Cryptocurrency margin trading (also known as leverage trading) has become extremely popular in recent times as crypto traders expand from ‘hodling’ and spot trading to new types of crypto trading which includes new global financial markets such as Futures, Forex, Stock Indices and Commodities with margin. Even though margin trading can be risky, a robust platform makes a major difference due to the focus on security, ease-of-use, and the range of global financial assets that they offer their traders.
When selecting a cryptocurrency margin trading platform, you should consider a range of different questions to help you make smarter trading decisions. These include:
- What financial assets do they support?
- What are their trading fees?
- Do they have a transparent order book?
- What type of liquidity do they have available?
- What is their security like?
With all these in mind, the following is a list of the top 3 cryptocurrency margin trading apps you should try in 2020:
TradeConnect is a new cryptocurrency margin trading platform released in 2020. This robust crypto margin trading platform combines all the features a trader needs on a single platform while maintaining transparency and offering lower trading fees.
One of the major selling points of a good margin trading platform is that it offers traders a combination of both traditional financial markets as well as cryptocurrency markets. TradeConnect does this exceptionally well with support for 60 different financial assets.
On TradeConnect you can trade Forex, Stock Indices, Commodities, and Cryptocurrency CFDs. Some of the financial assets available include EURUSD, the Dow Jones, NASDAQ, S&P 500, BTC/USD, ETH/USD, Gold, Silver, and Oil. Most recently they also rolled out the ability to trade against the Brazilian economy with the release of the Brazil60 Stock Index.
TradeConnect also provides 3 base currency options. You can choose between bitcoin (BTC), ethereum (ETH), and the platform’s native token, TCO as your margin collateral of choice. You can also trade with up to 100x leverage, which is good enough to maximize profits while minimizing your risk.
Traders pay minimal fees on TradeConnect. Trading Cryptocurrency CFDs attract a 0.004% fee alongside the “Connect Fee” program that returns most active traders with up to 75% of their daily trading fees in the form of fee rebates.
Another important feature is its transparent order book. An open order book provides a true and holistic view of the market, allowing traders to make better trading decisions. It also lets you control the price of your trade. By placing a Limit Order you can choose the best price at the best time for your individual trading strategy.
PROMO: You can download the TradeConnect IOS app and get a $5O bonus in your choice of either BTC or ETH when you complete your first ten trades.
PrimeXBT is a fast-growing margin trading platform established in 2018. The trading platform is based in Seychelles and offers a clean user experience over multiple platforms.
PrimeXBT allows you to trade over 30 financial assets with only BTC as its base wallet currency. If you hold any other cryptocurrency aside from bitcoin, you will need to convert your crypto to bitcoin in order to trade on the platform, which may come at a cost. Traders can also use up to 1000x leverage, depending on the trading pair they opt to trade.
PrimeXBT uses a broker model which means that they do not use a transparent order book on their platform, and instead fulfill each trade on behalf of the trader via liquidity providers that they work within the backend. This is not ideal if you want to control the price of your trade however it does provide additional liquidity.
PrimeXBT charges a trading fee of 0.05% on all crypto CFD trades, regardless of the crypto trading pair. Both Makers and Takers pay this fee. Also, Forex fees are as low as 0.001%.
BitMex stands for Bitcoin Mercantile Exchange and is one of the oldest cryptocurrency leverage trading platforms available to traders, having been around since 2015.
BitMex has a range of products including Traditional Contracts or Futures, Perpetual Contracts, Upside Profit Contracts and Downside Profit Contracts. Unlike TradeConnect or PrimeXBT it does not allow you to trade Forex, Stock Indices or Commodity CFDs.
The maximum leverage you can use on BitMex depends on the trading pair you are trading, however, for BTCUSD the maximum leverage available is 100x.
Trading fees on BitMex are higher. Takers pay 0.0075%, and Makers pay 0.025% when they trade BTC. It gets higher for other markets where traders have to pay 0.25%.
BitMex has not had a good reputation over the past few months. The exchange has been accused of inflating its volume and liquidity. Also, BitMex has had several outages in the past during critical market moments.
Many traders still use BitMex but have begun moving to alternatives like TradeConnect and PrimeXBT. With that said, BitMex is on this list due to its years of experience, larger user base, and deep liquidity pool.
All of the above crypto margin trading platforms offer similar trading interfaces and powerful charting tools to improve your trading experience. Where they differ is in their base currency options, fees, order book availability, and the liquidity they offer. When looking for a new crypto margin trading platform, traders should consider all of these elements and select the platform that offers the best services and comprehensive access to the financial markets that matter to them.