6 Best Crypto Margin Trading Exchanges in 2024 Compared
The best crypto margin trading exchanges offer users the option to magnify their profits (and losses) by increasing the size of their positions without a corresponding increase in their capital.
Hence, these exchanges are havens for traders who want to profit from crypto price action without owning or holding them long-term.
However, margin trading exchanges differ in the quality of service they provide, and their suitability, and the onus is left to traders to determine which is best for their needs.
This is where we come in. Our guide explores six of the best crypto margin trading exchanges. We dive into their most prominent features, highlight their pros and cons, and render verdicts on their suitability as a trading tool.
By the end of this guide, you should be able to choose a suitable exchange on or off our list.
The Best Crypto Margin Trading Exchanges - Our Top 3 Picks
Looking for a quick answer? Here are our picks for the best crypto margin trading exchanges to use.
The Best Crypto Margin Trading Exchanges in 2024
- Binance – Best Overall Option
- Skilling – Best Site for Trading CFDs
- ByBit – Best for Customer Rewards
- OKX – Most Integrated Margin Trading Exchange
- Kucoin – Most Crypto Trading Options
- dYdX – Best Decentralised Trading Exchange
Crypto Margin Trading Exchanges Comparison
| Exchange | Fees | Max Leverage | Number of Tokens | Margin Trade Types |
| Binance | Information not clearly stated on the website | 200:1 | 600+ | Spot, Futures, Options |
| Skilling | 0.2% per trade | 50:1 | 55+ | CFDs |
| ByBit | 0.10% | 100:1 | 1070+ | Spot, Perpetual |
| OKX | 0.10% | 500:1 | 434+ | Spot, Perpetual |
| Kucoin | charges 5% of your accrued interest as fees and 10% as the insurance fund | The maximum leverage on each trading pair varies | 700+ | Offers both cross and isolated margins |
| dYdX | Varies | 20x | 48+ | Perpetual |
Our Top 6 Crypto Margin Trading Exchanges Reviewed
1. Binance – Best Overall Option
Binance is the most widely used cryptocurrency exchange in the world, with over 600 listed cryptos, 170 million users worldwide, daily trade volumes exceeding $16 billion, and the largest peer-to-peer marketplace in the world.
The exchange offers a full range of margin trading options, from spot margin instruments to futures, vanilla options, and a trading bot to automate strategies. These instruments provide different advantages and come with varying leverage facilities.
For example, Futures instruments have a maximum leverage of 75x, while spot margin instruments have a maximum leverage of 10x.
Trading fees are low, ranging from 0.02% and 0.05% for Futures, 0.1% for spot margin, and 0.03% for Options.
The minimum trade size for spot margin and futures contracts is $10, while Options have a marked price per contract.
To start with Binance, create an account, get verified, and deposit funds. Alternatively, read our Binance review to learn more about the exchange.
Pros
- Wide crypto selection
- Customer support is available in 60+ languages
- Low trading fees
Cons
- Welcome bonus is not as robust as other exchanges
- Not available in the US
Features
- Reward system
- Crypto trading academy
- 24/7 customer support via email and live chat
- Mobile app
- Affiliate program
- Segregated accounts
2. Skilling – Best Site for Trading CFDs
Skilling is a crypto broker that offers trading services to people who wish to trade crypto without owning it or bothering with the intricacies of Futures or Options contracts. The platform stands out by focusing on trading and modelling its products and services to achieve that.
The Skilling platform is straightforward, allowing traders to focus on trading while the company focuses on everything else. The instruments used are Contracts for Differences (CFDs), which are derivatives that track underlying asset prices (in this case, crypto).
CFDs allow traders to focus on trading crypto price action at low costs. Skilling lists CFDs for over 55 major cryptos at 0.2% per trade regardless of volume and with a maximum leverage of 50x.
You can deposit funds using multiple payment options, cryptocurrencies like Bitcoin being one of them. You can use PayPal, credit cards, or bank transfers if you’re more traditional. Note that the minimum deposit limit is $100.
To get started, visit the website and open an account or read our Skilling review for more information.
Pros
- Cheap Bitcoin spreads
- Low 2% margin requirement
- Highly secure and well-regulated
- 50x leverage facility
- Supports crypto deposits
Cons
- $100 minimum deposit is higher than the others
Features
- Multi-asset support
- Flexible funding methods
- Secure and regulated by multiple agencies
- Intuitive user interface
3. ByBit – Best for Customer Rewards
ByBit is a crypto exchange with over 20 million users offering a $5,000 reward and a share of a $120,000 prize pool to new users as a welcome bonus.
