Best Coinbase Alternative UK – Top Crypto Exchanges with Cheapest Fees

If you’re thinking about buying cryptocurrencies online in the UK – you might be tempted to use Coinbase. After all, the exchange is known for making the crypto-investment process super-easy, not least because it supports debit card and bank account deposits.

However, Coinbase is arguably one of the most expensive cryptocurrency exchanges in the UK. Not only does it charge a trading commission of 1.49%, but cryptocurrency purchases made with a debit card will cost you 3.99%.

Taking the above into account, this guide will review the best Coinbase alternatives UK.

Best Coinbase Alternatives UK 2021

Looking to start buying crypto at the best Coinbase alternative right now? If so, check out which UK crypto exchanges we think you should consider!

  1. eToro – Overall Best Coinbase Alternative UK (FCA Regulated)
  2. Binance – Best Coinbase Alternative UK for Trading
  3. Coinjar – Best Alternative to Coinbase UK for Inexperienced Traders
  4. Kraken – Best Coinbase Alternative UK for Leverage and Margin Trading
  5. CoinCorner – Best UK Alternative to Coinbase for Buying Bitcoin Quickly

Best Coinbase Alternative UK Reviewed

One of the main reasons why UK crypto investors are looking for an alternative to Coinbase UK is because the exchange is super-expensive. With that said, you shouldn’t choose a Bitcoin trading platform just because it offers low fees.

On the contrary, you also need to look at important metrics surrounding regulation and safety, supported cryptocurrencies, and payment methods.

We spent countless hours in our search for the best Coinbase alternative UK – which you’ll find below.

1. eToro – Overall Best Coinbase Alternative UK (FCA Regulated)

etoro logoeToro is a popular online trading platform that offers everything from stocks and ETFs to forex and commodities. In addition to this, eToro also offers a fully-fledged cryptocurrency facility. This comes inclusive of 16 popular digital coins – including Bitcoin, Ethereum, Ripple, Litecoin, and more.

Unlike Coinbase, you won’t be charged an arm and leg with this top-rated provider. In fact, eToro allows you to buy and sell cryptocurrencies without paying a single penny in commission. That’s already saved you the 1.49% that Coinbase charges.

Best of all, you won’t need to pay a whopping 3.99% to use your UK debit card. This is because eToro charges a very reasonable 0.5% to get funds into your cryptocurrency trading account. Not only does this include debit cards, but credit cards, Paypal, Skrill, Neteller, bank transfers, and more.

eToro Bitcoin Price Chart

On top of offering the cheapest way to buy Bitcoin in 2021,  eToro is also the safest. This is because the platform is one of the few cryptocurrency providers in the UK that is authorized and regulated by the Financial Conduct Authority (FCA). If you’re on a budget, eToro is also the way to go.

This is because the minimum crypto trade on the platform is just $25 – or about £18.  This means that you can gain exposure to the highly volatile cryptocurrency scene without needing to risk large amounts. What we also like about eToro is that it offers automated trading services that are specifically linked to cryptocurrency.

etoro crypto copyportfolios

For example, it offers a crypto CopyPortfolio – which is a basket of various digital currencies. This is great for diversification purposes, as you won’t be putting all of your eggs into one cryptocurrency. Additionally, eToro also offers a Copy Trading tool. This allows you to copy a successful eToro cryptocurrency trader like-for-like.

In other words, if the trader buys Ripple and then exits the position a few days later, the trade will be mirrored in your own eToro account. Finally, eToro offers a top-rated investment app, so you can buy, sell, and trade cryptocurrencies from the palm of your hand.

For a full run down of how eToro compares to Coinbase, check out our eToro vs Coinbase review.

Pros

  • Offers Bitcoin and 15 other top cryptocurrencies
  • Buy Bitcoin 100% commission-free
  • More than 17 million people using the platform
  • Accepts debit/credit cards, e-wallets, and bank transfers
  • Minimum investment of just $25
  • Supports copy trading to automate your Bitcoin trades
  • Fully regulated in the UK by the FCA
  • Over 2,400 stocks and 150+ ETFs

Cons

  • Small withdrawal fee of $5
  • Platform operates in US dollars

Cryptoassets are highly volatile unregulated investment products. No EU investor protection.

 

2. Binance – Best Coinbase Alternative UK for Trading

Binance LogoIn our view, if you are looking to invest in a blockchain asset like Bitcoin and are planning to ‘sit tight’ for several years, eToro is unrivaled. However, if you are looking for the best Coinbase alternative to deploy short-term trading strategies – Binance is great.

