Best Online Brokers for Buying and Selling Cryptocurrencies in January 2024

Cryptocurrencies have been on quite a roll since their launch, with some early investors seeing significant gains, while those who bought at the peak likely suffered huge losses. The digital coins have sparked much debate in the investment industry about their investment merit and viability, with legendary investors such as Warren Buffett saying that cryptocurrencies are essentially worthless.

The collapse of crypto exchange FTX saw many of its executives charged with crimes in 2022 and left many questioning whether crypto could survive as an investment. But then the industry saw a huge boom in 2023. If nothing else, the volatility of Bitcoin and other popular coins can make cryptocurrencies an attractive trading vehicle and create the potential for some traders to make a profit.

While some traders like to own the currency directly, others turn to the futures market. Futures can be an even more attractive way to play the volatility of digital currencies like Bitcoin because they allow traders to use leverage to magnify their profits (but also magnify losses). But futures involve a lot more risk in exchange for that potentially higher reward.

Where you can buy and sell cryptocurrencies

Traditional brokers have the advantage of offering a wide variety of investable securities, although you usually cannot trade Bitcoin directly, only futures. Meanwhile, crypto exchanges are limited to digital currencies, although you can own the currencies directly and often buy several, rather than simply Bitcoin or Bitcoin futures, as you would with a general broker. And services like Cash App and PayPal have also stepped in, allowing US users to buy and sell cryptocurrencies.

Here are the best brokers for cryptocurrency trading, including traditional online brokers as well as new specialized cryptocurrency exchanges. You may also want to check which brokers offer the best bonuses for opening an account to determine where you can get a little extra.

Review: Best Brokers for Trading Cryptocurrencies in February 2024

Robin Hood

Robinhood is a great option to buy cryptocurrency directly. You’ll also benefit from Robinhood’s very popular trading commissions: $0 per trade, or commission-free, although you’ll still pay a built-in spread markup on any trades. And if you like more than just cryptocurrency, you can stay for stock and ETF trades for the same low price. Robinhood’s slick app makes trading so easy, though those looking for a full trading experience will be disappointed.

Commission: $0, but built-in spread markup Account minimum: $0

Interactive Brokers

With Interactive Brokers, you can trade four cryptocurrencies through Paxos Trust Company and Zero Hash, including Bitcoin and Ethereum, for one of the lowest commissions in the market. Clients can also access 24/7 crypto trading through an app associated with Paxos. Plus, IB allows you to buy Bitcoin and Ethereum futures rather than owning the currencies directly. And in this broker’s case, you can buy Bitcoin futures contracts on the Chicago Mercantile Exchange, with contracts costing $5 at five coins per contract or Ethereum contracts for $3 at 50 coins per contract. In addition, Interactive Brokers brings its full range of investment offerings, so you can buy almost anything traded on an exchange.

Commission: 0.12-0.18 percent of trade value; $5 per Bitcoin Futures Account Minimum: $0

Webull

While Webull may be less well-known than its rival commission-free trading app Robinhood, it offers investors a solid offering that includes cryptocurrency trading. While you won’t pay commissions on crypto trades (or stocks and ETFs), Webull does charge a spread markup of 100 basis points (1 percent of the price) on either side of a trade. Various cryptocurrencies are available for trading, including Bitcoin, Ethereum and Dogecoin. Charting tools and an impressive mobile app make Webull a broker worth considering.

Commission: $0, but built-in spread markup of 1 percent Account minimum: $1 to trade crypto

TradeStation

Traders have a few options at this broker, which has rolled out direct cryptocurrency trading via TradeStation Crypto, with a built-in spread markup. The spread markup is no more than 1 percent of the trade value, whether you buy or sell. Traders can also buy and sell Bitcoin futures contracts.

