With crypto margin trading, it’s important for traders to use a platform that ticks a range of essential boxes. Read on to find out more about the top cryptocurrency margin trading exchanges and learn more about the factors that you need to know to get started with these platforms.
There are several points to consider when choosing a crypto margin exchange. Is the trading platform feature-rich enough to accommodate your trading needs? Is the platform trusted? Does it have a history of being stable? Does the exchange support the specific trading pairs that you want to trade? Also consider the withdrawal limits, your margin requirements, trading volume, and the maker and taker fees.
Since a seasoned trader is going to spend a lot of time on their crypto trading exchange, it’s so important to choose the right one from the start.
1. ByBit: Best Margin Trading Platform
Bybit is the best crypto margin trading exchange overall. It was founded in early 2018, serves over 2 million users, and has over $10 billion of 24-hour trading volume, ensuring extremely high liquidity for short-term traders. The Bybit platform is extremely reliable, with 99.99% system functionality, and rapid trade speed of 100 000 trades per second.
Bybit offers up to 100x leverage on margin trading, a generous amount, considering some other exchanges only offer up to 5x leverage. The available derivatives markets are USDT Perpetual contracts, Inverse Perpetual contracts, and Inverse Futures contracts. Bybit has extremely low market taker fees of only 0.075%, and offers a rebate of 0.025% to market makers, meaning you get paid as a market maker.
Spot trading has recently been added to Bybit, which traditionally focused on being a derivatives trading platform. This is a welcome addition, with four trading pairs currently offered (BTC/USDT, ETH/USDT, XRP/USDT and EOS/USDT), with more on the horizon.
Bybit is ideal for all kinds of traders; its interactive user interface makes it possible for novices to ease into more advanced trading strategies, and experienced traders to find themselves at home. Bybit also offers a testnet platform with mirrored capabilities of the main website for maximum safety. You can easily create an account here and trade with demo coins to get a handle on Bybit's powerful functionality and ensure you know what you are doing before creating your main account.
Bybit looks after its users, with its unique insurance fund to protect traders from negative equity and being held accountable for excessive loss. There is also Live Chat support with a real person available 24/7 to assist you whenever you need. Unfortunately this exchange is not available for US residents; if you are from the USA, I suggest using Kraken, my #2 recommendation for margin trading.
2. Kraken: Best Margin Trading for US Residents
Kraken is my #1 choice of margin trading exchange for US residents. It is a well-established American crypto exchange with over 6 million users, and has been in operation since 2011. Kraken offers spot trading, margin trading and futures contracts in a user-friendly platform.
Margin trading is accessible to all Kraken users, with up to 5x leverage on 16 coins. It is available on both market and limit orders, with extremely low fees. Depending on which cryptocurrency pair you are trading, Kraken charges up to only 0.02% to open a position and up to only 0.02% (per 4 hours) in rollover fees to keep the position open. High margin limits are on offer, with eligible clients able to access up to $500 000.
Kraken's pro trading interface is intuitive yet filled with tools and advanced order options. It is an excellent exchange for both newcomers to the crypto market, as well as experienced traders. The 24/7 Live Chat with a real person is another feature that makes this platform the best exchange for US residents.
3. FTX: 3rd Best Margin Trading Crypto Platform
Created by Sam Bankman-Fried from Alameda Research, FTX is the best crypto margin exchange out there for advanced traders, backed by both Alameda Research and Binance. It is built by traders, for traders, and is designed to take trading to the next level.
The leadership style is very hands-on and SBF is very contactable on Twitter for dealing with any exchange issues, along with being famous for adding features to the exchange very quickly in response to trader requests or when users find that something is lacking.
In addition to the margin trading interface, FTX includes a range of unique features that you will not find anywhere else. It offers multiple futures contracts for both the bigger coins and smaller altcoins, along with leveraged tokens of multiple varieties. There is the option to purchase inverse leverage tokens, which are essentially positions that are leveraged against the coin.
FTX is also known for offering some great prediction markets where you can use your crypto trading account to bet on the outcomes of real-world events. In the past, this exchange has had a market for the outcome of sporting events, presidential elections and more, all of which are represented as native tokens on the exchange.
FTX also offers some of the lowest fees in the market, and you can pay less in trading fees along with taking advantage of many other benefits when you trade in their native FTT token.
4. Margex: 4th Best Bitcoin Leverage Trading
Margex is one of the best cryptocurrency derivatives exchanges that is the easiest to use. This is down to a wide range of factors that they offer including a user-friendly interface, low fees, great margin trades exchange and more.