The platform is one of the largest cryptocurrency exchanges for trading volume and liquidity. It offers hundreds of cryptocurrency pairs of all shapes and sizes. For example, while you can trade major coins like Bitcoin and Ethereum, Binance also supports heaps of ERC-20 tokens.

This Coinbase alternative is also attractive in the fee department. This is because Binance will charge you a commission of just 0.10% per trade. You can get this commission down even further if you trade large volumes and hold a minimum quantity of Binance Coins (BNB).

Binance Bitcoin Trading Platform

Binance is also a popular Coinbase alternative because you have the option of trading anonymously. This is only the case if you do not plan on making a deposit with ‘real’ pounds and pence. Rather, you would need to deposit and withdraw funds with a cryptocurrency to avoid uploading ID, as well as trade less than 2 BTC per day.

If, however, you want to deposit funds with a UK payment method, Binance has you covered. With that said, it’s best to stick with a UK bank transfer, as the exchange will charge you 2% to use a debit or credit card. There are many other features offered by Binance that in particular – will appeal to experienced crypto traders.

Binance Fee Structure

For example, Binance is one of the few exchanges to offer crypto-based derivatives. This includes heaps of markets that are backed by futures and options. These crypto derivatives also allow you to trade with leverage, meaning you’ll have access to more capital than your Binance account permits.

Pros

  • Largest cryptocurrency exchange UK in terms of trading volume
  • Hundreds of cryptocurrency pairs supported
  • Trading commission of just 0.1%
  • Supports UK debit/credit cards and bank transfers
  • Great reputation in the cryptocurrency scene
  • Ideal for advanced traders that seek sophisticated tools and features

Cons

  • Not great for newbie investors
  • Standard charge of 2% on debit/credit card deposits

Cryptoassets are highly volatile unregulated investment products. No EU investor protection.

 

3. Coinjar – Best Alternative to Coinbase UK for Inexperienced Traders and Investors

Coinjar Logo

While Binance is a great platform for experienced traders, Coinjar is suited for those of you that want to buy a little bit of crypto in a safe and simple environment. The platform – which is based in Australia but now super popular in the UK, allows you to buy cryptocurrencies with ease.

All you need to do is register an account and provide a copy of your passport or driver’s license. After that, you can purchase Bitcoin by transferring funds from your UK bank account.

As the transaction is facilitated by the Faster Payments Network, the funds should arrive in your Coinjar account in a matter of minutes. Once you have completed your purchase, you can then withdraw the coins out to a private Bitcoin wallet. Although you also have the option of storing your crypto on the Coinjar platform, this is best avoided.

Coinjar Trading Platform

After all, the provider isn’t regulated by the FCA. Perhaps the biggest drawback with Coinjar is that you will be required to pay a commission of 1% on all buy and sell orders. For example, if you bought £2,000 worth of Bitcoin, this would cost you a fee of £20.

Then, if you sold your Bitcoin when it was worth £3,000 – the 1% fee would amount to £30. On the flip side, if you decide to trade cryptocurrencies via the Coinjar exchange, the commission is much lower at just 0.1%

Pros

  • Offers ready-made cryptocurrency portfolios
  • Faster Payment bank transfers are free
  • Relatively inexpensive fee structure
  • Excellent cryptocurrency trading platform
  • Regulated by Australian Transaction Reports and Analysis Centre

Cons

  • Doesn’t include any technical indicators

Cryptoassets are highly volatile unregulated investment products. No EU investor protection.

 

4. Kraken – Best Coinbase Alternative for Leverage and Margin Trading

Kraken UK reviewAs you may well know, the FCA recently introduced a ban on crypto-derivatives. In turn, this means that you can no longer trade cryptocurrency CFDs and thus – won’t have access to leverage. However, if you still want to trade leveraged crypto products in the UK, Kraken can facilitate this.

This is because Kraken is not offering cryptocurrency derivatives in their truest form, not least because they are not backed by fiat currency.  This workaround will allow you to buy Bitcoin with leverage of 1:5.

This means that by funding your account with just £200, you would be able to trade with £1,000. Furthermore, if you are interested in trading Bitcoin futures, Kraken we’ll offer you even more leverage. This stands at up to 1:40, meaning you can trade with 40 times what your account balance permits.

Kraken vs coinbase UK

In terms of tradeable markets, it could be said that Kraken is both a broker and an exchange. Regarding the former, you can buy Bitcoin and several other cryptocurrencies directly from the platform. You can do this by transferring funds from your bank account fee-free and at a minimum of just £1. Or, you can deposit funds with a UK debit card, albeit, this costs a whopping 3.75% + €0.25.