The exchange is making a name for itself as one of the best places to get new tokens, an excellent quality for users who want a wide option of tokens to trade. Currently, the exchange lists over 1,000 tokens, and while not all may be available for margin trading, a more comprehensive range means more options.
Margin trading on ByBit can be done using spot margin instruments, limited to a 10x leverage, USDT/USDC Perpetuals, which have a 100x maximum leverage facility, and Options.
Trading fees on ByBit range between 0.15% – 0.20% depending on your 30-day trade volume. Trading costs decrease with increased volumes once your volume exceeds $1 million.
In addition to the platform’s trading software contained within the mobile application and website, ByBit connects with the popular MetaTrader4 software to leverage the execution speed and trading tools of traditional trading software.
To get started on ByBit, click the Sign-Up button at the top-right corner of the site’s landing page and fill in your email and password to verify your account. Once done, deposit funds using any supported payment method.
Pros
- Robust welcome bonus
- Wide selection of accepted cryptocurrencies (1k+)
- Employs high-level security measures like Triple Layer ASSET Protection
- Offers multiple margin trading instruments
- High leverage facility
Cons
- Slower withdrawal rates when compared to competitors
Features
- Demo trading
- Site-owned card payment facilities
- Mobile app enabled
- 24/7 customer support is available on both live chat and email
- VIP-only programs
4. OKX – Best Integrated Margin Trading Exchange
OKX is a crypto exchange that provides a holistic crypto experience, from trading to investing, staking, and even minting NFTs. The platform serves as an exchange and a portal into Web3 with a dedicated wallet.
Where margin trading is concerned, OKX offers Futures, spot margins, and Options instruments. Futures contracts can either be perpetual or expiry futures that are USDT margined, USC margined, or crypto margined; which are ways to specify the settlement currency used.
The spot margin product involves borrowing funds to trade regular tokens at a 10x maximum leverage, although more volatile cryptos have a 5x maximum leverage. Options trading involves buying Call or Put Bitcoin or Ethereum options.
Trading fees range between 0.14% and 0.23% for 30-day volumes below €100,000 and decrease with higher volumes.
To get started, buy cryptos like USDT with a credit card. If you live in the UK, you can deposit cash into your account to purchase major cryptos.
Pros
- The convert option is free
- Access to a larger web3 ecosystem
- Support for up to 30 fiat currencies
- 24/7 customer support
Cons
- Unavailable to US residents
Features
- Supports over 300 cryptos
- Clean, new-age UI
- Robust derivative selection
- OTC trading desk
5. KuCoin – Most Crypto Trading Options
Available in over 200 countries with a total user base of over 30 million users, KuCoin offers a comprehensive list of trading tools to help power the everyday trader. The exchange also has a wide list of supported cryptos, which means more choices for margin traders.
Trading margin on Kucoin comes in two primary forms: spot margin and futures contracts. Spot margin pairs can either be cross-margin or isolated. Cross-margin pairs have a 5x leverage, while isolated margin comes with a 10x maximum leverage; you cannot adjust these leverage parameters.
For future contracts, leverage goes as high as 75x for all contracts, which exceeds 270 pairs.
Trading charges vary with the amount of KCS, the exchange’s native token, held on your balance or your 30-day trading volume. The lowest tier (i.e., highest trading fee) ranges between 0.02%-0.06% for futures contracts and 0.08% for spot margin pairs.
These fees decrease with increased volume until a maximum of $80,000 per month, at which point your fees will range between -0.008% and 0.025% for futures and -0.005% and 0.020% for spot pairs.
To begin trading on KuCoin, create an account and deposit funds using cryptocurrency.
Pros
- Wide crypto selection
- Offers both isolated and cross-margin trades
- Has a mobile app
Cons
- Unavailable in some major regions like the US
- Welcome bonus is not as robust compared to some competitors
Features
- Leveraged tokens
- Trading bots
- Mobile app
- 24/7 customer service
- Affiliate programs
6. dYdX – Best Decentralised Margin Trading Exchange
dYdX is a fully decentralised crypto exchange operating on its own blockchain network that offers a full-fledged margin trading experience with contracts and leverage facilities.
