Bitcoin is the first online currency that can be accessed anywhere in the world. Considering that it only started in 2008, being a bitcoin trader is not as straightforward despite its increase in popularity. First-time trading can seem pretty scary to dip your toes into the water for, especially with the expansion of cryptocurrency exchanges and forex brokers offering cryptocurrency trading.
When it comes to choosing a reputable bitcoin broker that operates in Australia, it is important to pick one that is ASIC-regulated to ensure transparency and for the purposes of your own security.
Other factors to take into consideration are:
- User-friendliness – Since this is a relatively new market, the process of being able to navigate through a site and purchasing for the first time should not be as daunting. It should be simple for you to always be able to get through your transactions with ease.
- Prices – You will have to compare between various platforms as different brokers will charge different rates depending on the commission fees they will take. This can also simply be defined as a “spread.”
- Trading Fees – Payment charges ranging from 0% to 5% may be applicable based on the payment method and platform you choose. It is important to pick platforms where trading fees are aligned with the industry standard.
- Variety – Although it is the first, cryptocurrency is not limited to just Bitcoin. An example of this would be Ethereum, which is perhaps a strong contender in blockchain technology right now. Therefore, you may want to pick a platform with a range of cryptos.
- Limitations – There are conditions put in place on the amount that can be deposited or withdrawn. Furthermore, there may be limitations on the services that they are able to provide, such as where you are able to convert and receive your funds.
To simplify your search, here is a comparison of the Top 5 best bitcoin brokers in 2020 that you can trust.
eToro is one of the most popular and reputable brokers in the financial services market as it allows investing in Crypto, ETFs, Stocks, Indices, Commodities, and Currencies. eToro also offers a wide selection of helpful features such as a social trading platform where users can connect with other investors and traders. It is also easy to use for beginners as they may utilize the CopyTrader service where they can simply copy trades of leading investors. There is also the option to learn online through the eToro Trading Academy.
Established: Cyprus, 2007
Regulators ASIC, CySEC, FCA, MiFID
Initial Deposit: $200; For residents of Australia and the USA: $50; For residents of Algeria, Lebanon, the Maldives, and Venezuela: $5,000
Minimum Deposit: $50; If via Wiretransfer: $500
Deposit Methods: Debit cards and Credit Cards (Visa, MasterCard, Diners Club, Maestro), Neteller, PayPal, Wire transfer, Online banking, China Union Pay, Skrill, NETELLER, Yandex, Giropay
Withdrawal Methods: Sent to the same account as a deposit. Priority as follows: Credit card, PayPal, Bank transfer (withdrawal fees apply)
Commission Charges: 0%
Cryptocurrencies: ADA, BTC, BCH, DASH, ETC, ETH, EOS, IOTA, LTC, NEO, TRX, XLM, XRP, XTZ, ZEC
Restricted Countries: Afghanistan, Albania, Bahamas, Barbados, Belarus, Bosnia and Herzegovina, Botswana, Brunei, Burundi, Cambodia, Canada, Chad, Congo Republic, Crimea Region, Cuba, Democratic Republic of the Congo, Ethiopia, Fiji, Ghana, Guinea, Guinea-Bissau, Guyana, Iran, Iraq, Jamaica, Japan, Laos, Libya, Mali, Mauritius, Mongolia, Montenegro, Myanmar, Namibia, Nicaragua, North Korea, North Macedonia, Pakistan, Palau, Samoa, Serbia, Somalia, Sri Lanka, Sudan, Syria, Trinidad and Tobago, Tunisia, Turkey, Uganda, Vanuatu, Yemen, Zimbabwe
OS Support: Mac, Windows, Linux, Mobile, Web, iOS
- Diverse set of asset types in one platform
- Simple interface even for novices
- Informative and Social
- Fee structure is complicated, and conversion fees may be applicable
- High Risk
Plus500 is a broker that is trusted globally because it is regulated by several top-tier international financial authorities and is also listed as a London Stock Exchange Global CFD.
