Best Bitcoin Broker UK 2022

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.  

What is a Bitcoin Broker?

If you’re new to the crypto scene, you might be wondering what a Bitcoin broker is and how the investment process works. Perhaps the most simple comparison to make is that Bitcoin brokers are relatively similar to traditional share dealing sites.

This is because Bitcoin brokers sit between you and the investment markets – meaning that in order to buy and sell crypto, you need to go through a third party.

For instance, the Bitcoin broker will initially require you to open an account. And, if you’re looking to trade with pounds and pence, then you’ll also need to get yourself verified.

After all, it’s simply a case of searching for the crypto you want to trade, entering the amount you wish to invest, and confirming a market order.

The Bitcoin broker will then give you the option of keeping your newly purchased tokens in its own custodial storage facility – or withdrawing them out to a private wallet.

Ultimately, Bitcoin brokers are in the business of making money – so they will charge you an assortment of fees for using its platform. This might include fees to deposit and withdraw funds, and placing buy and sell orders.

Crypto Brokers vs Exchanges?

Crypto brokers and exchanges are terms that are often used interchangeably – so you can be forgiven for thinking that both refer to the same thing. However, there is actually a big difference between the two – which we explain in the sections below.

UK Crypto Brokers

As noted above, a crypto broker is much the same as a share dealing site, not least because the platform will allow you to buy digital currencies directly without needing to engage with market participants.

• As such, crypto brokers make the process of buying and selling Bitcoin and other tokens simple and burden-free.
• Moreover, brokers are heavily regulated in the UK.
• This means that should your chosen platform wish to offer regulated services to UK residents, it must be licensed by the FCA.
• This is why eToro came on top as our overall best UK Bitcoin broker – as you can trade crypto in safety.

Another benefit of choosing a broker as opposed to an exchange is that you will be able to deposit and withdraw funds in GBP.

This means that you can easily pay for your crypto purchases with a UK debit/credit card.

UK Crypto Exchanges

The investment process is somewhat different when using a crypto exchange. This is because, unlike brokers, you will be engaging directly with other market participants.

• For example, let’s suppose that you wish to buy £1,000 worth of Bitcoin.
• In using an exchange for this purpose, there would need to be a seller using the platform that not only wishes to sell £1,000 worth of Bitcoin, but at a price favorable to you.
• This can be problematic when using a crypto exchange that does not attract sufficient levels of liquidity.

On the flip side, we found that crypto exchanges will often offer more favorable commissions than brokers. And, you might also find that crypto exchanges offer a much larger suite of markets.

However, and most importantly, the vast majority of crypto exchanges are not regulated by the FCA – or any licensing body for that matter. This presents a number of issues that you should view as a red flag.

For instance, if a crypto exchange is unlicensed, it is not required to follow regulatory guidelines with respect to risk warnings, investor protection, or the prevention of market manipulation.

Moreover, unlicensed exchanges are rarely able to secure GBP facilities, meaning that deposits and withdrawals might only be possible via crypto.

And as such, if you’re looking for the best place to trade Bitcoin – it goes without saying that you should stick with FCA-regulated brokers like eToro.

How to Choose the Best Crypto Broker for You

Although we have already reviewed the five best Bitcoin brokers in the UK for 2022 – this doesn’t mean that our top picks are right for your requirements.

This is why we always suggest that our readers do their own research before joining a new trading platform. If you’re wondering how to select the best Bitcoin broker for your needs – consider reviewing the factors outlined in the sections below.

Regulation & Security

Although cryptocurrencies are unregulated in the UK as an investment product – this doesn’t mean that you should sign up with an unlicensed platform. On the contrary, we strongly suggest that you consider a Bitcoin broker that is regulated by the FCA.

In doing so, you can be sure that your funds are safe from financial crime and that you will have the ability to deposit and withdraw funds in GBP.

• For instance, as we mentioned earlier, FCA-regulated Bitcoin broker eToro is able to support GBP deposits across debit and credit cards, Paypal, Skrill, bank transfers, and more.
• And, when it comes to withdrawing GBP, you can cash out straight back to the same payment method you used to deposit.
• However, when using an unrelated platform, your ability to access GBP payments will be severely limited.
• What we find is that a lot of unregulated platforms will look to bypass these restrictions by partnering with third-party payment processors.
• However, this means that you will be charged a significant amount in fees – which can be as high as 10%.

Another risk of using a platform that isn’t regulated by the FCA is that there is no way of truly knowing whether or not your funds are safe.

For example, if you do a bit of research on unlicensed crypto exchanges – you’ll be shocked to learn that billions of pounds worth of hacks have occurred over the past decade.

