These days, most traders have started to turn away from conventional exchange-traded products, favouring more specialised digital assets, thanks to OTC trading. Like other trading strategies, the platform you choose as an OTC trader will significantly impact your trading performance. Below are 5 best OTC crypto trading platforms in Australia if you seek a highly responsive, secure, and safe OTC platform.
What is Over-The-Counter Crypto Trading?
OTC crypto trading is a method of trading cryptocurrencies directly between two parties. This type of trade can be either crypto-to-crypto or crypto-to-fiat, and it typically involves an OTC desk that acts as a middleman to connect crypto buyers and sellers. In contrast to traditional exchanges, the price of an OTC trade is determined solely by the two parties involved, without being impacted by the broader market.
One significant advantage of OTC crypto trading is executing large trades without affecting the market. When large orders are placed on traditional exchanges, they can change prices significantly and significantly affect the market. In contrast, OTC trades are executed directly between the two parties without affecting the market.
In addition, OTC crypto trading offers an added level of privacy. OTC trades are not publicly reported, so the two parties’ identities remain confidential. This is especially useful for those looking to trade large quantities of cryptocurrency because it eliminates the risk of the trade being publicly reported and impacting the market.
How to Select the Best OTC Trading Platforms
You should consider several variables to select the best OTC trading platform in Australia because your choice of broker will directly and proportionally affect how successful your trading strategy is.
Regulation & Security
It is crucial to choose a regulated broker who is watched and checked to ensure customers are not exploited or manipulated. Unregulated brokers who make markets may manipulate prices in the wrong direction if they face significant losses, negatively affecting traders on the other side of the trade and reducing profitability.
A regulated broker offers the advantage of increased safety and capital security. Brokers have taken investors’ money and run away with it more than once, causing investors to lose much money. This is not possible with regulated brokers since they are required to have insurance for the funds kept on their platform. Therefore, funds deposited with them are secure and can be withdrawn anytime.
To ensure that the broker you invest with is safe and regulated, only consider Tier-1 agencies. Several agencies belong to different countries worldwide, and each applies to a different jurisdiction or asset class. For instance, if trading in Australia, look for brokers regulated by AUSTRAC and have ISO certifications.
Assets Supported
Before using an over-the-counter (OTC) trading platform in Australia, it’s crucial to think about the types of assets it has. Even if you plan to trade only one or two asset classes, you can select an OTC brokerage platform that provides a variety of asset classes.
Also, platforms that let you trade in more than one type of asset usually have more features. Usually, you can trade coins, bitcoin ETFs, and other crypto-based products on multi-asset OTC trading platforms.
Fee Structures
The fees charged by OTC trading brokers can impact your type of strategy and your overall trading performance. For example, if you use an OTC trading platform that charges high commissions on each trade, you won’t be able to trade as much, and the commissions will wipe out your small profit margins, so you won’t make or lose much.
The fees can be categorised into two types: trading fees and non-trading fees. Trading fees refer to the fees you incur every time you trade, such as commissions or spreads. Non-trading fees, on the other hand, are not directly related to your trading activities and include inactivity fees, deposit and withdrawal fees, and account management charges.
Before starting to trade on a platform, you need to understand the different fees that the platform charges. These fees may vary across asset classes and are distinct for each country or jurisdiction. Choose an OTC crypto trading broker in Australia with lower fees over a platform that charges more for the same features.
Payment Methods
When choosing an OTC trading broker in Australia, it’s essential to consider how to put money into and take it out of your trading account. Even though many brokers offer bank transfers and credit/debit card options, it’s better to choose brokers that also accept e-wallets like PayPal, Skrill, etc. This will make it easier for you to manage your account and transfer funds in and out.
Mobile App
A crypto OTC trader needs to be able to quickly and automatically open and close multiple positions. While there’s not much need for close management, monitoring your portfolio is still important. This is where a mobile trading app comes in handy, as it allows you to keep an eye on your positions and trade on the go, even when you’re away from your computer. Additionally, many mobile apps come equipped with price alerts and push notification features that help you stay informed while on the move.
Customer Support
An essential thing to consider is how good the customer service is on an OTC trading platform in Australia. Live chat support is a great feature to look for because it lets you solve problems quickly and easily. Furthermore, it’s essential to choose a platform with customer service teams available 24/7 so that you can contact them via phone or email and receive prompt answers to your questions.
Top 5 Crypto OTC Trading Platforms in Australia
CoinSpot – Best OTC Trading Broker in Australia
CoinSpot, Australia’s leading OTC cryptocurrency broker, offers the most extensive range of digital assets, with over 380+ cryptocurrencies available. The platform provides lock-in pricing, eliminating slippage and minimising risks associated with high-volume trading.
With a low minimum transaction amount of only $50,000, assets are available instantly after trade settlement. CoinSpot’s user-friendly website and app are easy to navigate.
CoinSpot fees are very competitive, as the platform charges zero fees for AUD deposits via POLi, PayID, and direct deposit (OSKO) and only a small fee of 0.9% for BPAY deposits. Cash deposits at newsagents incur a 2.5% fee. Withdrawals in AUD to Australian bank accounts are free of charge, and trading fees are the lowest among the best Australian OTC crypto brokers at only 0.1%.
Customer support is at the forefront of CoinSpot’s services. The platform assists you with all aspects of cryptocurrency trading, including facilitating high-value deposits and withdrawals, providing blockchain training and education, implementing best practices in blockchain security processes, and onboarding Self Managed Super funds and Business Accounts.
