Stablecoins
The first stablecoins were issued in 2014 in an attempt to combat the volatility associated with cryptos like Bitcoin. Today, the market capitalisation of these new digital currencies stands above £6.5 billion with Tether’s USDT leading the pack. Here we review stablecoins, with definitions explained and the respective merits and drawbacks detailed. We also explain how retail investors can start trading stablecoins.
Crypto Brokers
-
Traders can engage in the speculation of popular cryptocurrencies with commissions starting at just 0.05% and leverage reaching up to 1:200. Furthermore, the broker enhances its portfolio by launching crypto futures and hosting trading contests that offer tangible prizes.
Crypto Coins
- BTC
- LTC
- ETH
- XRP
- EOS
- ADA
- DOT
- SOL
- UNI
- LINK
- DOGE
- BNB
- ICP
- SAND
- more
Crypto Spread Crypto Lending Platforms 0.05% BTC, 0.05% ETH No Own Crypto Staking Minimum Deposit Regulator No $0 -
IC Markets provides a range of over 20 cryptocurrencies for trading through CFDs, featuring less common tokens like Avalanche, Kusama, and Uniswap. Traders can enjoy commission-free transactions and experienced individuals can utilise high leverage up to 1:200 via the MetaTrader platforms.
Crypto Coins
- BTC
- BCH
- DOT
- DSH
- EMC
- EOS
- ETH
- LNK
- LTC
- NMC
- PPC
- XLM
- XRP
- ADA
- BNB
- DOG
- UNI
- XTZ
Crypto Spread Crypto Lending Platforms BTC 42.036 No MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade, Quantower Crypto Staking Minimum Deposit Regulator No $200 ASIC, CySEC, FSA, CMA -
OKX provides an excellent range of over 400 tokens, such as Bitcoin and Ripple. Traders can engage in buying and selling tokens or engage in crypto trading on margin through derivatives like perpetual swaps, options, and futures. The platform is distinguished by its competitive fees, wide token selection, and rapid transaction processing.
Crypto Coins
- BTC
- XCH
- ETH
- OKB
- OKT
- LTC
- DOT
- ADA
- DOGE
- XRP
- USDT
- ICP
- BCH
- LINK
- XLM
- ETC
- MATIC
- THETA
- UNI
- TRX
- EOS
- FIL
- XMR
- NEO
- USDC
- AAVE
- SHIB
- LUNA
- KSM
- BSC
Crypto Spread Crypto Lending Platforms Variable Yes AlgoTrader, Quantower Crypto Staking Minimum Deposit Regulator No 10 USDT VARA -
XTB provides a robust array of over 50 cryptocurrencies, featuring competitive spreads beginning at 0.22% on Bitcoin and leverage up to 1:5. The xStation platform facilitates trading with pairs like ETH/BTC and DSH/BTC. Traders can operate round-the-clock in a secure and transparent cryptocurrency trading environment.
Crypto Coins
- ADA
- BTC
- BCH
- DSH
- EOS
- ETH
- IOTA
- LTC
- NEO
- XRP
- XLM
- TRX
- XEM
- XLM
- XMR
- DOGE
- BNB
- LINK
- UNI
- DOT
- XTZ
Crypto Spread Crypto Lending Platforms 0.22% No xStation Crypto Staking Minimum Deposit Regulator No $0 FCA, CySEC, KNF, DFSA, FSC, SCA, Bappebti -
BitMEX provides an exceptionally competitive environment for crypto trading, offering low-cost $1 contracts and leverage up to 100:1. Its unique platform delivers advanced trading tools, featuring a customisable order book, a depth chart, and numerous technical indicators.
Crypto Coins
- BCH
- BTC
- ETH
- LTC
- XRP
- TRON
- EOS
- XMR
- ADA
- DOGE
- BNB
- DOT
- SOL
- SHIB
- AVAX
- GAL
- NEAR
- SUSHI
- AXS
Crypto Spread Crypto Lending Platforms -0.01% maker, 0.075% taker No BitMEX Web Platform, AlgoTrader, TradingView, Quantower Crypto Staking Minimum Deposit Regulator Yes $0.01 Republic of Seychelles -
IQCent provides access to 17 cryptocurrency pairs via its own platform, featuring popular options like Bitcoin, Ethereum, and Litecoin. With crypto CFDs, leverage is limited to 1:10. Payouts for binary options differ by token yet stay competitive, with some OTC assets offering payouts as high as 95%.
