Best Crypto Margin Trading Exchanges to Double Down on Your Trades

With a market capitalization of $2.8 trillion, the cryptocurrency market is the eighth largest market in the world with an average daily trading volume of $130 billion.

Due to the liquidity and high return on investment (ROI), many cryptocurrencies and securities traders prefer to trade at margins, and exchanges capitalize on this demand to include at least 2x or more leverages on their trading platforms. 

With this buzz, it becomes increasingly difficult to choose a good margin trading platform. 

That being the case, we cut down your challenge to present hot picks, using proper research and detailed methodology to make selections. Continue reading our best margin trading exchange roundup and guide to learn more.

What is Margin Trading?

Before we proceed, let’s talk about margin trading and how it works to refresh your memory and help newbies understand the concept. 

Margin trading simply means trading with leverage on an exchange. In that case, you borrow money from an exchange to increase your capital and hold positions greater than what you would have done with only your capital.

Margin trading could be 2x, 10x, 25x, 100x, etc. It varies from exchange to exchange, and some exchanges do not support it at all. Others may specifically assign leverages to markets to control the system and associated risk factors.

Trading with a margin helps you increase your profits. Suppose you enter a trade with 2x leverage and gain a 25% rise from your entry position; your profit will be 2 times 25%, which is 50%.

If you used 100x, your profit would be 100 times 25%, which is 2,500%. In the same vein, you stand to lose your capital at a faster rate if the trade goes against you. 

Now we know what margin trading means, let’s dive into the hot picks for crypto margin trading platforms.

FTX – Best Margin Trading Exchange

Why We Chose It

FTX is one of the best futures and derivatives trading platforms, offering high leverage and an intuitive trading platform.

Overview

FTX is a very popular crypto and derivatives trading platform with over one million users and over $10 billion in trading volume. Sam Bankman-Fried launched the exchange alongside others in May 2019 and chairs its board at the time of this writing.

FTX offers up to 101x leverage for popular cryptocurrencies pairs featuring BTC, USDT, ETH, etc., including derivatives and index futures. Its fee structure is quite competitive, hovering over maker and taker fees, spread, redemption & daily management fees (at 0.10% and 0.03%, respectively). However, there are no deposit fees.

FTX is best-suited for advanced traders with basic knowledge in crypto and futures trading. Beginners would need additional or external support on the exchange to trade its markets.

Customer support on FTX is fair, and Blockpug observed users got feedback when they encountered technical difficulties. There is a community on social media that could be resourceful in helping beginners.

FTX is generally easy to use, and in one view, you can locate the basic tools you may need, including advanced charts with technical tools. The exchange also claims to offer one of the most advanced securities in the industry, adopting strict KYC measures to ensure traders trade crypto assets in line with laid down AML regulations in regions they reside.

Binance—Most Popular Crypto Margin Trading Exchange

Why We Chose It

Binance offers many crypto margin trading markets, plus low fees and advanced charts to enable margin traders to read the market well.

Overview

Binance launched its futures and margin trading offers in 2019 and announced them in newsletters and blogs, including news and press releases.

Initially, the exchange offered up to 25x leverage on its futures and margin accounts but reduced it to 20x in July 2021. It has many margin trading markets, mostly through DeFi tokens like CAKES, 1inch, AVAX, ALGO, ATOM, etc., and a competitive market for futures and derivatives.

Binance operates a tier-fee structure. Its margin trading fee varies for all assets and could range from 0.01-0.10%, while the average futures trading fee is 0.025% for makers and 0.075% for takers.

Binance’s margin trading service best suits advanced traders, considering the high risks and complexity associated with trading margins in general. Although the platform has educational tools that could help beginners get started, they may need additional support from experts to get started on the platform.

Binance interface is user-friendly, spiced with advanced charting mechanisms that allow users to place technical tools and perform standard trading analysis, set stop losses, and leverages.

Its trading platform is easy to use and access. However, one may not consider its customer support good enough despite providing additional support sections to help users when they encounter technical issues occasionally.

The exchange operates a strict KYC verification process, and users must complete at least level one verification before getting started on the platform. Security on Binance is industry-standard, and the exchange protects users’ funds in cold “offline” wallets.

BitMEX – Most Secure Crypto Margin Trading Exchange

Why We Chose It

BitMEX is one of the fast-growing and most advanced crypto trading platforms that offers margin trading at its best.

Overview

BitMEX is a crypto trading platform based in Hong Kong. Arthur Hayes, Ben Delo, and Samuel Reed launched BitMEX in 2014 and launched its futures and margin trading services two years later.

BitMEX offers up to 100x leverage, operating one of the lowest fee structures in the industry, beginning at 0.05% for takers and a rebate fee for makers at 0.01%.

BitMEX has a great interface that may be suitable for beginners and advanced traders. Users have access to advanced tools, including charts. There is a customizable API and web socket for advanced/ institutional traders.

Customer support on BitMEX is fair compared to some competitor exchanges. The exchange also provides additional support facilities for traders to resolve complaints on its platform.

