Editorial note: Forbes Advisor Australia may earn revenue from this story in the manner disclosed here. Read our advice disclaimer here.
The crypto industry has faced a turbulent few years, with several catastrophic crypto exchange collapses, regulatory crackdowns and volatility among digital assets.
However, growing institutional interest in crypto combined with the newly elected pro-crypto US government, has created a surge in the value of digital assets, especially bitcoin.
US-based spot BTC exchange traded-funds have experienced record inflows, and companies are increasingly adding bitcoin to their balance sheets. The Trump administration has even launched a strategic bitcoin reserve. This growing interest in crypto is not limited to the US either; countries like Brazil are also looking to buy bitcoin, and it is estimated that some 4.5 million Australians own crypto.
Many of these Australians will choose to hold their cryptocurrency on an Australian-based or international exchange. There have been several catastrophic exchange collapses over the years, raising concerns about these centralised exchanges and their management of user funds. In fact, the collapse of FTX, once a leading crypto exchange, has left a lasting impact on the industry, with many Australian investors still reeling from losses.
Despite several proposals that have been put forward over the past few years, the Australian Government is still yet to put together a concrete plan for regulating the crypto industry in a way that promotes innovation yet protects investors from illegitimate businesses operating illegally in Australia.
The Government has flagged that crypto exchanges operating in Australia will need to obtain and maintain an Australian Financial Services License (AFSL), but legislation is yet to be introduced to Parliament. This means there are very limited protections for crypto investors under the current regulatory framework.
While the Federal Government attempts to catch up with the swiftness of crypto uptake, many Australians are searching for the safest exchanges to use to trade and store crypto. For those Australians, it’s never been more important to understand what to look for in an exchange and how to evaluate the increasing number of exchanges on offer to investors.
This is a comprehensive guide to what we have determined to be the best crypto exchanges at present. In this article, we’ll look at the top exchanges, evaluating them based on a wide range of factors, including their security, fees, ease of use, and the range of available cryptocurrencies. Whether you’re a seasoned crypto trader or just starting out, this article will help you find the best exchange for your needs. Our list is based on publicly available data and research compiled by an expert team of crypto researchers and writers. Still, we caution our readers to tread carefully when placing money with a centralised exchange or investing in cryptocurrency more broadly.
Note: The below list represents a selection of our top category picks, as chosen by Forbes Advisor Australia’s editors and journalists. The information provided is purely factual and is not intended to imply any recommendation, opinion, or advice about a financial product. Not every product or provider in the marketplace has been reviewed, and the list below is not intended to be exhaustive nor replace your own research or independent financial advice. For more information on how Forbes Advisor ranks and reviews products, including how we identified our top category picks, read the methodology selection below.
An earlier version of this story listed Bitfinex in our top picks. It has since been removed as the exchange is not registered with AUSTRAC in Australia.
Related: Safest way to store crypto
Featured Partners
Our in-house team of data researchers performed an in-depth assessment of the features and options offered by nearly 50 international and Australian cryptocurrency exchanges, crypto trading apps and brokerage platforms that offer crypto trading options.
The trading fees reflected for each brokerage or crypto exchange are the trading fees for the lowest trade volume, using the most basic version of the platform.
The data addressed 11 key variables to assess the quality of each platform:
These variables benchmark features and options across the crypto exchanges and brokerages we surveyed.
The sum of weighted values across all or some of these key factors was calculated for each ranking to award each brokerage or exchange its overall score.
You will note that we have included a star rating next to each product or provider. This rating was determined by the editorial team once all of the data points above were considered, and the pros and cons of each product attribute was reviewed. The star rating is solely the view of Forbes Advisor editorial staff. Commercial partners or advertisers have no bearing on the star rating or their inclusion on this list. Star ratings are only one factor to be considered, and Forbes Advisor encourages you to seek independent advice from an authorised financial adviser in relation to your own financial circumstances and investments before you decide to choose a particular financial product or service.
Related: Top 10 Cryptocurrencies
A crypto exchange is a marketplace where you can buy and sell cryptocurrencies, like bitcoin, Ether or Dogecoin. Cryptocurrency exchanges work a lot like other trading platforms you may be familiar with. They provide you with accounts where you can create different order types to buy, sell and speculate in the crypto market.