Although dYdX is a decentralised exchange, it delivers the speed and functionality its centralised counterparts are known for, supporting 55 cryptos with up to 20x leverage.
We found the site’s interface seamless, offering the same dynamic order types as conventional trading platforms like limit orders, stop market and limit orders, and take profit orders.
Outside of core trading, the exchange offers staking returns and trading rewards for token holders and community members. As of writing, the staking return is 21.32%.
To start on Dydx, click the “Trade Now” button at the top right corner of the site’s landing page. Next, connect your crypto wallet and select a currency to deposit. All balances in your dYdX account are denominated in USDC, so whichever crypto you send will be converted to USDC.
Pros
- Fully open source
- Seamless onboarding process
- Low fee structure on margin trades
- Custody of digital assets stays with the trader
Cons
- A limited number of accepted cryptocurrencies
- Unavailable in some major regions like the US and Canada
Features
- Trading reward system
- Staking function
- Onchain order book
What is Crypto Margin Trading?
Crypto margin trading is buying and selling digital assets using funds borrowed from a broker or an exchange. Borrowing aims to increase the size of your positions to increase the profit realised from each trade.
To borrow funds from your exchange, you need to put down a certain amount, called a margin, which has some bearing on the amount you can borrow. Hence, the more money you put down as a margin, the more you can borrow.
Margin and leverage go hand in hand. If the margin is the amount you must put down to borrow, then leverage is the degree to which you can borrow based on your margin.
Usually, you’ll see exchanges specify a margin percentage and leverage ratio. For example, if an exchange states that its leverage is 50x, you can borrow up to 50x the margin you provide. If you provide $50 as a margin, you can borrow up to $2,500 to trade.
The exchange doesn’t credit your account with $2,500; instead, it allows you to open trades up to $2,500 in size.
Similarly, if an exchange states that its margin is 5%, the amount you provide must be at least 5% of the total position size you intend to open. So, $50 at a 5% margin means you can open a trade size of $1,000.
Margin trading can be wildly profitable as you can earn profits in multiples of your margin; however, it can also be wildly disastrous as you can lose money in multiples of your margin. Hence, it is riskier than regular trading.
How Does Cryptocurrency Margin Trading Work?
Cryptocurrency margin trading is similar to traditional margin trading. The only difference is that you trade cryptos, not stocks or currency pairs.
First, traders amplify the size of their trades by borrowing from exchanges at a specified margin percentage and leverage ratio; there’s usually a range that you can choose from. Then, you deposit funds into your margin trading account, which is generally isolated from your spot account because of the risk involved.
Next, select the instrument you wish to trade and the crypto pair. Many exchanges, huge ones especially, offer several types of margin trading instruments. For example, Binance offers spot margin trading, perpetual, and even vanilla Options, all of which use margin.
Different instruments come with varying terms of leverage. For example, perpetuals usually have a blanket leverage ratio that you can set for all pairs; however, spot margin instruments usually have specified leverage ratios per pair.
Once you set your leverage ratio, deposit funds into your account to use as a margin, which will determine the maximum dollar amount you can trade with.
You can then open buy positions (longs) or sell positions (shorts). Long means you’re betting that the price goes up, while short means you’re betting that the price falls.
If the price moves against your bet, you risk losing your margin, especially if you do not set a price at which the trade should be closed if you begin to lose money, called a Stop Loss.
What is the Difference Between Crypto Spot Trading, Futures Trading, and Margin Trading?
| Crypto Spot Trading | Futures Trading | Margin Trading |
| Traders buy or sell cryptocurrencies at the current market price, with settlement occurring immediately or within a short period | Traders buy or sell contracts that obligate them to buy or sell a specified amount of cryptocurrency at a predetermined price and date in the future. | Traders borrow funds from an exchange to boost the size of trades, allowing traders to execute larger positions than they could with their capital alone |
| It does not involve leverage | Could involve leverage | Involves leverage |
| It involves the direct exchange of assets, where traders either own the cryptocurrency they buy or deliver the cryptocurrency they sell | Allows traders to lock in a price in the present to be delivered in the future | Allows traders to borrow funds to buy or sell cryptocurrencies at the current market price |
Short Margin Trading Vs. Long Margin Trading
Short margin trading is where traders aim to profit from a decline in the price of a crypto, while long margin is where traders aim to profit from an increase in the price of a crypto.
| Short Margin Trading | Long Margin Trading |
| Traders borrow the asset from the exchange, sell it at the current market price, and hold onto the proceeds until they repurchase the asset at a lower price to close the position | Traders purchase the asset at the current market price and hold onto the asset until they sell it at a higher price to close the position |
Which Coin is Best for Crypto Margin Trading?
