Margin trading is a high-risk, advanced trading strategy mostly used by veteran traders. It’s when an exchange loans you funds to open positions with 2x, 5x, 10x or even 50x leverage. However, more leverage doesn’t necessarily translate to a better exchange. To choose the best crypto margin trading exchanges, we must account for a combination of different factors, such as margin rate, trading tools, range of features, the credibility of the platform and much more.
It’s unlikely for a single platform to be the best in every aspect, so we curated a list of the 9 best crypto margin trading exchanges. Every exchange has its pros and cons, but if you know what you’re looking for, there is something for everyone.
Founded in 2018, ByBit is our number-one choice when it comes to the best crypto margin trading exchanges.
Originally started as a derivative trading platform (later added spot trading), ByBit is a legit crypto trading platform with over 2 million active users. It supports all the major cryptocurrencies and trading pairs and has over $10 billion in 24-hour trading volume.
ByBit offers up to 100x leverage, meaning you can open a position for $100, even if you only have $1. The only fees you pay are the marker maker and market taker fees, which are 0.01% and 0.06%, respectively.
The platform has an easy and interactive user interface that helps beginners learn and get familiar with all the features and functions faster. At the same time, the platform also has advanced trading options to attract veteran traders.
The only downside is it’s not available in every country, including the US. Since ByBit doesn’t require KYC verification, you can technically access the platform using a VPN. However, your account and the funds in it will always be at risk of freezing if they find out.
Stormgain is as close as it gets to an all-in-one best crypto margin trading exchange. It’s a relatively new exchange, launched in 2019, which quickly surpassed the 1 million active users mark last year and has a 24-hour trading volume of $6.9 million.
Stormgain offers 5x to 500x leverage, the most any platform has ever allowed, depending on the trading instruments. As you can guess, you can get more leverage on derivatives trading, while spot trading has limited options.
As for the trading fee, Stormgain has a unique fee structure. Instead of charging maker and taker fees, the platform charges a flat fee of 0.25%, a little higher than the industry standard. It also has a separate fee structure where you only pay trading fees if you make a profit. But the trade-off is you’ll pay a 10% trading fee on the profit.
One of the biggest strengths of BitMex is its mobile app with a highly intuitive and interactive user interface, which allows traders to trade just as easily on their mobile phone as on a desktop.
But it doesn’t stop there.
Stormgain is also an all-rounded crypto exchange with features like Bitcoin mining, unlocked staking, a demo trading account for beginners and credit card purchases.
With over 28 million users and a 24-hour trading volume of $76 billion, Binance is undoubtedly one of the biggest and most trusted crypto exchanges.
Binance didn’t allow margin trading until very recently. As of now, Binance only supports margin trading for a few trading pairs, including the BTC/USDT pair. The exchange offers up to 10x leverage on spot margin trades and 125x on derivatives.
The interest rate on the borrowed amount, also known as the margin fee, changes time to time. You can check out the latest interest rates on different cryptocurrencies here. The trading fees also differ based on your account level. Check out the fee structure for your account level.
You can get a 25% discount on trading fees and interest fees if you pay using the Binance Coin (BNB).
The platform is not suitable for beginners, not only for margin trading but in general. The advanced features and busy user interface can overwhelm newbie traders. However, advanced traders will feel at home.
The only downside? The US version of Binance doesn’t allow margin trading.
Phemex is a relatively new platform, but it quickly established itself as one of the best crypto margin trading exchanges. Launched in 2019, Phemex has already garnered over 5 million active users with a 24-hour trading volume of $8 billion.
Phemex offers 5x to 100x leverage, depending on what you’re trading. The transaction fee for spot trading is only 0.1%. For contracts, it’s 0.01% for makers and 0.06% for takers.
Once again, Phemex is unfortunately not available in the US. But as with other exchanges, you can use a VPN to access the platform since it doesn’t require KYC verification. But we highly suggest against it.
It has an easy and intuitive user interface, and the trading engine has a response time of less than a millisecond, making it ideal for both beginners and advanced traders.
PrimeXBT is an all-in-one exchange that supports trading over 30 assets, like indices, forex, commodities and much more. However, it lies more on the less-popular side of the spectrum.
With a 24-hour trading volume of $86 million, PrimeXBT offers up to 100x leverage on crypto trading, including derivatives or spot trading. The trading fees and margin fees are some of the lowest in the industry. Check out their fee structure here.
Furthermore, the platform has an easy and interactive user interface with lots of features and functions.
The platform doesn’t require you to verify your KYC to open an account and trade. This could be one of the reasons why PrimeXBT, along with all the others mentioned up until now, is not available in the US.
So far, in this list of best crypto margin trading exchanges, none of the entries are available to US residents. But that changes with Kraken. Established in 2014, Kraken is a US-based platform and one of the biggest and most trusted crypto exchanges.
It has over 9 million users with a 24-hour trading volume of over $700 million.
Kraken is certainly not the best crypto margin trading exchange when compared to others. The only reason it’s on this list is its availability to US residents. The platform has a set of eligibility criteria for its margin trading services. Plus, it only offers up to 5x leverage.
The trading fee varies based on the pair you’re trading and a number of other factors, but on average, it’s around 0.02%. It also has a rollover fee (fee for maintaining the position) of about 0.02% per 4 hours. You can check out their complete fee structure here.
Kraken also has a pro version with more advanced trading features and tools, suitable for experienced traders. However, the basic platform, Kraken itself, has quite an intuitive user interface, which beginners can easily navigate and learn on.
Despite all its shortcomings, BitMex, founded in 2014, has quickly become one of the fastest-growing and best crypto margin trading exchanges. However, it’s far from perfect.
The platform has a 24-hour trading volume of over $200 million.
As for margin trading, currently, the platform only supports margin trading for 6 cryptocurrencies with different leverage limits for each – Bitcoin, Bitcoin Cash, Ethereum, Cardano, Ripple and Litecoin. The platform offers up to 100x leverage on Bitcoin, followed by 50x on Ethereum. The others range from 20x to 30x leverage.
The trading fees are also quite reasonable, with a maker fee of 0.01% and a taker fee of 0.075%.
BitMex is not available in some countries, including the US (surprise, surprise). But of course, you can always bypass that restriction using a VPN since BitMex doesn’t require a KYC verification to open an account and start margin trading.
Other than that, many users have complained about the choppy trading engine of BitMex. It has resulted in many trades liquidizing unexpectedly.
Overall, it’s a decent exchange for margin trading. Not the best.
Whether you want an exchange with the most leverage or an exchange with the lowest trading fees, this list of the best crypto margin trading exchanges has it all.