A piece of expert advice is necessary when choosing the best crypto exchange among many. Coinbase, Kraken, and eToro are at the top for us.
The United Kingdom has become a hub for cryptocurrency trading, with several reputable exchanges offering secure and user-friendly platforms. Choosing the right exchange is crucial for making secured investments. This guide explores five top cryptocurrency exchanges operating in the UK, highlighting their strengths and weaknesses to help you make an informed decision. Coinbase, ideal for beginners, and Kraken, a favorite for experienced traders, top our list.
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Quick Look: 5 Best UK Crypto Exchanges in 2024
- Best for Beginners: Coinbase
- Best for Advanced Traders: Kraken
- Best for Copy Trading: eToro
- Best for Diversification: PrimeXBT
- Best for Spot Trading: MEXC
Top 5 Best Cryptocurrency Exchanges in the UK
Here is the list of top 5 crypto exchanges in the UK:
1. Best for Beginners: Coinbase
Sum of median estimated savings and rewards earned, per user in 2021 across multiple Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the subscription cost), rewards from Coinbase Card, and staking rewards. ³Crypto rewards is an optional Coinbase offer. Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts.
Launched in 2012, Coinbase is a popular cryptocurrency exchange serving over 100 million users. It's particularly well-suited for beginners due to its user-friendly interface and educational resources. However, it's important to be aware of Coinbase's fees, which can be higher than other options. For instance, buying crypto with a debit card on Coinbase incurs a 3.99% fee, significantly steeper than the 0.5% charged by some competitors. A separate 1% commission applies on crypto trading. Despite the higher fees, Coinbase prioritizes security. Account logins require two-factor authentication, and additional checks are implemented for unrecognized devices. They also store 98% of client crypto assets in secure offline storage (cold storage). Finally, Coinbase offers a convenient mobile app (iOS and Android) that functions as an exchange and a crypto wallet.
Why We Love It:
Coinbase offers a vast selection of over 250 cryptocurrencies for trading. Despite the fees, Coinbase caters well to beginners with its user-friendly interface and secure platform. They even offer a built-in wallet to store your cryptocurrency.
2. Best for Advanced Traders: Kraken
Another top UK exchange for crypto is Kraken, which has over nine million users globally. Kraken shines with its low trading fees, starting at just 0.16% per transaction. These fees decrease as your trading volume increases. Kraken offers instant buying options with a slightly higher fee of 1.5% for most crypto and 0.9% for stablecoins. Security-conscious investors will appreciate Kraken's spotless record: they've never had a major security breach. Their CSO50 award for outstanding security protocols also speaks volumes about their commitment to protecting your assets. Kraken offers a wide range of options for both beginners and experienced traders. Newbies can explore over 220 cryptocurrencies with a minimum deposit of just $1. Seasoned investors can leverage margin trading and futures options to potentially maximize their returns. Plus, Kraken Pro unlocks advanced charting tools for in-depth technical analysis. They store 95% of user funds in secure cold storage, offering peace of mind for your crypto holdings.
Why We Love It:
Kraken offers trading in over 220 cryptocurrencies. There's a 3.75% fee for buying Bitcoin with a debit card, but trading fees start much lower at 0.16% per transaction (or 1.5% for instant purchases). Like Coinbase, Kraken provides a secure wallet and stores 95% of user assets in cold storage while offering advanced trading options.
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3. Best for Copy Trading: eToro
Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
Looking for a user-friendly platform with social features in the UK? eToro might be a good fit. Deposits made with a UK debit card are processed instantly, while bank transfers can take a day or two. They charge a deposit fee of 0.5% on GBP payments, which is generally lower than other exchanges. When buying or selling any of their 70+ cryptocurrencies, a flat fee of 1% applies. Popular available trading options include Bitcoin, Dogecoin, Ethereum, and Cardano. Convenience is a plus with eToro's mobile app (iOS and Android), which allows you to trade and store your crypto on the go. For a more hands-off approach, explore their prebuilt Crypto Smart Portfolios. These thematic portfolios, like the Coinshares France SAS option, offer exposure to various cryptocurrencies with varying weights managed by eToro. Another social feature is copy trading, where you can mimic the trades of experienced investors. With thousands of verified traders to choose from and a $200 minimum investment, it's a low barrier to entry. Keep in mind that eToro primarily focuses on cryptocurrencies, but it also offers thousands of UK and international stocks and ETFs. You can even speculate on contracts-for-difference (CFDs) across various asset classes.
Why We Love It:
eToro offers over 70 cryptocurrencies for trading. They have a flat fee of 0.5% on deposits and a 1% fee on buying Bitcoin (plus spread). While they provide a mobile wallet, their strength lies in variety. eToro boasts a user-friendly platform with social features like copy trading and offers a wide range of assets beyond just crypto.
