cryptocoingossip

Trading any crypto isn’t rocket science – just hop on an exchange, place an order, or if you want to take a step further, you can find many crypto derivative exchanges to do different types of trading.

But the problem occurs when you want to do large trades with the exchanges.

Because fees and slippage (the difference between the expected price of a trade and the price at which the trade is executed) cost you heavily. Even a tiny fluctuation can mean big losses – like, hundreds or thousands of bucks.

The solution to the problem is trading through OTC brokers.

What Is a Crypto OTC Broker?

The full abbreviation for OTC is Over The Counter trading which occurs on the counter instead of regulated exchanges.

In this trading method, asset prices are not shown to trade because the platform offers no upfront liquidity, so here a broker who has a network of buyers and sellers makes the deal.

For example, if you want to buy a Bitcoin worth $1,000,000 through an OTC broker, the broker contacts a seller who wants to sell the Bitcoin worth your price and make a deal successful.

This whole deal is done in kind of an anonymous way only known by your broker and seller, not disclosed to the general public, and the deal is done on the agreed price to avoid price fluctuations and slippage.

And most importantly OTC brokers only deal with high liquidity, which means at least above $100,000-$50,000, so required KYC and a bunch of other ID details.

At last, the broker charges fees for making the deal successful.

Still, have confusion about OTC trading? Don’t worry, here is the comparison of OTC trading with Exchange trading to give you a clear picture of OTC trading.

OTC Trading V/S Exchange Trading.

OTC.	Exchange.
Only for traders who trade in high volume.	Low volume traders.
There are fewer options to trade.	More options to trade like swaps and derivatives.
Fixed fees.	Many factors affect fees.
Less vulnerable to hacks.	Hacks and theft are common.
Prefer anonymity even required KYC and other ID details.	Not prefer anonymity required KYC and other verifications.

Ok, now you understand the OTC clearly, but to make trading, you need a trustworthy OTC broker.

Here I made the list of the best and trustworthy OTC brokers in the market.

List of Best OTC Brokers.

1. Kraken OTC Exchange.

Kraken is a reputed crypto exchange that started back in 2012.

In 2018 they started to offer OTC trades.

To start trading in Kraken OTC, you must offer more than $100K liquidity and have to complete an onboard process providing Government ID, Proof of Residency, and Proof of Income.

For trading, they have a desk of expert traders from JP Morgan, Credit Suisse, UBS, Morgan Stanley, and Merrill Lynch; you just need to open up a line of communication, via chat, text or voice call with the trade-desk about your preferred trade.

You can trade all the cryptos and fiat currencies listed on the Kraken exchange.

Along with OTC services, Kraken also offers meticulous market analysis, fully customized 1 to 1 service, complete asset support as well as 24-hour international coverage of crypto assets and investor services, with its brokerage fee being included in the price agreed to by both buyer and seller.

2. Coinbase Prime.

Coinbase is a famous crypto exchange offering many crypto services.

And now, they’re diving into OTC trading with their Prime platform, which was launched in 2020 when Coinbase acquired the institutional brokerage firm Tagomi.

The platform is designed for institutions such as asset managers, hedge funds, VCs, endowments, private equity, private wealth managers, and sovereign wealth funds.

It provides investors and businessmen with access to a diversified liquidity pool that comprises Coinbase products like Coinbase and GDAX. Algorithmic orders, margin finance, and an advanced market data product.

OTC offering: Coinbase Prime. The platform inherits Coinbase’s stellar reputation to make trading services available to institutions and large traders.

The exchange also provides some features normally not supported by OTC exchanges, including safe custody of NFT assets and participation in staking and governance for supported tokens.

3. Binance OTC.

Binance needs no introduction; they are the largest crypto exchange in the world operating since 2017.

With their OTC platform, you can trade a minimum amount of $10,000 not only in fiat also in crypto to crypto supporting 70+ cryptos and tokens.

Trades are completed in a matter of minutes when the price is agreed upon.

The support team is available 24/7 via chat, email, or Telegram.

