.

3. Best for Demo Accounts: eToro

• Read Full ReviewBEST FOR:Social InvestingGet Started with eToroCryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk.eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

eToro fundamentally changed the way many people trade and invest with its social trading platform. Social trading involves mirroring another trader or investor’s transactions in a special social trading account. While you make the same amount proportionally as the trader you’re copying, you also take the same percentage of losses the trader takes. You can trade traditional investments like stocks and exchange-traded funds (ETFs) and cryptos on the same platform with eToro, making it a fantastic all-around platform.

Winner of Benzinga’s FinTech Awards for Best Multi-Asset Platform.

Why We Love It: eToro is one of the best options for those looking to practice trading due to its unlimited demo account, real-time market data, user-friendly interface and seamless transition to live trading. Whether you are a beginner looking to learn the ropes or an experienced trader testing new strategies, eToro’s demo account provides a safe and risk-free environment to hone your trading skills.

4. Best for Active Traders: Interactive Brokers

• Read Full ReviewBEST FOR:Active and Global TradersGet Started with IBKR Crypto

Interactive Brokers provides active crypto traders with numerous advantages over competitors. Did you know that most crypto exchanges charge a spread on your buy or sell orders? This means that you are paying extra for your crypto. Interactive Brokers charges no added spreads, markups or custody fees and charges low commissions. Interactive Brokers currently offers Bitcoin, Bitcoin Cash, Ethereum, Litecoin and more digital tokens from Paxos Trust Company.

Listmaker of Benzinga’s FinTech Awards for Best Day Trading Software, Best Broker for Short Selling & Winner for Best Paper Trading Platform.

Why We Love It: With its low-cost structure, diverse range of asset classes and advanced trading tools, Interactive Brokers provides active traders with everything they need to succeed in today’s fast-paced and competitive trading environment.

5. Best for New Crypto Traders: Caleb & Brown

• Read Full ReviewBEST FOR:Crypto NewbiesGet Started with Caleb and Brown

Caleb & Brown is a premier team of cryptocurrency brokers that offers support for all crypto account holders. Uniquely, this company wants to work with crypto newbies to help them learn how the markets work and what can be done to build a better portfolio. The broker can easily facilitate large transactions, offer instant information on spot prices and provide the clients with customer support as needed.

With a personalized path to building a crypto portfolio, you can use Caleb & Brown for support when you don’t have time to build a portfolio. Plus, you can work directly with a dedicated broker who is going to get to know you and your needs. There are over 300 assets in which you may invest and industrial security measures.

Why We Love It: Caleb & Brown is a top choice for new crypto traders looking for a reliable, personalized and secure trading experience. With their focus on client satisfaction and commitment to excellence, Caleb & Brown sets itself apart as the best option for new crypto traders.

6. Best for Copy Trading: AvaTrade

• Read Full ReviewBEST FOR:Non U.S. Forex & CFD TradersGet Started with AvaTrade

AvaTrade offers traders a diverse range of assets that includes crypto. Plus, you can add to your portfolio with assets including more than 50 currency pairs, stocks and much more. You can use MT4 and automated trading software for copy trading, or you can try their proprietary trading platform. There are more than 90 indicators to try along with several charts. If you want to learn more there are educational tools, or you can try SharpTrader for more formal training.

Why We Love It: AvaTrade offers a diverse range of copy trading options, user-friendly interface, transparency, and security measures. Whether you are new to copy trading or an experienced trader looking to expand your portfolio, AvaTrade provides the tools and resources you need to succeed in copy trading.

7. Best for Buying and Selling Dogecoin: Robinhood

• Read Full ReviewBEST FOR:Buying & selling DogecoinGet Started with Robinhood Crypto

Robinhood is a popular commission-free trading app that allows users to buy, sell and trade a variety of cryptocurrencies, including Dogecoin (DOGE). With its user-friendly interface, additional financial services, 24/7 customer support and crime insurance to safeguard against breaches or theft, Robinhood makes it easy to invest in the world of cryptocurrency.

One of the key features of Robinhood is its mobile accessibility, making it easy for users to trade anytime, anywhere. The mobile app, available for both iOS and Android devices, allows for seamless navigation and quick execution of trades. With a few taps on your smartphone, you can place orders, track your portfolio performance, and stay up to date on market news and trends.

Why We Love It: With its commission-free trading, real-time market data, and security features, Robinhood provides a comprehensive platform for trading popular cryptocurrencies such as Dogecoin.

8. Best for Crypto Futures Traders: Kraken

• Read Full ReviewBEST FOR:Crypto futures tradersGet Started with Kraken

Kraken offers a range of business-friendly offerings and access to tough-to-find tokens like Gnosis, Kava and Dogecoin. In addition to these tokens, there are a total of over 50 to trade that allow you to diversify your portfolio as much as you like. You can set up a business account easily, hold your personal portfolio with Kraken and enjoy 24/7 customer support. 

There’s also the Kraken Trade Desk and Kraken Account Management for corporate clients, making this platform much simpler for futures traders and corporate financial managers to use.

Why We Love It: Kraken’s combination of security, variety of trading options and regulatory compliance makes it one of the best crypto brokers in the market.