Range of Assets

We often find that the best crypto brokers in the UK are platforms that give you lots of options when it comes to supported markets.

For example, you might be interested in buying Bitcoin today. But, at a later date, you might be keen on an alternative digital currency such as Decentraland.

Either way, it can be cumbersome to open and operate accounts with multiple crypto brokers and exchanges just to be able to diversify. And as such, it’s best to stick with crypto brokers that give you access to a wide variety of digital currencies.

An additional point to note is that you might also be looking to diversify into other asset classes completely. A great option in this respect is eToro – which not only offers 40+ crypto markets, but thousands of commission-free stocks and ETFs, as well as tradable CFD instruments that track forex, commodities, indices, and more.

Fees

When attempting the find the best Bitcoin brokers in the UK – we were surprised at just how much variation there is when it comes to fees.

Moreover, we also found that a number of platforms make it somewhat difficult to view information surrounding core account charges.

To point you in the right direction, below we elaborate on the main fees to look for when choosing the best crypto broker for you.

Payments

The cost that you need to assess when researching Bitcoin brokers is with regards to payments. After all, in order to buy crypto, you need to first make a deposit.

Payment fees will not only vary depending on the broker – but the deposit method too.

For example:

• You can deposit funds for free at Crypto.com via a UK bank transfer. But, debit/credit card payments are charged at 2.99%
• Over at Coinbase, you’ll pay a whopping 3.99% on debit/credit card payments. But, UK bank transfers are free.
• At eToro, all payment method methods – which includes debit/credit cards, e-wallets, and bank transfers – cost just 0.5%.

Don’t forget, if you opt for a UK bank transfer, it can take several days for the funds to arrive. Nevertheless, in addition to deposits, you also need to check what withdrawal fees apply.

Trading Commissions

In most cases, Bitcoin brokers charge a commission on buy and sell orders. This is usually expressed as a percentage rate that is multiplied against the size of your trading order.

For example:

• In using Coinbase to trade Bitcoin against GBP, you’ll pay s standard commission of 1.49%
• So, if the trade value amounted to £1,000 – that’s a fee of  £14.90
• If a few months later you decided to cash out your Bitcoin position and it was worth £3,000 – then again, you would pay 1.49%
• This means that you would pay a fee of £44.70

Make no mistake about it, there are much cheaper options than Coinbase when it comes to choosing a Bitcoin broker. For example, eToro only charges the spread – which is the difference between the bid and ask price determined by the markets.

Trading Tools

Now that we have covered fees, we can move on to trading tools. These are tools that can aid you when making crypto investment decisions.

Some of the tools offered by the best Bitcoin brokers in the UK are explained below:

Charts and Technical Analysis

Cryptocurrencies are volatile – so expect wild pricing swings. Therefore, if you’re looking to engage in a short-term trading strategy, then it’s a good idea to choose a Bitcoin broker that offers real-time pricing charts.

Moreover, if you’ve got some experience in technical analysis, it goes without saying that you should look for a platform that offers pricing indicators and drawing tools.

Copy Trading and Managed Portfolios 

The copy trading tool is a feature offered by eToro that allows you to ‘copy’ an experienced crypto investor. The main concept here is that instead of attempting to research, analyze, and predict the crypto markets yourself – you can sit back and allow your chosen investor to do this for you.

Crucially, although each and every trade is mirrored in your own eToro account, this is at an amount proportionate to what you invest.

For example:

• Let’s say that you invest £5,000 into a crypto trader at eToro
• A few hours later, the trade risks 7% of their portfolio on a Bitcoin buy order
• In your eToro account, you would see a Bitcoin buy order worth £350 (7% of £5,000 investment)
• We’ll then say that a few days later, the trader sells their Bitcoin position and makes a profit of 10%
• The Bitcoin position will also be sold in your account – meaning that you make a passive profit of 10%
• On a £350 trade, this means you made gains of £35 without needing to do any of the legwork

In addition to copy trading, eToro also offers professionally managed portfolios. One example is the CryptoPortfolio, which contains 20 different tokens at the time of writing.

The portfolio is weighted based on market capitalization, meaning that preference is given to leading projects like Bitcoin, Ethereum, and BNB.

Educational Materials

Unless you’ve got some prior experience of trading digital currencies, it’s a great idea to brush up on your knowledge. With this in mind, it’s wise to choose a Bitcoin broker that not only offers trading services – but educational materials.

This could include everything from long-form guides on how to trade Bitcoin to webinars and videos.

Order Types

Another tool to look for in your search for the best Bitcoin broker in the UK is that of customized order types. This will give you the opportunity to enter and exit trades in a risk-averse way.

