Ethereum (ETH) Trading Platforms

Written by Zornitsa Stefanova

Zornitsa Stefanova

Zornitsa Stefanova is experienced forex and crypto analyst. She also covers various financial topics such as stocks trading and retirement investments.

, | Updated: July 15, 2024

Ethereum is one of the two most popular blockchains in the world, with a market cap standing at over 458 billion US dollars in June 2024. Its native cryptocurrency, Ether (ETH), achieved an impressive daily transaction volume of 1.194 million at the time of publication and ranks among the most traded crypto coins in the world. Hundreds of platforms facilitate buying and trading this cryptocurrency but some offer better conditions than others.

Our team combed through dozens of platforms to identify the best brokers and exchanges where you can trade Ethereum tokens with confidence. We factored in multiple criteria during the selection process, including transaction costs, security, platform features, regulation, and range of tradable coins.

Additionally, we looked at overall consumer ratings in Trustpilot to single out the highest-ranking Ethereum platforms among traders. Also featured in this guide is useful information about leverage, trading costs, what factors affect Ether’s prices, and more.

1Fusion Markets

Rating: 4.9 ⭐

74-89% of retail CFD accounts lose money

Top Rated

2FP Markets

Rating: 4.8 ⭐

73.85% of retail investor accounts lose money

3Global Prime

Rating: 4.4 ⭐

74-89% of retail CFD accounts lose money

4eToro

Rating: 4.2 ⭐

51% of retail investor accounts lose money

5PrimeXBT

Rating: 4.2 ⭐

Trading leveraged products carries a high level of risk

Best Platforms for Ethereum CFD Trading

1. TRADE NOW READ REVIEW
   1. eToro

   Our first pick, eToro, offers a superior crypto trading experience trusted by millions of customers worldwide. Voted best broker for cryptocurrency trading in 2024, eToro facilitates investing in over 100 popular and less-known crypto assets, including Ethereum, Bitcoin, Solana, Shiba Inu, and Ripple. Depending on their country of residence, customers can buy and trade actual Ethereum tokens or trade derivatives based on the underlying Ether prices. The company launched a standalone crypto wallet in 2019 where customers can store and manage their purchased coins.

   Spreads for cryptocurrencies like Ether are variable at eToro and generally quite competitive. Following experienced crypto traders and copying their positions is also possible on the eToro platform, renowned for its superior social trading capabilities. Ethereum greenhorns can advance their knowledge with guides on the popular cryptocurrency in the eToro Academy section. The broker offers maximum leverage of 1:5 on crypto trades via its Seychelles-regulated entity and 1:2 via its European, Australian, and UK entities.

   CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 51% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
2. TRADE NOW READ REVIEW
   2. Fusion Markets

   Fusion Markets is a Melbourne-based online brokerage that facilitates low-cost speculative trading with over a dozen cryptocurrencies and altcoins, including Ethereum. It operates with licenses issued by the regulatory authorities of Australia, Vanuatu, and the Seychelles. Customers can trade ETH/USD through contracts for difference with maximum leverage of 1:10 or 1:2, depending on their country of residence.

   The broker offers highly competitive trading conditions as spreads for Ethereum trades average 2.7 pips, and there are no commissions. Speculating on Ether price movements is possible through robust third-party platforms like MT4, MT5, and TradingView. New customers can get their feet wet at trading the volatile crypto markets by setting up free demo accounts. In addition to Ether, Fusion Markets offers trading with other popular tokens like Bitcoin, Solana, Stellar, Bitcoin Cash, Dogecoin, and Chainlink.

   Gleneagle Asset Management Limited (ABN 29 103 162 278) trading as Fusion Markets, is the issuer of the Fusion Markets Products described in this communication. Trading in Fusion Markets Products involves the potential for profit as well as the risk of loss which may vastly exceed the amount of your initial deposit and is not suitable for all investors. You should read all of these Financial Product Service Terms, the Product Disclosure Statement (PDS) and the Financial Services Guide (available on our website) carefully, consider your own financial situation, needs and objectives for investing in these Fusion Markets Products and obtain independent financial advice.
3. TRADE NOW READ REVIEW
   3. FP Markets

   Regulated by ASIC and CySEC, FP Markets is a solid choice for all who wish to trade crypto in a secure and fair environment. The broker’s crypto spreads are lower than the industry averages and start at 4.43 pips for CFDs involving Ether against the US dollar. Trading the second biggest cryptocurrency in the world is possible via cTrader, MetaTrader 4, and MetaTrader 5. Crypto traders at FP Markets can also count on low-latency execution, with most orders being filled in under 40 milliseconds.