This fee includes the commission to buy Bitcoin. If you also decide to use Kraken to trade cryptocurrencies, the platform offers a reasonable selection of pairs. Fees start at 0.16% per trade, which is competitive. You can get the commission down further, but this will require a minimum 30-day trading volume of $50,000.

Pros

  • Trade Bitcoin with leverage of 1:5
  • Leverage of up to 1:40 offered on Bitcoin futures
  • Deposit funds via UK bank transfer for free
  • Minimum deposit just £1
  • Great reputation
  • Exchange fees start from 0.16% per trade

Cons

  • Debit card purchases charged at 3.75% + €0.25
  • Not the most user-friendly crypto platform

Cryptoassets are highly volatile unregulated investment products. No EU investor protection.

 

5. CoinCorner – Best UK Alternative to Coinbase for Buying Bitcoin Quickly

CoinCorner LogoIf you have one specific goal – to buy Bitcoin online in the UK, you could consider CoinCorner. This popular platform allows you to complete your purchase in less than 10 minutes – should you opt for a debit/credit card or Neteller. Bank transfers are also supported, but this will delay the process.

With that said, CoinCorner does everything by the book, so you first need to upload a copy of your ID before you can make a purchase. CoinCorner is also a really good option if you only want to invest a few pounds into Bitcoin.

This is because the minimum purchase amount is just £10. CoinCorner also allows you to set up recurring Bitcoin investments. For example, you decide to buy £25 of Bitcoin per week or £200 per month. We also like the cashback feature that CoinCorner has implemented into its platform.

coincorner buy bitcoin

This allows you to earn Bitcoin every time you buy something from one of its partnered merchants – such as Boots or Currys. As convenient and burden-free as CoinCorner is, it must be noted that this UK Coinbase alternative is rather pricey. This starts at the very offset when you make a deposit, as the exchange changes  2.5% and 3.2% on debit and credit cards, respectively.

Trading commissions are on the high side, too. For example, anything Bitcoin purchases over £300 attract a 1% fee. But, if you invest less than this, the commission is even higher. For instance, if you purchased £10 worth of Bitcoin, you’d pay a fee of £1.50 – which amounts to 15%.

Pros

  • Very fast to start trading
  • Supports a wide variety of payments
  • Set up recurring cryptocurrency investment
  • Reward program with 1,000+ businesses

Cons

  • Extremely high trading fees
  • Minimal charting and trading tools

Cryptoassets are highly volatile unregulated investment products. No EU investor protection.

 

Coinbase Alternatives Fees Comparison

When searching for the best Coinbase alternative UK, you are likely to do so because you want to find a cheaper exchange. As such below we have compiled a table comparing the main fees charged by our selected alternatives to Coinbase UK.

 

Crypto Trading Fee Debit Card Fee Bank Transfer Fee
eToro 0% 0.50% 0.50%
Binance From 0.1% 2% Free
Coinjar 1% N/A Free
Kraken From 0.16% 3.75% + €0.25. Free
CoinCorner From 1% 2.5% £1

 

As per the comparison table above, if you are looking to buy Bitcoin with a debit card, credit card, e-wallet, or bank transfer – eToro is by far the best alternative to Coinbase UK. Other than a small 0.5% deposit fee, you won’t pay anything to buy and sell your chosen cryptocurrency!

How to Choose the Best Coinbase Alternative UK

There are hundreds of alternatives to Coinbase UK, so you’ll want to spend some time thinking about what your priorities are.

To help you along the way, below you will find the most important metrics that you need to cross-off before choosing an alternative to Coinbase UK.

Fees

The obvious starting point is, of course, fees. After all, Coinbase is one of the most expensive cryptocurrency exchanges in the UK. As we discussed earlier, there are several fees that you need to look out for.

This includes:

  • Deposit Fee: Most exchanges in the UK offer free, or near-free, bank account deposits. However, debit/credit card deposits can be costly. At Coinbase, this will cost you 3,99%. CoinCorner and Binance are also expensive, at 2.5% and 2%, respectively. eToro, on the other hand, requires a deposit fee of just 0.5% on all of its supported payment methods.
  • Trading Commission: You will always need to pay a trading commission when you buy and sell crypto online. Well, not unless you use eToro – as the platform is commission-free. This is in stark contrast to Coinbase, which charges a commission of 1.49%. Binance is also competitive, with the platform charging just 0.10% per slide.

To give you an idea of just how expensive Coinbase is to buy and sell Bitcoin, let’s see how a £1,000 debit card purchase compares with a top-rated alternative – eToro.

