Ripple Day Trading 2024 – Tutorial and Brokers

Trading ripple

There has been a surge in the number of people day trading Ripple in recent years. But what precisely is it and how does it work, and even more importantly, how do you go about trading Ripple in 2024? This page will answer all those questions, whilst also covering its benefits and drawbacks, including top Ripple brokers, trading platforms, price, volume, analysis, and regional differences to be aware of.

Ripple Brokers

#1 - FOREX.com

Why We Chose FOREX.com

You can trade a small range of 8+ cryptos against USD, EUR, GBP and AUD with tight spreads and no virtual wallet required. Algo traders can also utilize Expert Advisors (EAs) to automate their crypto trades.

"FOREX.com remains a best-in-class brokerage for active forex traders of all experience levels, with over 80 currency pairs, tight spreads from 0.0 pips and low commissions. The powerful charting platforms collectively offer over 100 technical indicators, as well as extensive research tools."

- DayTrading Review Team
  • Coins: BTC, BCH, ETH, LTC, XRP
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: BTC 1.4%, ETH 2%
  • Crypto Lending: No
  • Crypto Staking: No
  • Platforms: MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral
  • Minimum Deposit: $100
  • Regulator: NFA, CFTC

About FOREX.com

Founded in 1999, FOREX.com is now part of StoneX, a financial services organization serving over one million customers worldwide. Regulated in the US, UK, EU, Australia and beyond, the broker offers thousands of markets, not just forex, and provides excellent pricing on cutting-edge platforms.

Pros

  • FOREX.com offers industry-leading forex pricing starting from 0.0 pips, alongside competitive cashback rebates of up to 15% for serious day traders.
  • Alongside a choice of leading platforms, FOREX.com offers a superb suite of supplementary tools including Trading Central research, SMART Signals pattern scanner, trading signals, and strategy builders.
  • With over 20 years of experience, excellent regulatory oversight, and multiple accolades including runner-up in our 'Best Forex Broker' awards, FOREX.com boasts a global reputation as a trusted brokerage.

Cons

  • Funding options are limited compared to leading alternatives like IC Markets and don’t include many popular e-wallets, notably UnionPay and POLi.
  • Demo accounts are frustratingly time-limited to 90 days, which doesn’t give you enough time to test day trading strategies effectively.
  • Despite increasing its range of instruments, FOREX.com's product portfolio is still limited to forex and CFDs, so there are no options to invest in real stocks, real ETFs or real cryptocurrencies.

#2 - Interactive Brokers

Why We Chose 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.

"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."

- DayTrading Review Team
  • 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, eSignal, TradingCentral
  • Minimum Deposit: $0
  • Regulator: FCA, SEC, FINRA, CBI, CIRO, SFC, MAS, MNB

About Interactive Brokers

Interactive Brokers (IBKR) is a premier brokerage for experienced traders, providing access to 150 markets in 33 countries, along with a suite of comprehensive investment services. With over 40 years of experience, this Nasdaq-listed firm adheres to stringent regulations by the SEC, FCA, CIRO, and SFC, amongst others, and is one of the most trusted brokers for trading around the globe.

Pros

  • IBKR continues to deliver unmatched access to global stocks with tens of thousands of equities available from 100+ market centres in 24 countries.
  • IBKR is one of the most respected and trusted brokerages and is regulated by top-tier authorities, so you can have confidence in the integrity and security of your trading account.
  • While primarily geared towards experienced traders, IBKR has made moves to broaden its appeal in recent years, reducing its minimum deposit from $10,000 to $0.

Cons

  • 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.
  • 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.
  • IBKR provides a wide range of research tools, but their distribution across trading platforms and the web-based 'Account Management' page lacks consistency, leading to a confusing user experience.

#3 - DNA Markets

Why We Chose DNA Markets

You can trade a handful of cryptos 24/7. However, the narrow selection of 4 tokens trails alternatives like Vantage with its 40+ tokens, while the spread from $28 on Bitcoin is significantly higher than the cheapest crypto brokers.