   The broker offers segregated accounts, negative balance protection, and maximum leverage of 1:2 to Ethereum traders from Europe and Australia. Customers can diversify their portfolios with other popular cryptocurrencies and altcoins like Ripple, Bitcoin Cash, Solana, Stellar, Polkadot, and Dogecoin. They have access to round-the-clock customer support in over 40 languages, including Japanese, German, Malay, Spanish, French, and Italian.

   CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.92% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
4. TRADE NOW READ REVIEW
   4. Global Prime

   Global Prime positions itself as a reliable and affordable option for those looking to dip their toes into crypto trading, offering tight spreads and lower-than-average commissions for 40 crypto coins, including Ether. Regulated in Australia and Vanuatu, the brokerage has no minimum account requirements and facilitates free transactions to and from customer accounts.

   Global Prime provides ETH/USD contracts for difference with average spreads of 22.17 pips and maximum leverage capped at 1:5 for customers registering through the Vanuatu entity. Clients from Australia have access to lower leverage ratios of 1:2 but benefit from negative balance protection. The minimum trade size for the ETH/USD symbol is set at 0.01 lot. Other popular altcoins available for CFD trading at Global Prime include Dash, Litecoin, Chainlink, Ripple, Bitcoin Cash, and Solana.

   Global Prime is a trading name of FMGP Trading Group Pty Ltd (ABN 74 146 086 017) and is regulated by ASIC and licensed to carry on a financial services business in Australia under Australian Financial Services License No. 385620. Gleneagle Securities Pty Limited trading as Global Prime FX, is a registered Vanuatu company (Company Number 40256) and is regulated by the VFSC. The website is owned and operated by FMGP Trading Group Pty Ltd, ABN 74 146 086 017.
5. TRADE NOW READ REVIEW
   5. PrimeXBT

   PrimeXBT poses a reliable one-stop solution for buying and trading over 30 cryptocurrencies, including Ethereum, Litecoin, Bitcoin, Ada, Avalanche, and Tron. The intuitive platform enables users to purchase Ether outright, speculate on price movements through CFDs, or dabble in Ethereum futures with affordable maker/taker fees and adjustable leverage. CFD spreads for popular crypto coins like Ether start at 0.1 pips only.

   Those interested in owning Ether can purchase it straight through the platform using their Mastercard or Visa-branded cards. Copy trading is available to PrimeXBT customers looking to profit from the know-how of seasoned crypto investors. Ethereum traders can stay ahead of the markets by taking advantage of the available economic calendar and price charts. The crypto broker-slash-exchange has obtained licenses from the regulatory authorities of Saint Lucia and Lithuania.

   Risk warning: Before engaging with this website and the services made available through it, you should read all relevant Terms & Conditions, policies, and accompanying documentation which govern the Terms of Use of all PrimeXBT products and services. Crypto Futures and CFDs products are complex financial instruments which come with a high risk of losing money rapidly due to leverage. These products are not suitable for all investors. You should consider whether you understand how leveraged products work and whether you can afford to take the inherently high risk of losing your money. Virtual Assets are volatile and their value may fluctuate, which can lead to potential gains or significant losses. Returns or profits may be subject to capital gains tax. If you do not understand the risks involved, or if you have any questions regarding the PrimeXBT products, you should seek independent financial and/or legal advice if necessary.

Comprehensive Comparison of the Top 5 Ethereum Trading Platforms

Best Platforms for Buying and Exchanging Ether

1. KuCoin

   Established in 2017, KuCoin has emerged as one of the largest crypto exchanges in the world, making digital coins accessible to laypersons and early adopters alike. The platform reaches over 27 million customers worldwide and processes transactions valued at 1.2 billion US dollars per day. KuCoin boasts an impressive suite of over 750 cryptocurrencies and altcoins, extending way beyond popular options like Ethereum and Bitcoin. At KuCoin, customers can purchase Ether with various fiat-based payment methods, including bank transfers, Visa, Mastercard, Skrill, and Zelle.

