Margin trading is one of the main reasons why the crypto market is so volatile. It’s the practice of borrowing crypto so that you can make bigger trades. And bigger trades mean either bigger profits, or bigger losses.
Pretty much all the big crypto exchanges let their users trade on margin. Of course, some let you borrow more than others, while certain platforms charge higher fees or support more cryptos. So to help you decide which is the best crypto margin trading platform for you, we’ve reviewed the best margin trading platforms in 2024.
What is Margin Trading?
Margin trading is named after the ‘margin’ that investors have to deposit as collateral in order to open a margin trading position with an exchange. This is the crypto that investors actually own, and which they deposit with an exchange as security.
The idea behind margin trading is this. First, an investor will start with the belief that a particular crypto, such as Bitcoin, will soon rise. They’d like to buy a large amount of Bitcoin, but don’t have the funds to afford this amount. They therefore begin margin trading, opening a leveraged position with their exchange. What this means is that they deposit collateral to cover the loan they receive from their exchange. The exchange usually sets this at a ratio of the borrowed funds, with many platforms offering 2x, 5x or 10x leverage.
So if you have $1,000, 10x leverage will give you $10,000 in crypto. You will be able to use these borrowed funds however you like. You might trade them with other cryptos, if you believe any other coins will rally. Or you may keep hold of them, hoping that they’ll rise in price.
Either way, you will have to keep your collateral deposited with your exchange for as long as you keep the borrowed funds. This collateral will have to remain in proportion to the amount you borrowed, so if it falls in value, you will have to deposit more collateral to keep your margin trading position open.
What’s interesting about margin trading is that it can multiply your profits. This is by your leverage ratio, meaning that if your borrowed crypto rises by 5% and you have 10x leverage, you would see a 50% profit. Conversely, if it falls by 5%, you will make a 50% loss.
Best Margin Trading Platforms in 2024
Here’s the rundown of the top leverage trading platforms currently in operation. They’re listed in no particular order, with each having their own strengths and weaknesses.
Huobi – best for high leverage
Bybit – best for reducing liquidation risk
Binance – best for trading pairs
BitMEX – best for low fees
OKX – best for futures trading
KuCoin – best for customer service
Crypto.com – best for regulation and reliability
Poloniex – best for user interface
Huobi
Huobi is one of the biggest crypto exchanges in the world, having launched in 2013. It offers two main kinds of margin trading. These are Cross Margin and Isolated Margin. Isolated Margin works like normal leveraged trading, in that users open a position for only one currency pair. Cross Margin, however, pools a users’ funds into a single margin account, so that they can borrow funds against all of their cryptocurrencies, if they want.
This option gives you the flexibility to borrow more funds and increase your leverage. Cross Margin accounts also make liquidation less likely to occur, in that gains with some of your cryptos are likely to offset any losses. That said, Isolated Margin accounts limit your losses to only a single account, so in the event of a big market downturn they may be safer.
Huobi charges different annual interest rates on margin trading loans, according to the trading pair. For example, it currently charges 0.99% per year for borrowing Bitcoin, and 1.29% for Ethereum. It reduces this rate according to the tier of your Prime membership, with Prime 11 members seeing the above rate for Bitcoin decline to 0.64%. These rates are also varied very slightly if you open a Cross Margin account, as opposed to an Isolated Margin one.
The exchange offers 10x leverage with Isolated Margin accounts, and 5x leverage with Cross Margin accounts. It also offers anything from 1x to a potential high of 200x leverage on perpetual swaps, which are futures contracts that you can hold for an indefinite period of time.
Pros
Huge number of trading pairs
Helpful customer support and user guides
Wide range of margin trading options
Cons
Better interest rates reserved for higher-tier members
Interface can be complex for newcomers
Bybit
Founded in 2018 and based in Dubai, Bybit is ranked second for 24-hour trading volume, behind Binance. Aside from a wide range of spot-based options, it also offers margin trading on most of its listed cryptocurrencies. These number into the dozens, giving users plenty of choice.
