Crypto Margin Trading – Tutorial & Best Exchanges

Written By

Jemma Grist

Edited By

Tobias Robinson

Fact Checked By

William Berg

Updated

Nov 24, 2025

With a boom in cryptocurrency, margin trading on this volatile asset provides new and potentially lucrative opportunities. In this tutorial, we explain how to trade crypto on margin plus offer tips for choosing the best exchanges and platforms. We also cover the pros and cons of crypto margin trading and a guide to getting started.

Crypto Margin Trading Platforms

Learn how we test brokers and why you can trust our ratings.

Here is a short summary of why we think each broker belongs in this top list:

Interactive Brokers - IBKR lets you purchase and hold Bitcoin, Bitcoin Cash, Ethereum, and Litecoin at competitive commission rates and without needing a crypto wallet. Additionally, there is a range of other diverse assets to explore, such as crypto indices like the NYSE Bitcoin Index, as well as futures contracts like the BAKKT Bitcoin Futures.
Plus500US - Plus500’s Micro-Bitcoin and Micro-Ethereum futures only allow traders to scratch the surface of crypto trading with bets on the two most popular digital assets. Importantly, you cannot buy and own the cryptos with these derivative contracts - you are speculating on their price.
NinjaTrader - You can get exposure to micro Bitcoin futures through the CME Group’s centralized exchange, which is highly regulated by the US CFTC. Micro contracts allow you to trade a fractional size of one Bitcoin, giving you more risk control and order flexibility.
OANDA US - Cryptocurrency trading is offered via Paxos, a separate entity from Oanda. You can speculate on the world’s biggest cryptos by market cap. Commissions are lower than many peers starting at 0.25%. Through the broker’s partnership with Paxos, clients can spot trade cryptocurrencies on the itBit exchange through the OANDA native platform.
Plexytrade - Plexytrade lets traders capitalize on the inherent volatility of the cryptocurrency market by offering leveraged trading on 5 popular cryptocurrencies, including Bitcoin. However, the threadbare offering of digital tokens seriously trails leading brokers like Eightcap with its 100+ crypto derivatives.
Focus Markets - Focus Markets has clearly been built for crypto traders, offering an impressive 90+ derivatives, including major tokens like Bitcoin, Ethereum and Ripple. With high leverage, a commission-free trading account and fast execution on MT5, it delivers a reliable environment for active crypto traders.

Interactive Brokers

"Interactive Brokers is one of the best brokers for advanced day traders, providing powerful charting platforms, real-time data, and customizable layouts, notably through the new IBKR Desktop application. Its superb pricing and advanced order options also make it highly attractive for day traders, while its diverse range of equities is still among the best in the industry."
Christian Harris, Reviewer

Interactive Brokers Quick Facts

Coins	BTC, LTC, ETH, XRP
Crypto Mining	No
Auto Market Maker	No
Crypto Spread	0.12%-0.18%
Crypto Lending	No
Crypto Staking	No
Platforms	Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, TradingView, eSignal, TradingCentral, ProRealTime, Quantower
Minimum Deposit	$0
Regulator	FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA, AFM
Account Currencies	USD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF

Interactive Brokers Leverage Trading

At Interactive Brokers the available leverage is 1:50. Margin rate is 1.55 - 2.59%

Pros

There's a vast library of free or paid third-party research subscriptions catering to all types of traders, plus you can enjoy commission reimbursements from IBKR if you subscribe to Toggle AI.
The new IBKR Desktop platform takes the best of TWS while adding bespoke tools like Option Lattice and Screeners with MultiSort to create a genuinely impressive trading experience for day traders at every level.
The TWS platform has clearly been built for intermediate and advanced traders and comes with over 100 order types and a reliable real-time market data feed that rarely goes offline.

Cons

You can only have one active session per account, so you can’t have your desktop program and mobile app running simultaneously, making for a sometimes frustrating trading experience.
Support can be slow and frustrating based on tests, so you might find it challenging to reach customer service representatives promptly or encounter delays in resolving issues.
TWS’s learning curve is steep, and beginners may find it challenging to navigate the platform and understand all the features. Plus500's web platform is much better suited to new traders.