Crypto Coins
- BTC
- ETH
- LTC
- ETC
- DOGE
- MATIC
- QNT
- SOL
- XRP
- USDT
- XMR
- BNB
Crypto Spread Crypto Lending Platforms Variable No Online Platform, TradingView Crypto Staking Minimum Deposit Regulator No $250 IFMRRC -
BlackBull facilitates short-term trading on 11 cryptocurrencies, such as Bitcoin and Ethereum, with leverage of up to 1:5. Cryptos are traded against USD. The broker's 'Daily Opportunities' provide exceptional insights into emerging cryptocurrency trends.
Crypto Coins
- BTC
- ETH
- XRP
- LTC
- ADA
- POLY
- XFET
- XINJ
- XNAKA
- XAX
- XCOTI
Crypto Spread Crypto Lending Platforms 245 No BlackBull Invest, BlackBull CopyTrader, MT4, MT5, cTrader, TradingView, AutoChartist Crypto Staking Minimum Deposit Regulator No $0 FMA, FSA
Safety Comparison
Compare how safe the Stablecoins are and what features they offer to protect traders.
Broker | Trust Rating | FCA Regulated | Negative Balance Protection | Guaranteed Stop Loss | Segregated Accounts |
---|---|---|---|---|---|
PrimeXBT | ✘ | ✔ | ✘ | ✔ | |
IC Markets | ✘ | ✔ | ✘ | ✔ | |
OKX | ✘ | ✘ | ✘ | ✘ | |
XTB | ✔ | ✔ | ✔ | ✔ | |
BitMEX | ✘ | ✘ | ✘ | ✘ | |
IQCent | ✘ | ✘ | ✘ | ✘ | |
BlackBull Markets | ✘ | ✔ | ✘ | ✔ |
Payments Comparison
Compare which popular payment methods the Stablecoins support and whether they have trading accounts denominated in British Pounds (GBP).
Broker | GBP Account | Debit Card | Credit Card | Neteller | Skrill | Apple Pay |
---|---|---|---|---|---|---|
PrimeXBT | ✔ | ✔ | ✔ | ✘ | ✘ | ✘ |
IC Markets | ✔ | ✘ | ✔ | ✔ | ✔ | ✘ |
OKX | ✔ | ✘ | ✔ | ✘ | ✘ | ✔ |
XTB | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
BitMEX | ✘ | ✘ | ✘ | ✘ | ✘ | ✘ |
IQCent | ✘ | ✔ | ✔ | ✘ | ✘ | ✘ |
BlackBull Markets | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
Mobile Trading Comparison
How good are the Stablecoins at mobile trading using apps or other mobile interfaces.
Broker | Mobile Apps | iOS Rating | Android Rating | Smart Watch App |
---|---|---|---|---|
PrimeXBT | iOS & Android | ✘ | ||
IC Markets | iOS & Android | ✘ | ||
OKX | Android & iOS | ✘ | ||
XTB | iOS & Android | ✔ | ||
BitMEX | iOS & Android | ✘ | ||
IQCent | iOS & Android | ✘ | ||
BlackBull Markets | iOS & Android | ✘ |
Beginners Comparison
Are the Stablecoins good for beginner traders, that might want an affordable setup to get started, along with good support and educational resources?
Broker | Demo Account | Minimum Deposit | Minimum Trade | Support Rating | Education Rating |
---|---|---|---|---|---|
PrimeXBT | ✔ | $0 | 0.01 Lots | ||
IC Markets | ✔ | $200 | 0.01 Lots | ||
OKX | ✔ | 10 USDT | Variable | ||
XTB | ✔ | $0 | 0.01 Lots | ||
BitMEX | ✔ | $0.01 | Variable | ||
IQCent | ✔ | $250 | $0.01 | ||
BlackBull Markets | ✔ | $0 | 0.01 Lots |
Advanced Trading Comparison
Do the Stablecoins offer features that allow for more advanced trading strategies?