"DNA Markets is an excellent choice for short-term traders familiar with the MetaTrader platforms. The smooth sign-up process also makes it easy to get started while the $100 minimum deposit is accessible. That said, DNA Markets trails the top brokers in education, research and mobile trading. "

- DayTrading Review Team
  • Coins: BTC, ETH, LTC, XRP
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: $28 (Bitcoin)
  • Crypto Lending: No
  • Crypto Staking: No
  • Platforms: MT4, MT5
  • Minimum Deposit: $100
  • Regulator: ASIC

About DNA Markets

DNA Markets is a forex and CFD broker established in 2020. The broker operates two entities in Australia and the offshore jurisdiction, St Vincent and the Grenadines. Traders can access 250+ markets, with a Standard account for beginners and a Raw account for experienced traders. The reliable MetaTrader 4 and MetaTrader 5 platforms are available, alongside Signal Start.

Pros

  • Short-term trading strategies are permitted including scalping and automated trading using Expert Advisors (EAs)
  • Low trading fees with spreads from 0.0 pips in the Raw account and zero non-trading fees
  • 24/5 customer support with response times of <2 minutes during testing

Cons

  • Despite access to MT4 and MT5, there is no proprietary trading app
  • There are limited educational and research tools, reducing its appeal to beginners
  • Although it continues to strengthen its client base and reputation DNA Markets lacks the track record of top brokers like Vantage

#4 - LQDFX

Why We Chose LQDFX

You can trade 16 well-known cryptos including Bitcoin, the majority paired with USD or EUR. Spreads are low, starting from 1.02 pips. You can also deposit instantly via crypto with minimum deposits from $20 and no fees.

"LQDFX is best for active day traders looking for ultra-tight spreads, low fees and high leverage up to 1:1000. Forex traders will particularly appreciate the strong range of 70+ currency pairs with minimum deposits starting from $20."

- DayTrading Review Team
  • Coins: BTC, LTC, ETH, DSH, XRP, BCH, NEO, ZEC, XMR, ADA, BNB, SOL, LUNA
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: 1.02 - 28.0 pips
  • Crypto Lending: No
  • Crypto Staking: No
  • Platforms: MT4
  • Minimum Deposit: $20

About LQDFX

LQDFX is a straight-through processing (STP) broker based in the Marshall Islands. The offshore trading firm offers competitive spreads from 0.0 pips, free deposits, 24/5 support and access to the hugely popular MetaTrader 4 platform. LQDFX also runs a competitive bonus program for short-term traders.

Pros

  • There are multiple STP account types with fast execution speeds, plus an Islamic swap-free option and PAMM accounts
  • Tight forex spreads from 0.0 are available in the raw spread account and the $3.50 per lot commissions are in line with competitors
  • Leverage is available up to 1:1000 for experienced day traders

Cons

  • There are no additional charting platforms available, such as MT5 or a proprietary solution
  • Market research tools and educational resources are very limited compared to top brands like IG
  • The lack of regulatory oversight is a concern, although the broker does claim to use segregated accounts and balance protection

#5 - Pocket Option

Why We Chose Pocket Option

Pocket Option offers a modest crypto offering with 10+ digital currencies including Bitcoin and 65+ tokens if you deposit $1000. The integrated analytics feature in the platform is helpful for finding opportunities, while the daily signals service makes it straightforward to act on short-term crypto opportunities.

"Pocket Option excels for its easy-to-use web platform which provides a best-in-class user experience for short-term binary traders. The $50 minimum deposit is also accessible for beginners while opening an account is really easy. Looking at the negatives, Pocket Option still trails alternatives in its market offering and regulatory credentials."

- DayTrading Review Team
  • Coins: BTC, ETH, BCH, LINK, AAVE, ALGO, TLM, ALPP, ANT, AVAX, AXS, BNB, ADA, CHZ, COMP, ATOM, DASH, MANA, DGB, DOGE, ENJ, EOS, FIL, GLMR, ILV, ICP, KAVA, LTC, MKR, MASK, MIOTA, XMR, ALICE, NEAR, NEO, NULS, OMG, DOT, MATIC, QTUM and many more
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: N/A
  • Crypto Lending: No
  • Crypto Staking: No
  • Platforms: Web, MT4, MT5
  • Minimum Deposit: $50
  • Regulator: MISA

About Pocket Option

Established in 2017, Pocket Option is a binary options broker offering high/low contracts on forex, stocks, indices, commodities and cryptocurrencies. With over 100,000 active users and a global reach, the platform continues to prove popular with budding traders.