One of its most distinctive offerings in terms of margin trading is its Smart Leverage feature. This offers a high rate of leverage while reducing the risk of liquidation. It does this by comparing the position’s final settlement price to a breakeven price. However, traders whose crypto falls below the breakeven risk losing their entire investment, so they need to be careful.
Outside of Smart Leverage, Bybit generally offers 5x leverage for most of its trading pairs. Its margin trading fees are calculated according to its standard spot trading fee, its interest rate and its liquidation fee. Its normal trading fee is 0.1% for non-VIP members, while its daily interest rate is 0.02%. Meanwhile, all users who liquidate their positions pay a 2% settlement fee on the final value of their funds.
Bybit has a very streamlined website, which is simple even for beginners to use. It helps newbies by offering FAQs and guides, including for margin trading and other more advanced features. Meanwhile, its Help Center provides 24/7 live chat and a contact form, just in case anything goes wrong.
Pros
Hundreds of trading pairs
Unique Smart Leverage feature
User-friendly website
Cons
Not the highest leverage for normal margin trading
Fess are in the higher range
Binance
The world’s biggest exchange by volume, Binance is also one of the best crypto margin trading platforms. It offers over 600 pairs for margin traders, while it also provides cross and isolated leveraged trading. It offers up to 10x leverage with isolated margin trading, while cross margin trading goes up to 5x for non-Pro users.
Other nice features include an insurance fund for anyone who lends to margin traders, with Binance stepping in whenever a leveraged trader can’t afford to repay what they borrow. Binance also has an Automatic Margin Trading function, whereby users can opt to repay loans or increase their margin automatically whenever they need to and can afford it. This can save them time and effort, while freeing them up to focus on other things.
Binance’s interest rates are fairly competitive, without being the best in the market. They can range from 1.21% for Bitcoin per year, to 2.05% and 4.94% for Ethereum and Solana, for example. Users will also have to pay a spot trading fee, which is 0.1% for regular users. Binance is very clear in setting its fees, with pages and tables setting out what users will have to pay according to their VIP level.
Pros
Very large number of trading pairs
Good choice of margin trading options
User-friendly website
Cons
Higher fees than most
Margin trading not available in the US
BitMEX
BitMEX launched in 2014 and is registered in the Seychelles, with the exchange receiving regulatory approval in Italy in 2022. It offers trading in over 80 cryptocurrencies, spanning more than 140 trading pairs. It has also become one of the most recognized platforms in the space for margin trading, with the exchange offering up to a maximum of 100x leverage for many of its pairs. For example, this includes 100x leverage for SOL-USD, ETH-USD, BTC-USD and BTC-ETH.
As with certain other margin trading platforms, BitMEX helpfully provides users with the choice between isolated and cross margin products. Yet its fees are probably its best feature, given how competitive they are with other platforms. There’s no settlement fee on its futures contracts, while its daily interest rate on most of its perpetual contracts is only 0.01%.
In January 2024, BitMEX introduced its Margin+ feature, available to its higher volume traders. What this does is provide users with additional collateral in the form of Tether or Bitcoin. It does come with specific trading balance and volume requirements, but it provides this extra collateral at lower rates than it would ordinarily lend crypto. It may therefore be a good fit for more experienced traders, who can make strategic use of the extra funds.
As a whole, BitMEX is a very streamlined and responsive platform. Trades are easy to make, while the additional range of features – such as options trading and guilds – will appeal to serious investors who are looking for more than leverage.
Pros
Recognized exchange with high liquidity
Very low fees on most products
Strong range of trading pairs
Cons
Not available in the US, Canada and Japan
Best features reserved for big traders
OKX
Boasting sponsorship deals with Manchester City FC and the McLaren F1 team, OKX is one of the most recognized crypto-related brands in the world. It’s also one of the best platforms for leverage trading in the market, offering margin on over 30 cryptocurrencies and with a maximum leverage of 10x. Traders will also appreciate its extensive range of other products, including options and futures trading, as well as savings and lending products.
While its fees on margin trading aren’t the lowest, they are competitive. Traders can borrow most cryptos at an annual interest rate of 1%, and what’s interesting is that this doesn’t decline for high-tier VIP members. Its initial margin requirement is 10% if you take out the max 10x leverage, while its maintenance margin is 2%. These are reasonable rates, and while dramatic changes in the market can make it difficult to maintain a margin position, doing so with OKX is no harder than with most other platforms.