CoinSpot has the highest level of security because it uses standard security measures like two-factor authentication (2FA), biometric authentication, and storing most digital assets offline in cold storage. CoinSpot is Australia’s most audited OTC crypto broker and the only one with ISO 27001 certification. This makes it the country’s most trusted and safest OTC cryptocurrency broker. You can read our CoinSpot review for more details.
Swyftx – #2 OTC Crypto Broker in Australia
Swyftx is the second-best crypto OTC broker in Australia. Swyftx offers an extensive selection of cryptocurrencies with over 320 various coins accessible. You can execute large OTC transactions on all its currencies with low spreads thanks to its access to a network of international liquidity sources.
With a sleek UI that makes it simple to navigate on both mobile and PC apps, Swyftx provides an excellent user experience. Swyftx’s OTC customers receive advice, transaction execution, and continuing assistance. OTC desk transactions can be changed and settled quickly.
For AUD transfers and disbursements to Australian bank accounts, Swyftx levies NO fees. Swyftx costs 0.6% commissions on each trade it executes. High-volume dealers are eligible for discounted costs.
Swyftx, like all of the top Australian OTC crypto exchanges, has top-notch security and has not experienced a security incident since its founding in 2017. Swyftx is registered with AUSTRAC to combat money laundering and the funding of terrorism, and security measures used include 2FA, biometric identification, and password leak detection. You can read our Swyftx review for more details.
Kraken – Best US-based OTC Trading Broker
Kraken is one of the leading US-based cryptocurrency trading platforms that supports over 110 cryptocurrencies, including major ones such as Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Dogecoin (DOGE), Litecoin (LTC), Polkadot (DOT), and Polygon (MATIC). The exchange also supports stablecoins like Tether, USD Coin, and Dai, and allows the exchange of US dollars for Canadian dollars, Japanese yen, or Swiss francs.
Kraken’s Over-the-Counter (OTC) trading desk requires a minimum trade value of $145,000. It offers 1-on-1 market insights from experienced investors who have worked at companies like JP Morgan and Morgan Stanley. The platform provides 24/7 customer support worldwide to all OTC users.
Unlike other exchanges, Kraken charges deposit fees based on the deposit method, not the currency used. Bank transfers and OSKO deposits are free, while Google Pay and Apple Pay deposits incur a 3.75% + $0.25 fee, and credit and debit card deposits have a 3.75% + €0.25 fee. Trading fees start at 0.16% for makers and 0.26% for takers, and average trading fees are 0.9% for stablecoins and 1.5% for other cryptocurrencies or FX pairs.
Kraken takes a comprehensive approach to user safety, offering distinct Two-factor Authentication (2FA), offline storage of 95% of all deposits, granular API key permissions, configurable account timeouts, and a mechanism to prevent modifications to compromised accounts. Kraken charges zero fees for AUD withdrawals to Australian bank accounts, making it a secure and convenient platform for Australian users. You can read our Kraken review for more details.
CoinJar – Best OTC Broker For Competitive Fees
CoinJar is a reliable option for Australians seeking an OTC crypto broker. While less well-known than CoinSpot, CoinJar offers lower fees and is a safe choice. Although it offers fewer cryptocurrencies than other exchanges, with more than 50 of the most popular coins, it should be sufficient for most investors.
CoinJar’s OTC trading desk is responsive, providing a smooth user experience. Trades are quickly processed with liquidity from around the world and minimal slippage. The platform interface is intuitive and easy to navigate. Additionally, CoinJar OTC allows a minimum trade amount of $50,000, which is attractive to some users as other exchanges require $100,000 or more for OTC trades.
Depositing on CoinJar is free when using NPP, but there are fees of 1.5% for Blueshyft and 2% for Visa/Mastercard, Apple Pay, and Google Pay. However, withdrawals in AUD to Australian bank accounts are free. CoinJar claims to offer the lowest OTC fees among Australian crypto exchanges, usually less than 0.5%, based on the spread between buyers and sellers.
CoinJar prioritises security for both the platform and customers’ assets. The platform uses BitGo and Fireblocks, two leading cryptocurrency custody providers, and always maintains full currency reserves. CoinJar is fully compliant with AUSTRAC and has been operating for a decade, indicating its legitimacy as an Australian crypto exchange. You can read our CoinJar review for more details.
Independent Reserve -Best OTC Desk For Insurance Cover
Independent Reserve is an Australian over-the-counter (OTC) cryptocurrency broker that offers insurance against the loss or theft of digital currency in its online wallet. Independent Reserve supports a variety of popular coins, including BTC, ETH, LTC, XRP, and ADA.
Independent Reserve offers a premium OTC service for SMSFs, institutional clients, and high-net-worth investors. With over 8,000 SMSFs, their professional customer service quality is a testament to their expertise. This crypto OTC trading platform has a minimum order of $100,000, and trades are usually settled on the same day.
Deposit fees vary based on the deposit method you select. Electronic Funds Transfer, PayID/OSKO deposits are free if you deposit AUD 1,000 or more. International deposits are free for NZD and USD deposits of $5000 equivalent or more. AUD withdrawals are free, or $1.50 for NPP instant withdrawals. International or non-AUD withdrawals incur a fee of $20. Trading fees start at 0.5%, which can be reduced with a sizeable 30-day trading volume.
Independent Reserve takes extensive measures to keep customer information confidential and their crypto secure. Independent Reserve offers insurance coverage with a Premium Account for additional protection for its investors, with the highest level of cover ensuring AUD 5 million worth of digital assets. You can read our Independent Reserve review for more details.
Conclusion
OTC platforms offer a distinct advantage for trading cryptocurrencies by enabling traders to access products not typically available on exchanges. If you’re considering using an OTC trader, it’s essential to keep certain factors in mind, which we’ve covered in our 5 best OTC trading platforms in Australia above.