Broker | Automated Trading | Pro Account | Leverage | VPS | AI | Low Latency | Extended Hours |
---|---|---|---|---|---|---|---|
PrimeXBT | ✔ | ✘ | 1:1000 | ✘ | ✘ | ✔ | ✘ |
IC Markets | Expert Advisors (EAs) on MetaTrader, cBots on cTrader, Myfxbook AutoTrade | ✘ | 1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global) | ✔ | ✘ | ✔ | ✘ |
OKX | ✔ | ✘ | - | ✘ | ✘ | ✘ | ✘ |
XTB | Open API | ✔ | 1:30 | ✘ | ✘ | ✔ | ✘ |
BitMEX | BitMEX Market Maker, BotVS, and via API | ✘ | - | ✘ | ✘ | ✘ | ✘ |
IQCent | ✘ | ✘ | 1:500 | ✘ | ✘ | ✘ | ✘ |
BlackBull Markets | Expert Advisors (EAs) on MetaTrader, cTrader Automate | ✘ | 1:500 | ✔ | ✘ | ✔ | ✘ |
Detailed Rating Comparison
Use this heatmap to compare our detailed ratings for all of the Stablecoins.
Broker | Trust | Platforms | Mobile | Assets | Fees | Accounts | Support | Research | Education |
---|---|---|---|---|---|---|---|---|---|
PrimeXBT | |||||||||
IC Markets | |||||||||
OKX | |||||||||
XTB | |||||||||
BitMEX | |||||||||
IQCent | |||||||||
BlackBull Markets |
Our Take On PrimeXBT
"PrimeXBT suits aspiring traders interested in crypto derivatives and traditional markets such as forex and indices, all accessible via a user-friendly, web-based platform. The copy trading feature is perfect for passive traders, offering 5-star ratings and performance charts to identify suitable traders."
Pros
- Trading fees for crypto futures contracts are quite competitive, with maker fees at 0.01% and taker fees at 0.02%.
- PrimeXBT offers ultra-fast execution speeds, averaging 7.12ms, making it an ideal choice for traders seeking optimal pricing during market volatility.
- PrimeXBT has introduced new trading options with the addition of tokens such as 1Inch, Aave, and Injective for exchange and investment.
Cons
- PrimeXBT operates widely in the crypto sector but without approval from a recognised regulator, significantly increasing the risk for retail traders.
- The absence of integration with established platforms such as MT4 restricts traders accustomed to the globally popular forex software.
- Despite enhancements, the range of approximately 100 instruments lags significantly behind competitors, such as OKX, which offers over 400 assets.
Our Take On IC Markets
"IC Markets provides excellent pricing, swift execution, and easy deposits. With cutting-edge charting tools like TradingView and the Raw Trader Plus account, it continues to be a preferred option for intermediate and advanced traders."
Pros
- In 2025, IC Markets earned DayTrading.com's accolade for 'Best MT4/MT5 Broker' due to its top-tier MetaTrader integration. This achievement highlights the broker's continuous refinement over the years to enhance the platform experience.
- IC Markets provides some of the industry's narrowest spreads, offering 0.0-pip spreads on major currency pairs. This makes it an extremely cost-effective choice for traders.
- IC Markets provides reliable 24/5 support, especially for account and funding queries, drawing from direct experience.
Cons
- Certain withdrawal methods incur fees, including a $20 charge for wire transfers. These costs can reduce profits, particularly with frequent withdrawals.
- The tutorials, webinars, and educational resources require enhancement, lagging behind competitors such as CMC Markets, which diminishes their appeal to novice traders.
- Although there are four top-tier third-party platforms available, the absence of in-house software or a trading app tailored for novice traders is notable.
Our Take On OKX
"OKX is ideal for traders seeking new crypto projects and emerging coins. They can utilise the platform's copy trading feature and automated bots."
Pros
- In 2025, OKX obtained a MiFID II licence, allowing it to offer regulated derivatives across Europe, ensuring peace of mind for traders.
- A vast array of blockchain products is available, featuring DeFi services, NFTs, and games, along with over 400 established and emerging cryptocurrencies.