As far as special features go, OKX also provides the ability to switch between cross and isolated margin trading. Its rates are the same across its isolated and margin trading features, so it really provides maximum flexibility. Other than that, there isn’t much else, although OKX’s reputation as an exchange provides users with a secure margin trading experience.
Pros
Highly secure and regulated exchange
Big market depth
Rates are uniform across loyalty tiers
Cons
Narrow range of margin trading features
Not the highest leverage
KuCoin
With its HQ in the Seychelles, KuCoin is one of the most recognised exchanges in the crypto market. It’s registered with the Malta Financial Services Authority and also India’s Financial Intelligence Unit, giving it a reach and a reputation that some of its rivals lack. Much of its reputation also comes from the variety of services it provides, such as spot trading, derivatives trading, and even savings accounts. These services also include leverage trading, with KuCoin providing up to 10x leverage for isolated margin trading, and up to 5x for cross margin trading.
What’s particularly good about KuCoin is that it offers leverage on most of its listed tokens, which amount to well over 700. You can also leverage trade with its derivatives, which includes futures and perpetual contracts. This provides plenty of choice and flexibility to the user, allowing you to adapt your borrowing to your own particular requirements and timeframes.
KuCoin calculates its margin trading fees at an hourly rate, which equate to 5% APR. This is high in relation to other leverage trading platforms, yet in KuCoin’s favor it charges very low spot trading fees, which you also need to pay whenever using leverage. For instance, its trading fee is only 0.1% for basic members, while this declines to 0.025% for its highest tier customers.
As a platform, KuCoin also has the benefit of providing one of the most comprehensive trading ecosystems in crypto. I was impressed to find many services beyond margin trading, while its customer service and learning materials are among the best in the industry.
Pros
Lists more coins than most other platforms
Highly responsive customer service
Transparent and regulated exchange
Cons
High annual interest rate for borrowing
Leverage is relatively low with cross margin trading
Crypto.com
Regulated in the UK and the EU, Crypto.com is one of the top margin trading platforms operating in the industry. It began offering margin trading in 2021, and now provides leverage of up to 5x and supports well over 100 currency pairs. Unfortunately for some, its margin products are now available only to Prime members, which are users who deposit funds worth at least $1 million.
Aside from normal margin trading, Crypto.com also lets you trade perpetuals and futures contracts using leverage. In terms of fees, it charges annual interest rates that can vary from 6.6% for USDT to 21.9% for Bitcoin. This makes it one of the more expensive platforms for leverage trading, although these do decline heavily depending on how much of Crypto.com’s native token you stake.
Crypto.com also charges a liquidation fee of 0.5%, as well as a 20% ‘haircut’ to the value of your collateral. This can make it expensive, but it arguably makes up for this by providing a slick overall experience and great customer support.
Pros
Good bonuses for Crypto.com (CRO) holders
One of the most secure exchanges in the industry
Great user interface
Cons
Margin trading restricted to high-tier customers
Quite expensive fees
Poloniex
Poloniex has been a recognized name in the cryptocurrency industry since 2013, with the US-based exchange providing margin trading in addition to a choice of other products. It lists around 400 cryptocurrencies, but provides leverage for only 12 of them at the moment, including Bitcoin, Ethereum, XRP, Dogecoin and Solana.
With its basic margin trading, users can choose between isolated and cross margin. The latter comes with a max leverage rate of only 3x, which is fairly limited compared to some other platforms. On the other hand, Poloniex also lets users trade perpetual futures contracts. These come with a max leverage rate of 100x, and give users the ability to settle their contracts at any point in the future. They will have to pay a funding rate, however, which can vary on a daily basis.
Poloniex’s initial margin requirement is 50%, meaning that you need to deposit crypto worth 50% of your position to open a leveraged position. However, going forward you need to keep crypto worth only 10% of your position to continue trading. It calculates its interest rate hourly, with rates ranging from 3.65% APR for BTC to 30% APR for SOL. On top of this you have to pay a spot trading fee of 0.145%, at least if you’re a basic tier customer.
