While cryptocurrency exchanges offer a range of digital assets to trade and the ability to store crypto coins on electronic wallets, these exchanges are exposed to security threats and often charge high fees and commissions.
Binance, for instance, is the world’s largest cryptocurrency exchange but it has some major disadvantages.
In this guide, we will explain where Binance falls shorts and provide 4 Binance alternatives which offer better platforms, safety and fees.
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Best alternatives to Binance exchange
- eToro: Purchase 16+ cryptos on a regulated platform
- Plus500 : Trade over 2,000 assets. Best choice for European customers
- Libertex: Crypto trading with high leverage
- Forex.com : U.S. broker with super low fees on crypto trading
- Avatrade: Heavily regulated CFD platform
What are some of the disadvantages of Binance?
Overall, Binance is a decent cryptocurrency exchange. It offers more than 150 coins, it provides a crypto e-Wallet for its traders and has an advanced user-interface. But the biggest cryptocurrency exchange in the world has some major flaws:
Though Binance is one of the most reasonable cryptocurrency exchanges, it has some notable disadvantages that you need to aware of.
One of the such disadvantages is that it does not offer CFD or leveraged trading. If you are planning to execute a large number of trades, cryptocurrency CFD trading, a contract that allows you speculating on the price of an asset without owning the security, can be a better alternative to buy Ethereum with PayPal and holding tokens. The benefits of CFD trading are that you can trade on margin and instead of owning an asset, you simply speculate on the price of a security without actually owning the digital asset.
In the past two years, online platforms such as eToro have entered the cryptocurrency market, offering leveraged positions for major digital assets. Below, we will explore such platforms, and explain why they are fantastic alternatives to Binance.
eToro - Best Trading Platform for Beginners
- Unlike Binance, eToro offers cryptocurrency trading to US residents
- Unlike Binance, eToro is a social trading exchange which is great for beginners
- Different from cryptocurrency exchanges, eToro is highly regulated and ensures clients' funds are safe
- eToro offers a narrow selection of coins compared to Binance
- eToro does not offer crypt-to-crypto pairs
Plus500 - Best Binance Alternative Platform in Europe
Plus500 is a well-known and reputable CFD broker that offers traders to trade more than 2000 financial instruments including cryptocurrencies. Being a Europe-based broker, Plus500 is regulated by the Cyprus Securities And Exchange Commission (CySEC) and the Financial Conduct Authority (FCA) in the United Kingdom. At the time of writing, Plus500 is not available to US residents.
Cryptocurrencies supported: Bitcoin, Ethereum, Litecoin, NEO, Ripple, IOTA, Stellar, EOS, Bitcoin Cash, Cardano, Tron, Monero and Crypt 10 Index.
Demo Account: Available
Educational Material: Yes
Fees: Plus500 has no trading activity fees besides the buy and sell spread. However, there are some additional fees associated with using the firm's service that includes an overnight fee, currency conversion fee, guaranteed stop order fee, and inactivity fee.
Minimum deposit: $100.
Special Features: Plus500 offers traders to buy and sell the Crypto 10 Index which measures the performance of the top 10 cryptocurrencies in the market. Plus500 also features the two-factor authentication.
Regulation: CySEC, FCA, and ASIC
Payment methods: Debit/Credit cards, Electronic wallets (PayPal or Skrill), and Bank transfer.
- Plus500 is highly regulated compared to Binance
- Unlike Binance, Plus500 offer the Crypto10 Index and a selection of other markets and products
- While Binance charges a withdrawal fee, Plus500 has no deposit and withdrawal fees.
- Binance supports more than 150 crypto coins while Plus500 offers a selection of 15 coins
- Unlike Plus500, Binance offers an electronic wallet
Libertex - Best Crypto Broker with Low Minimum Deposit
Founded in 1997, Libertex is one of the first CFD brokers in the industry to offer online trading. The CySEC and FSCA regulated broker offers 15 cryptocurrencies with leverage of up to 1:30. Though Libertex operates in most countries around the world, the broker does not accept customers from the United States, Japan, Brazil, Iran, etc. See the full list of restricted countries here.
Cryptocurrencies supported: Bitcoin, Ethereum, Bitcoin Cash, Bitcoin Gold, DASH, Ripple, IOTA, NEO, OmiseGo, Quantum, Monero, Tron, ZCASH, Stellar, and Cardano.
Demo Account: Available
Educational Material: Yes
Fees: There are two types of fees and commissions charged by Libertex - Transaction fee (buy and sell spread), and Rollover (overnight) fee.
Minimum deposit: $10.
Special Features: Libertex offers the MetaTrader4 and MetaTrader5, the most popular trading platform in the market, which enables traders to automate their trading.
Regulation: CySEC, FSCA
Payment methods: Credit/debit card, Skrill, Sofort, Neteller, Wire transfer, GiroPay, Trustly, iDeal, and Rapid.
- Unlike Binance that has a complicated web-baseed trading platform, Libertex offer the most popular trading platform in the market , the MetaTrader4
- Unlike Binance, Libertex offer a demonstration account
- Libertex is highly regulated and ensures clients' funds are safe
- Libertex does not accept customers from many countries in the world including the United States
- Libertex charges an overnight fee
Forex.com - Best Binance Alternative Platform in the US
- While Binance is not available to US residents, Forex.com accepts traders from the US
- Forex.com is regulated by top regulators worldwide including financial authorities in the United States
- Unlike Binance, Forex.com offers an advanced trading platform and VPS automated trading tool
- Forex.com offers a low selection of cryptocurrencies compared to Binance
- Unlike Binance, Forex.com charges and inactivity fee
Binance alternatives – Final Thoughts
If you are planning to execute a large number of trades, cryptocurrency CFD trading, a contract that allows you speculating on the price of an asset without owning the security, is a better alternative to buying and holding tokens.
CFD trading, however, is not offered on Binance, therefore, we recommend trying the CFD brokers we listed above. At the time of writing, these are the best alternatives for Binance : eToro, Plus500, Libertex, and Forex.com. These brokers enable you to take part in Bitcoin trading without having to pay exchange fees and the complicated process of storing your crypto coins on digital wallets.
Not only that, but CFD brokers are considered to be a safer option than cryptocurrency exchanges in terms of regulation and cyber threats.
eToro: Best Crypto Platform for 2020
- Paypal accepted
- CySEC, FCA and ASIC Regulated
- Buy 15+ Cryptos or trade as CFDs
Are there any sites like Binance?
Yes, there are many sites offering similar services like Binance. Those include Coinbase, Kraken, CEX.io, and many more. However, these exchanges charge high fees and require a long registration procedure.
Why is Binance so expensive?
Binance is a cryptocurrency exchange, meaning it offers cryptocurrency trading, storage, and full operation of an exchange. Therefore, the largest cryptocurrency exchange in the world charges various fees to cover costs such as trading fees, deposit and withdrawal fees, conversion fees, and transaction fees. On the other hand, CFD brokers such as eToro enable you to trade with lower trading costs.
Is Binance unsafe?
Generally speaking, Binance is one of the most secure cryptocurrency exchanges in the world. And yet, it was subjected to hacking attacks numerous times in the past few years.
What's the benefit of trading crypto currencies via a CFD broker?
Different from cryptocurrency exchanges where you physically trade a digital asset and have to store it, CFD brokers enable you to speculate on the price of a cryptocurrency without having to own the coin. These brokers also offer leverage, meaning you will be able to trade with a higher capital than initially deposited.