All you need to do to join Binance OTC is get verified with KYC details, even if you don’t need to set up a different wallet for OTC. They will send coins to your Binance account.

They don’t charge any direct fee for OTC trades, but there will be a spread (if you are buying, the prices will be above the market price. If you are selling, the price will be below the market price).

4. FalconX.

This San Francisco-based exchange-based OTC trading desk offers its clients the best execution using data science.

FalconX is focused on providing services to institutions such as hedge funds, crypto miners, payment providers, and proprietary traders, but currently, there is no minimum order requirement for trade execution.

The platform provides clients with fast, secure, and reliable execution of cryptocurrency brokerage and digital asset trading using data science to eliminate slippage and hidden fees. It specializes in the fields of blockchain, cryptocurrency, defi, and fintech.

5. B2C2.

Operating since 2015 and crowned as the Best Institutional Crypto Liquidity Provider by the readers of Profit & Loss in 2019.

The platform is also a leader in electronic OTC trading means you can connect to B2C2 via REST, WebSocket, and FIX APIs, in addition to via web interface or voice trading.

The platform facilitates OTC trading using both fiat and cryptos such as BTC, ETH, LTC, BCH, XRP, EOS, DOT, UST, LNK & USDC.

The minimum requirement to do OTC trading is $50,000 with a KYC-verified account (approving KYC details takes 1-3 business days).

They charge a flat 2% annual fee for both long and short positions.

6. HitBTC OTC.

Founded in 2013, HitBTC is a reputed crypto exchange.

They started to facilitate OTC trading through TrustedVolumes.com in 2019.

With this partnership, HitBTC’s OTC service allows you to execute high-volume trades without going through the public order books and also helps you facilitate deals directly with the counterparty without affecting the market price of the coin or token.

To be eligible to use the service, first, you have to submit all your details to their partner site; secondly, you should place a trade that exceeds the equivalent of $100K USDT by volume.

You can trade in 200+ cryptos including BTC, ETH, BCH, BSV, LTC, XRP, EOS with guaranteed personal support and fast execution from highly experienced traders at the most competitive prices.

They charge a 0.1% fee for OTC trading.

7. DV Chain.

DV chain is the electronic OTC trading platform affiliate of DV Trading, which is a Chicago-based proprietary trading firm operating since 2006.

Like B2C2, DV Chain also facilitates electronic OTC trading via REST API and FIX API and/or via IM, skype, and telegram where you can message them directly for quotes.

But before starting OTC trading using a DV chain you have to know that their electronic OTC platform via API is available 24/7. If you wish to trade via IM, telegram, or Skype, you can do so anytime Monday-Friday from 7:00 am EST to 7 pm EST. And you have to contact them by filling in the KYC details.

You can trade in more than 20 cryptos, including Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Tether, USDC, and over 30 fiat currencies such as USD, CAD, GBP, EUR, and JPY.

In DV Chain, fees are always included in the price we quote; there will never be any additional fees.

8. Bitpanda Plus.

Bitpanda is Europe’s popular crypto exchange operating since 2014.

They offer OTC service via the Bitpanda Plus platform.

The OTC service is mainly for Bitpanda users since 2014 who want to trade in over €1million.

So if you want to trade in Bitpanda Plus, then you have to be their loyal customer since the beginning you’re earning at least €150,000 (gross) a year or have savings worth €500,000 and have to promote Bitpanda on your website also have held at least 2,500,000 PAN tokens.

Even in heavy restrictions to join, Bitpanda Plus service is highly specialized and tailored to individual customers, letting you trade BTC, ETH, DASH, LTC, BCH, XRP and other digital assets with exclusive discounts and reduced trading premiums and payment fees upon request.

Conclusion.

Not only do the above 8 platforms offer crypto OTC trading there are many of them offering crypto OTC services, but I picked some best ones in this post.

Also, after reading this post, you’ll get all the information about OTC trading, so you can pick any platform on your own.

Now it’s your turn, tell me which one you pick for OTC trading or mention your previous experience about any crypto OTC platform if you used/using one.