  • At Coinbase, you’ll need to pay 3.99% to buy crypto with a debit card
  • On a £1,000 investment, that’s a fee of £39.90 – which includes the trading commission
  • Assuming you sold your crypto on Coinbase, a £1,000 sell order cost you a trading fee of 1.49%
  • This would therefore cost you £14.90

As per the above, buying and selling £1,000 worth of crypto on Coinbase would cost you £54.90.

Now let’s repeat the same transaction but this time, with eToro.

  • At eToro, you’ll need to pay 0.5% to deposit funds with a debit card
  • On a £1,000 deposit, that’s a fee of £5
  • When you buy crypto on eToro, you won’t be charged any commission
  • When you sell your crypto investment on eToro, you also won’t be charged any commission

As per the example above, the same transaction on eToro cost you just £5, while at Coinbase, you would have paid £54.90!

Regulation and Safety

etoro fcaAlthough you might want to find an alternative to Coinbase UK to save on fees, it is crucial that you only use a platform that is safe. In all fairness to Coinbase, the exchange does have an excellent reputation in the safety department.

This is, however, completed countered by the excessive fees it charges. Nevertheless, the best Coinbase alternative that we reviewed – eToro, is actually authorized and regulated by the FCA.

Not only this, but the platform is also licensed by regulators in Australia and Cyprus. This ensures that you are able to buy, sell, and trade crypto without needing to worry about the safety of your funds.

Payments

The best Coinbase alternatives in the UK will offer a range of payment methods at competitive fees. The best option on the table is a debit card, as your deposit will be processed instantly. E-wallets like Paypal and Skrill are also useful, as these provide a fast and secure way of getting money into your trading account.

However, a lot of alternatives to Coinbase UK only allow you to deposit funds via bank account transfer. If this is the case, it can take several working days for the funds to arrive. You should also check to see what the minimum deposit is and how long the exchange takes to process withdrawal requests.

Supported Cryptocurrencies and Altcoins

Although most investors in the UK are seeking a Coinbase alternative to buy Bitcoin, there are many other cryptocurrencies that you might be interested in. For example, you might want to dabble in Ethereum, Ripple, or even Bitcoin Cash.

etoro cryptocurrency list

Either way, it’s best to choose an alternative to Coinbase UK that gives you access to heaps of markets. eToro offers 16 digital currencies that you can buy and sell on a commission-free basis.

Wallet Security and Storage

When you buy crypto from an online exchange, you are normally given two options in terms of storage.

  • First, you have the option of leaving the coins at the exchange until you decide to cash out. As most exchanges in the UK are unregulated, this isn’t advisable. After all, if the exchange was hacked, our funds are at risk.
  • Secondly, you’ll have the option of withdrawing the crypto coins to a private wallet. Although this is typically a much safer way of doing things, digital wallets can be imitating if you don’t quite know how they work.

As such, the conundrum of storing digital currencies is often what prevents newbies from entering the market for the first time. With that said, our top-rated UK Coinbase alternative – eToro, offers a great solution.

This is because the platform will safely store your crypto investment until you decide to sell. As the broker is regulated by the FCA, ASIC, and CySEC – you can be sure that the provider will keep your digital currency safe at all times.

Automated Crypto Trading and Investing

Coinbase offers a skin and bones service in terms of automation. That is to say, you will be required to buy and trade cryptocurrencies on a do-it-yourself basis.

This can be challenging if you are a complete newbie, as cryptocurrencies operate in a highly speculative and volatile ecosystem. As such, we find that the best alternatives to Coinbase UK offer automated trading solutions.

cryptoportfolio at etoro

As we mentioned earlier, eToro offers a CopyPortfolio that focuses exclusively on cryptocurrencies. This means that you will be buying a full range of different digital coins – allowing you to diversify and reduce your exposure to a single asset. Plus, the team at eToro will manage your crypto CopyPortfolio on your behalf by rebalancing it as and when needed.

Getting Started with the Best Coinbase Alternative UK

Once you have selected the best Coinbase alternative for your needs, it’s then time to go ahead and open an account with your chosen provider. By using our top-rated alternative, eToro – you can buy crypto in less than 10 minutes from start to finish.

Here’s what you need to do:

Step 1: Open a Crypto Trading Account at eToro

Unlike unregulated exchanges in the crypto scene – eToro is heavily regulated. As such, the provider requires you to go through a quick registration process before you can start trading cryptocurrency.

eToro sign up

Once you click on the ‘Join Now’ button on the eToro homepage, you will be asked to provide the following information:

  • Full Name
  • UK Address
  • Date of Birth
  • UK Mobile Number
  • National Insurance Number
  • Email Address

eToro will send a PIN to your phone via SMS, which you will then need to enter to complete the registration process.

