How to Trade Crypto Futures - In the UK 2025
Explore our curated list of our top 3 reputable exchanges for 2025, each rigorously tested with real funds. All brokers are accessible to traders in the United Kingdom.
Quick Answer: How can you Trade Crypto Futures in the UK?
In the UK, for example, while the FCA bans retail consumers from trading crypto derivatives, platforms like MEXC offer these services globally, including to UK users, from their offshore bases, bypassing the ban and direct FCA oversight. Users should tread carefully, considering the regulatory landscape.
Comparison Table of Crypto Futures Trading Exchanges
| MEXC | OKX | Coinbase | |
|---|---|---|---|
| Spot Trading Fees | 0.1% for some pairs, Zero fees for selected pairs | 0.08% for makers, 0.10% for takers | Varied fees based on pricing tiers |
| Futures Trading Fees | 0.01% for makers, 0.05% for takers | 0.02% for makers, 0.05% for takers | Not applicable |
| Leverage | Up to 200x | Up to 100x on futures, 10x on spot trades | No |
| Number of Coins | 1,520+ cryptocurrencies | 320+ tradable cryptocurrencies | Extensive range, exact number varies |
| User Base | Info not found | Over 20 million users worldwide | Large global presence |
| Deposit Methods | Crypto, Visa/Mastercard, Bank Transfer, etc. | Crypto deposits; Fiat not supported directly | Bank transfers, Debit/Credit cards |
| Withdrawal Fees | No fiat withdrawals | Competitive crypto withdrawal fees | Varies by asset and method |
| Security | High, with cold storage for assets | Proof of Reserves (PoR) report, $14.5 billion in assets | High, adheres to U.S. regulations |
| Regulation | Unregulated in most jurisdictions | Largely unregulated in major markets | Heavily regulated, U.S.-based |
| User Experience | Versatile platform for all levels | User-friendly, suitable for beginners and pros | Known for trustworthiness, user ed. |
| Special Features | Copy Trading, Token Launchpad | Spot Copy Trading across 120 spot pairs, Smart Account feature | Crypto educational courses |
| Geographical Availability | Almost every country | 160+ countries, not available in North America | Global, focus on the U.S. market |
Introduction to Crypto Futures
Crypto futures represent a cornerstone in the dynamic world of cryptocurrency trading, enabling traders to predict and bet on future price movements of digital currencies without the need to possess the actual asset.
Essentially, these contracts are agreements to buy or sell a particular cryptocurrency at a specified price on a future date, serving both speculative purposes and as a hedge against market volatility.
Particularly, Bitcoin futures stand out for their potential to diversify trading strategies, allowing investors to gain exposure to Bitcoin’s price movements while managing risks more effectively.
This mechanism not only broadens the scope and limits the availability of investment opportunities but also introduces a strategic layer to trading in the digital asset markets.
MEXC – Low Fees, Deep Liquidity, Global Focus
Pros & Cons
- Very low trading fees (as low as 0%)
- Huge range of cryptocurrencies (1,000+ listed)
- High liquidity, especially for altcoins
- Offers futures, margin, staking, and launchpad features
- Not FCA-registered (operates offshore)
- Limited fiat on-ramp options for UK users
- Interface may be overwhelming for beginners
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What are the Fees?
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What Cryptocurrencies are Available?
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How Safe is the Exchange?
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Who Is It Best For?
MEXC offers highly competitive fees. Spot trading fees start at 0.1%, with frequent promotions reducing fees to 0%. Futures trading can be as low as 0% maker and 0.01% taker. However, UK users may face higher costs using third-party services for GBP deposits and withdrawals, as MEXC does not directly support Faster Payments.
MEXC is known for its extensive selection, listing over 1,000 cryptocurrencies, including major tokens like Bitcoin, Ethereum, and Solana, as well as a wide array of emerging altcoins. It’s one of the best platforms for discovering new tokens early.
While MEXC employs security features like two-factor authentication and withdrawal whitelists, it is not regulated by the FCA or a major Western financial authority. That said, it has a solid track record with no major hacks reported, and it holds user funds in cold storage. Caution is advised due to the lack of UK regulatory oversight.
