Invest with confidence: Australia’s top crypto brokers revealed

Trading ASX stocks has long been the go-to option for Australian investors looking to build wealth.  But with cryptocurrencies such as Bitcoin and Ethereum on the rise, many are also exploring the world of crypto trading. The first Bitcoin ETFs have recently been approved in the US which has led to a surge in interest from institutional investors. In this article we take a look at the best crypto brokers in Australia

Crypto trading has become increasingly popular due to several factors. Firstly, cryptocurrencies like Bitcoin and Ethereum are decentralised, meaning they’re not subject to government or financial institution control. This makes them especially popular with younger traders who may be wary of traditional financial systems and wish to invest in alternative assets. However with Bitcoin ETFs now entering the market crypto trading is becoming a viable option for mainstream traders as well.

The rise of online brokers and trading platforms has made it easier than ever to trade cryptocurrencies from anywhere in the world. In this article we will take a closer look at some of the best crypto brokers on the available to Australian traders. We will cover some key features, fees, customer support, user experience, and the key statistics available. We also share valuable advice on how to trade while reducing your risk as cryptocurrencies emerge from a prolonged bear market.

Whether you’re a seasoned investor or just starting your trading journey, you’ll find all the information you need to trade confidently.

eToro

eToro is a popular social trading platform that has gained success due to its user-friendly interface, a wide range of features, and convenient cryptocurrency wallet. A key benefit is its ability to copy the trading strategies of successful traders, making it a popular choice.

The platform has low fees and commissions — a significant advantage for investors seeking to maximise profits. eToro also offers a range of resources to help investors make informed decisions, including market analysis, research reports, and real-time charts.

eToro offers trading in the most popular cryptocurrencies, including Bitcoin, Ethereum, Bitcoin Cash, Litecoin, and Stellar. Traders can buy these assets outright or trade their price movements via CFDs. Additionally, traders can gain exposure to crypto assets through eToro’s Smart Portfolios. The platform is user-friendly and straightforward, making it easy for anyone to start trading in the crypto market. With a wide range of assets available, eToro provides a diverse and accessible trading experience for investors of all levels.

eToro is known for its prompt and professional customer support. The company provides several support channels, including email and live chat. Multilingual support is also available.

Additionally, eToro offers a comprehensive knowledge base and an active social trading community where users can connect with other traders, ask questions, and obtain advice.

Key Statistics

• Founded in 2007
• Headquarters in Israel
• Over 30 million users
• Available in 100+ countries
• Trade stocks, ETFs, forex, and crypto
• Regulated by ASIC

eToro AUS Capital Ltd ACN 612 791 803 AFSL 491139. OTC Derivatives are speculative and leveraged. Not suitable for all investors. Capital at risk. See PDS and TMD

IC Markets

IC Markets is a popular and well-established Australian forex and CFD broker that has expanded its offerings to include cryptocurrency trading. A key benefit is its advanced technology, lightning-fast execution speeds, and low latency, making it an ideal option for high-frequency trading.

The platform offers deep liquidity and competitive pricing — an essential benefit for traders seeking to minimise their trading costs. IC Markets also provides a range of trading tools and resources, including advanced charting software, trading signals, and expert analysis to help traders make informed decisions.

IC Markets offers a crypto CFD product that enables traders to take long or short positions without holding the actual cryptocurrency. Using this, traders can gain exposure to the cryptocurrency’s price without being concerned about security risks linked with its storage or exchange-related counterparty risk. This trading concept is similar to Energy Futures trading, wherein traders speculate on the price of oil without owning any physical oil.

IC Markets is known for offering exceptional customer support to its users. Support channels include telephone, email, and text chat. IC Markets also offers multilingual support, making it accessible to users worldwide.

Key Statistics

• Founded in 2007
• Headquarters in Australia
• Over 200,000 users
• Available in 200 countries
• Trade forex, stocks, commodities, indices and crypto
• Regulated by ASIC

TMGM

TMGM (TradeMax Global Markets) is a multi-regulated online broker offering trading in various financial instruments, including cryptocurrencies. A key benefit is its deep liquidity, which enables traders to execute trades quickly and efficiently, even during periods of high market volatility.

The platform offers low spreads and commissions, coupled with an array of trading tools and resources such as cutting-edge charting software, expert analysis, and advanced trading signals.

TMGM prides itself on providing excellent customer support to its users. The company offers multiple channels, including telephone, email, live chat, multilingual support and VIP Client Support for high-volume traders. The support team is known for its quick response times and friendly attitude.

TMGM offers access to the top 12 most popular and liquid cryptocurrencies, with markets open 24/7 and leverage of up to 1:20 for trading cryptocurrency CFDs. Trades can be made from the familiar MT4 platform, and the broker boasts competitive spreads as tight as those offered by crypto exchanges. The cryptocurrency pricing engine ensures that there are no requotes, giving traders a smooth and reliable experience.