The company not only provides access to Indices, Forex, Commodities, Crypto, Shares, Options, and ETFs but is also an official sponsor of one of the top Spanish football clubs, “Atlético de Madrid”. In 2013, Plus500 also became the first company to create a Bitcoin CFD.
- Established: Israel, 2008
- Regulators: ASIC, CySEC, ISA, FCA, FMA, FSCA, MAS
- Initial Deposit: $100; $500 if via bank transfers
- Minimum Deposit: Same as initial
- Deposit Methods: Debit Cards and Credit Cards (Visa or Mastercard, other limitations dependent on region), PayPal, Skrill, Bank Transfer
- Withdrawal Methods: Debit Cards and Credit Cards, Bank Transfer, Skrill, Paypal (5 free withdrawals per month, exceeding withdrawals will be charged $10. Withdrawal charge of $10 will also apply if less than $100 is being withdrawn)
- Commission Charges: 0%
- Cryptocurrencies: ADA, BAB, BTC, Crypto10, ETH, EOS, IOT, LTC, NEO, TRX, XLM, XMR, XRP
- Restricted Countries: Belgium, Brazil, Cameroon, Canada, Cayman Islands, Cote D’Ivoire, Egypt, France, India, Indonesia, Iran, Nigeria, Pakistan, Philippines, Thailand, United States of America, Zimbabwe
- OS Support: Windows, OS X, Android, iOS
- Easy platform to use
- Low spreads
- Highly Regulated
- Insufficient educational resources for traders
- No phone support
- Inactivity Fee ($10 per quarter after 3 months of inactivity)
IC Markets is an industry-leading, Australian, forex broker founded in Sydney. It is also the world’s largest and most liquid CFD provider by volume as they surpass over $4 trillion in a day. Its market includes: Forex, Commodities, Indices, Bonds, Cryptocurrency, Stocks, Futures. Even though they offer cryptocurrencies unavailable in other platforms, they do so with small spreads that start from zero pips.
- Established: Australia, 2007
- Regulators: ASIC, CySEC, FSA
- Initial Deposit: No initial deposit but $200 is recommended
- Minimum Deposit: Same as Initial
- Deposit Methods: Debit Cards and Credit Cards (Visa and Mastercard), Paypal, Neteller, Neteller VIP, Skrill, Union Pay, Wire Transfer, Bpay, FasaPay, Broker to Broker, POLI, Thai Internet Banking, Rapidpay, Klarna, Bitcoin Wallet, Vietnamese Internet Banking
- Withdrawal Methods: Debit and Credit Cards (Visa and Mastercard), Neteller, PayPal, Skrill, Western Union, Wire Transfer, Local Bank Transfer
- Commission Charges: Dependent on a trading account. Raw Spread (cTrader and MetaTrader options available) offers spreads with zero pips but is commission-payable; Standard Account (MetaTrader) offers spreads from one pip but has commission-free trading.
- Cryptocurrencies: BCH, BTC, DASH, EMC, EOS, ETH, LTC, NMC, PPC, XRP
- Restricted Countries: Afghanistan, Angola, Antigua and Barbuda, Bolivia, Botswana, Burma (Myanmar), Cambodia, Cote d’Ivoire (Ivory Coast), Cuba, Democratic Republic of Congo, Former Liberian Regime of Charles Taylor, Gambia, Guinea Bissau, Guinea Conakry, Iran, Iraq, Kyrgyzstan, Lesotho, Liberia, Libya, Mali, Namibia, Niger, North Korea, Senegal, Sierra Leone, Syria, Tanzania, Togo, Yemen, Zimbabwe
- OS Support: Windows, OS X, Android, iOS
- High Volume
- Low Forex Fees
- Commission-free trading and no deposit fee
- 24/7 customer care
- High range of educational materials
- No negative balance protection
Coinbase is a US-based brokerage service in California. It is the largest cryptocurrency exchange, supporting over 100 countries in the world, and continues to grow its customer base in numbers. Some of the leading investors of Coinbase are The New York Stock Exchange (NYSE), USAA, Ribbit Capital, and Andreessen Horowitz.