Visit Interactive Brokers

Interactive Brokers Review

Plus500US

"Plus500US stands out as an excellent choice for beginners, offering a very user-friendly platform, low day trading margins, and access to the Futures Academy to enhance trading skills. Its powerful tools and reliable service helped it scoop second place in DayTrading.com's annual 'Best US Broker' award."
Michael MacKenzie, Reviewer

Plus500US Quick Facts

Coins	MicroBitcoin, MicroEthereum
Crypto Mining	No
Auto Market Maker	No
Crypto Lending	No
Crypto Staking	No
Platforms	WebTrader, App
Minimum Deposit	$100
Regulator	CFTC, NFA
Account Currencies	USD

Plus500US Leverage Trading

At Plus500US the available leverage is Variable

Pros

The trading app provides a terrific user experience with a modern design, a clean layout and mobile-optimized charts
Plus500 is a publicly traded company with a good reputation, over 24 million traders, and a sponsor of the Chicago Bulls.
The straightforward account structure, pricing model and web platform offer an easier route into futures trading than rivals like NinjaTrader

Cons

Plus500US does not offer social trading capabilities, a feature available at alternatives like eToro US which could strengthen its offering for aspiring traders
While Plus500US continues to broaden its investment offering, it's currently restricted to around 50+ futures with no stocks
Despite competitive pricing, Plus500US lacks a discount program for high-volume day traders, a scheme found at brokers like Interactive Brokers

Visit Plus500US

Plus500US Review

NinjaTrader

"NinjaTrader continues to meet the demands of active futures traders looking for low fees and premium analysis tools. The platform hosts top-rate charting features including hundreds of indicators and 10+ chart types."
Tobias Robinson, Reviewer

NinjaTrader Quick Facts

Coins	BTC
Crypto Mining	No
Auto Market Maker	No
Crypto Spread	Floating
Crypto Lending	No
Crypto Staking	No
Platforms	NinjaTrader Desktop, Web & Mobile, eSignal
Minimum Deposit	$0
Regulator	NFA, CFTC
Account Currencies	USD

NinjaTrader Leverage Trading

At NinjaTrader the available leverage is 1:50

Pros

Low fees are offered, with $50 day trading margins & commissions from $.09 per micro contract
Traders can get free platform access and trade simulation capabilities in the unlimited demo
NinjaTrader continues to deliver comprehensive charting software for active day traders with bespoke technical indicators and widgets

Cons

Non forex and futures trading requires signing up with partner brokers
There is a withdrawal fee on some funding methods
The premium platform tools come with an extra charge

Visit NinjaTrader

NinjaTrader Review

OANDA US

"OANDA remains an excellent broker for US day traders seeking a user-friendly platform with premium analysis tools and a straightforward joining process. OANDA is also heavily regulated with a very high trust score."
Jemma Grist, Reviewer

OANDA US Quick Facts

Coins	BTC, ETH, LTC, BCH, PAXG, LINK, UNI, AAVE
Crypto Mining	No
Auto Market Maker	No
Crypto Spread	$100
Crypto Lending	No
Crypto Staking	No
Platforms	OANDA Trade, MT4, TradingView, AutoChartist
Minimum Deposit	$0
Regulator	NFA, CFTC
Account Currencies	USD, EUR, GBP, CAD, AUD, JPY, CHF, HKD, SGD

OANDA US Leverage Trading

At OANDA US the available leverage is 1:50. Margin rate is 2%

Pros

Beginners can get started easily with $0 minimum initial deposit
Day traders can enjoy fast and reliable order execution
OANDA is a reliable, trustworthy and secure brand with authorization from tier-one regulators including the CFTC

Cons

The range of day trading markets is limited to forex and cryptos only
There's only a small range of payment methods available, with no e-wallets supported
It's a shame that customer support is not available on weekends

Visit OANDA US

OANDA US Review

Plexytrade

"Plexytrade is a newcomer in the brokerage scene with attention-grabbing features like 1:2000 leverage, zero spreads on select instruments and fast execution speeds of less than 46 milliseconds. However, the absence of regulation is a significant concern, while the non-existent research and educational tools place it far behind industry frontrunners."
Christian Harris, Reviewer

Plexytrade Quick Facts

Coins	BTC, ETH, LTC, SOL, XRP
Crypto Mining	No
Auto Market Maker	No
Crypto Spread	1.1
Crypto Lending	No
Crypto Staking	No
Platforms	MT4, MT5
Minimum Deposit	$50
Account Currencies	USD, EUR

Plexytrade Leverage Trading

At Plexytrade the available leverage is 1:2000

Pros

Despite lacking regulation, Plexytrade provides negative balance protection and reinforces safety protocols by holding client funds in segregated accounts.
There are various VPS packages starting from $50 per month, but they become complimentary once specific deposit thresholds are reached.
Plexytrade accommodates a range of trading methods and short-term strategies, including scalping, hedging, and automated trading.

Cons

There are no social or copy trading features for inexperienced traders to replicate the trades of more experienced investors, trailing category leaders like eToro.
There are no research and educational materials, falling short of alternatives like IG, while access to the economic calendar is restricted to clients with balances of $500.
Plexytrade lacks regulation in major jurisdictions, significantly increasing the risks of opening an account and depositing funds.