TMGM is the proud sponsor of a multi-year sponsorship of the Australian Open, which started in 2021.

Key Statistics

• Founded in 2013
• Headquarters in Australia
• Over 15,000 users
• Available in 150+ countries
• Trade forex, stocks, indices, commodities, and crypto
• Regulated by ASIC

YouHodler

YouHodler is an established FinTech platform with regulatory approval in the EU and Switzerland. It strives to seamlessly integrate traditional financial services with the dynamic world of Web3 banking. YouHodler pursues its mission by offering various crypto and fiat services catering for seasoned investors and novices.

One of the standout benefits of YouHodler is the ability for its users to use their digital assets actively – providing more options than platforms focused just on holding and trading. Its exchange readily supports conversions to and from a number of fiat currencies, including USD, EUR, CHF, and GBP. Clients can find further information about YouHodler fees, commissions, and transaction times on the website’s FAQs page. Specific YouHodler conversion rates between fiat and crypto are available via its online calculator.

After seamless currency conversion, YouHodler provides users access to services to hold, trade, and earn interest on their crypto. YouHodler interest rates are competitive – for example, its MultiHODL service earns up to 12% APR in open deals. Other YouHodler services that allow users to earn interest on their holdings include Crypto Loans, the Loyalty Program, and YouHodler Dual Asset.

Those wondering, “Is YouHodler safe?” will be glad to know YouHodler is deeply committed to security. This commitment is demonstrated through the platform’s associations with Ledger Vault and Fireblocks and its efforts to follow security best practices such as multifactor authentication and biometric recognition.

However, no YouHodler review would be complete without an overview of YouHodler’s service offerings. The primary services include Exchange, MultiHODL, and Crypto Loans.

The YouHodler fiat and crypto Exchange platform stands out for its real-time execution prices and minimal fees. Users can easily buy and exchange a wide range of cryptocurrencies, streamlining what is often a frustrating process.

YouHodler’s MultiHODL is a portfolio management platform with a user-friendly interface and transparent fee structure. It was designed to cater to seasoned traders and beginners seeking to navigate the volatile crypto market. The platform supports more than 60 trading pairs, empowering users to diversify and hedge against market uncertainties.

The platform’s Crypto Loans tool allows users to earn a return on their crypto by loaning it at YouHodler interest rates. Users can use over 50 top coins as collateral to secure loans. The process is streamlined, ensuring quick access to funds without the hassles of traditional banking. Additional convenience is provided by the ability to withdraw to credit cards, banks, or exchanges instantly.

YouHodler also offers Loyalty and Mining Programs with a $200,000 yield limit on popular coins, such as (but not limited to) BTC, XRP, and ETH. Yields differ from coin to coin but range from 7% to 12%. Users can enhance their yield from the Loyalty program by using YouHodler’s straightforward mining application on their mobile devices.

Key Statistics:

• Founded in 2018
• 24/7 support
• YouHodler crypto wallet app is available on the App Store and Google Play
• Regulated in the EU and Switzerland
• Advanced software to protect digital assets via Ledger’s Vault and Fireblocks.
• Over 420,000 active users and over 1 million registered users
• Monthly trading volume on MultiHODL: Over $2,000,000,000

How to Trade Crypto

If you’re interested in trading crypto, the first step is to choose a secure, trustworthy, reliable broker. Look for an established trading platform with a user-friendly interface and a range of tools and resources to meet your needs.

Then decide on a trading strategy based on your goals and risk tolerance. One popular strategy is day trading, where you buy and sell cryptocurrencies within a single day, taking advantage of small price movements.

An alternative is long-term investing, where you hold your cryptocurrency for an extended period with the aim of profiting from long-term price movements.

A third option is swing trading, which involves holding positions for a few days or weeks to capture profits over medium-term timeframes.

Day trading and swing require a more active, hands-on approach than long-term investing.

Copy trading is another popular strategy that allows novice traders to replicate the trades of more experienced traders in real-time. This can be a great way to learn about trading and gain exposure to different markets and strategies, but it’s important to note that copy trading involves risk, so users should conduct their due diligence first.

Risk Management For Crypto Trading

If you’re new to trading, consider starting with a small investment, gradually increasing your exposure as you gain more experience and confidence.

You’ll also need a risk management plan. Crypto is highly volatile, so it’s essential to have a strategy in place to minimise your losses. Consider setting stop-loss orders, which automatically close your position when the price reaches a certain level.

Additionally, it’s a good idea to keep on top of market news. Stay up to date with the latest events and developments in the crypto market, follow reputable news sources, and keep yourself informed about regulatory changes, major partnerships, and new product launches.