Commission: $0, but built-in spread markup of more than 1 percent Account minimum: $0, but term margin depends on the contract

Binance.VS

Binance is a specialized trading platform that allows you to buy and sell digital currencies, including the biggest ones like Bitcoin and Ethereum, but also hundreds of other much smaller coins. In total, you will have access to more than 300 cryptocurrencies. The commission structure at Binance is low and only gets cheaper the more you trade. Trading fees start at 0.57 percent of your trade value (ie $57 for every $10,000 traded) and decrease from there depending on your trading volume over the previous 30 days. However, Bitcoin trading is free here.

Binance’s finances came under scrutiny in 2022 following the collapse of FTX. The accounting firm used by Binance to verify its reserves has suspended its work for all crypto clients and the Securities and Exchange Commission (SEC) has said investors should be wary of crypto firm audits. None of the big four accounting firms are willing to work with Binance, according to the Wall Street Journal.

The SEC sued Binance in June 2023, alleging that it illegally operated as an exchange, broker-dealer and clearing agency and offered and sold unregistered securities. The lawsuit also accused Binance and its founder, Changpeng Zhao, of misappropriating customer funds. SEC Chairman Gary Gensler warned investors against using Binance platforms. Binance said that its customers’ assets are safe.

Commission: 0.57 percent of the transaction value or less, while Bitcoin trading is free Account minimum: $0

Coin base

Coinbase is a specialized cryptocurrency-focused platform that allows you to directly trade digital currencies, including Bitcoin, Ethereum, Solana and Tether. In total, you will have access to more than 200 cryptocurrencies. You’ll also be able to store your coins in a vault with time-delayed withdrawals for added protection. The exchange’s commission structure is steep. It charges a spread markup of around 0.5 percent and adds a transaction fee depending on the size of the deal and the funding source, although its Advanced Trade platform does not charge a spread.

The SEC sued Coinbase in June 2023, alleging that it illegally operated as an exchange, broker-dealer and clearing agency, and offered and sold unregistered securities. The lawsuit said Coinbase intentionally violated securities laws designed to protect investors. Coinbase said it will continue to operate its business as usual.

Commission: Fees start at 0.6 percent on Advanced Trading Account minimum: $0

Kraken

Kraken is a cryptocurrency exchange that allows you to trade over 200 different digital currencies such as Bitcoin and Ethereum, as well as emerging ones such as Cardano and Solana. Using the Kraken Pro level, the initial trading fee ranges from 0.16 percent to 0.26 percent and then drops rapidly from there based on your 30-day trading volume. Kraken is not yet available for New York and Washington state residents.

Commission: At Kraken Pro, fees start at 0.26 percent Account minimum: $1

Charles Schwab

Charles Schwab is regularly one of Bankrate’s picks for top broker, and this investor-friendly company offers Bitcoin futures trading. Schwab also has no account minimum, but any futures you trade will require a minimum margin to keep them open. Schwab offers an attractive commission of $2.25 per contract, and if you can bring big money to the table, you’ll also receive a welcome bonus.

Commission: $2.25 per contract Account minimum: $0, term margin depends on contract

With keyboard

Tastytrade is a relatively newer player to the brokerage world, and it offers some attractive prices on cryptocurrency transactions, powered by partner Zero Hash. Tastytrade charges 1 percent of the trade value on the buy and sell, but only up to $10 per side of the trade. So once you trade over $1000, your crypto commissions here will flatline at a sawbuck. However, only four cryptocurrencies are available to trade here. You can also buy crypto futures at $1.25 per contract on the open and close.

Commission: 1 percent of the trade value on the buy and sell, up to $10 per leg. Futures contracts at $1.25 on the buy and sell account minimum: $0

Bottom line

Whenever you choose a broker, it is important to consider all your needs. And for new cryptocurrency traders, you’ll want to figure out whether you want to own the virtual currency directly or whether you want to trade futures, which offer higher reward but also higher risk. If you’re looking to start trading cryptocurrency, here are the most important things you need to know.

You will also need to consider whether you want to trade more than Bitcoin, which the majority of traditional brokers limit you to. If not, you may want to turn to a cryptocurrency exchange, as they offer more choice of tradable cryptocurrencies.