- Established: The United States of America, 2012
- Regulators: Licensed in all districts it operates and cash held in Coinbase wallets are FDIC insured up to $250,000
- Initial Deposit: No initial deposit
- Minimum Deposit: No minimum deposit
- Deposit Methods: Bank Account (ACH), Wire Transfer, Cryptocurrencies
- Withdrawal Methods: Bank Account (ACH), Wire Transfer, SEPA (Only UK) (withdrawal fees may apply)
- Commission Charges: If the total transaction amount is less than or equal to $10 the fee is $0.99; If the total transaction amount is more than $10 but less than or equal to $25, the fee is $1.49; If the total transaction amount is more than $25 but less than or equal to $50, the fee is $1.99; If the total transaction amount is more than $50 but less than or equal to $200, the fee is $2.99
- Cryptocurrencies: Algo, Atom, BAT, BCH, BTC, CVC, DAI, DASH, DNT, EOS, ETC, ETH, GNT, KNC, LINK, LOOM, LTC, MANA, MKR, OXT USDC, XLM, XRP XTZ, ZEC, ZRX
- Restricted Countries: Afghanistan, Albania, Algeria, Antigua and Barbuda, Azerbaijan, Belarus, Bangladesh, Belize, Bhutan, Bolivia, Bosnia and Herzegovina, Burkina, Burundi, Cabo Verde, Cambodia, Chad, Central African Republic, China, Comoros, Congo, Côte d’Ivoire, Cuba, Democratic Republic of Congo, Djibouti, Dominica, Egypt, Equatorial Guinea, Eritrea, Eswatini, Ethiopia, Faso, Fiji, Gabon, Gambia, Georgia, Germany, Grenada, Guinea, Guinea-Bissau, Guyana, Haiti, Holy See, Iran, Iraq, Israel, Japan, Laos, Lebanon, Lesotho, Liberia, Libya, Liechtenstein, Luxembourg, Papua New Guinea, Madagascar, Malawi, Malaysia, Marshall Islands, Mali, Mauritania, Micronesia, Moldova, Monaco, Morocco, Mozambique, Myanmar, Nauru, Niger, Nigeria, North Macedonia, North Korea, Norway, Palau, Pakistan, Qatar, Russia, Saint Kitts & Nevis, Saint Lucia, Kiribati, Samoa, Sao Tome & Principe, Seychelles, Saudi Arabia, Senegal, Sierra Leone, Solomon Islands, Somalia, South Korea, South Sudan, Sri Lanka, State of Palestine, St. Vincent & Grenadines, Sudan, Suriname, Syria, Tajikistan, Tanzania, Thailand, Timor-Leste, Togo, Tonga, Turkmenistan, Tuvalu, Ukraine, United Arab Emirates, Vanuatu, Venezuela, Vietnam, Yemen, Zimbabwe
- OS Support: Windows, OS X, Android, iOS
- User-friendly interface
- Highly regulated and secured
- Exceptional Reputation
- Bad customer service
- Lack of control and access on your own funds
- High Fees
- Limited payment methods
AvaTrade is one of the oldest online brokerages and is therefore a leading and well-established company in the industry and has a 10-year track record to prove it. It is also the first broker to receive a 3A license from Abu Dhabi, United Arab Emirates, and is partnered with Manchester City F.C.
They are a widely spread global company and have corporate branches in Australia, Chile, China, Ireland, Italy, Japan, Mongolia, Nigeria, Spain, and South Africa. Clients can take advantage of different trading options such as: commodities, bonds stock indices, ETFs, forex, individual equities, and options.
- Established: The Republic of Ireland, 2006
- Regulators: MiFID, Central Bank of Ireland, FSA, ASIC, BVI, FFAJ, FSCA, ADMG – FRSA
- Initial Deposit: $100 for credit and debit cards; $500 for bank transfers
- Minimum Deposit: Same as the initial deposit
- Deposit Method: Credit card and Debit Card (Mastercard and Visa), Wire Transfer, Skrill, WebMoney and Neteller (E-Wallets not available for EU and Australian clients)
- Withdrawal Method: Credit card and Debit Card (Mastercard and Visa), Wire Transfer, E-Wallets
- Commission Charges: 0% but is compensated with through bid-ask spread
- Cryptocurrencies: BTC, XRP, ETH, LTC, NEO, EOS, MIOTA forex pairs, respectively.