Pros

  • The web platform shines for its straightforward design and usability that will appeal to beginners looking to speculate on popular financial markets in a few clicks
  • Extremely fast and smooth sign-up process that takes less than 2 minutes
  • The range of payment methods beats the majority of rivals, providing fast, secure and convenient deposits for traders in most countries

Cons

  • The maximum binary contract length of 4 hours is restrictive for longer-term trading strategies. Alternatives like Videforex offer binaries up to 1 month
  • Pocket Option offers a slimmed down iteration of the MT4 and MT5 that doesn't provide the full charting package for advanced traders
  • Despite offering competitive payouts up to 92%, binary brokers like IQCent offer higher returns up to 98% based on tests

Ripple Chart

What Is Ripple?

Ripple is both the name of the digital currency (XRP), plus an open payment network where the currency can be transferred. It looks to facilitate quick and easy transactions across the world in a matter of seconds.

The end goal is to enable everyone to smash through the ‘walled gardens’ of financial networks, such as Western Union, who charge access and exchange fees, plus inhibit customers with significant processing delays. With Ripple, you can transfer almost every currency, and if it succeeds, it will relegate systems like SWIFT and PayPal to the pages of history.

Its use is perhaps best understood with the following example: Transferring currency directly and inexpensively from Croatia to Malawi (HRK/MWK), isn’t usually a walk in the park. You’d probably transfer HRK to USD and then USD to MWK.

At each stage you’ll wrack up transaction and exchange fees, not to mention it will be time-consuming. However, using Ripple allows you to transfer HRK to XRP (Ripple’s currency), relatively cheaply, send XRP to the recipient (who has a Ripple wallet or Malawian bank), and then XRP to MWK. Ripple effectively acts as a catalyst, speeding up the transaction process, whilst also cutting costs.

Low Cost

One of the selling points of Ripple is the low cost. Some even describe it as ‘free(ish)’. That’s because whereas banks and PayPal charge hefty transaction and conversion fees, Ripple takes but a tiny percentage. That percentage is the equivalent to 1/1000th of a cent. The amount taken is then actually destroyed. This is because the deduction is simply supposed to act as a safeguard from individuals who may want to pour millions of transactions through at once.

Trading Price

Before we get on to the benefits of trading XRP, how many Ripple trading coins are there, and at what price?

The company intends to create 100 billion Ripples. Half will be available to consumers, and the other half will be retained by Ripple, for now. With each priced at around 25 cents (November 2017), that puts its total value at around $25 billion, giving it the third highest market capitalisation in the cryptocurrency world, after Bitcoin and Ethereum.

Why Trade Ripple?

For those looking for serious potential profits, the world of cryptocurrencies and Ripple is an appealing choice. Below are several reasons trading Ripple is a smart move.

Volatility

Ripple, much like the other big players in the cryptocurrency world are hugely volatile. With that unpredictability comes the potential for significant profit, especially for short-term traders. One news announcement can send prices soaring, or plummeting.

XRP, Ripple’s native currency soared from under $0.01 to over $0.30 a coin in 2017. This spike can be attributed to its adoption by numerous banks and the global growing interest. These price fluctuations provide precisely the environment needed to bolster profits.

Throw in a growing trade volume that exceeds hundreds of millions of dollars a day and you can see why Ripple is a rich hunting ground for the aspiring intraday trader.

Promising Direction

Whilst other cryptocurrencies shun banks, Ripple is embracing them. This is good for traders. It means Ripple’s value will continue to increase, along with trading opportunities. Compare it to Bitcoin, for example, and Ripple offers the following:

Ripple, then, is taking a markedly different approach than other cryptocurrencies. This bold move to work with major financial institutions so far seems to be paying off. This will all increase Ripple prices and trading volume, providing ample opportunity for the switched on day trader.

On top of that, every time any currency is traded into XRP, liquidity and value of XRP increases as a result of the increased demand. This may lead to XRP ending up as a global reserve currency, but in the meantime, you can jump on the money train.

Leverage

Plenty of brokers offer generous leverage options when it comes to day trading with Ripple, AVA, for example. They will effectively give you a loan, enabling you to increase your position if you see a price move on the horizon. However, it is worth noting, whilst leverage can magnify profits, it can also increase losses.