MEXC is ideal for experienced traders and altcoin enthusiasts who want access to a broad range of assets and advanced tools. It’s less suited for UK beginners due to its complex interface and lack of direct GBP support, but great for those who prioritize selection and low fees.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
OKX - Low Fees, Advanced Features, Less Regulated
Pros & Cons
- Very low spot trading fees
- Advanced trading features (futures, margin)
- High liquidity for major cryptocurrencies
- Not FCA-regulated
- Limited fiat on-ramp options
- Interface can be complex for beginners
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What are the Fees?
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What Cryptocurrencies are Available?
-
How Safe is the Exchange?
-
Who Is It Best For?
OKX charges 0.08% maker and 0.1% taker fees on spot trades, with lower rates for high-volume traders. Futures trading fees start at 0.02% maker and 0.05% taker. Crypto deposits are free, but withdrawal fees vary by asset.
OKX offers access to over 200 cryptocurrencies, including major coins and a wide selection of altcoins. It’s a strong choice for users who want more trading options beyond just Bitcoin and Ethereum.
OKX uses cold storage for most customer funds and supports two-factor authentication. However, because it’s not FCA-regulated, UK users don’t get the same local protections as with FCA-registered platforms.
OKX is best for experienced traders who want access to advanced features like margin and futures trading. It’s ideal for users who prioritize low fees and deep liquidity over beginner-friendly design or local regulation.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
Coinbase- Beginner-Friendly, Secure, Trusted Brand
Pros & Cons
- Beginner-friendly interface
- Strong security measures
- FCA-registered
- Supports over 390 cryptocurrencies
- Higher fees compared to competitors
- Limited advanced trading features unless using Coinbase Advanced
- Slower customer support response times
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What are the Fees?
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What Cryptocurrencies are Available?
-
How Safe is the Exchange?
-
Who Is It Best For?
Coinbase charges around 1% per trade, plus a spread fee of 0.5%. Debit card deposits incur a 3.99% fee. Advanced traders using Coinbase Advanced enjoy lower maker-taker fees starting at 0.5% and decreasing with higher volumes.
Coinbase offers over 390 cryptocurrencies, including Bitcoin, Ethereum, Cardano, and many altcoins. It’s one of the widest selections available among FCA-registered platforms, catering to both casual buyers and those exploring newer tokens.
Coinbase is highly secure, storing 98% of customer assets in cold storage. It enforces two-factor authentication and has a strong reputation for protecting user funds. Its compliance with UK regulations adds an extra layer of investor protection.
Coinbase is best for beginners who prioritize ease of use and security. Its simple platform design and clear buying process make it perfect for those new to cryptocurrency who want a safe place to start without technical complexity.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
Regulatory Landscape in the UK
In the UK, the Financial Conduct Authority (FCA) has taken a firm stance on crypto derivatives, imposing a ban on the sale of such products to retail clients. This prohibition stems from concerns over high risks and volatility associated with these instruments, which could lead to significant losses for retail investors.
The regulatory landscape for bitcoin futures is nuanced, with the FCA’s decision highlighting the need for investor protection. However, this has also created a complex environment where traders seek platforms outside FCA jurisdiction to access these markets, emphasising the global and decentralised nature of cryptocurrency trading.
Trading Stategies and Risk Management
To delve deeper into trading strategies and risk management in the volatile crypto market, it’s essential to adopt a multifaceted approach that balances potential profits against the costs and the risks of significant losses. Key strategies to explore include:
- Technical Analysis: Utilizing chart patterns and indicators to predict future price movements and identify entry and exit points.
- Fundamental Analysis: Assessing the intrinsic value of a cryptocurrency based on news, developments, and financial metrics.
- Position Sizing: Calculating the appropriate amount to invest in a trade based on your risk tolerance and overall portfolio size.
- Diversification: Spreading investments across various assets or sectors to reduce the impact of a single loss.
- Stop-Loss and Take-Profit Orders: Automatically closing trades at predetermined price levels to lock in profits and limit losses.
- Hedging: Using derivative instruments like futures contracts to offset potential losses in spot market positions.
Understanding exposure is crucial. It refers to the degree of risk associated with your investments. Setting appropriate limits—such as how much of your portfolio is exposed to a single asset—helps in managing this exposure and ensuring that potential losses don’t exceed your risk tolerance. Regularly reviewing these parameters in light of evolving market conditions and personal financial goals is vital for maintaining a robust risk management strategy.