Some crypto exchanges support advanced trading features like margin accounts and futures trading. Others have features like crypto staking or lending that allow you to earn interest on your crypto holdings. The best exchanges feature educational offerings to keep you up to date on all things crypto.
Broadly speaking, there are two categories of crypto exchanges: centralised and decentralised. Each category comes with its advantages and disadvantages.
Centralised crypto exchanges (CEX) are managed by one organisation, which makes it easy to start cryptocurrency trading by allowing users to convert their fiat currency, like Australian dollars, directly into crypto. The vast majority of crypto trading takes place on centralised exchanges.
Some crypto enthusiasts object to centralised exchanges because they run counter to the decentralised ethos of cryptocurrency. Even worse, in the eyes of some crypto users, the company or organisation may require users to follow Know Your Customer (KYC) rules. These require each user to divulge their identity, much as you would when you apply for a bank account, to combat money laundering and fraud.
There’s another concern with centralised exchanges: hacking. With a CEX, the exchange holds the crypto traded on its platform—at least in the short term, while trades go through—raising the risk of hackers stealing assets.
Centralised crypto exchanges have beefed up security over recent years to address this risk. Among other strategies, they now store most customer assets offline and take out insurance policies to cover crypto losses in the case of hacking.
If you like the convenience of a centralised exchange, you can reduce your risk by transferring crypto to a separate, off-exchange hot or cold wallet.
A decentralised exchange (DEX) is a marketplace where users can trade cryptocurrencies directly with one another without the involvement of intermediaries. This means that there is no need for a third party to oversee the transfer and custody of funds. Instead, DEXs use blockchain-based smart contracts to enable the exchange of assets, effectively replacing traditional intermediaries such as banks, brokers, and CEXs.
In contrast to transactions processed on a CEX, which lack transparency and rely on an intermediary, DEXs provide complete transparency regarding the movement of funds and the mechanisms involved in the exchange. Additionally, DEXs reduce counterparty risk by eliminating the need for user funds to pass through a third-party cryptocurrency wallet during trading. This, in turn, can mitigate systemic centralisation risks within the cryptocurrency ecosystem.
Unlike their centralised counterparts, DEXs do not typically use an order book system for trades. Instead, they use Automated Market Makers (AMMs). An AMM can be thought of as a money robot that can quote a price between two or more digital assets. This system is beneficial in that it creates instant access to liquidity that would have otherwise been inaccessible, allowing for trading of assets with low liquidity. Due to access to instant liquidity, buyers and sellers do not need to wait for their order to match with a counterparty, allowing the trade to execute immediately. Liquidity providers to DEXs earn fees from the trading activity, creating an opportunity for passive income generation.
However, there are some drawbacks of DEXs. A major disadvantage is that decentralised exchanges are much less user-friendly from an interface standpoint and in terms of currency conversion. Decentralised exchanges, for instance, don’t always allow users to deposit and exchange dollars for crypto. This means you either have to own crypto already or use a centralised exchange to get crypto that you then use on a DEX. For this reason, many newer investors will stick to CEXs due to their ease of use and one-stop-shop functionality.
There are nearly 600 cryptocurrency exchanges worldwide inviting investors to trade bitcoin, Ethereum and other digital assets. But costs, quality and safety vary widely. With an emphasis on regulatory compliance, Forbes Digital Assets ranked the top 60 cryptocurrency exchanges in the world.
You pay two types of fees when you buy and sell crypto: trading fees and withdrawal fees.
Trading fees may be charged as a flat percentage of the amount of crypto you buy or sell, or an exchange may differentiate between orders that are makers and those that are takers, charging a different percentage accordingly.
On a basic level, makers are orders that add liquidity to an exchange, meaning they do not fulfil standing orders. Meanwhile, Takers remove liquidity from an exchange by completing orders waiting for a trade. Depending on the exchange, maker fees are usually slightly less than taker fees, although this isn’t always true. While you’re ideally picking an exchange with the lowest costs, dwelling too much on the ins and outs of maker and taker fees can be counterproductive. That’s because you can’t choose whether your order is processed as a maker or a taker. Instead, you’re better served considering overall fees and any discounts available for trading a certain amount each month or holding an exchange’s native cryptocurrency.