Visit Plexytrade

Plexytrade Review

Focus Markets

"Focus Markets is perfect for experienced traders familiar with MetaTrader 5, offering flexible crypto transactions (USDT and BTC) and access to over 90 cryptocurrencies for seamless speculation, deposits, and withdrawals."
Christian Harris, Reviewer

Focus Markets Quick Facts

Coins	BTC, ETH, XRP, LTC
Crypto Mining	No
Auto Market Maker	No
Crypto Spread	Variable
Crypto Lending	No
Crypto Staking	No
Platforms	MT5
Minimum Deposit	$100
Regulator	ASIC, SVGFSA
Account Currencies	USD, EUR, GBP, CAD, AUD, NZD, JPY, SGD

Focus Markets Leverage Trading

At Focus Markets the available leverage is 1:500

Pros

While its meagre four commodities won’t meet the needs of some serious traders interested in softs and metals, Focus Markets offers a huge suite of 90+ cryptos, providing short-term opportunities on high-reward, high-risk assets.
Focus Markets is regulated by ASIC – one of the most respected regulatory bodies in the financial industry with robust safeguards like negative balance protection, ensuring you can’t lose more than your balance in volatile markets.
Focus Markets’ MT5 platform delivered fast, seamless trade execution during testing with advanced charting, multiple timeframes, and useful tools like Depth of Market (DOM). Its clean interface made navigation easy, while clear risk/reward ratios ensures precise trading.

Cons

Focus Markets’ 24/5 support lacks direct phone help and unresponsive live chat, while email replies took a full business day during our latest tests. This slow support is a major drawback for active traders who need quick resolutions.
A significant drawback of Focus Markets is the lack of platform variety. It only support MT5, excluding popular platforms like MT4, cTrader, and TradingView, plus it hasn't developed its own software that could better meet the needs of beginners.
Focus Markets still has a long way to go to compete with the best brokers - with virtually zero research tools and education, plus limited value-add features like VPS hosting, copy trading and swap-free accounts.

Visit Focus Markets

Focus Markets Review

What Is Crypto Margin Trading?

Crypto margin trading is the practice of using leverage to multiply the results of a trade. The amount a trader has deposited in their account is known as the margin.

A broker offering margin trading will provide traders with a leverage quote, this is usually displayed as either a ratio (e.g 1:2) or a multiple (e.g 2x), meaning that for every 1 base crypto coin, the results of a trade are multiplied by 2.

To enable traders to open larger positions, the broker allows them to borrow capital. This will need to be paid back in full, but the profits can be retained by the trader.

For example, if your leverage is 1:2 and you deposit $1,000, you can open positions with a total value of $2000.

If you use this to purchase Ethereum and the price moves 5%, you’ll have $2,100 worth of ETH.

If you close your trade there and return the $1,000 borrowed, you’re left with $1,100, having made a $100 profit.

If you’d placed the same trade in your spot account, you’d have made a $50 profit.

It’s important to note that profits are amplified, but equally, so are losses. Plus, your borrowed amount will still need to be returned. Therefore, margin trading on cryptos should only be utilised by knowledgeable investors.

Some of the top crypto exchanges now offer crypto margin trading, including Binance, Kraken and Crypto.com. However, it is a fairly new practice, so some of the top brokers for professionals, such as TradeStation, are yet to facilitate crypto margin trading.

What Is A Margin Call?

If the price of the asset held on margin drops in value significantly, a broker will issue a margin call. This means that traders will have to prove that they can return the amount borrowed, by depositing more funds.

The account will usually be suspended from opening new trades until this has been completed, or the asset rises in value again.

A margin call is designed to protect traders from losing more than they can afford.

For example, if you’re trading $1,000 on margin with 5x leverage and the value of ETH drops 17.5%, the value of the asset you hold is now worth $4,125.

Your operating loss is -$875. Since you’ve only deposited $1,000, you’re in danger of losing more than your initial deposit amount if the value slips further. At this point, a margin call may be issued.

Pros Of Crypto Margin Trading

Lower capital requirements – Some Bitcoin trading strategies that require large amounts of capital. For example, scalping is the practice of executing short and sharp trades to collect small profits regularly. Crypto margin trading allows traders to maximise the results of each trade and means profits can accumulate quickly.
24/7 margin trading – Unlike the forex and commodities markets, crypto can be traded 24/7. If you’re a weekend trader, this means you can take advantage of margin trading outside of usual operating hours.

