OTC trading is an excellent opportunity for traders to get the most reward for their investment. Although it’s not that popular, the few traders exploring this opportunity steadily give positive feedback.
In this post, I’ll take you through the nitty-gritty of OTC cryptocurrency and why you should implement it. But before that, let’s run through the benefits of OTC trading.
Benefits of OTC Trading
1. Better prices
The crypto market is still developing; thus, there’s no guarantee that high-volume orders will do well as the liquidity is not high enough. However, you can effectively place a massive order at a reasonable price and expect good results with OTC.
2. Deeper liquidity
The liquidity of traditional cryptocurrency trading methods isn’t sufficient to process trades of a certain magnitude. On the other hand, OTC trading offers you high liquidity for all your trading activities.
3. Faster trades
Due to low liquidity, it might take many days to complete a transaction when processing a massive trade via traditional crypto trading methods. OTC trades, on the other hand, have a faster processing time.
4. Less slippage
Traditional trading methods dissect your orders into small sections to facilitate the entire process, increasing the order processing fees known as spillage. Conversely, making OTC trading your number one choice guarantees less slippage in your order.
5. Same price for the total order
Affluent individuals and institutions inject over $100,000 into their trades, which might not be the case with you. If you want to purchase cryptocurrency at lower rates, CoinSpot is the recommended OTC crypto broker. They have lower limits for trading.
Best OTC Crypto Broker in Australia
1. CoinSpot
Safe, secure, and highly regulated, CoinSpot is an excellent option for OTC trades. It’s audited regularly, compared to other brokers. What’s more, CoinSpot is the only crypto broker with ISO 27001 certification, so you can trust them with your funds.
CoinSpot allows its users to effectuate their trading activities across over 360 cryptocurrencies. CoinSpot charges low OTC fees in every trade, which is a great advantage of trading with them. Their trading desk is professional and valuable as it helps you include cryptocurrency in your portfolio. Blockchain education and training, great prices, facilitating deposits, blockchain security, and withdrawals.
Moreover, CoinSpot offers an excellent trading deal as it has the option to trade with as low as $50,000, whereas other OTCs require you to invest $100,000 and above. So if you want to start using CoinSpot, visit their website to learn more about their great deals.
2. Swyftx
Swyftx is another great OTC broker that offers many trading opportunities to its users and rates 4.8 stars on Trustpilot. Their OTC services are available for wealthy individuals, institutional clients, and SMSFs who need to inject a massive chunk of money anonymously.
Swyftx also provides an opportunity for its users to use over 320 different cryptocurrencies in massive orders of over $100,000. They offer services that will enable you to trade efficiently without any setbacks. They have worldwide liquidity providers which enable users to conduct their trading activities swiftly without slippage. They charge the standard price of 0.6% per trade, and it’s possible to come up with a new payment structure if you talk to the manager.
3. Digital Surge
Digital Surge is a great OTC broker for Aussies. They have personalised their interactions with their users as they offer OTC services and allow investments of over $100,000. Similarly, they have genuine connections worldwide and guarantee competitive pricing without slippage.
Digital Surge incorporates tailored order techniques according to your requirements, which most users find interesting. According to the market, they also have a pliable fee structure and can provide a locked-in rate or a fixed fee.
Digital Surge currently supports over 300 cryptocurrencies. Their trading fee is capped at 0.5%, but this can further decrease if you take up large-scale trading. If you want to start trading with Digital Surge, you simply need to open an account and contact their credible team.
4. Independent Reserve
If you’re looking for an OTC broker with insurance cover, consider Independent Reserve’s premium plan. The Insurance cover will cover you against theft or the loss of digital currencies in your wallet. The premium account includes cover for up to $5 million worth of cryptocurrencies, with a 0.01% reduced crypto exchange fee.
However, Independent Reserve supports only 27 cryptocurrencies. The most popular coins such as ETH, BTC, XRP, LTC, and ADA are among these. Using Independent Reserve is an excellent opportunity for fiat currencies such as USD, SGD, AUD, and NZD. Their policies state that you can transact $100,000 with a 0.5% fee per trade. This fee can be discounted when you make high-volume trades for up to 30 days.
Their support team works tirelessly 24/7. However, their call agents are available from 9 a.m. to 5 p.m., Mondays through Fridays. Besides their quick response to complaints and enquiries, they also offer a same-day settlement, which is one of the reasons it’s so famous. To start trading with Independent Reserve, you’ll have to open an account.
Top OTC Brokers Discrete Breakdown
Now that we know the best four OTC brokers in Australia let’s break them down individually to reveal core features.
1. CoinSpot
User experience
CoinSpot offers excellent services and focuses more on its user’s experience. You’ll find qualified brokers at their OTC desk who will help you include cryptocurrency in your portfolio. This includes blockchain education and training, deposits, security processes, and withdrawals.
CoinSpot has a minimum trade amount of $50,000, which is less than other OTC brokers. Their app is straightforward to use. And, in the event of any setbacks, you can always contact their support team.