9. Best for Businesses: ICONOMI

• Read Full ReviewBEST FOR:Businesses Wanting Exposure to CryptocurrencyGet Started with ICONOMI

ICONOMI is a unique crypto site that allows you to enter the crypto market at your own pace. For example, when you visit the site, it asks simple questions: do you want to trade crypto and automate your portfolio, or do you want to copy the strategy of a professional? 

You can look through all the features on the site or check out trading strategies that could benefit you. From there, you fund your account and get to work on your portfolio. This platform works like a crypto broker in that you can set up everything on the site, but it strays away from a traditional cryptocurrency brokerage in offering unique options.

ICONOMI is a great place to go if you’re just getting started or if you’re tired of the standard brokers that might not give you what you’re looking for.

You can also earn money by sharing your strategy with other users. Referral bonuses are available and business accounts are available if your company is trading or if you are a financial planner or advisor. 

The robust platform lets you share information and learn from other traders, with a learning section for those who want to read up on the subject. Pricing is clearly noted on the site. You can open an account for free, start trading and enter the crypto market right away.

Why We Love It: Given its diversified investment options, transparent and secure platform, access to professional management, user-friendly interface and cost-effective solutions, Iconomi provides businesses with the tools they need to succeed in today’s digital economy.

10. Best for Auto Trade: Carbon DeFi

• Read Full ReviewBEST FOR:Decentralized Automated Trading SolutionsGet Started with Carbon DeFi

Carbon DeFi is a decentralized exchange (DEX) that offers custom trading bots on the Ethereum blockchain. What does this mean for you? This platform operates much like a traditional broker because it uses linked orders to mimic grid trading, giving you a better experience.

You can create fully transparent, automated trading strategies that take advantage of the movement of the market, current pricing and quick execution to increase profits and reduce losses. This is no different than using bracket orders through a traditional broker, and the interface is just as simple as one you would find through a standard broker.

Orders move in one direction on this platform so that active crypto traders can move take advantage of market movements to buy a token low and sell high. There are no counterparty risks, zero fees charged on trades and it supports ERC-20 tokens like ETH, MATIC, LINK and USDC.

Your bots are fully customizable, and you can adjust in or out of trends as you need. Carbon DeFi may be built for those who have a clear understanding of the DeFi space, but it can work well for those in the know.

Why We Love It: Carbon Defi offers a modern and innovative way to trade digital assets, similar to a traditional broker but with additional benefits and risks. Whether you’re an experienced trader or new to the world of cryptocurrency, exploring DeFi platforms like Carbon Defi can open up new opportunities for investment and financial growth.

What Is a Crypto Broker?

A crypto broker is an individual or a company that assists clients in buying, selling and trading cryptocurrencies. They may offer advice on investment opportunities, help clients navigate different exchanges, and execute trades on behalf of their clients. Crypto brokers play a key role in the rapidly growing cryptocurrency market by providing expertise and guidance to investors seeking to navigate this complex and volatile market.

Pros & Cons of Cryptocurrency Brokers

Before you decide to use a crypto broker for your trading needs, it’s crucial to weigh the benefits and drawbacks to determine if it aligns with your financial goals and risk tolerance.

Pros

• Provides easy access to a wide range of cryptocurrencies
• Offers user-friendly platforms for trading
• Offers educational resources for beginners
• Can provide liquidity to quickly buy and sell cryptocurrencies
• Can provide personalized investment advice and strategies

Cons

• May have higher fees or commissions
• Trustworthiness of crypto brokers can vary
• Limited regulation and investor protection compared to traditional financial institutions

How to Choose the Best Crypto Broker

Here are some key factors to consider when choosing a crypto broker:

• Security: The security of your funds should be your top priority when choosing a crypto broker. Look for brokers that offer two-factor authentication, cold storage for funds and insurance against hacking or theft.
• Reputation: Research the reputation of the broker by reading reviews, checking online forums and asking for recommendations from other traders. A reputable broker will have a history of reliable service and transparent operations.
• Fees: Consider the fees charged by the crypto broker for trading, withdrawals and deposits. Some brokers may offer lower fees but have hidden costs, so be sure to read the fine print and understand all fees associated with trading on the crypto platform.
• User interface: The user interface of the broker’s platform should be easy to navigate and user-friendly. Look for a platform that offers advanced charting tools, real-time market data and order execution capabilities.
• Customer support: Choose a broker that offers excellent customer service with multiple channels of communication such as phone, email and live chat. It is important to have access to support in case you encounter any issues or have questions about your cryptocurrency trades.
• Regulation: Ensure that the broker is regulated by a reputable financial authority to protect your funds and ensure that the broker is operating within legal guidelines. Regulation provides an added layer of security for traders.
• Asset selection: Consider the range of cryptocurrencies offered by the broker. Some brokers may offer a wide selection of crypto coins, while others may only offer a limited number. Choose a broker that offers the cryptocurrencies you are interested in trading.

Are You Ready for the Future? 

The future of finance is pointing towards digital currency and blockchain technology, with cryptocurrencies becoming more widely accepted as a form of online payment. While they are currently volatile, they offer potential long-term investment opportunities and are gaining ground as powerful contenders in the financial landscape. It is recommended to start exploring the world of digital assets with a reputable cryptocurrency broker. The best crypto broker for you will depend on your trading style, preferences and level of experience. Take the time to research and compare different brokers to find the one that best suits your financial needs.