Crypto is the market where the difference between brokers matters most, because the difference between products is largest. Some brokers offer CFDs on crypto prices, some give access to the underlying coin, and a few do both under one login without making it obvious which you are buying.
It is also the market where regulatory protection is thinnest. Several major regulators restrict or ban crypto derivatives for retail clients entirely, which is why the same brand may offer them in one country and not another.
What it costs
Expect a spread far wider than on forex - often measured in whole percentage points rather than pips - plus overnight financing on any leveraged position. Weekend pricing is usually wider again, because the underlying market never closes but the broker's liquidity thins out.
What to watch for
- Crypto CFDs are unavailable to UK retail clients and restricted in several other jurisdictions. A broker offering them to you may be doing so through an offshore entity.
- Leverage is normally capped far lower than forex - often 1:2 for retail - for good reason.
- "Buying Bitcoin" on a CFD platform usually means you never hold a coin and cannot withdraw one.
What separates a good broker here
- An explicit statement of whether you own the asset or a contract on it
- The spread quoted as a percentage, not just in dollars
- Which entity is providing the product, and what that entity is licensed for
- Weekend and holiday pricing policy