Step 2: Upload ID

An additional requirement that the FCA has on regulated crypto brokers is that of the KYC (Know Your Customer) process. This simply means that eToro needs to verify your identity by collecting some documents from you.

As such, you’ll be asked to upload the following two documents:

  • Bank account statement or utility bill issued within the last 3 months
  • Passport or driver’s license

eToro is normally able to verify the above documents as soon as you upload them.

Step 3: Deposit Funds

Although eToro allows you to buy cryptocurrency from just $25, the minimum deposit is $200. You can fund your eToro account with a UK debit/credit card, e-wallet, or bank transfer.

Step 4: Choose Which Cryptocurrency to Buy

Once you have made a deposit, you can search for your chosen cryptocurrency by clicking on the ‘Trade Markets’ button, followed by ‘Crypto’. However, if you already know which cryptocurrency you want to buy, search for it.

Buy cryptocurrency on eToro

As you can see from the example above, we are looking to buy Ripple (XRP).

Step 5: Buy Cryptocurrency

Once you find the cryptocurrency you want to buy, click on the ‘Trade’ button. This will populate an order box like the image below.

Buy cryptocurrency on eToro

All you need to do is enter the amount of cryptocurrency that you want to buy. This is always in US dollars on eToro and you will need to meet a minimum investment of $25.

Finally, click on the ‘Open Trade’ button to complete your commission-free cryptocurrency investment!

Best Coinbase Alternative – The Verdict

As we have covered throughout this guide, Coinbase is an expensive cryptocurrency exchange. Not only does it charge a commission of 1.49% every time you buy or sell a digital currency, but you’ll need to pay a whopping 3.99% when depositing funds with a debit card.

With that in mind, this guide has reviewed the best UK Coinbase alternatives to consider in 2021. We concluded that eToro is the best option in this respect, as the platform allows you to buy and sell cryptocurrency commission-free. Plus, eToro is regulated by the FCA and you will only pay 0.5% when you deposit funds with a debit/credit card, e-wallet, or bank account!

eToro – Best Coinbase Alternative UK

 

Cryptoassets are highly volatile unregulated investment products. No EU investor protection.

FAQs

What is the best Coinbase alternative UK?

We found that eToro is the best Coinbase alternative for several reasons. Crucially, the platform is regulated by the FCA, charges just 0.5% on debit/credit card and e-wallet deposits, and you won't need to pay any commission to buy or sell cryptocurrency!

Which UK crypto exchanges are cheaper than Coinbase?

If you're looking to save money on your crypto trading endeavors, eToro charges nothing in the way of commission. This will save you the 1.49% commission that Coinbase charges. You will also avoid paying a 3.99% fee to fund your account with a debit card, as eToro charges just 0.5%.

Which Coinbase alternatives UK accept Paypal?

If you want to buy cryptocurrency with Paypal, this is supported by eToro. The FCA broker also supports Skrill and Neteller. .

Is there an alternative to Coinbase?

Yes, there are hundreds of cryptocurrency exchanges available to UK traders! However, most of these operate without a license from the FCA. This is why we suggest sticking with an FCA broker like eToro - which allows you to buy cryptocurrency commission-free.

What are the Coinbase fees UK?

If you want to buy cryptocurrency directly with your debit card, Coinbase will charge you an all-in fee of 3,99%. If you deposit funds with a UK bank account, you won't pay a transaction fee. But, you will pay a trading fee of 1.49% when you buy and sell your chosen cryptocurrency.

What is the best Coinbase alternative beginners?

Although Coinbasen charges excessive fees, the exchange is well-known for being suited to newbies. If you're a beginner, eToro is worth considering as a great Coinbase alternative, as the platform is really simple to use.

Which is better Kraken or Coinbase?

Kraken not only allows you to buy, sell, and trade cryptocurrencies on a much cheaper basis than Coinbase, but it offers a lot more markets.

Kane Pepi

About Kane Pepi PRO INVESTOR

Kane Pepi is a British researcher and writer that specializes in finance, financial crime, and blockchain technology. Now based in Malta, Kane writes for a number of platforms in the online domain. In particular, Kane is skilled at explaining complex financial subjects in a user-friendly manner. Academically, Kane holds a Bachelor’s Degree in Finance, a Master’s Degree in Financial Crime, and he is currently engaged in a Doctorate Degree researching the money laundering threats of the blockchain economy. Kane is also behind peer-reviewed publications - which includes an in-depth study into the relationship between money laundering and UK bookmakers. You will also find Kane’s material at websites such as MoneyCheck, the Motley Fool, InsideBitcoins, Blockonomi, Learnbonds, and the Malta Association of Compliance Officers.

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