4. Best for Diversification: PrimeXBT
PrimeXBT caters to those who value low barriers to entry. Unlike some exchanges, they don't have a minimum deposit, allowing you to try out the platform with any amount before committing more. Deposits can be made with various cryptocurrencies and fiat currencies through third-party services like AdvCash and Perfect Money. PrimeXBT shines with its competitive fees. Crypto trading fees start at 0.01%, with even lower maker/taker fees of 0.01% and 0.02% for crypto futures contracts. They also offer copy trading, enabling you to mimic the trades of experienced investors, which can be helpful for beginners. Speaking of beginners, PrimeXBT Academy offers educational resources to help you navigate the platform, understand crypto basics, and even delve into advanced topics like blockchain and NFTs. Beyond crypto, PrimeXBT allows you to diversify your portfolio with traditional assets like currencies, stock indexes, and commodities such as gold, oil, and gas. This makes it a well-rounded platform for those seeking a wider range of investment options. However, keep in mind the limited fiat deposit options through third-party services.
Why We Love It:
PrimeXBT offers over 40 cryptocurrencies for trading but has no built-in wallet. The deposit fee and how much you pay for Bitcoin depend on the third-party service you use. This platform stands out for its low trading fees and the ability to copy experienced traders but keep in mind the limited ways to deposit fiat currency.
5. Best for Spot Trading: MEXC
MEXC stands out for its competitive fee structure. Notably, they offer 0% spot trading fees, making it an attractive option for cost-conscious investors. For those interested in futures trading, taker fees start at as low as 0.02% per transaction, with limited orders even enjoying a 0% fee. But MEXC isn't just about low fees. They offer a vast selection of over 1,000 cryptocurrencies to trade, including popular options like Bitcoin, Ethereum, and Dogecoin. Seasoned traders can leverage their holdings for potentially amplified returns with up to 10x leverage. Security is a priority at MEXC. They store over half a billion dollars worth of user cryptocurrency in secure cold storage and require two-factor authentication (2FA) and KYC verification for added protection. Beyond trading, MEXC Launchpad allows you to discover and invest in newly launched crypto projects. You can also generate passive income by staking popular coins like Bitcoin and Polkadot, potentially earning up to 10% annual returns. MEXC offers 24/7 customer support and advanced trading tools to help you make informed decisions. The platform is accessible from your desktop or through their mobile app (iOS and Android).
Why We Love It:
MEXC is a great choice for investors focused on spot trading, as they uniquely charge 0% fees for those transactions. There's a wide selection of over 1,000 cryptocurrencies to trade, and you can even earn passive income by staking certain tokens with yields up to 10%. However, keep in mind there's a 2% fee for buying Bitcoin with a debit card.
How to Choose the Best Crypto Exchange in the UK for You?
Here are the key factors to consider when choosing a crypto exchange in the UK:
Regulation
Regulation is the first and foremost thing every trader must consider if they are starting trading. FCA is the reputed regulator for the UK market, so it is recommended that traders prioritize those regulated by FCA.
Available Crypto Range
A wide range of tradable assets makes it convenient for any trader to diversify their portfolio. There are hundreds of trading strategies, but every crypto may not support each trading strategy. So, you can choose the cryptocurrency that suits your trading style. Above all, you must go with the crypto exchange offering many cryptocurrencies, including Bitcoin and altcoins like Dogecoin, Ethereum, Ripple, BNB, and Bitcoin Cash.
Fees/Cost of Trading
When choosing the best crypto trading platform in the UK, it is essential to evaluate fees, including deposit and commission charges. For instance, eToro charges a 0.5% fee for instant deposits with a debit card, while Coinbase can charge up to 3.99%. Trading commissions vary widely; MEXC commission starts at 0% for spot trading. Understanding these fees is crucial for making informed decisions and minimizing costs.
Type of Wallet Offered
After buying crypto from an exchange, the tokens are initially stored by the exchange itself, allowing investors to see their balances by logging into their accounts. However, this means the exchange holds the private key to the wallet, which might not be ideal for all investors. Many UK crypto exchanges, like eToro, offer their own wallet apps, which provide more flexibility for storing and transferring crypto.
Payment Methods
When buying crypto for the first time, investors must choose an exchange that accepts regular money (fiat payments). Users can deposit funds using a UK debit/credit card, e-wallet, or bank transfer. It's important to check the payment fees for the chosen deposit method. Additionally, investors should look at the minimum deposit requirement for the exchange.
Are Cryptocurrency Exchanges Legal in the UK?
While buying and selling cryptocurrencies through exchanges is legal in the UK, it's important to understand the regulatory landscape. Crypto assets are unregulated, so exchanges operating in the UK don't necessarily need FCA (Financial Conduct Authority) authorization. However, choosing an FCA-registered exchange offers peace of mind. They operate under the FCA's guidelines, ensuring a legitimate platform. Keep in mind that certain types of crypto trading are banned in the UK for retail investors, including derivatives like CFDs, futures, options, and perpetual swaps.