An important note: Some crypto investment apps claim to charge zero fees, but this isn’t entirely accurate. Instead of charging you outright, they charge a spread—that’s the difference between the rate at which they buy or sell crypto. Spreads can, and frequently do, wind up being much more expensive than if you paid a percentage trading fee.
Many exchanges charge fees to withdraw coins from their platform. If you prefer to move your crypto to a secure wallet or onto another exchange, this can be an issue. Withdrawal fees typically vary by cryptocurrency.
If you anticipate moving your crypto off of an exchange, you should be aware of any fees involved with the withdrawal of any given coin.
Related: Best Crypto Wallets For Australians
If you engage in more advanced trading strategies, like margin trading, there are additional fees associated with borrowing money. Beginner-friendly exchanges like Coinbase and Coinspot offer quick buy features that charge higher fees. You can avoid them by learning how to buy and sell on an exchange’s trading platform.
If you make purchases using a credit card or debit card, you may be charged a premium by both the exchange and your card issuer. That’s why buying crypto with a bank transfer is best.
Beyond fees, when choosing the best crypto exchange for your needs, consider things like security, trading volumes, educational resources and whether an exchange lists the cryptocurrencies you’re interested in buying.
As crypto has grown more popular and valuable, it’s become a big target for hackers. Leading exchanges like Binance and KuCoin have been hacked, resulting in tens of millions of dollars in losses. While exchanges often reimburse those whose coins are stolen, nobody wants to be in that position in the first place.
You can minimise your risk by spreading your crypto purchases across multiple exchanges. Alternatively, make it a habit to move your crypto holdings out of an exchange’s default wallet to your own secure “cold” wallet. These are storage options that are not connected to the internet, making them nearly impossible to hack—although you’ll need to record your passcode carefully or you could lose access to your crypto forever.
Alternatively, make it a habit to move your crypto holdings out of an exchange’s default wallet to your own secure “cold” wallet.
Carefully consider the cryptocurrencies available on a given exchange. You might be perfectly fine using a crypto exchange that only trades a few coins. Conversely, if you’re a crypto fiend, you may want access to all of the 500 available on Binance.
The availability of coins alone isn’t sufficient if there are no trades happening. You’ll ideally want to verify that there’s sufficient trading volume in your target coins to ensure liquidity, so you can easily trade your coins and dollars.
Low-volume markets could cost you on sales. If there’s not a lot of volume and you put an order in, that’s called slippage. You could end up buying at a higher price or selling at a lower price than you’d want.
If you’re an advanced crypto trader, you may want to make sure your preferred exchange offers the trading types—like limit orders, which can prevent slippage by setting a hard price—and margin you want. The rules around margin trading in Australia are strict, so the offerings can vary by exchange depending on their individual licence or registration agreement with regulators.
If you’re just getting started with cryptocurrency, look for an easy-to-use platform with plenty of educational resources to help you understand this complex, rapidly developing market.
Finally, don’t assume that an exchange is available in Australia just because you can access its website. The Australian Government is yet to introduce crypto regulation in Australia, but has recently announced that crypto exchanges will need to acquire and maintain an AFSL in the near future.
There are still plenty of exchanges, both legitimate and fraudulent, that exist online claiming to be suitable for Australians. Over time this number will decrease, but for now, it is important to be cautious and stick with reputable, regulated exchanges.
Centralised exchanges offer a convenient way to store cryptocurrencies, and can be useful for storing crypto for trading purposes. However, when users keep their cryptocurrency on an exchange, they are essentially placing their trust in a third party to safeguard their assets. This means that the exchange, rather than the user, becomes the sole controller of their assets. If the exchange experiences any issues, the user’s crypto could be put at risk, as the exchange holds their private keys. The phrase “not your keys, not your coins” is used to describe this risk.
Unfortunately, there have been numerous instances in the past where exchanges have been hacked, resulting in the loss of investor tokens, or have simply disappeared altogether. Even in the past few years, crypto investors have seen multiple exchanges engaging in risky behaviour with their funds, which has led to exchange bankruptcies, as happened with FTX, and investors losing their assets
While it’s possible to reduce the risks associated with keeping crypto on exchanges by using established, regulated, and reputable companies, unless you can view the company’s bank statements, there is always some risk involved. Unlike bank deposits, crypto deposits are not insured by the federal government, however, some exchanges have an insurance fund to cover assets on the platform in the event of losses.