Several factors come into play when selecting the right crypto coin for your leverage trading, from liquidity to trading volume and even your personal preferences. Any coin can be good for margin trading, provided it possesses certain qualities. Some of these include
Availability
The best coins for margin trading are usually available on your chosen exchange and several others. This availability usually ties in with liquidity because the more people trade a token, the more liquidity it has.
However, the first step is it being available for margin trading. Some exchanges with wide selections only provide margin facilities for some tokens. For example, Kucoin lists over 700 tokens but provides margin facilities for 270.
Liquidity
The best cryptos for margin trading have deep liquidity because they trade often. An easy way to gauge a token’s liquidity is to check its 24-hour trading volume with tools like Coingecko.
For example, Bitcoin’s 24-hour volume is around $33 billion, more than enough to absorb large trade positions, which makes Bitcoin the ultimate crypto for margin trading. Other cryptos like Ethereum ($14 billion) and Solana ($3 billion) have sufficient liquidity to be suitable for margin trading.
Volatility
Margin trading aims to make wider profit margins from market moves. Hence, volatility is needed to achieve this. However, the degree of volatility is essential, and too volatile cryptos are too risky to trade with leverage (like memecoins). In contrast, those that are not volatile are a waste of margin facilities (like trying to trade stablecoins with margin).
Crypto Margin Trading Tips for Beginners
- Don’t trade with leverage: While this may sound counterintuitive to the guide’s theme, statistics show that most people are not good traders, and adding leverage to the mix is a recipe for disaster.
- Before going into margin trading, ensure you understand how it works, from leverage to risk management and even the expected pitfalls.
- Select a reputable, well-known crypto margin trading exchange with high-level security measures to ensure your funds are out of the reach of fraudsters.
- Start with easy-to-follow margin trading strategies and gradually use your lessons and experiences to expand your skill set.
- Set up risk management protocols like stop-loss to protect your capital and minimise losses.
What is the Difference Between Isolated Margin and Cross Margin?
Isolated margin is a mode of margin trading where each trading position is separate from others and requires its own margin. The goal is to detach the outcome of one trade from the outcomes of others so that a loss in one position doesn’t affect the margin of other positions.
Cross margin, on the other hand, is a mode where the total margins in traders’ accounts support all open positions. So, profits and losses from all positions are combined.
| Isolated Margins | Cross Margins |
| The margin allocated to a specific position is separate from that allocated to other positions in a trader’s account. | The total margin in a trader’s account supports all open positions. This means profitable positions can help offset losses from losing positions and vice versa. |
Key Factors to Consider When Choosing a Crypto Margin Trading Platform
Several factors come into play when selecting a crypto margin trading exchange that fits your preferences. Here is a list of factors to watch out for during your selection process,
Security Measures
Look out for exchanges that use high-level security measures like SSL encryption, 2-factor authentication, and any other protocols that keep your funds out of the reach of scammers.
Liquidity and Trading Volume
Prioritise exchanges with higher liquidity and trading volumes, as these help reduce the price impact from large orders. Liquidity also ensures that counterparties are always available so you can easily open and close trades.
Leverage Options
Ensure the exchange you select offers leverage levels matching your trading objectives and risk tolerance. Some traders can handle leverage ratios as high as 50x, while others prefer a more conservative 5x. Whichever it is, ensure that the exchange has the facilities.
Cost
Exchanges charge for facilitating trades, and some may charge extra for leverage facilities. Ensure you know all costs involved in trading margin on any exchange you wish to use before you begin.
Benefits of Margin Trading Crypto
Enhanced Trading Opportunities
Margin trading provides access to a wide range of markets and allows traders to execute various strategies that wouldn’t be possible (or at least be more expensive) if done in the spot market. A good example is shorting.
Increased Buying Power
Margin trading gives traders greater purchasing power than using their capital alone. This increased buying power empowers traders to capitalise on trading opportunities and potentially achieve higher returns.