For example, the likes of eToro, Binance, and Huobi all allow you to deploy a stop-loss order when you buy crypto. This will instruct the broker to automatically close your position in the event it declines in value by a specified amount – e.g. 10%.

Additionally, the aforementioned brokers also allow you to deploy take-profit orders too. This enables you to instruct the broker to exit your trade when it reaches a profit target – e.g. 30%.

Usability

We mentioned in our reviews of the best Bitcoin brokers that while some platforms are suited for newbies, others will appeal to experienced pros.

In order to determine whether a Bitcoin broker is suitable for your skillset, a good starting point is to have a look around its trading platform.

For example, when you register with eToro, you will have access to a free demo facility that allows you to trade with paper money. You can access this feature without needing to deposit any funds, meaning that you can assess whether the platform is suitable before you go any further.

Ultimately, if you open an account with a Bitcoin broker that offers an overly complex trading suite, this could result in you making a costly mistake.

Mobile App

All of the top Bitcoin brokers that we have mentioned on this page offer a top-rated mobile that is compatible with both iOS and Android phones.

• This means that you can access your crypto portfolio no matter where you are located.
• This could come in handy in the event that you hear about a new upward trend and you wish to buy a specific crypto asset.
• Or, if you want to close an open position without delay, it’s just a case of logging into the app.

Either way, if your chosen Bitcoin broker doesn’t offer a suitable mobile app that connects to your main account – it’s best to consider another provider.

Customer Service 

The best cryptocurrency brokers in the UK will offer a top-notch level of customer service. This will usually be offered via a live chat facility – such as that offered by eToro and Crypto.com.

Check to see what days and hours the support team works, alongside the specific communication channels offered. If email is the only option, this means that you might need to wait several days before you hear back from the broker.

How to Get Started with a Bitcoin Broker 

You should now have a firm idea as to which Bitcoin broker is best suited for your skillset and trading objectives.

If you’re looking for some guidance on how to get started with a Bitcoin broker today – this walkthrough will have you set up with the FCA-regulated platform eToro in less than five minutes.

Step 1: Open an eToro Account 

First up – visit the eToro website. Look for the ‘Join Now’ button and a registration form will appear once you click it.

This will initially ask you to enter your first and last name, mobile number, and email address. You also need to choose a username and password.

After clicking on ‘Create Account’ you will be asked for some additional personal information – such as your home address and national insurance number. After all, you will need to verify your mobile number. 

Step 2: Upload ID

The KYC (Know Your Customer) process is implemented by all FCA-regulated brokers. It simply means that the broker will need to verify your identity before removing account limitations.

At eToro, you can skip this step until a later date if you are not planning to invest more than €2,000 right now – which is about £1,600.

If, however, you wish to verify your account straightaway – you simply need to upload two documents.

First, for proof of address, choose from an electricity/water bill, bank statement, or any other eligible document. Second, upload a copy of your driver’s license or passport.

Step 3: Deposit Money

Before you can start trading Bitcoin and other digital currencies, eToro requires you to deposit some funds. Choose from an e-wallet like Paypal or Skrill, a debit/credit card issued by Visa, MasterCard, or Maestro – or a UK bank transfer.

The minimum deposit required by eToro is a mere $10 – or about £7.

Step 4: Search for Crypto

You can now search for the crypto that you want to buy. Otherwise, you can click on the “Discover’ button. Then, click on “Crypto.

This will allow you to browse the full list of markets supported at eToro. When you find the crypto you are interested in, click ‘Trade’.

Step 5: Buy Crypto 

The final step is to create a buy order. eToro makes this part of the process easy – as all you need to do is let the broker how much money you want to stake. However, take note, eToro operates in US dollars.

As such, when you enter your investment size – be mindful that this is being stated in USD and not GBP. Nevertheless, in terms of minimums, you can invest any amount from just $10.

Finally, to confirm your investment – click ‘Open Trade’.

Cryptoassets are a highly volatile unregulated investment product. 

And that’s it – you have just learned how to buy Ethereum at eToro. Your newly purchased ETH tokens can be found in your portfolio.

Conclusion

In reading this guide, you should now have a firm overview of how to choose the best Bitcoin broker in the UK for your skillset, budget, and trading goals.

All in all, our top pick is eToro – which is regulated by the FCA and requires just $10 to open a Bitcoin account – which is about £7. Moreover, fees are super low and you can instantly deposit funds with your UK debit or credit card.

Cryptoassets are a highly volatile unregulated investment product. 

Frequently Asked Questions on UK Bitcoin Exchanges