10 Best Crypto Brokers in Australia 2024

What Is a Crypto Broker?

A crypto broker is a firm that acts as an intermediary for people who wish to convert their fiat currency into cryptocurrency. Many times, crypto exchanges also offer brokerage services and vice versa for crypto brokers. However, there is a category of firms that are classified as brokers.

A telling sign is that brokers also offer other financial instruments like stocks, currency pairs, metals, and commodities while crypto exchanges focus solely on cryptocurrencies.

How Do Crypto Brokers Work in Australia?

Crypto brokers work the same everywhere. They must first obtain a license from the governing regulator to offer their services within the region. They may require more than one license as they offer multiple financial products, however, this depends on the regulator.

Brokers support various methods for depositing cryptocurrencies. However, unlike exchanges, their methods are limited to the more popular ones like bank transfers, credit card deposits, and some e-wallets.

Once you deposit, you may convert your fiat to crypto for a fee. Many brokers then allow you to trade between various cryptos, however, their selection tends to be smaller than that of exchanges.

What’s the Difference Between a Crypto Broker and a Crypto Exchange?

Crypto brokers and exchanges seem to fulfill the same functions from a distance, but a closer look reveals some stark differences between them. Here, we explore some.

Types of Assets Listed

A dead giveaway for brokers is the types of assets they list. Crypto exchanges list cryptos while crypto brokers could also list stocks, commodities, currencies, and even precious metals.

A good example of a broker that may be mistaken for an exchange is eToro. The broker also lists stocks, precious metals, and commodities.

Crypto Selection

One easy way to differentiate brokers from exchanges is to consider the number of cryptos they list. Brokers almost always list significantly fewer cryptos than exchanges within their class.

Note that the class matters because a global broker may list more cryptos than a local exchange, however, it will almost always list significantly less cryptos than a global exchange.

Brokers tend to stick with the most popular cryptos, while some sprinkle a few exotic cryptos into their lineup. Crypto exchanges, on the other hand, oftentimes list cryptos that are relatively unknown.

Price Discovery

Most crypto brokers set their own prices and fees while exchanges match orders. This is because brokers deal with clients directly while exchanges simply provide a platform for clients to deal directly with one another.

Hence, crypto prices may be slightly higher with brokers than with exchanges as the former may derive profit from the difference between the price users pay and the market price.

Key Things to Consider When Choosing the Best Crypto Broker in Australia

Security

Security is always the first consideration because a broker with compromised security will soon go out of business due to hacks. The ideal choice should have a clean track record when it comes to breaches.

On the off chance that they have suffered a breach, their response should be swift and an emphasis should be on making clients whole.

Brokers that use cold wallets to store the larger portion of their cryptos holdings are a green flag.

Regulation

Brokers are usually well-regulated because they list various asset classes. However, you should always check which regulator issues their license. The regulator should be a viable authority in your region. If not, the broker may not be authorized to do business in your region.

Reputation

Security breaches are not the only events that can tarnish a broker’s reputation. News of fraud, mismanagement, or even a poor work culture could erode customer confidence in a broker.

These are things you must check when considering a broker. Even the work histories of top executives are important. For example, a COO with a bad record could spell trouble down the road.

Fees

Brokers often set their own fees and prices. Hence, you need to ensure that you choose one that will offer the best deal.

Brokerage fees are often between 0% and 1.5% which may run into a hefty sum depending on your transaction volume. Some brokers charge a fixed amount for transactions regardless of volume, which works in your favor if you trade large volumes.

Payment Methods

Brokers usually accept legacy payment methods like bank transfers, credit card payments, and e-wallets in some cases. For local brokers, bank transfers work as they are cheap and transaction times may not exceed a few hours, depending on the country.

However, international brokers are not suitable for bank transfers, unless they have specialized accounts for the countries they operate in or you don’t mind waiting several days for wire transfers to clear. In this case, credit cards may be the preferred option, however, they are also the most expensive.

The best option in most cases is the e-wallet as it is as cheap as bank transfers and as fast as credit cards.

Coin Selection

Brokers usually offer fewer cryptos than exchanges. The trick is to use a broker that has more cryptos than other brokers. The most obvious choice is international brokers as they tend to have more cryptos than local ones.

Customer Service

Your chosen broker should have live chat support, email support, and phone support. However, phone support may not be available for international brokers who do not have offices within your region. This is why live and email support are paramount.

How Much Does it Cost to Trade Bitcoin?

The cost of trading Bitcoin depends on the broker you use so it will change based on the broker and even your country of residence. However, there are some fees that are associated with trading Bitcoin that you should be aware of.

Transaction fees are charges incurred from the act of trading Bitcoin. They are charged when your order is filled. While the exact amount varies, the average range is between 0% and 1.5% for brokers.

Funding fees are charges incurred when transferring money into your brokerage account. They are usually charged by the payment provider you use, but some brokers also charge deposit fees.

Why Should You Use a Crypto Broker?

Easy to Use

Crypto brokers are easy to use because their interfaces often resemble that of legacy finance applications. The sign-up process is familiar and even the crypto purchase interface is closer to what is used for stocks and other assets.

Because of this, legacy finance stakeholders who may not be able (or unwilling) to get around a crypto exchange can easily get started with a broker.

Brokers’ support for other asset classes also decreases the number of applications that investors will have to use to trade cryptos. Good brokers often allow users to manage their entire portfolio of various assets, including crypto.

Legally Compliant

The legal frameworks for brokers are usually more established and straightforward, although strides have been made to create legal frameworks for cryptocurrencies and exchanges. Most popular brokers are compliant with local securities laws as the assets they list have clear regulations around them.

Crypto exchanges, in some regions, have run into legal trouble due to unclear crypto regulation, while some have not been allowed to operate in certain countries because of a lack of clear regulations.

Secure

Crypto brokers are usually secure. While we cannot make comparisons as both platform types are not above breaches, there are fewer stories of brokers being hacked. This is because regulators understand the technologies needed to keep these sites secure and require them to comply with industry standards.

Are Crypto Brokers Safe?

Crypto brokers in Australia are safe provided they remain compliant with regulatory requirements, use industry-standard security technologies and measures, and encourage users to implement security features like 2FA and complex passwords.

Are Crypto Brokers Regulated?

Yes. Crypto brokers are usually well-regulated as they tend to offer more legacy investment assets that are regulated under clear frameworks. As such, they are well-regulated.

Review Methodology

The brokers covered in this guide were chosen through rigorous testing, research, and reviews. We paid attention to security, transparency, reputation, funding fees, deposit and withdrawal methods, and coin selection.

The platforms listed are the best we found in the various categories we listed them. Check our why trust us and how we test pages for more information on our testing process.

Final Thoughts on the Best Crypto brokers in Australia

We explored the best crypto brokers in Australia and chose eToro as your top choice because of its regulatory compliance, vibrant community, low prices, easy deposit methods, and investment tools for users who wish to do more with the cryptos that they buy.

Nonetheless, all the brokers on our list are great options, however, the best for you may depend on factors like your country of residence, the payment services available to you, and the fees you are willing to pay.

Either way, we are sure that there’s a broker on our list with a balance that works for you. To begin buying cryptos with a broker, sign up with eToro.