- Restricted Countries: USA, New Zealand, and Iran
- OS Support: Windows, macOS and Linux, Android, iOS
- Wide range of educational materials in different languages and free online trading coach
- Free deposit and withdrawal
- Have promotions such as bonuses as high as 40% of the initial deposit (dependent on sliding scale amount)
- Has Social Trading
- Inactivity fee ($50 per quarter after 3 months of inactivity)
- Limited trading options
Guide to Bitcoin Trading in Australia
What is Bitcoin? Simply put, in terms of the physical world, our form of exchange is through cash. Virtually it is a line of code known as cryptocurrency, which Bitcoin is a type of. Bitcoin takes away our reliance on banks and instead passes from one user to another or, “peer-to-peer”, through blockchain technology that works like a ledger to secure our transactions.
Should You Invest in Bitcoin?
The answer to this may be tricky and will depend on your outlook and strategy as the same reasons for why it is beneficial are the same reasons why it is a risk such as:
- Decentralized: It does not require you are located anywhere specific. There are no global boundaries, so it does not get affected by factors such as inflation. However, it can bring about fears that bitcoin may end up being mismanaged.
- Predetermined Supply: There is a likelihood that it may become irrelevant. The limit of Bitcoins is exactly 21 million units. Having this fixed amount means that it is not built to last. Yet, it is this exact reason why it has intrinsic value like gold. Demand could go upward as people would aggressively want a piece.
- Highly Volatile: Cryptocurrencies are extremely risky investments. Its value could spike up or down quickly at any given time. This means that you might be able to get a return on your investment in a short period of time just as much as it could mean that you may suffer a huge loss. Fears such as hacking may also be an issue.
What is a Bitcoin Broker?
A bitcoin broker is a middleman for trading bitcoin at a fixed price. You can utilize brokerages by going to a platform to see the current rate at which the bitcoin is being sold. If the rate displayed is at a price you deem fit, you can select and pay the amount you are willing to buy. Bitcoin brokers are also the only way for you to buy a lump sum of bitcoin at a time.
Brokers hold the set value of what you have purchased, and you may be able to sell it once the price goes up for a kickback on the initial payment.
Who is the ASIC?
The ASIC or the “Australian Securities & Investments Commission” is a government body established in 1998. Its primary objective is to regulate and supervise that businesses adhere and uphold fair trading standards and that consumers’ and investors’ interests are protected. All brokers registered with the ASIC are required to obtain an Australian Financial Services License (AFSL). Therefore, by choosing an ASIC regulator, you are securing the fact that your funds will not disappear overnight.
Buying and Selling in Australia
Contrary to the stance the government of Australia had a few years ago, Australia has become a major and proactive player in cryptocurrency. It has continued to be progressive since its announcement in 2017, where they declared cryptocurrencies were legal and should not fall under the double taxation in Australia’s goods and services tax (GST). Furthermore, because of the ASIC regulations, Australia has also paved the way by giving global assurance through strict guidelines before the issuance of licenses to guarantee the security crypto has in Australia.
In the end, it is important that you consider a variety of factors before settling on a choice. There are advantages and disadvantages to each platform, and it is up to you to find which is most suitable to you and your needs.
In terms of whether you should invest or not, bitcoin does not look like it is going away any time soon and is still an essential resource that is being circulated online. It may be new, but individuals continue to give the currency value, especially in Australia. While Australia has taken the leap into accepting and protecting the laws that govern cryptocurrencies, it might also be the right time for you to take the risk at making a profit. There is a list of reputable bitcoin brokers, some of which we have covered, that can provide further materials to assist you in your cryptocurrency journey ahead.