Pros
High leverage on perpetual futures
One of the most secure exchanges in the industry
Great user interface
Cons
Limited number of supported cryptos for leverage
Low leverage on cross margin trading
Key Factors to Consider When Choosing a Margin Trading Platform
Choosing a crypto-exchange for margin trading all rests on understanding what you want as an investor. If your priority is security, go for a platform with a long-running track record for reliability. If you want a wide selection of trading pairs to choose from, go for a platform that lists the most coins. As the below list will show, there are multiple factors that contribute to a margin trading platform’s quality, so you will have to prioritize which are the most important to you.
Max Leverage
Margin trading is all about borrowing funds in order to increase your chances of a big profit. As such, platforms which provide the highest leverage – expressed as a multiple of your collateral – will be the best, all other things equal. Higher leverage enables you to borrow more and potentially earn higher profits, but beware that it can also multiply your losses.
Security and Reliability
Look for exchanges which have experienced no outages or hacks, or at least very few problems over their history. Also check for information on the security practices they follow, such as use of cold wallets, high-level encryption and two-factor authentication. Because you will be depositing your funds in order to trade on margin, you need to make sure you can trust your chosen platform.
User Interface and Customer Support
Because margin trading can seem complex and overwhelming for the newbie, it really helps to use an exchange with a clear and streamlined user interface. It should be easy to find all the available trading options, to change settings and to trade. On top of this, the best platforms have responsive customer support channels, such as live chat, email addresses and telephone numbers.
Fees and Costs
Inexperienced traders can often forget about fees, which can really eat into your profits. Luckily, all proper exchanges have pages on their websites in which they lay out their fee schedule in clear detail. Check with several different platforms and compare, in order to give yourself an idea of what you will be paying.
Cryptocurrency Listings
Some leverage trading platforms list more coins than others. More importantly, some offer leverage on only a small selection of their listed trading pairs. It therefore pays to double check what you can actually trade on margin with, so that you don’t go to the trouble of registering with an exchange only to find that you can’t trade what you want.
Best Margin Trading Strategies
Start with Low Leverage
For newcomers, it really helps to start with lower levels of leverage. By using only 2x or 3x leverage, you will limit any potential losses while also potentially doubling or tripling profits. Don’t move to 5x or 10x leverage until you’re more confident in your abilities and the market’s direction.
Stop-Loss Orders
Investors often use stop-loss orders when trading cryptocurrencies on a spot basis, yet using them when margin trading is also a great idea. By closing a position if a coin falls to a chosen level, they can limit what you end up owing your exchange.
Use Automatic Trading Functions
Certain platforms offer automatic trading features which can top up your margin whenever necessary, so that your position isn’t liquidated in the event of a fall. It often makes sense to use these when you feel more confident with margin trading, since they can save you from having to watch the market 24/7.
Conclusion
Margin trading can be an effective strategy for multiplying profits, even though it carries greater risks. The best platforms, such as Binance, Bybit and Huobi, offer a good range of coins to trade on margin, while they also provide different kinds of margin trading. Most traders can therefore find something which suits their profile and needs, yet they should also take care themselves to follow the best trading practices. That way, they’ll improve their chances of making margin trading for them.
FAQs
Can I Short Coins with Margin Trading?
It is possible to use leverage to short as well as go long on tokens. Shorting a coin means you place a bet on it declining in price, borrowing it at its present price, selling it, and then buying it back at its later, presumably lower, price.
What’s the Difference Between Margin Trading and Futures Trading?
Margin trading is much like normal spot trading, except you trade using borrowed funds. Futures trading, however, is an agreement to buy a crypto at a set price and at a set date, so while it may also involve borrowing funds it’s quite different from margin trading.
Do All Crypto-Exchanges Offer Margin Trading?
Not all exchanges provide margin trading. Due to regulations in various jurisdictions, many have withdrawn such trading or have never offered it in the first place. Check with an exchange’s list of products and or services before signing up, or with its FAQ pages.
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