   The exchange facilitates spot trading but dabbling in derivatives like crypto futures is also an option for KuCoin customers. Futures contracts for top cryptocurrencies like Ether have competitive maker/taker fees that range from 0.015% / 0.042 to 0.100% / 0.100%, depending on one’s VIP level. The highest leverage futures traders can use is 1:100 but the default is set at 1:20. Customers will benefit from a custodial wallet to store their coins in and can earn staking rewards for holding their crypto for extended periods.

2. Mexc

   Mexc is a reputable provider of digital asset services trusted by more than 10 million crypto enthusiasts worldwide. The Seychelles-registered exchange attracts customers with an abundant selection of cryptocurrencies encompassing over 2,000 small and large-cap digital coins. Buying and trading altcoins is a streamlined process at Mexc, even for customers relatively new to the crypto markets. Clients can hold their coins in a cold storage wallet, eliminating the risks of hacker attacks and theft.

   You can purchase Ether with cryptocurrencies and fiat payment methods like Visa and Mastercard or use the peer-to-peer service to buy from other customers. Apart from spot trading, Mexc offers futures contracts for Ethereum with adjustable leverage of up to 1:200 and reasonable maker/taker fees of 0.00% / 0.01% for larger volumes. The minimum amount of Ether you can withdraw from your account is 0.003 ETH. The exchange runs a generous referral program and offers staking rewards ranging from 0.50% to 4.80% based on the amount of Ether you hold.

3. Bybit

   Bybit launched in 2018 and quickly gained traction in the crypto community for its superior exchange, storage, and trading services. New customers can set up all-in-one accounts to trade crypto spots, options, and derivatives. The exchange enables buying, selling, and holding over 100 cryptocurrencies, including Ethereum, Bitcoin, Ripple, Tether, and Dai. You can purchase Ether with Apple Pay, Google Pay, Visa, Mastercard, Revolut, or bank transfers. Various local payment methods are also available.

   Customers can grow their crypto holdings through a generous staking initiative. Reward rates for holding Ether range from 1.40% to 872.14% based on the holding duration. Additionally, Bybit is home to a thriving social trading community comprising over 118,000 crypto signal providers to copy and follow. Another benefit here is that Bybit upholds high standards of security under the regulations of CySEC (Cyprus), AFSA (Kazakhstan), and VARA (Dubail).

4. Kraken

   Kraken is a reliable crypto exchange renowned for upholding high standards of security and offering a robust range of over 200 digital currencies. Its excellent reputation is not at all surprising considering Kraken is one of the longest-running crypto exchanges in the world, with a history dating back to 2011. It runs on a user-friendly platform with an intuitive interface guaranteed to appeal to crypto novices and veterans alike.

   Maker/taker fees on spot crypto transactions are quite reasonable at Kraken, ranging from 0.00% / 0.10% to 0.25% / 0.40%, depending on monthly volume. Customers can also trade on margin, with opening and rollover fees of 0.02% per Ethereum position. Those trading futures can increase their market exposure with maximum leverage of 1:50. Leverage on pairs involving Ether ranges from 1:2 to 1:5. Holding the Ether you purchase for extended periods can earn you staking rewards of up to 4% at Kraken.

5. Coinbase

   Coinbase is a reputable cryptocurrency exchange whose history dates all the way back to 2012. The platform attracts crypto enthusiasts with a vast selection encompassing over 260 decentralized assets and 300+ tradable cryptocurrency pairs. It facilitates digital wallet storage and enables customers to earn additional staking rewards for holding their coins. Additionally, you can earn extra tokens by watching educational videos and completing quizzes via the Learning Rewards program.

   Trading and storing NFTs in a custodial wallet is also an option at Coinbase. Buying Ether is possible with a range of familiar payment methods, including debit cards, bank transfers, PayPal, Apple Pay, and Google Pay. Retail customers residing outside Spain and the UK can trade derivatives like crypto futures, with a minimum contract size of 1/10 ETH for Ethereum and 1/100 BTC for Bitcoin. Leverage is flexible and depends on the notional value of your futures contracts.