Cons Of Crypto Margin Trading

Losses are amplified – While crypto trading on margin can mean increased profits, it also means that any losses are multiplied. Losses can exceed the deposit amount, so the risk involved is significantly larger when compared with trading on a cash account. Traders should consider whether they can afford the risk.
Interest on borrowed crypto – While traders keep all the profits from their trades, some exchanges, such as Binance, charge interest on the borrowed amount. The rate varies based on the cryptocurrency and the length of time capital is borrowed.
Negative balance protection – In the world of forex, margin trading has been around a while. Therefore, most brokers are subject to regulation that aims to protect retail investors. In the UK, forex brokers regulated by the Financial Conduct Authority (FCA) must provide negative balance protection, for example. This means that traders are prevented from losing more than their deposit amount when trading on margin. This level of protection is not available in the crypto industry, leaving altcoin margin traders exposed to significant risk.
Brokers and exchanges – Having mentioned the lack of regulation above, there is a global tightening of restrictions that is already impacting the availability of crypto margin trading. In 2020, Coinbase Pro, one of the top Bitcoin exchanges, suspended margin trading for US customers, citing new guidance from the Commodity Futures Trading Commission (CFTC). Binance and Robinhood also restrict margin trading on cryptos for US customers and eToro has suspended it at times due to volatility. These restrictions could increase and margin trading on crypto assets phased out on Bitcoin exchanges in the US and potentially other jurisdictions too.
Limited trading pairs – Not all crypto margin trading platforms offer leverage on all pairs, sometimes it’s only available on one or two. This limits traders’ scope for utilising an arbitrage strategy. For example, crypto.com only offers margin trading on BTC/USDT.

How To Start Crypto Margin Trading

To start crypto margin trading, you’ll first need to select a broker or an exchange that provides the service. Some of the best crypto exchanges that offer margin trading include Binance and Kraken. Then sign up to an account and complete any KYC checks. Most exchanges will require proof of identity if they also offer fiat exchange, however, there are some, such as Prime XTB, which have no KYC checks. Next, visit your settings. There will usually be an option to switch your account from spot to margin trading. In some cases, you’ll then need to transfer tokens to your margin account.

Binance crypto margin — Binance how to switch to crypto margin trading

Choosing A Crypto Margin Trading Broker

Leverage offered – Take a look a what leverage a broker is offering to understand how much you can trade. If you’re happy with the risks involved, higher leverages can mean higher profits, but they’re not always necessary. Both Binance and Kraken offer leverage of 1:5 when crypto margin trading. Crypto.com offers 1:3 and IC Markets offers 1:2.
Fees – The fee structure for margin trading varies per broker. Some operate by allowing traders to borrow tokens as leverage, including Binance. In this instance, interest is usually charged on the borrowed amount. Kraken, on the other hand, charges an opening and closing fee on the spot value of the trade. A rollover fee is applied based on how long the position is held. Look for a broker whose fee structure you’re comfortable with. Also, taxes will usually need to be paid on any gains, in line with rules in your jurisdiction.
Demo accounts – Since Bitcoin margin trading involves an increased level of risk, traders must have the opportunity to practice their strategies using signals beforehand. A trading simulator and online courses allow clients to trial strategies before using real money. Profit calculators are also useful to help predict the outcome of a trade and can replace the manual spreadsheet you’ve previously worked with. Plus500 offers a great CFD crypto-simulator with 2x leverage, however this is only available on their professional trading account.

Final Word On Crypto Margin Trading

Now we’ve explained the ins and outs of crypto margin trading, you’ve hopefully got the understanding to get started. Bitcoin and other cryptos are highly volatile markets and while trading on margin can mean huge upside, retail investors should also be aware of the risks involved. It’s possible this asset could suffer from increased regulation in the future, but for now, it represents an exciting opportunity for traders.

FAQ

How Does Bitcoin Margin Trading Work?

Crypto margin trading means investors can multiply the results of their Bitcoin trade by utilising leverage. Leverage is the number of times you can multiply the results, it is either written as a ratio (e.g 1:3) or a multiple (e.g 3x). Leverage allows traders to borrow funds from their broker. In this way, a trader can execute much larger positions than their deposit amount and can amplify profits.

Are There Many Crypto Exchanges That Allow Margin Trading?

The top crypto margin trading exchanges that allow margin trading include Kraken and Binance, but there are more to choose from. However, availability does vary by location. Some popular exchanges, including eToro and Coinbase, have suspended crypto margin trading at times due to volatility in the market.

Is Crypto Margin Trading Legal In The USA?

Bitcoin margin trading in the United States is restricted by the Commodity Futures Trading Commission (CFTC). Regulated exchanges that previously offered the service, such as Coinbase and Binance, have removed leveraged trading in 2021 for clients from the USA.

Will A Crypto Margin Call Go Away?

A margin call will cease once your account has been deposited with sufficient funds or the asset has increased in value. A margin call is designed to protect a trader from losses that exceed their deposit amount.

Can I Trade Crypto On Margin?

Yes, some of the top Bitcoin exchanges now offer trading on margin, with the opportunity to multiply the results of any trade. Whilst the practice is restricted in some jurisdictions, like the US, it is available in the UK, Australia, India, and Canada, to name just a few.