Finally, you can learn from fellow traders. Join online communities and forums to chat with experienced traders, discover their strategies and insights, and share your experiences.

How is Crypto Taxed in Australia?

In Australia, cryptocurrencies are considered an asset for tax purposes, which means they’re subject to Capital Gains Tax (CGT). If you dispose of your crypto by selling it or trading it for another cryptocurrency or asset, you will be liable to pay CGT on any profits you make.

The CGT you pay is calculated based on the difference between the cost of acquiring the cryptocurrency and the proceeds you receive from its disposal.

If you hold your cryptocurrency for at least 12 months, you may be eligible for a CGT discount of up to 50%, which can help to reduce your tax liability. However, if you dispose of your cryptocurrency within 12 months of acquiring it, you will be taxed at your marginal tax rate on any gains.

It’s important to note that if you receive cryptocurrency as payment for goods or services, this is also considered a taxable event, and you may be required to include the value of the cryptocurrency in your assessable income for tax purposes.

If you hold cryptocurrency as an individual, you will be personally liable for any CGT owed. However, different tax rules may apply if you hold cryptocurrency as part of a business, such as a crypto mining operation or a trading business.

You should seek professional advice if you’re unsure about your tax obligations. Retaining accurate records of all your transactions can help you calculate your tax liability and ensure compliance with the relevant laws.

Will Crypto Prices recover?

Cryptocurrencies entered a bear market in November 2021 after the price of Bitcoin peaked at almost $67,000 USD. Bitcoin fell throughout 2022, reaching a low of $16,000 USD in November 2022, with many other cryptocurrencies also experiencing significant declines.

2023 saw the price of bitcoin begin to recover as the anticipation for the next halving event and the possibility of the first Bitcoin ETFs grew. After starting the year at around $16,000 Bitcoin closed out 2023 just shy of $44,000.

Several factors drove the bear market, including increased regulatory scrutiny, security concerns, declining investor confidence, and global economic uncertainty. Several governments around the world cracked down on cryptocurrency exchanges and ICOs, with some countries banning them outright. The US Securities and Exchange Commission (SEC) initiated legal action against several major cryptocurrency projects, including Ripple (XRP) and LBRY Credits (LBC), claiming the projects had violated securities laws.

However, with the recent approval of the first Bitcoin ETFs, cryptocurrency is gaining momentum once more.  The next halving event is also due in the first half of 2024 which, historically, has led to new all-time-highs.  It’s important to remember that the cryptocurrency market is still in its early stages of development, and there is potential for significant growth and innovation in the future.

Ultimately, the cryptocurrency market’s future is uncertain, and investors must do their research and carefully consider their investment decisions.

Closing comments

Throughout this article, we discussed a range of topics related to cryptocurrency trading, including the best crypto brokers in Australia, strategies for trading crypto, and the current state of the cryptocurrency market.

We explored three of Australia’s top crypto brokers: eToro, IC Markets, and TMGM. Each broker offers a range of benefits, such as low spreads and commissions, trading tools and resources, and secure and reliable platforms.

We also discussed different strategies for trading crypto, including day trading, swing trading, and long-term investing. Each approach has its pros and cons, and it’s crucial for traders to carefully consider their investment goals and risk tolerance before choosing a strategy.

Finally, we looked at the current state of the cryptocurrency market, which has been in bearish territory since late 2021. Factors contributing to the bear market include global economic conditions, increased regulatory scrutiny, and security concerns. However, there is optimism among many investors that prices have begun to recover.

In conclusion, the cryptocurrency market remains a highly unpredictable and volatile space, and it’s vital that investors carefully consider their investment decisions and conduct research before investing.

While risks are involved in trading crypto, there is also the opportunity for significant profit as the market grows and innovates.

FAQs

When Will Crypto Recover?

Nobody knows for sure when crypto prices will recover. Bitcoin fell dramatically from its 2021 high of $69k to a low of $15k in November 2022. Prices recovered throughout 2023 ending the year just short of $44k. The recovery has continued in 2024 as the first Bitcoin ETFs were approved. With the next Bitcoin halving event due in 2024 we are likely to see the recovery continue in the short term, but ultimately the cryptocurrency market’s future is uncertain.

What is Market Cap in Crypto?

Market cap is a term used to describe the total value of a cryptocurrency in circulation. For example, if a cryptocurrency had 1 million coins in circulation and each one was worth $5, the market cap for that coin would be $5 million.

How is Crypto Taxed in Australia?

In Australia, cryptocurrencies are considered an asset for tax purposes, which means they’re subject to Capital Gains Tax. When you sell your crypto, or trade it for another asset, you will be liable for CGT on any profits