Automated Opportunities

If you’ve already formulated a successful strategy then employing a Ripple trading bot could boost your profits. Many brokerages facilitate straightforward bot setups. Once you’ve programmed your trading requirements, the automated system has the ability to execute a vast number of trades automatically.

Video – Ripple Explained

Getting Started

The first thing you need to do is get your hands on some XRP. To do that you need to follow three simple steps.

  1. Ripple (XRP) wallet – XRP wallets are very much like Bitcoin wallets. However, when you’re setting up your wallet make sure you note down the secret key and store in a secret location. This key can give any user access to your wallet, so keep it secure. Rules stipulate your Ripple wallet must be funded with a 20 XRP reserve. There are plenty of online wallet options, both Ledger Nano S and Rippex do a good job.
  2. Ripple trading exchange – You can buy XRP with fiat currency, such as GBP, EUR, USD, etc. This can be done with ease via wire transfer through major cryptocurrency exchanges, such as Bitstamp, Kraken, Bitfinex, and others. Alternatively, you can trade Bitcoins for Ripple on specific exchanges. Trading with Ripple on Coinbase, for example, is a popular choice. As the popularity of Ripple increases so does the number of exchanges on the market.
  3. Withdrawal – Ensure you withdraw your XRP to your wallet. Leaving any on the exchange you bought them on could open you up to security vulnerabilities. This is because you don’t control the private key for your coins so they aren’t actually yours. So, keep them in the Ripple wallet only you hold the keys too.

Trading Tools

So you’ve got a platform and currency at your fingertips, but you also need a number of other components to enhance your chances of success.

Strategy

You need an intelligent strategy to give you an edge over the market. That means taking into account charts and signals, whilst conducting thorough analysis. You also need to backtest your strategy against historical data so you can utilise every minute of open trading hours.

Example

One example of a Ripple strategy is as follows. Recently Ripple has been trading within a tight range of $0.017 on the lower-end and up to $0.21 on the upper. Those attempting to breakout and breakdown of this range are yet to prove successful.

On top of that, previous attempts to rally were met with substantial resistance at the downtrend line. So, you need cryptocurrency to break out of $0.21 to find significant buying support. On the downside, a breakdown and close below $0.17 would sink Ripple to $0.165 levels.

Therefore, it could be a sensible move to buy Ripple on a breakout and close above $0.21. Then keep your stop loss at $0.16. On the upside, you’d then expect a rally to $0.3 levels.

Your strategy will depend on your individual trading style, but for detailed guidance, see our strategies page. You can also find strategy advice in the ‘Contrarian Ripple Trading’ book and pdf, by Aidan J. McNamara and Martha A. Brozyna.

Ripple Trading News

Part of your strategy will need to take into account trading news. In such a volatile market, government moves and news announcements around cryptocurrencies can seriously impact the price of Ripple. If a major bank announces they’re going to adopt Ripple, prices may well spike for a period.

That means you need to be constantly tuned into a variety of reliable sources. Below are several sources that offer fast and accurate information on all things Ripple and cryptocurrency.

Before you trade today, head over to some of these sites and ensure you’re not missing anything. On occasion, some of these sources can also offer trading ideas and account advice. So, a savvy trader will keep his ear to the grindstone.

Regional Differences

Before you dive in it’s worth being aware of any regional differences. Trading Ripple in India may not be the same as it would in Canada. This is because firstly, processing times will vary depending on where you’re based, and secondly, different financial systems have different trading rules and tax regulations.

You need to look at how long your bank and exchange will take to facilitate payments. Different countries and exchanges will also offer different pairs. In India, for example, you can buy XRP on BTCXIndia using INR. So, do your homework first.

You then need to check the rules around your financial system’s tax. Do some digging to find out where you will pay tax, domestically and/or abroad? What tax will you pay, and how much will you pay?

For more detailed guidance, see our taxes page.

Risks

Before you pour your life savings into Ripple, you should be aware of its potential pitfalls. As it currently stands, there are two main drawbacks:

Final Verdict

In the next couple of years Ripple’s popularity looks to increase, as they offer a global settlement network that reduces transaction fees and processing times. Those who start Ripple fx trading have the opportunity to make vast profits. However, whilst it may only be at the beginning of its ascent, there remain risks. Therefore, utilise smart strategies, news sources and other trading tools to stay firmly in the black.

Further Reading