Despite the many catastrophes that occurred in the crypto industry over the past 18 months, the demand for cryptocurrency from Australian investors is strong. Chainalysis ranks Australia 40th globally for crypto adoption, and surveys conducted from 2019 to 2022 by Statista found that around one in four Australians, or 25%, own crypto. 

Many of these Australians will choose to hold their crypto on an Australian-based or international exchange. Events in the past year have raised concerns about these centralised exchanges and their management of user funds after one of the industry’s supposed leading lights, FTX, collapsed spectacularly, taking the local arms—FTX Australia and FTX Express—with it.

The fallout of the FTX collapse was felt far and wide. Not only were tens of thousands of Australian creditors left out of pocket, but, in December, local exchange Digital Surge also went into voluntary administration with more than half of its assets exposed to FTX. However, the exchange has since come back online after undergoing a comprehensive restructuring process.

The Australian Government is pushing ahead with plans to regulate crypto, and in a discussion paper released in October, Treasurer Jim Chalmers advocated for exchanges to be subject to the same financial services laws as other entities to better protect consumers. The Government also proposed that exchanges be required to obtain and maintain an Australian Financial Services License (AFSL).

“The failures of digital asset platforms are symptomatic of unregulated asset holding intermediaries. Such risks are further amplified by the vertically integrated nature of digital asset platforms – where various functions, like trading and holding assets, are managed within a single organisational structure,” Chalmers noted.

The Federal Government is seeking feedback on their proposals contained within the discussion paper, with submissions to be lodged by December 1. In the meantime, while some Australians will undoubtedly opt for alternative storage methods, many will choose to keep their crypto on exchanges. 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.

In the volatile world of cryptocurrency, nothing is certain. 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, indeed, 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.

Related: Safest Way to Store Crypto

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Crypto assets are unregulated & highly speculative. No consumer protection. Capital at risk.

We performed an in-depth assessment of the features and options offered by nearly 25 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:

• Basic Trading Features. Key metrics included the number of cryptocurrencies available to trade, the number of fiat currencies accepted, the exchange’s overall liquidity and trading fees.
• Advanced Trading Features. We looked at the availability of complex trading features like advanced order types and volume discounts for frequent trading.
• Margin Trading. An assessment of margin trading rates, if applicable.
• Platform Availability. While some of the best crypto exchanges are available everywhere, others have widely varying degrees of accessibility to different features by country.
• Customer Service. Customer support options were analysed.
• Educational Resources. We evaluated the educational content offered by each platform.
• Crypto Rewards Credit Card. A few platforms offer crypto rewards credit cards.
• Security and Storage. Types of storage options, security and insurance available, plus an assessment of any large-scale hacks of each exchange over its lifetime.
• Staking and Rewards. Some platforms allow users to stake selected cryptos and earn interest payments.
• Crypto Lending. Some crypto exchanges allow users to lend out their cryptocurrency.
• Registration. In Australia, crypto exchanges must be registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC) to provide digital asset exchange services to Australians legally. AUSTRAC is responsible for monitoring money laundering and other illegal activities, so any exchanges that were not registered were eliminated from the list.

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.

About Star Rankings

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: Crypto News Australia Updates

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 Exchanges

Centralised crypto exchanges (CEX) are managed by one organisation. Centralised exchanges make 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.

Decentralised Exchanges

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, not only from an interface standpoint but also in terms of currency conversion. Decentralised exchanges, for instance, don’t always allow users to deposit dollars and exchange them 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.

Global Crypto Exchanges

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

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. Takers, meanwhile, remove liquidity from an exchange by completing orders that are waiting for a trade. Depending on the exchange, maker fees are usually slightly less than taker fees, although this isn’t always the case.

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.

Withdrawal Fees

Many exchanges charge fees to withdraw coins from their platform. This can be an issue if you prefer to move your crypto to a secure wallet or onto another exchange. Withdrawal fees typically vary by cryptocurrency.

If you anticipate moving your crypto off of an exchange, you should choose a platform that allows a certain amount of fee-free withdrawals, like Gemini.

Other Fees

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 Gemini 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 it’s best to buy crypto with cash or wire transfers.

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.

Security

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 carefully record your passcode 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.

Available Coins

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 more than 600 available on Gate.io.

Trading Volume

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. Remember trade types involving the latter are still evolving in the U.S., so different exchanges’ offerings may vary over time.

Educational Resources

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.

Accessibility

Finally, don’t assume that an exchange is available in your country, or even state, just because you can access its website. Many state and federal governments are still figuring out how exactly they want to treat cryptocurrencies from a legal and tax standpoint.

Related: Crypto and Tax in Australia: Everything You Need to Know

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. This is commonly referred to in the crypto phrase “not your keys, not your coins.”

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 12 months, 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 subject to Australian regulations, which can provide investors with greater security and protection. For example, Australian exchanges must register with the Australian Transaction Reports and Analysis Centre (AUSTRAC) to legally provide digital asset exchange services to Australians. They also must comply with the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) and the Privacy Act 1988, which are designed to prevent financial crime and protect the privacy of investors.

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 unregulated in Australia, so consumers are at the mercy, and 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 looking to get started in the world of digital assets, choosing the right exchange is an important first step towards buying your first cryptocurrency. With the huge number of exchanges available, it can be a daunting task to choose one that will suit your needs at the start of your investing journey. 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. Make sure 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 already begun the process.

This article is not an endorsement of any particular cryptocurrency, broker or exchange nor does it constitute a recommendation of cryptocurrency or CFDs as an investment class.  Cryptocurrency is unregulated in Australia and your capital is at risk. Trading in contracts for difference (CFDs) is riskier than conventional share trading, not suitable for the majority of investors, and includes the potential for partial or total loss of capital. You should always consider whether you can afford to lose your money before deciding to trade in CFDs or cryptocurrency, and seek advice from an authorised financial advisor.