Finalizing the List of Best Crypto Exchanges in the UK
Picking the right crypto exchange depends on what you want to do. For beginners, Coinbase is user-friendly but has higher fees. Kraken offers lower fees and advanced features. eToro boasts social features and a mobile app but has a limited crypto selection. PrimeXBT shines with low fees and copy trading but has limited ways to deposit fiat currency. MEXC is a great option for spot trading with 0% fees, but it also has a 2% fee for debit card purchases. Remember, do your research and choose an FCA-regulated exchange for added security.
Frequently Asked Questions
What is the best crypto exchange in the UK for beginners?
On the basis of prudent research, our experts say that Coinbase is the best crypto exchange in the UK for beginners.
Which UK crypto exchange has the lowest fees?
Among many in the business, MEXC charges 0% trading fees for spot trading.
Should I use Coinbase or Binance?
Choose Coinbase for its user-friendly interface and strong regulatory support, which is ideal for beginners, or Binance for its advanced trading features and lower fees, which are suitable for more experienced traders.
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About Jay and Julie Hawk
About Julie:
Julie Hawk earned her honors undergraduate degree from the University of Michigan before pursuing post-graduate scientific research at Cambridge University. She then started work in the private sector as a business systems analyst for a major investment bank, where she qualified as a Series 7 Registered Representative and received comprehensive training in various financial products. Further honing her skills, she attended the prestigious O’Connell and Piper options training course in Chicago, mastering professional option risk management techniques.
Julie then transitioned into the role of a professional Interbank forex trader, currency derivative risk manager and technical analyst, ascending to the position of vice president over a 12-year career in the financial markets. Julie’s illustrious banking career spanned working for major international banks in New York City, London, and San Francisco, where she served as an Interbank dealer, technical analyst, derivative specialist and risk manager. Her responsibilities included educating, devising customized foreign exchange hedging and risk-taking strategies, and overseeing large-scale transactions for esteemed banking clients, including corporations, fund managers and high-net-worth individuals. As part of her responsibilities, Julie managed substantial portfolios of forex options, spot, and futures positions as a currency options risk manager, earning recognition for executing innovative and highly profitable forex derivative transactions. Julie also spearheaded educational conferences on currency derivatives.
During her banking career, Julie attained world-class expertise in technical analysis, including Elliott Wave Theory, and pioneered research into automated trading and trading signal systems. An active member of the San Francisco Writers’ Guild, Julie also authored trade strategies, educational material, market commentary, newsletters, reports, articles, and press releases. She became a sought-after market expert who was frequently interviewed by financial magazines and news wires such as REUTERS.
Following her retirement from the banking sector, she dedicated 15 years to online forex trading, mentoring and freelance writing for TheFXperts, which she co-founded with her husband Jay. Julie is the co-author of “Forex Trading: A Beginner’s Guide” and “Technical Analysis for Financial Markets Traders,” in addition to five other books on financial markets trading and personal finance. She now focuses on writing articles on financial markets for platforms like Benzinga, although she continues to trade forex online and mentor fellow traders as part of TheFXperts’ financial team.
About Jay:
Jay Hawk grew up in Chicago and Mexico City where he became bilingual in English and Spanish. After taking formal training as a classical guitarist at prestigious music conservatories in Europe, Jay then embarked on a remarkable journey into the financial markets, cultivating his notable expertise through hands-on experience that began on the Midwest Stock Exchange.
His financial career progressed as he started actively participating in various exchange floor trading activities in the Chicago futures and options pits, where he worked his way up the ladder, serving as a clerk, trader, broker, investor and fund manager. Jay then ran a retail stock brokerage desk and managed funds for large institutional investors, leveraging his discretionary trading skills to yield profitable results for clients.
This ultimately led to Jay holding exchange seats and operating as a market maker on options exchanges in Chicago and San Francisco, initially on the Chicago Board Options Exchange. Jay also played a significant role in the Chicago Mercantile Exchange’s evolution, where he contributed to launching and actively trading the first listed currency futures options. After transitioning to the West Coast, Jay then held a seat and ventured into trading stock options and their underlying stocks on the Pacific Options Exchange.
Jay’s comprehensive understanding of fundamental economic and corporate analysis continues to inform his trading and investment activities and has led to his subsequent success as an expert financial writer. Together with his wife Julie, he co-authored “Stock Trading: A Beginner’s Guide”, “Commodity Trading: A Beginner’s Guide” and “Fundamental Analysis for Financial Markets Traders,” among their published books focusing on financial markets trading, market analysis, and personal finance.
As an integral member of TheFXperts’ team, Jay now excels in trading forex online for his personal account, mentoring aspiring traders and writing for financial platforms like Benzinga where he specializes in covering topics related to the stock and commodity markets, as well as investing, trading and reviewing online brokers.