Quick Facts About Ether and Ethereum Blockchain

Ethereum emerged in 2015 as a popular blockchain that allows programmers to develop and run decentralized applications on its network. The blockchain facilitates smart contracts, enabling blockchain participants to conduct transactions without centralized intervention from governments or financial institutions. The blockchain essentially acts as a ledger that records all transaction history. This information is distributed across the network for all blockchain participants to see, which results in increased security, transparency, and verifiability.

Ether (ETH) is the cryptocurrency used for transactions on the Ethereum blockchain. Ether has no hard cap on circulation supply, unlike Bitcoin, which has a supply limit of 21 million coins. Ether tokens have multiple uses, including paying participants for supporting the blockchain and fueling the computations required to execute smart contracts. Some Ether owners use their coins to purchase goods and services, much like they would with fiat currencies. Others incorporate it into their investment portfolios as a store of value, while a third group speculates on Ether price fluctuations without owning any tokens.

Ethereum Brokers vs. Ethereum Exchanges

Depending on your investment goals, there are two main ways to access the Ethereum market. The first is to join a cryptocurrency exchange where you can buy and sell various crypto tokens from other people at the current market prices. It entails ownership of the underlying digital assets. You can purchase Ether and other altcoins with fiat currencies and methods like bank cards, wire transfers, or digital wallets.

Many crypto exchanges offer custodial wallets for customers to store their coins in and manage their private keys on their behalf. We can also distinguish between hot and cold custodial wallets. Hot wallets connect to the internet via mobile or desktop applications and are primarily suitable for individuals who conduct crypto transactions regularly.

By comparison, cold wallets do not require an internet connection as coins are stored offline. Transactions are slower and involve more steps to complete. Cold wallets offer enhanced security and are more suitable for those seeking to hold their coins for extended periods as a long-term investment. Ethereum exchanges commonly reward customers for storing their tokens through staking.

Using conventional brokerages is a better option for beginners just learning the ropes of trading cryptocurrencies like Ether. Most online brokers allow customers to speculate on Ether price movements without buying the underlying tokens. It usually happens through derivative instruments like the contract for difference (CFD), where traders profit if asset prices move in their favor. CFDs are high-risk leveraged instruments that involve trading on margin, but we shall elaborate on this later.

Some brokers offer crypto derivatives like options and futures on top of contracts for difference. Customers use the broker’s platform to place trading orders and incur fees in the form of spreads (the difference between the bid and ask prices quoted by the broker). Brokers may also charge commissions in addition to spreads. Custodial wallets are usually unavailable since customers do not purchase any Ether, at least with most conventional brokers.

How to Confirm if Ethereum Trading Platforms Are Legitimate

Choosing a reliable platform is obligatory for crypto enthusiasts looking to extract maximum value from their Ethereum trades. Trading crypto with regulated derivatives brokers results in higher price transparency and enhanced security. It also gives you a legal recourse in case something goes wrong. All legitimate brokers facilitating speculative crypto trading provide detailed regulatory information on their websites.

It is typically available in the footer where brokers list all their licenses. Ethereum traders can double-check this information in the official licensee registers of regulatory bodies like CySEC, FSA, FCA, and ASIC. Brokers regulated by such first-tier authorities uphold high security standards and customers rarely face major issues when trading with them.

The situation is more complicated with crypto exchanges due to the decentralized nature of the assets they deal with. As a relatively new phenomenon, cryptocurrencies are partially regulated in some regions while others lack regulatory frameworks altogether. The regulatory status of cryptocurrencies may differ vastly from one jurisdiction to another.

However, many key players in this field readily embrace regulatory compliance and seek authorization in their target markets. Kraken and Coinbase are two notable examples, as they have obtained approval from regulators like FinCEN (US), FCA (UK), ADGM (Abu Dhabi), and AUSTRAC (Australia). Ethereum traders can easily locate this information in the footers or About Us sections of their exchanges’ websites.

Ways to Trade Ether Online

There are various ways to trade ETH online, including spot trading and price speculation with derivative instruments like contracts for difference (CFDs), futures, and options. Whichever approach you choose largely depends on your investment goals, risk tolerance, experience, and bankroll. Your investment time horizon also matters. Are you looking to reap short-term or long-term profits from your ETH trades? Here are brief overviews of the most common instruments you will encounter on your Ethereum trading journey.