There are several advantages to using an Australian crypto exchange as a local crypto investor. Firstly, these exchanges are typically compliant with Australian regulations, which can provide investors with greater security and protection.
For example, while all exchanges operating within Australia must register with the Australian Transaction Reports and Analysis Centre (AUSTRAC) to legally provide digital asset exchange services, it is much easier for exchanges operating overseas to avoid compliance while still attempting to onboard Australian investors. They also must comply with the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) and the Privacy Act 1988, designed to prevent financial crime and protect investors’ privacy.
Just because an exchange is based in Australia does not necessarily mean it offers greater protection
Additionally, Australian crypto exchanges typically offer local support and are more likely to accept instant deposits in Australian dollars (AUD) using PayID, which is the most convenient way to buy crypto with AUD. However, it is also important to consider factors such as fees, trading volumes, and availability of features when selecting an exchange. Some traders may prefer to use international exchanges or online trading platforms, which can offer lower fees and access to more advanced features.
However, just because an exchange is based in Australia does not necessarily mean it offers greater protection—Brisbane-based Digital Surge, for example, went into voluntary administration due to its exposure to FTX. Furthermore, an AUSTRAC registration or even an Australian Financial Services License does not offer the protection you may imagine. Cryptocurrency is legal but still unregulated in Australia, so consumers are at the mercy of the insurance fund of the exchange, if things go wrong.
The best exchange for local traders depends on their individual needs, goals, and risk tolerance. Local traders should do their own research and determine what exchange will suit their needs best, whether that is an Australian exchange or an exchange based overseas.
For beginners, choosing the right exchange is an important first step towards buying your first cryptocurrency. With the huge number of exchanges available, choosing one that will suit your needs at the start of your investing journey can be daunting. Here are some important factors to consider when choosing an exchange:
Security: The security of a crypto exchange is the most important factor to consider. Look for exchanges that have security measures such as two-factor authentication and cold storage for user funds. Research on the exchange’s history should give an indication of any previous hacks or security breaches, and how the exchange handled them.
Ease of use: An exchange that is easy to use is extremely important when first getting started. Beginners typically don’t need access to the most complex tools available on some platforms, and jumping straight into an advanced platform can just lead to confusion and frustration. Look for an exchange that is easy to use and navigate, with an intuitive interface that makes buying and selling cryptocurrencies straightforward.
Education and Support: A good exchange should provide access to a range of educational materials and customer support to help you through the process.
Supported Currencies: Different crypto exchanges support different cryptocurrencies. Ensure the exchange you choose supports the cryptocurrencies you want to buy or sell.
Fees: Crypto exchanges charge fees for buying and selling cryptocurrencies. Make sure to check the fees charged by the exchange and consider whether they are reasonable and affordable for you.
Reputation: The reputation of a crypto exchange is critical. Look for reviews and feedback from other users to see what they think of the exchange. Consider the exchange’s track record, such as how long they have been in operation and whether they have a history of timely withdrawals and customer support.
AUSTRAC Registration: Some crypto exchanges may not be properly registered in Australia. Be sure the exchange you sign up with is registered with AUSTRAC, or it will not be compliant with Australian law. Outside the requirement for AUSTRAC registration, cryptocurrency is yet to be regulated in Australia, but the federal government has flagged its intention to do so.
It is difficult to give the title of “Best Crypto Exchange” to one platform, as each has its own unique advantages and disadvantages. A platform that is the best for one investor may be missing a crucial feature for another. Using 11 key variables, we ranked our top seven exchanges in Australia and found Binance and Bitget to be our top picks for Australians. Different exchanges offer different features, so be sure to do your research before choosing to sign up. Some exchanges will suit you better than others. And remember: there is always a risk of things going wrong when trading crypto so don’t invest what you can’t afford to lose.
There is no one-size-fits-all answer to the question of which crypto exchange is the safest. However, some exchanges are considered to be more secure than others based on factors such as the strength of their security measures, the transparency of their operations, and their compliance with regulatory requirements. One of the key variables we used in evaluating exchanges was the platform’s security measures.
