6 Best Crypto Leverage Trading Platforms

When I first started seriously trading, one of the hardest decisions was choosing which exchange to use. Almost every platform promises an advanced trading platform with high leverage and low fees. But who can you really trust?

That’s why I’ve done all the heavy lifting for you. I spent hundreds of hours testing almost every major exchange. I risked my own money and spent hours trading on each platform, testing every trading product so you can choose the exchange that suits your needs best.

I know not all traders are the same. That’s why I’ve broken things down into categories to help you find the best exchange for your own preferences.

List of Top Crypto Exchanges for Leverage Trading

How Did FXEmpire Choose the Best Crypto Leverage Trading Platforms?

While coming up with a list of the best exchanges for leverage trading, there was a range of things to consider. Given the different types of leverage trading, there are many factors to consider. These were some of the key criteria that I used to rank each exchange:

• Exchange Security: Security should be your number one priority when choosing an exchange. Whether you’re leverage trading or just HODLing, you should always do so on a reputable platform. That’s why I only covered exchanges with strong safety measures and full transparency to minimize the risk to your assets.
• Maximum Leverage Levels for Futures and Margin Trading: Leverage levels also play a major role in choosing which exchange to use. I compared the maximum leverage level available on each exchange to highlight the ones with the highest leverage for traders with high-risk appetites.
• Number of Leverage Markets Available: I find that more markets means more flexibility. So I compared the range of markets available on each exchange, favoring ones that offer a wider range that include instruments like stocks, Forex, Indices, and Commodities for the most flexibility. This lets you easily pivot across markets to trade those that offer the best trade opportunities at any given moment.
• Exchange Trading Volume and Open Interest: High leverage and advanced features mean nothing without liquidity. I traded extensively on each exchange to see how well they were able to execute orders regardless of volatility. I’ve highlighted the platforms that offer the deepest liquidity and deliver a reliable trading experience.
• Trading Fees: I’m aware that fees can quickly eat into your profits, especially when trading with leverage. I compared the maker/taker fees and interest/funding fees on each platform to find the most cost-effective platforms for a mix of short and longer-term strategies.
• Bot & Copy Trading: I like the availability of automated trading tools to help earn some passive income when I’m away from my screen. That’s why I looked at the bot and copy trading support on each exchange. These features make it easier for beginners to start leverage trading and learn strategies from experienced traders or pre-configured bots.
• Advanced yet User-Friendly Trading Platform: I tested the trading features and user-friendliness of each exchange, looking for platforms that balance advanced features with an easy-to-navigate interface. This makes exchanges accessible for both professional traders and beginners.

Best Crypto Leverage Trading Platforms Comparison Table

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How to Choose the Best Crypto Leverage Trading Exchange?

What are the Different Types of Leverage Trading in Crypto?

Leverage trading in crypto lets you trade with borrowed funds or derivatives that gives you a much larger position size than your initial deposit. The main types of leverage instruments you’ll find on mainstream exchanges are:

• Leverage Tokens: These are a type of derivative that gives you a leveraged position without the risk of liquidation or the hassle of managing collateral. This makes them ideal for beginners who are looking to progress from spot trading without having to worry about liquidated positions.
• Margin: This uses borrowed funds from the exchange to give you a larger position to trade, using your coins as collateral. There are two main types of margin: isolated and cross. Isolated limits your risk to just one position, while Cross risks your entire account balance.
• Perpetual Futures: Perps are a derivative where you trade futures contracts that have no expiry date, which makes them perfect for longer-term trades. They also enable much higher leverage levels compared to margin, but come with a much higher risk of liquidation.
• Options: Options are contracts that give you the right to buy or sell a given crypto at a pre-defined price before the expiry date. These are typically seen as the most volatile crypto trading instruments and should only be traded by experts with years of experience.

What Fees Should I be Aware of When Choosing an Exchange?

When you’re looking to join a new exchange, it’s important to consider all the fees that you’re going to have to pay, including those hidden costs. Trustworthy exchanges are always transparent about their fees and pricing structures, so it’s important to go through their fee pages carefully before you start trading. The main types of fees to consider are:

• Maker/Taker Fees: These are your standard trading fees for opening and closing positions. Maker fees apply when you use limit orders and add liquidity to the market, while Taker fees apply when you use market orders and remove liquidity from the market. Makers almost always pay lower fees than Takers, since they’re adding liquidity to the exchange.
• Interest Fees: This is the interest charged by the exchange for borrowing its assets for margin trading. These can be calculated hourly or daily, depending on the exchange you are using.
• Funding Fees: These are unique to futures trading and are periodic fees that are paid between traders who have long positions and traders who have short positions. This helps keep the futures prices in line with the spot price. A positive funding rate means longs pay shorts, whilst a negative funding rate means the shorts pay the longs. As a general rule, if the market is bullish, the funding rate will usually be positive and vice versa.
• Deposit/Withdrawal Fees: This is the cost for transferring money or crypto in and out of the exchange. Crypto deposits are usually free of charge, but crypto withdrawals will incur network fees. Fiat deposits are free on certain exchanges, but almost all charge varying fees for fiat withdrawals.

How important is Trading Volume and Open Interest in Leverage Trading?

High trading volume is key when it comes to all types of trading, especially leverage trading. What it does is give you an idea of how active the markets are. Higher daily trading volumes mean the markets are more active and more liquid, which makes it easy to open and close positions without significant slippage. If an exchange has low daily trading volume, it can mean that you may have difficulty exiting positions during periods of high volatility, which can increase your risk of being liquidated.

Open interest is sometimes mistaken for trading volume, but they aren’t exactly the same. Open interest is the total value of outstanding futures or options contracts that have not yet been settled or closed. It gives us an idea of how active the markets are and can help us gauge the level of interest in a certain asset. You can also use high open interest to get an idea of overall market strength and confirm trends. Decreasing open interest could suggest many positions are being liquidated or traders are exiting the market.

Which Red Flags Should I Avoid When Choosing an Exchange?

There are several factors to consider when choosing an exchange. Here are a few things to look for when choosing an exchange, and if you see an exchange with more than one factor from the list below, it may be time to look elsewhere:

• • Lack of Proof of Reserves: I struggle to trust exchanges that lack PoR transparency. The collapse of FTX showed us how important it is to verify that an exchange holds enough assets in reserve to cover all users’ deposits. PoR helps build trust and reassure you that your money isn’t being mismanaged.
  • Low Liquidity: While this doesn’t always mean you should avoid an exchange. If a platform has dangerously low trading volumes, you may find liquidity to be a problem. Low liquidity can lead to greater slippage and poor trade execution, which can be the difference between a stop loss being triggered correctly or getting liquidated.
  • Weak Security Measures: Personally, I prioritize security above everything else. If an exchange lacks security measures like two-factor authentication, withdrawal whitelists, and biometric authentication, that’s usually a deal breaker for me. Those exchanges tend to be more vulnerable to hacking attempts and, in the worst case, loss of user funds.
  • No Mandatory KYC: This is another factor that isn’t necessarily a deal breaker, but exchanges without mandatory KYC usually attract bad actors and illegal activity. This makes them more likely to face regulatory sanctions or closures that could see your assets go with them.
  • History of Security Breaches: I find that past operations are a fairly good indicator of how much you should trust an exchange. If an exchange has been hacked several times in the past and lost a lot of user assets, you might want to consider other options.