1. Spot Trading

   Spot trading refers to the act of purchasing and selling Ether at its current market price, which obviously involves ownership of the underlying asset. With this approach, you obtain tokens at their prevailing market price and sell them when their value appreciates, profiting from the price difference. If interested in engaging in ETH spot trading, you must register with an exchange and fund your balance with fiat or cryptocurrencies to buy Ether coins.

2. Contracts for Difference (CFDs)

   CFDs are broadly available at brokerages offering ETH trading, allowing traders to speculate on price fluctuations without purchasing any coins. The goal here is to predict whether Ether’s value will appreciate or depreciate. You go long if you believe prices will increase or short if you think they will fall.

   Traders net a profit upon making correct predictions on price movements. CFDs are leveraged instruments where traders use borrowed capital to increase their market exposure and inflate the size of their positions. CFD trading can result in massive losses in the absence of adequate risk management and sufficient knowledge.

3. Ethereum Options

   Like CFDs, options are derivative contracts that enable traders to gain exposure to the Ethereum market without buying underlying assets. Options traders can also profit from rising or falling prices. Two parties participate in the transaction, a buyer and a seller. When entering into a call options contract, sellers take on the obligation to sell assets while buyers have the right to purchase said assets.

   With put options contracts, sellers are obligated to buy the asset and buyers have the right to sell it. Buyers are charged premiums because they have the right but not the obligation to sell or buy the assets. Sellers are at higher risk as they are obligated to execute their side of the options contract. Options are obviously complex instruments, which renders them unsuitable for those new to Ethereum trading.

4. Ethereum Futures

   Futures contracts are similar to options as they, too, facilitate price speculation without necessitating asset ownership. Each contract involves two parties agreeing to buy or sell Ether on a predetermined date, at a prearranged price. Unlike options, both parties take on the obligation to fulfill their side of the contract. Buyers are obligated to purchase the assets at the agreed-upon price when the contract expires.

   Conversely, sellers must deliver the assets at the time of contract expiration. Futures derive their value from the value of the underlying asset, Ethereum’s native cryptocurrency in this case. Two types of Ethereum futures are commonly available. Quarterly futures expire after three months. Perpetual futures have no specific expiration date and can remain valid until the contract holder gets liquidated.

Trading Ethereum with Leverage

As previously mentioned, instruments like the CFD enable crypto traders to boost their market exposure by harnessing the power of leverage. For example, let’s assume the current price of Ether is $4,000. A news release is pending, causing you to believe Ether will appreciate, reaching $4,500. Your available balance is $2,000, and you want to purchase 2 ETH using 1:5 leverage.

Your margin requirement will be 1/5 x $4,000 x 2 = $1,600, or 20% of your total position size ($8,000). Assuming Ether rises to $4,500, you will generate $1,000 (500 x 2 ETH) in net profits. However, if Ether depreciates by $100 and drops to $3,900, you will lose your entire balance. When using leverage, your earnings and losses are calculated based on the total value of your position rather than on the initial margin only.

Conversely, you can harness leverage to profit from the falling prices of Ether. Let’s assume ETH is trading at $4,000, but you have reasons to think the price will drop by $200. You buy 2 ETH with 1:5 leverage, so your margin again stands at $1,600 (1/5 x $2,000 x 2 ETH). If Ether falls to $3,800, your position stands to make $400 (200 x 2 ETH) in profit. If the price moves in the opposite direction and Ether appreciates, your short position will again cost you your entire balance.

What Moves Ethereum Prices?

Understanding what factors affect Ether price movements is essential for becoming a profitable crypto trader. Gaining sufficient market knowledge is all the more important in margin trading where adverse market movements can result in massive losses due to leverage. Microeconomic factors have a lesser impact on the prices of cryptocurrencies like Ether due to their decentralized nature. Here are the main drivers of ETH price movements you should take into account.

Supply and Demand

Ether availability fluctuates despite Ethereum lacking a hard cap on its maximum circulating coins. In turn, supply and demand can significantly impact the value of the world’s second-largest cryptocurrency. Ether prices tend to go up when supply is low but demand is high. Conversely, the tokens depreciate when supply grows while demand declines.