However, it’s important to note that no exchange can guarantee 100% security, and it’s up to each individual trader to take their own precautions, such as using strong passwords, enabling two-factor authentication, and remaining vigilant and avoiding scams. Before using any exchange, it’s essential to do your research, read reviews, and make an informed decision on what exchange is right for you.
Buying cryptocurrency typically involves a few key steps:
Centralised exchanges offer a convenient way to store cryptocurrencies, but users place their trust in a third party to safeguard their assets. If the exchange experiences any issues, as was the case with FTX, the user’s crypto could be at risk. There have been numerous instances of exchanges being hacked, resulting in the loss of investor tokens. Even established and reputable exchanges carry some risk, and crypto deposits are not insured by the federal government
Yes, Coinbase is regulated by AUSTRAC and is available to Australian investors. As with other crypto exchanges, you will need to complete the Know-Your-Customer (KYC) process before you can start trading and some features may be restricted on the Australian version of the platform.
There are numerous crypto exchange apps that are available in Australia. When choosing which to go with, it’s crucial to do research into the reputation of the exchange and their track record with security. Prioritise exchanges that have been around for some time, with proven track record of managing user funds, solid reviews online and robust security practices to ensure your assets are kept safe.
Opening a cryptocurrency exchange account generally involves a few key steps:
Once these steps are completed, you will have successfully opened a crypto exchange account.
Whether to keep your cryptocurrency on an exchange or in a wallet depends on your investment strategy, risk tolerance, and preferences. Exchanges can be convenient for trading and may offer a variety of features, but they can also be targets for hackers.
Wallets, especially hardware or cold wallets, offer more security but might be less convenient for active trading. Consider your individual needs, do your research, and possibly use a combination of both for enhanced security and convenience.
Holding crypto in a wallet is generally considered more secure than keeping it on an exchange, especially if you use a hardware or cold wallet. Wallets give you control over your private keys, reducing the risk of loss due to exchange hacks or closures.
However, it also means that you are responsible for the security of your assets, which can be daunting for some. For those actively trading, keeping a portion on a reputable exchange might be necessary, while long-term holdings are often better stored in a secure wallet.
Finding the best crypto wallet for Australian users depends on their individual needs. Ledger and Trezor are widely accepted as the best hardware wallets, and Safepal and Exodus are highly regarded as top software wallets. There are significant differences between software and hardware wallets, which you should consider before choosing the wallet you want to go with.
For most crypto investors, choosing a wallet that balances security, functionality, and support for a diverse range of cryptocurrencies is important. You can find the full list of top crypto wallets for Australians ranked here.
Crypto exchanges require your ID for a few key reasons. Firstly, it’s to comply with legal regulations, particularly those related to anti-money laundering (AML) and know-your-customer (KYC) laws. These laws are in place to prevent financial crimes and require exchanges to verify the identity of their users.
Requesting ID also helps ensure the security and integrity of transactions on the platform, protecting both you and the exchange from fraudulent activities. It’s an additional way to safeguard your account, ensuring that only you can access and operate it. While it may seem like an extra step, it’s crucial to maintaining a safe and legally compliant crypto exchange in Australia.
Yes, crypto exchanges operating in Australia are required to report to the Australian Tax Office (ATO). These exchanges have data-sharing agreements with the ATO, which mandate the reporting of user identities, trade activity, and potentially other relevant data. This is part of the ATO’s efforts to ensure transparency and compliance with Australian tax laws, particularly concerning capital gains and income from cryptocurrency transactions.
The ATO likely already knows you own crypto due to their extensive surveillance powers, so it is not possible to legally avoid crypto tax in Australia. Through data matching from exchange data and blockchain tracing, they can likely already identify your wallets and how much tax you owe. Instead of attempting to avoid taxes, it’s advisable to maintain accurate records of your crypto transactions using crypto tax calculation software and consult with a tax professional to ensure compliance with Australian tax laws rather than risk penalties or worse.
Yes, the Australian Taxation Office (ATO) has extensive surveillance powers and employs data matching techniques to track cryptocurrency activities. They can link withdrawal addresses from centralised exchanges to your wallets, effectively monitoring your crypto transactions via the blockchain. While the ATO cannot directly access your private keys, they can observe and analyse public blockchain data associated with your wallet addresses to get an estimate on how much tax you owe.
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