Portfolio Hedging
Margin trading allows traders to hedge their cryptocurrency portfolios by establishing positions in spot and Futures or Options. This strategic approach protects against downside risk in the spot market, mitigating potential losses from adverse price fluctuations.
What are the Risks of Margin Trading Crypto?
- Margin calls: If price moves against your bets and the value of your positions dips below a critical threshold, the exchange will issue a margin call, a warning that your margin is about to be depleted and your position closed.
- Volatility: This ties into margin calls. Crypto markets are volatile and can swing from one extreme to another quickly. Margin trading exposes traders to this volatility more than spot trading.
- Funding rates: In the case of Options and Perpetuals, funding rates can fluctuate with market direction and the volume of buy orders to sell orders. In highly volatile cases, these fees can eat into profit.
How to Manage Crypto Margin Trading Risk
Always Use Stop-Loss Orders
Stop-loss orders are a safety net that automatically closes your position if your losses reach a specified level. You set the level based on the amount of margin you are willing to give up if the trade doesn’t go your way.
Keep an Eye on the Market
Stay up to date on what’s happening in the market. Keep an eye on news and trends affecting crypto prices so that you can make smarter decisions.
Set Reasonable Goals
Don’t expect to get rich overnight. Set realistic goals for yourself and be patient. Remember, slow and steady wins the race.
Stick to a Plan
You should have a trading plan that outlines when to enter a position, when to close it in profit, when to cut your losses, how much profit to aim for, and how much to risk. Your trading decisions should not be based on emotion or how you feel in the moment.
Is Crypto Margin Trading Safe?
Margin trading offers the chance for significant gains, but it’s not without risks.
Market volatility can wipe out fortunes in a heartbeat, and leverage magnifies losses just as much as wins. You need to plan for volatility by using stop losses and setting reasonable profit levels.
Choosing the right platform is also crucial; trustworthiness and security are paramount. Stay away from exchanges that have looming regulatory issues.
Lastly, risk management is vital as the market tends to take back any gains given to those who lack proper risk management policies.
Is Margin Trading Legal?
The short answer? Yes. Margin trading is legal in many jurisdictions, but its legality may vary depending on the specific regulations governing financial markets and trading activities in each country or region.
For example, crypto is legal in the UK, but crypto derivatives like CFDs are not legal for retail investors, so some margin trading instruments may not be available to UK citizens.
Latest Crypto Margin Trading Exchange News
- Bitcoin suddenly plummets 7% after hitting over $64K, triggering over $700M in liquidations.
- Crypto exchange OKX’s token suffers a 50% flash crash amid liquidation cascade.
How to Open an Account on a Crypto Margin Trading Exchange
For this guide, we used Binance; however, most margin trading platforms follow similar steps.
1. Open an account
Head to the Binance website and click on “Sign Up”. Sign up with an email and password, or use a Google or Apple account.
2. Verify your account
Once you’ve signed up, verify your account by submitting KYC documents like a valid government ID and proof of address document, such as a utility bill.
3. Make a deposit
Once your account is verified, deposit funds into it using a convenient payment method; Binance supports several of them. Once you deposit, move funds to your margin trading account from the wallet section of your account.
4. Trade Margin
You can open positions and trade once you move funds into your margin account.
Final Thoughts on Crypto Margin Trading Exchanges
We explored the best crypto margin trading exchanges and chose Binance as our top choice because of its range of available instruments and pairs, low trading fees, global availability, and wide range of payment methods.
With Binance, you can trade spot margin instruments, Futures (perpetuals), and Options at low prices and with leverage as high as 75x.
However, Binance Global is not available in all countries. For example, the US allows another entity, called Binance.US, to operate within its borders. Unfortunately, Binance.US does not offer as many pairs and instruments as its global counterpart.
If you find this (or something similar) to be the case, you can use any of the five other exchanges listed, as they are great alternatives. If you are a new trader, you may want to learn how to trade Bitcoin before signing up for a margin trading exchange.
Methodology - How we Picked the Best crypto Casinos
The sites we covered in this guide were chosen through rigorous research and reviews. We paid attention to security, compliance, reputation, crypto selection, leverage facilities, margin requirements, and competitive edge.
The sites listed are the best we found in the various categories we listed them. For example, we listed Kucoin as the site with the most trading options as it offers 270 perpetual contracts, the largest on our list.
Check out our why trust us and how we test pages for more information on our testing process.