News Releases

News releases may impact supply and demand, causing traders to buy or sell Ethereum en masse. Negative news announcements related to hacking attacks or security vulnerabilities influence the public perception and drive the prices down. The opposite is true of positive news coverage on improved transaction speed, reduced fees, or increased staking rewards.

Regulatory Decisions

While cryptocurrencies are largely decentralized, more and more governments are pushing for regulatory frameworks for this new breed of assets. Major regulatory decisions may impact short-term price movements and contribute to market volatility. One recent example comes from May 2024 when the US Securities and Exchange Commission (SEC) endorsed the sale of spot Ethereum exchange-traded funds, a decision resulting in a 5% daily price gain for Ether.

Other Cryptocurrencies

Last but not least, Ethereum is part of a broader crypto landscape and is not traded in isolation. Ether shows a strong correlation with rival cryptocurrency Bitcoin whose price movements often affect the prices of other crypto tokens. When BTC exhibits volatility, other major cryptocurrencies like Ether usually move with it. Bitcoin halving is a great example.

The term refers to the periodical reduction of BTC mining rewards by half, a process occurring approximately every four years. Halving causes BTC prices to soar since it decreases supply and creates scarcity. Historical data suggests Ethereum has consistently correlated with Bitcoin’s price fluctuations after halving events.

Costs Associated with Ethereum Trading

Identifying brokers with reasonable commissions is essential for all Ethereum enthusiasts seeking to reduce their overall trading costs. This way, you will profit more from your successful trades and grow your crypto budget faster. Read on to learn more about the fees you can anticipate when trading Ethereum online.

Spreads

Spreads represent the difference between the bid and ask prices of assets, including cryptocurrencies like Ether. Brokers build spreads into crypto trades to generate profits and cover order execution costs. Highly liquid cryptocurrencies like Ethereum and Bitcoin usually have narrower spreads because liquid markets attract more buyers and sellers.

Commissions

Some brokers charge commissions on CFDs on top of spreads. Rates vary from one broker to another and typically depend on trade size. Brokers treat opening and closing a position as two separate trades, meaning that you will incur commissions for each side of your trades. Round-turn commissions represent the full cost of opening and closing trades. If a broker charges $2.25 per lot per side, a trader would pay a round-turn commission of $4.50.

Financing Fee

Financing “overnight” fees apply when traders leave their leveraged CFD positions open overnight. These charges are typically percentage-based and are debited or credited to trading accounts, depending on the open positions’ direction. Long positions pay overnight funding charges, while short positions earn financing fees. Traders can calculate them by multiplying their position size by a broker’s financing fee and the closing price. For example, a long contract for ETH/USD trading at $3,400 could hypothetically cost you $2.24 per day (1 x 3,400 x 0.0658%).

Maker/Taker Fees

Cryptocurrency exchanges like Kraken and Coinbase impose percentage-based maker and taker fees. Maker fees apply to cryptocurrency orders that are not filled immediately, which helps improve market liquidity. Instantly processed orders incur taker fees and reduce the liquidity of the market. By rule of thumb, taker fees are always higher than maker fees. Comparing the maker and taker fees charged by different platforms is essential for profitability since the rates may vary significantly from one crypto exchange to the next.

Gas (Transaction) Fees

Gas fees aim to cover the expenses of initiating transactions on the blockchain network and are charged in Ether on the Ethereum blockchain. On other blockchains, these charges are called mining commissions or transaction fees. Ethereum traders may incur them when moving Ether tokens from one wallet to another, for example. It is similar to initiating money transfers in a bank where you must pay to use its network. The fees increase and decrease proportionately to the transaction volume on the blockchain. More traffic results in higher gas fees and vice versa.

Reasons For and Against Trading Ethereum

Incorporating Ether into your trading or investment portfolio offers several advantages but there are downsides to dipping your toes in this volatile market as well. It is important to acquaint yourself with both sides of the coin, if you’ll excuse the pun, before you dive into Ethereum trading. We finish with several valid reasons for and against ETH trading that you may want to consider.

Written by Z. Stefanova