Choosing/Selecting a Crypto Broker

All traders use a crypto broker to handle their transactions. Trader makes a decision on which trade transaction to make, then places an order with a crypto broker who then executes the order for them and earns money by charging a commission or a fee called 'the spread' for their services.

Crypto brokers are associated with large financial institutions such as banks in order to provide the funds and liquidity necessary for margin trading. Banks are known as "liquidity providers". These large/big Banks are also the ones that provide the interbank exchange rate to online brokers. trading is traded through a network of banks known as 'interbank network'. CryptoCurrency Brokers gain access to the inter-bank network through banks, & then provide this access to retail traders.

A good crypto broker should be signed up with a well known regulatory authority such as CFTC, NFA, CYSEC, FCA, ASIC and FSP, these regulatory authorities serve as a protection measure against fraud and abusive trade practices.

Before you begin you need to set up an account. You might feel overwhelmed by the number of firms that offer these services online.

Deciding on a good company broker requires a little bit of research on your part, but the time spent researching will give you insight into the services provided & fees charged.

Best recommendation is word-of-mouth advice, & this is just as valid in bitcoin trading as it's for any other type of business.

You also want to find a broker who executes orders quickly with minimum slippage & should offer automatic/instant execution & have clear protocols regarding slippage.

Next you want to find out the fees involved i.e. Spread. If spread charged is fixed or variable. Are there other charges like commissions per lot traded?

Margin trading is what Bitcoin is about, so be sure you understand the margin trading terms requirements before setting up an account. You need to know the margin requirements and how the margin is calculated.

Does the margin change in accordance to the bitcoin traded? Is it the same every day of the week or does it vary? Some brokers may also offer different margin requirements for mini & standard bitcoin accounts. Some may also change their margin requirements during the weekend. Do not select those that change their margin requirements during the weekends as this might mean your open trade positions are more likely to be close out over the weekend because of the changing margin requirement during the weekend. Always choose the one which has fixed margin requirement at all times.

The software is also very important to a bitcoin trader. You can get a feel of the software options which are available by trying out demos from a couple of firms online. Above all, you are looking for reliability & the ability to execute transactions on fast-moving markets.

To make sure that you get fast execution from your crypto broker make sure that you trade with big Bitcoin companies that have enough liquidity required to execute orders quickly. The big companies have multiple liquidity providers and these many liquidity providers ensure that the company that you select can execute as many trade transactions as possible at any given time in a very fast & efficient manner, that way your orders do not get re-quoted.

Factors to Consider When Comparing

Before comparing brokers we recommend that you do not open a trading account with a USAUS based company, regulation by the CFTC and NFA imposes excessive and over-bearing regulations that have been imposed on US based companies. These include reduced bitcoin leverage levels, no hedging rule & the FIFO (first-in first-out) rule that affects the way you trade. FIFO rule states that the first trade you open must be the first one you close, and keeping track of your orders especially if you open many of them might be difficult for you.

The following are the factors you should consider:

Regulation

Regulation is an important factor to take into consideration when comparing, regulation is implemented by financial regulatory authorities like FSA, NFA, CySEC and others. You should always open an choose & select a company that's regulated.

Deposit and Withdrawal

In depositing and withdrawing money from your trading account, you should consider the following:

What is the minimum deposit required?

How much time does it take to withdraw your money?

Is there any deposit or withdraw fee?

It's also crucial and important that you as a trader find out what payment method or money transfer methods are available for use with for example Wire Transfer, Credit Card, Debit Card, Pay Pal & others that are suitable for you.

Minimum Deposit Requirements

How much money do you as a trader need to deposit so that to open a account? - The minimum for many is $100 dollars but for some its less. This is important to consider when comparing 2 or more.

Software

The platform provided can be used for comparison and trader can choose & select the best type of software. Most popular software is the MT4.

MT4 is the best software with powerful technical tools & charts that's why most if not all brokers offer the MT4. If you're a newbie select one that offers you MetaTrader 4 that way if you decide to move to another one you will still find the MetaTrader 4 platform software that way you don't have to re-learn a new trading software every time you decide to try a new broker.

Charting is very important and you need a powerful crypto charting software with good charts & indicators so that to make the right decisions. The best choice is a one that offers good quality charting software such as the MT4.

Order Execution

Consider if execution, is instant, is it that of an STP. Best model is STP model, with high liquidity to guarantee order execution.

Bitcoin Leverage & margin

Should give you the option to choose bitcoin trading leverage 1:50, 1:100 1:200 or 1:500 for the risk takers with an appetite for risk. However anything above 1:200 is too high 1:100 is the optimum crypto leverage.

Account Types

Should offer micro, mini & standard cryptocurrency trading accounts for a trader to select and choose the one which they want.

Customer Support

Should provide customer & technical support during the btcusd trading market hours, either via E-Mail, phone or online chat.

Before selecting a company to open an account with you might want to check the customer support & professionalism and compare & analyze this between different one.

What to Consider for Comparison

The fact is that genuine & regulated firms come with a guarantee of being genuine.

The company you choose should be suitable for all trader types whether it's scalping, day, swing or position trading. Most will not accept scalping: these aren't recommended even for non-scalpers. Those that do not allow scalping may be because they do not have enough liquidity to guarantee trade execution of your trade orders. This is bad even for others traders because your orders might not be filled at the correct point & you might get re-quotes.

A good broker will be suitable for the traders of all levels of expertise. Beginner Traders should find the trading conditions to be quite flexible & the platform easy to use, while professional traders should benefit from high liquidity & instant execution of orders.

The factors and aspects below should be used when comparing, visit their website look at the information provided & then use your judgment to make a choice if they are is best for you.

MetaTrader 4 software platform
Up to 1:200 bitcoin trading leverage
Funding through WebMoney, Liberty Reserve, PayPal, Money Brokers, bank wire, credit card, debit card and other payment options
Minimum deposit $100 dollars
Bonuses on deposits
In addition to bitcoin, other trading instruments such oil, bitcoin and silver & indices
Instant execution of orders, no requotes
STP
Professional customer support
Well regulated by a financial regulatory authority

Recommended broker is one that will ensure you trade better by offering you the best tools and support for analysis.

BTCUSD means the exchanging of one financial instrument for another in the market. CryptoCurrency market is one of the largest market in the world. With the objective to earn substantial profits, new investors are jumping into the bitcoin trading market everyday.

Investors, who take time to know the basic knowledge & info, definitely earn high returns on their investment than those who do not.

However there are times, when investors fail to do anything right in the bitcoin trading market due to and because of lack of enough information and awareness regarding bitcoin trading. Thus, it is recommended to select and choose one before investing in the btcusd trading market. A good broker can improve an traders result by providing the best execution of trade transactions, there are many companies out there that trader can select from but not all are good. One thing to look out for is to select one that's regulated.

While selecting, ensure that they are the best for you. It is not a tiresome task to find a broker having a long list of customers. But it is not enough for you. You as a trader should look for a one that is regulated. Also look at their terms & conditions this will help you as a trader know about their workings.

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