BitMEX also claims to offer one of the most secure exchange services. In 2020, the US government charged the company to court on a $100 million suit in which it accused the exchange of not setting up AML protocols and registering the US section of the exchange.

The US government also arrested one of the exchange’s co-founders, Samuel Reed, causing the company to withdraw operations from the region. However, BitMEX still maintains its excellence in offering its services to a global crypto market.

ByBit – Low Fee Crypto Margin Trading Exchange

Why We Chose It

Bybit is often considered one of the fastest-growing exchanges in the industry. Its margin and derivatives trading is one of the industry’s best.

Overview

Bybit is a cryptocurrency and derivatives trading exchange launched in 2018. Analysts often consider it a fast-growing exchange after it reached 3 million active users in such a short period.

Bybit offers up to 100x leverage, meaning that users can hold positions a hundred times their capital. However, equal profit and losses apply, making it a risky approach to execute all 100x leverage.

Bybit’s margin trading applies to both select crypto pairs, and majorly derivatives and futures. Fees are quite competitive and low, ranging from 0.025% for makers and 0.075% rebate for takers.

There is an advanced chart that enables traders to analyze markets and a set of technical tools easily. Advanced traders would find its futures and derivatives trading exciting because of the many markets it offers.

Customer support on Bybit is fair compared to some competitor exchanges. The exchange is easy to access and provides additional security for user information and funds through an offline “cold” wallet storage method.

Kraken

Why We Chose It

Kraken gives traders within the US the full comfort to trade cryptocurrencies at margins.

Overview

Kraken is a crypto and futures trading platform based in the United States. It is one of the oldest crypto exchanges serving the region and beyond. 

Its fee structure places it as a low-fee crypto exchange in the United States (you may compare this to its US competitor, Coinbase).

Kraken offers leverages up to 5x. This offer is fair for US traders, considering the high censoring crypto exchanges face in the region. US traders can at least grace crypto trading with margins as a regulated exchange with that little leverage.

Beginner and advanced traders can easily access its trading platform and use trading tools, advanced charts, and technical tools.

Kraken has an intuitively designed interface for easy navigation and usage. Customer support is also good with additional support sections like the live chat, a community, and FAQ.

Kraken claims to offer high security to traders, adopting industry-standard protocol to protect user funds and information. Users must complete at least level one verification to enjoy the exchange in its entirety.

Kucoin

Why We Chose It

KuCoin offers one of the best margin trading services to crypto traders in select cryptocurrencies and futures contracts.

Overview

KuCoin launched its margin trading service in 2019, two years after it formally launched its exchange. It offers users up to 100x leverage in select crypto pairs and futures/derivatives contracts.

KuCoin is one of the big names in the centralized exchange industry, operating one of the lowest fee structures for futures and spot trades, beginning at 0.02% for makers and 0.06% for takers.

KuCoin does not have an intuitively designed platform and is better suited for advanced traders with a basic understanding of crypto and futures trading.

Although direct customer contact may not be feasible, users may leverage support tools like FAQs, the help/support center, and Huobi’s online community to solve some of their technical problems on the platform.

Kucoin claims to offer high security of investors’ funds and information by adopting strict cold storage and authentication on its exchange.

Huobi Global

Why We Chose It

Huobi Global is a big name in the margin trading ecosystem with over 10 million users and over $4B in daily trading volume—providing crypto and futures trading to a global audience.

Overview

In 2013, Huobi started in China and moved to other borders after the Chinese government banned cryptocurrencies. Lately, the exchange plans to discontinue its services in Singapore over regulatory concerns.

Huobi offers up to 125x leverage in futures and select cryptocurrencies, including BTC, ETH, and USDT. Its fee structure is tiered and competitive, beginning at 0.02 and 0.04 for opening positions for makers and takers, respectively, and closing at the same price for the same positions.

Huobi’s platform is not design-oriented but offers a basic user experience and easy navigation for newbies. Advanced traders may find the exchange very interesting, considering the many markets it offers together with high leverage.

Customer support on Huobi is not what users may expect. Additionally, there are support tools like an online community, help center featuring FAQs and guides on navigating the platform.

Huobi follows strict KYC and implores users to comply with AML policies, completing at least first-tiered verification. The exchange also claims to store users’ funds in cold wallets, which protects users’ funds.

StormGain

Why We Chose It

StormGain offers the highest leverage among other exchanges in the industry, standing at 300x leverage.

Overview

StormGain is a cryptocurrency exchange from Tel Aviv, Israel. Launching in July 2019, the exchange trades over $600 million worth of assets daily, amassing over 120,000 users in-between.

StormGain is a fast-growing cryptocurrency exchange and has high popularity in the UK. It also offers one of the highest leverages in the industry, marked at a whopping 300x. However, not many people want to take that risk, but it’s still worth it since it’s adjustable.

StormGain doesn’t charge additional fees if a user simultaneously opens a similar trade on its platform. However, it charges commissions on its trades which begin at 0.095% to 0.25%.