Understanding Leverage and Its Risks
Understanding Leverage in Futures Trading:
Leverage allows traders to control larger positions with a smaller capital investment.
It magnifies both potential profits and losses in proportion to the chosen leverage level.
Potential Benefits of Leverage:
Leverage can amplify profits, offering the opportunity for significant gains.
It allows traders to access larger positions than they could with their own capital alone.
Risks Associated with Leverage:
On the flip side, leverage can lead to substantial losses, and even a small adverse price movement can wipe out an entire investment.
It amplifies the impact of market volatility, making risk management paramount.
Essential Aspects of Risk Management:
Setting stop-loss orders at predefined price levels helps limit potential losses.
Diversifying a portfolio across different assets spreads risk.
Proper position sizing ensures that traders don’t overcommit to a single trade.
Significance of Regulated Platforms:
Trading on regulated platforms ensures adherence to financial standards and operational integrity.
Regulated platforms prioritize client protection and provide a safer environment for leveraging trading strategies in the volatile crypto market.
Exploring Market Trends
When it comes to exploring market trends in cryptocurrency futures, it’s essential to consider the broader landscape beyond Bitcoin. Here’s an analysis:
Diverse Cryptocurrency Futures: While Bitcoin futures remain a focal point, there’s a growing interest in futures contracts for other cryptocurrencies like Ethereum, Ripple, and Litecoin. These offer traders opportunities beyond the Bitcoin market.
Rising Popularity of Altcoins: Altcoins (alternative cryptocurrencies to Bitcoin) are gaining traction in the futures market. Traders are exploring futures contracts on assets like Ethereum (ETH), which has seen significant growth.
Emergence of Crypto ETFs: Exchange-traded funds (ETFs) tracking cryptocurrency indices have become increasingly popular. These ETFs provide exposure to a basket of cryptocurrencies, simplifying diversification.
Commodities and Stocks in Futures: Some platforms offer futures contracts tied to traditional assets like commodities (e.g., gold) and stocks (e.g., tech companies). These contracts enable traders to diversify their portfolios further.
Leveraging Traditional Assets: futures can serve as a hedge against traditional market movements. Traders may turn to futures during stock market volatility or economic uncertainty.
Overall, the futures market is evolving, with traders exploring a more extensive range of assets and investment opportunities, including ETFs, commodities, and stocks, to diversify, increase their exposure and adapt to changing market conditions.
Conclusion
In conclusion, the state of futures contract trading in the UK reflects a dynamic landscape shaped by regulatory decisions and market trends. The ban on certain crypto derivatives for retail clients by the Financial Conduct Authority (FCA) underscores the importance of investor protection. However, this has led to a complex environment where traders seek platforms in jurisdictions outside FCA jurisdiction to access these markets.
The future outlook for futures trading in the UK remains uncertain. Potential developments may include:
Regulatory Evolutions: Ongoing regulatory changes may influence the accessibility and types of crypto futures available to UK traders.
Market Expansion: As the crypto market continues to grow, new assets and trading opportunities may emerge, further diversifying the futures market.
Innovative Products: Platforms may introduce innovative products, such as crypto ETF futures, to cater to evolving investor preferences.
It’s paramount for readers to stay informed and exercise caution when considering futures trading. Due diligence, risk management, and choosing regulated platforms are vital for both profit while navigating this dynamic and evolving market. By staying informed and making informed decisions, traders can potentially benefit from the opportunities while minimizing risks.
FAQs
How can I trade crypto futures in the UK?
To trade futures in the UK, you will not find legally a UK regulated exchange. Off shore exchanges may offer these services but they will not be FCA regulated so please act with caution.
What are futures contracts in crypto trading?
Futures contracts are agreements to buy or sell cryptocurrencies at a specified price on a future date. They enable traders to speculate on price movements without owning the underlying assets.
Are Bitcoin futures available in the UK?
Yes, Bitcoin futures are accessible in the UK through unregulated platforms. These bitcoin futures allow traders to bet on the future price of Bitcoin.
How can trading strategies significantly impact futures?
Effective trading strategies can optimise profits and minimize losses in futures trading. Strategies like technical analysis, diversification, and risk management play a vital role.
What is the appropriate level of leverage for futures?
The appropriate leverage level varies based on your risk tolerance. It’s crucial to choose a level that allows you to maximize potential profits while managing risks effectively. Leverage will cause greater losses.