CoinSpot fees
If you’re depositing in AUD, you don’t have to pay any fees using PayID, POLi, or OSKO. However, if you’re using BPAY deposits, you’ll pay a fee of 0.9%, whereas newsagent cash deposits will require you to pay a fee of 2.5%. On the other hand, AUD withdrawals are free of charge, but they must be directed to Australian banks.
360+ cryptocurrencies
CoinSpot supports over 360 cryptocurrencies in the Australian market. Generally, CoinSpot incorporates new coins, so you can take this as an opportunity to exploit the trading market as it provides you with a wide range of options. CoinSpot doesn’t have numerous slippage cases. It reduces the risk of large-scale trading, providing you with the best coin prices.
CoinSpot security
CoinSpot takes its security seriously. Hence, it’s one of Australia’s most secure and trusted OTC brokers. They have numerous security practices like securing assets in cold storage and imposing a 2FA biometric validation process. It’s also regularly audited.
2. Swyftx
User experience
Swyftx has an impressive interface geared toward solving all its user’s challenges. Their interface allows users to navigate quickly and freely without complications while trading. They offer top tier services, including extensive consultations with clients and trade execution which are primarily crucial for most users.
Swyftx fees
Swyftx doesn’t charge any fees for AUD deposits and withdrawals to Australian bank accounts. However, Swyftx requires you to pay a trading fee of 0.6%. Large-scale traders are eligible for a discount.
320+ cryptocurrencies
Swyftx has proved to be one of the best OTC brokers as it has a massive range of cryptocurrencies totalling 320+ coins. It has access to worldwide liquidity providers to execute trades with no slippage.
Swyftx security
Since its establishment in 2017, Swyftx has never had any security breach. Its security system comprises 2FA, password detection, biometric authentication, and AUSTRAC to deter money laundering. It is a secure OTC broker you can trust with your finances.
3. Digital Surge
User experience
Digital Surge has a highly-rated user interface that functions exceptionally on mobile apps and desktops. What makes it even better is that you can easily navigate through it and get the assistance you need in no time. They have a live chat system that lets you contact their professionals regarding anything. They allow you to make payments through Bitcoin, which is a feature you can’t find anywhere else. Additionally, their settlement is instant, making them even more popular among traders.
Digital Surge fees
Digital Surge allows its users to deposit money freely when they use PayID, but when they use POLi, they’ll have to pay a certain fee. The fee starts from $2 and is capped at $3.30. However, when making AUD withdrawals to
an Australian bank account, you don’t have to pay anything.
Digital Surge charges a trading fee of 0.5%, but this can be discounted if you place a large-scale trade for 30 days. If your trade surpasses $1 million during this period, your fees will be lowered to 0.1%.
300+ cryptocurrencies
Digital Surge allows users to trade over 300 distinct coins, which is impressive since they haven’t been in the trading game for too long. Even more impressive is their range of the most popular cryptocurrencies, such as ETH, BTC, ADA, XRP, and BNB.
Digital Surge security
Even though Digital Surge hasn’t been in the game for too long, they have taken the mandate to ensure that their security is top tier. They have managed this by ensuring most of their user’s assets are stored in cold storage. They also ensure that all deposits made through POLi and PayID are safe and secure. They have a 2FA to enhance their security system, and they are registered with AUSTRAC and ASIC, which makes them even more trustworthy.
4. Independent Reserve
User experience
Independent Reserve offers its users—institutional clients and large-scale investors—quality OTC services. This broker has gained popularity among many high-volume traders; hence, they are trusted by over 8,000 SMSFs. They have a great OTC team that comprises professional veteran traders who will readily offer you the required assistance for your investment. Their minimum deposit currently stands at $100,000, with a 24 hours settlement.
Independent Reserve fees
Deposits of 1000 AUD or more are free. However, if you invest less than that, you’ll have to pay a fee of 2.50 AUD. You don’t have to pay anything for electronic transfers if you deposit over 100 AUD. On the other hand, international deposits are only free when you invest 5000 USD or its NZD equivalent. You’ll have to pay a $15 transaction fee for lesser amounts.
All AUD withdrawals are free, but if you need the money quickly and opt for NPP, you should be ready to pay $1.50. Non-Australian dollar withdrawals incur a $20 fee. The trading fees start at 0.5%, but this can be discounted
when you take up large-scale trading for 30 days.
27 cryptocurrencies
Independent Reserve doesn’t offer many cryptocurrencies compared to various OTC brokers in Australia. They only offer 27 famous coins, including ETH, BTC, ADA, XRP and LTC. This is why Independent Reserve has high liquidity on specific researched digital assets. Their minimum trading amount is $100,000; however, you can trade as much as $10 million without any slippage.
Independent Reserve security
Independent Reserve security is top tier as they ensure that all the information you share with them is confidential. Their data is safe at a Tier 3 centre in Sydney, which helps them stop data loss when there’s an outage. Their data is encrypted and signed numerous times for certainty.
Similarly, most Independent Reserve assets are kept safe in cold storage that is keenly monitored to prevent malpractice. Multiple layers of physical security safely secure the vaults protecting the assets. And what’s more, there’s also a biometric authentication system to reassure users of the safety of their assets.