StormGain’s interface has one of the best designs among exchanges. Newbies can easily navigate the exchange and appreciate its features. It has an advanced charting system better suited for advanced traders with a basic understanding of margin trading.

StormGain has a good customer support service, is easy to use, and doesn’t operate a draconian KYC verification process. StormGain claims to provide a very secure service, protecting users’ funds in cold wallets.

Poloniex

Why We Chose It

Poloniex is a popular cryptocurrency and futures trading exchange. It offers one of the best margin trading services in the industry in addition to its DEX integration and partnerships.

Overview

Poloniex announces itself as a “legendary crypto exchange.” It formally began operations in 2014 by Tristan D’Agosta, who also chaired the exchange at the time in the US. 

However, Poloniex operated without a license and stopped offering margin trading to US customers after the government interfered in 2018. It also agreed to pay its penalty of $10 million to the US around August 2021.

Notwithstanding, Poloniex has scaled through several situations, including hacks that made it lose about 12% of its users’ Bitcoin holdings. In 2019 Circle Inc purchased the company on its mission to revitalize the exchange.

Until its dilemma, which began in 2014, Poloniex was one of the top exchanges globally. At the moment, it is rising steadily to regain its place as a top crypto exchange.

Poloniex offers up to 100x leverage for futures and select margin crypto pairs. Its fees are quite competitive, beginning at 0.01% for makers and 0.075% for takers.

Poloniex has a clustered interface that beginners may find overwhelming to use. However, advanced traders will find the exchange interesting because of its markets, fees, and trading platform.

Poloniex does not operate a draconian KYC process but expects users to complete at least level one KYC verification. Its security rating dropped after users complained about subtle hacks they experienced on its platform following the 2014 hack.

Phemex

Why We Chose It

Phemex is easily a top pick because of its easy-to-use platform and high-margin trading offering.

Overview

Phemex began offering its crypto trading service in 2019, and by 2020, it launched margin trading for derivatives and BTC futures and select crypto pairs.

It offers high leverages—up to 100x for major cryptocurrencies like BTC, ETH, USDT, etc., in addition to its margin-poised futures contracts. Its fees are quite competitive in the industry, beginning at 0.025% for makers and 0.75% for takers.

Advanced and beginner traders may find the exchange exciting, considering its easy-to-use guides on navigating and trading margins on its platform. However, beginners in the crypto-trading sphere should employ the services of experts and low expectations to trade successfully on the exchange.

Phemex is easy to use and access. Signing up is straightforward, but newbies must complete KYC to get started on the exchange. The platform’s interface is user-friendly, and customer support is fair, providing additional support features and community on Twitter and Telegram.

Phemex adopts stringent and industry-standard security protocols, including cold and hot wallet storage, in addition to account authentication and passwords.

Comparing the Best Margin Trading Crypto Exchanges

Things to Consider Before Trading Cryptocurrencies With Leverage

Risk Management Tools

Since trading with margins comes with a very high risk, users should ensure their preferred exchange provides standard risk management tools and features, including “stop losses and take profits” to prevent going below their liquidation margin, which could be disastrous.

Leverage Amount

While most traders may find exchanges with high leverages exciting, others may not. Their reasons may not be far-fetched from the fact that high margins may be unnecessary considering the worth of an average trader.

High leverage exchanges may be most suitable for advanced and institutional traders. At the same time, beginners and low-volume traders may not technically find it resourceful.

Good Technical Analysis

Employing the services of a financial advisor helps in abating certain risks associated with margin trading, such as exceeding your liquidation margin. Margin traders must consider perfecting their analytical prowess to enable them to grace the market at leverages.

Short-Term Vs. Long-Term Trading

Margin trading is best in the short term because of the high volatility of cryptocurrencies. However, experts may choose otherwise depending on how they read the market.

Before trading with leverages, ensure you understand the underlying risks of long-term and short-term trades and how they relate to your investment capacity.

Trading Capacity

Users must consider their financial and mental trading capacities. It doesn’t end at having enough funds to trade in a margin market; having the mentality to handle losses will help you stand the tests of time.

Fees

Fees are the number-one factors to consider before trading on a margin exchange. Asides from trading fees, there are additional fees on most exchanges, including deposits and withdrawal fees, redemption & daily management fees, etc. 

These fees have a way of affecting your investment, especially if you are at a loss and wish to withdraw your remaining funds. By taking note of these fees, you ensure you are fully aware of what to expect in any situation.

Educational Tools

Educational tools, including demo accounts, can help users understand how margins work, perform technical analysis, and maintain mental balances in case of loss.

As a beginner, your first interest should be the platform’s educational tools, if possible, vlogs explaining how some features and services work and why. You shouldn’t rely entirely on the information you get from these platforms, carry out due diligence and ensure you understand the concept before trading with actual funds.

Customer Support

Customer support is an invaluable section on any exchange. Ensure your preferred exchange has a nice customer support system, possibly direct contact, to enable you to resolve issues when they arise on the platform.

FAQ