Privacy is key in the crypto markets and in some cases, cryptocurrency traders that hold leveraged positions do not want to give up their information to institutions. Margex considers this and, as a result, has made it easy for anybody to sign up by simply creating an account and making a deposit before you start margin trading. There is no need to provide Know Your Customer details.
Margex supports Bitcoin deposits and withdrawals, and allows you to trade a variety of different leverage pairs in the crypto exchange itself. The funding fees vary and the high 100x leverage allowance makes it one of the most versatile cryptocurrency margin trading platforms available. And, another helpful feature is the quick updating of the price figures.
Margex has a very simple and easy to understand user interface that brings all of its features to life for leveraged trading. It is a simple process due to the fact that all of the features are displayed prominently with obvious labels that make it easy for even complete beginners to understand. Margex is founded and based in Seychelles, allowing them to be completely privacy-oriented without the need to force their users to give up information they don’t want to give to start trading.
5. Phemex: Top Leverage Trading Exchange
Phemex is an excellent crypto trading exchange with some of the best welcome bonuses on offer. It is one of the newer names in the game, having launched in Singapore in 2019 before quickly climbing the ranks to become one of the most trusted crypto exchanges. It has earned a name as a powerful spot and margin exchange and offers leverage from 5x all the way to 100x. It even offers a native mobile app allowing you to easily trade on the go.
Phemex is extremely fast and responsive. Along with high leverage, the trading engine boasts a response time of less than one millisecond, with over three hundred thousand orders executed per second and over one billion dollars in average trading volume per day. There are more than thirty liquidity providers directly integrated into their order book.
When combined with the low fees that they offer, Phemex stands out as one of the best trading platforms right now, and is especially popular due to its deposit bonus system. Phemex gives traders a deposit bonus simply for creating an account and making their first deposit, allowing them to start trading even more straight away. While the deposit bonuses that they offer do vary from time to time, there are always great deals on offer. You can get bonuses for signing up and making a deposit, linking your social media, creating a leveraged position, creating a spot trade and more.
6. StormGain: Best Bitcoin Margin Trading Exchange
StormGain is an all-in-one app for cryptocurrency margin trading and offers one of the best mobile apps in the industry overall. Check out their website to get more information on why it is considered to be one of the best trading exchanges available for crypto margin trading.
StormGain takes low fees to the next level by charging zero fees for cryptocurrency trades. In addition, it has a very high liquidity and allows you to open up a leveraged futures position with up to 300x leverage, one of the highest position allowances in the industry to date. You can choose from various available margin trading instruments including Bitcoin futures along with smaller alt currencies like Dash and XEM.
This exchange offers excellent multi-platform integrations and an awesome mobile app that you can use to access the futures exchange and trading engine from anywhere. The app is one of the best in the industry with a stunning design, high responsiveness and flexibility, and offers most of the same functions that you can find on the website with no need to worry about compromising your trading when on the go.
Despite the fact that StormGain already helps traders save a lot of money, it doesn’t stop there. They also offer a range of additional ways to earn money aside from trading including an in-house Bitcoin mining app, a loyalty program, and deposit interest that pays up to 12% annually for holding funds on the website.
7. Binance Futures: Best Futures Trading Platform
Binance is known as the king of crypto margin trading. Binance is currently one of the largest cryptocurrency exchanges on the market, and often takes the number one spot for weekly volume. Binance Futures is considered to be the best cryptocurrency margin trading exchange for novices.
This crypto margin exchange offers highly liquid trading offerings along with a spot trading exchange that has very low taker fees, especially when using their native BNB token for paying trading fees. Thanks to the highly stocked order book, Bitcoin margin trading on Binance is especially good. In addition, high-volume trading pairs always have very good liquidity since the exchange is used for trading by a lot of whales.
There are various margin types that you can use for risk management and protecting your position in a range of different ways, whatever the leverage. They offer a versatile futures exchange with low fees, allowing you to trade a variety of coins from big names to smaller alt coins. You can trade with Binance Futures when the price of crypto goes either up or down.
Before you get started on this exchange, you will be asked to take a short quiz to make sure that you don’t trade any more than you can afford to lose, since you will be margin trading with borrowed funds.
The enticing fee structure offered by Binance has made it one of the best crypto margin trading platforms available. You can save 25% on fees when you pay with BNB and get more attractive crypto margin trading fees as you move up the VIP ranks on the platform. When you progress high enough, Binance actually starts paying you for crypto margin trading.
Some of the main features that they offer include several USD trading pairs, around the clock customer support, and some of the best Bitcoin and altcoin liquidity around. It’s a great place to make your first margin trade if you have no experience in the crypto world. In addition to the great features, it also offers a stunning and intuitive user interface that’s similar to the spot interface at Binance.
8. AscendEX: Top Leveraged Trading Platform
This exchange is considered to be the top spot and margin exchange thanks to its huge offering of over 190 spot pairs and margin pairs. It’s created by Wall Street veterans who have applied the rigor of the traditional market to create an experience for margin traders that is secure, reliable and robust.
Despite the high taker fee of 0.20%, AscendEX is still popular due to their great core functionality and a reliable crypto margin trading engine. It uses a range of order book views and charting tools that are integrated into the margin trading window allowing you to get all the tools you need to perform technical analysis right there on the site.
AscendEX is an excellent margin leverage trading platform that offers very low funding fees. It has also partnered with a licensed payment processing company to provide easy debit and credit card payments on the website. This allows users to easily deposit money and purchase crypto using legacy finance payment methods to immediately access margin leverage exchanging.
9. eToro: Most Popular Margin Platform
This is a fully licensed, popular derivatives exchange that has been around for quite some time, since 2007, which is quite rare in this industry. It has been around for longer than Kraken, which is one of the longest-running Bitcoin exchanges.
Along with crypto margin trading, eToro also offers a range of derivative offerings including stock leverage trading, forex, CFDs and more. They are fully regulated and therefore considered to be a very safe choice of exchange. Fiat deposits from multiple sources are fully supported.
While eToro does have slightly higher trading fees compared to others, this is made up for with a range of awesome and unique features that you will only find here. CopyTraders is one such feature, which allows you to select a trader from a range of profitable trader profiles and connect your profile to theirs so that every time they trade, your profile will automatically do the same thing. You can easily choose the best trader to copy, and any position they execute will automatically be replicated in your profile even if you’re not actively using the exchange at the time. This is an ideal choice for anybody who wants to be led by a professional or doesn’t have the time to put a lot of work into it themselves.
eToro also supports several funding methods that you might not always be able to access on other exchanges including the regular debit and credit cards, PayPal, Neteller, Skrill and bank transfers. However, you can’t deposit Bitcoin.
10. Poloniex: Very Popular Margin Trading Exchange
This is one of the most established and oldest margin trading exchanges in the industry. They have recently revamped their UI and support, offering the best user experience you can find. Since the upheaval, they now offer a gorgeous, modern user interface that is easy to navigate and ideal for beginners.
When it comes to getting support, Poloniex offers excellent customer support with queries responded to quickly. All users can access a live chat room with moderators where they can share ideas and advice. The careful UX design makes it easy and intuitive to create a position. You can find margin leverage and futures on offer along with a lending section that allows you to store coins and earn interest on them, paid by other traders who you are lending the coins to for their own margin trading.
The overall experience at this exchange is designed for people who specifically want to use margin leverage, with a lot of emphasis on their margin platform.
What is Crypto Margin Trading?
Cryptocurrency margin trading allows users to borrow funds to access greater capital, and leverage their positions. It amplifies trading results, so traders can make a higher profit from their trades, without having to invest more capital. Of course, the converse is true: a small drop in the price of a coin may cause substantial losses for a margin trader, and they can lose more than the capital they invested.
Leverage is the amount that your buying power has been amplified to. You will see that a margin trading exchange may offer for example, 5x or 100x leverage. Leverage of 5x means that for every $1 you have, your buying power is $5. Leverage of 100x means that for every $1 you have, your buying power is $100.
How to Margin Trade Crypto:
On your crypto trading account, you will be able to select the amount of leverage you want when creating your position. This can be as low as 2x or as high as 100x, depending on your trading platform. A leverage of 100x means that just a 1% increase in Bitcoin price, for example, will give you 100% return on your initial investment! However, the same is true if the price drops. As a trader, you need to determine what your level of risk is, and select the right leverage for you.
The crypto exchange market is currently huge and continuously growing as crypto becomes more of a mainstream investment option. There are plenty of great options to choose from, but after researching the features on offer, the exchanges mentioned above are considered the best for margin trading.
Even within these exchanges, there’s quite a lot of variety. The one that you ultimately choose will mainly depend on your needs as a margin trader. Whether you are looking for a great UI, extremely high leverage, or something that’s ideal for beginners, there is an excellent margin trading exchange for you.
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