- OKX enjoys a strong reputation, serving 20 million clients worldwide and holding a licence from the Dubai Virtual Assets Regulatory Authority.
Cons
- The broker's platform and features might feel intricate for beginners.
- Testing revealed that customer support quality varied.
- The firm has minimal regulatory oversight, which is typical for crypto brokers.
Our Take On XTB
"XTB emerges as an ideal option for novice traders, offering the impressive xStation platform, zero commission pricing, no required minimum deposit, and outstanding educational resources, many of which are conveniently integrated into the platform."
Pros
- XTB ensures swift access to funds, providing fast withdrawals with same-day payments for requests made before 1 pm.
- XTB offers a superb array of educational resources, such as training videos and articles, embedded within the platform to assist traders of all experience levels.
- Top-notch customer support, available 24/5, includes a welcoming live chat with response times under two minutes during tests.
Cons
- Trading fees are competitive, with average EUR/USD spreads of about 1 pip. However, they are not as low as the most affordable brokers, such as IC Markets. Additionally, an inactivity fee applies after a year.
- XTB lacks a raw spread account, a feature increasingly offered by competitors such as Pepperstone. This omission might not satisfy traders seeking the most competitive spreads.
- It is frustrating that XTB products do not allow traders to modify the default leverage level. Manually adjusting leverage can greatly reduce risk in forex and CFD trading.
Our Take On BitMEX
"Traders interested in a wide selection of crypto derivatives will find BitMEX appealing, especially with its Perpetual Contracts. Additionally, the 100x leverage on Bitcoin exceeds that of many other platforms."
Pros
- The Guilds social trading platform enables traders to join competitions and earn rewards. This includes a weekly prize pool valued at 4,000 USDT as of this writing.
- Traders can engage with investors through the intuitive chat feature integrated within the platform.
- The broker ensures exceptional security by employing a mix of hot and cold wallets alongside advanced encryption for managing cryptographic keys.
Cons
- Only Bitcoin is allowed for cost-free withdrawals.
- BitMEX operates as an offshore company and lacks regulation by any reputable authority, which is typical for crypto brokers.
- The broker faced legal action from US regulators, resulting in fines.
Our Take On IQCent
"IQCent attracts traders seeking a simple binary options and CFD platform with minimal fees, multiple accounts, and copy trading. Begin in under a minute with a $250 deposit."
Pros
- The broker provides payouts of up to 98% on binary options, surpassing alternatives such as Pocket Option, which offers a maximum of 92%.
- The broker offers quick and dependable customer support around the clock, usually responding in under a minute during tests.
- IQCent is a rare binary options broker providing a copy trading service for passive traders.
Cons
- IQCent imposes a £10 monthly inactivity fee if a trader does not execute at least one trade each month.
- The broker operates without oversight from a reputable regulator, which is typical for binary options companies.
- Automated trading support is unavailable for algorithmic traders.
Our Take On BlackBull Markets
"Following the upgrade to Equinix servers in New York, London, and Tokyo, BlackBull has reduced latency, making it a clear choice for stock CFD trading using ECN pricing."
Pros
- BlackBulls's research excels, particularly in the daily 'Trading Opportunities' articles. These publications simplify complex market dynamics into clear insights, enabling traders to effectively capitalise on emerging trends.
- BlackBull provides everything a trader needs: execution speeds under 100ms, leverage as high as 1:500, and competitive spreads starting at 0.0 pips.
- After collaborating with ZuluTrade and Myfxbook and refining its CopyTrader, BlackBull now provides an exceptionally comprehensive trading experience.
Cons
- Despite enhancements such as webinars and tutorials in the Education Hub, our review indicates that the courses still require greater emphasis on elucidating broader economic factors affecting prices.
- Despite an expanding range of over 26,000 assets, including new additions to Asia Pacific indices, their offerings are primarily equities. The selection of currency pairs and indices remains average.
- BlackBull does not offer its own trading platform, instead utilising MetaTrader, cTrader, and TradingView. Although these platforms are highly regarded, some brokers, such as eToro, provide proprietary platforms with distinct features that cater well to novice traders.
What Is A Stablecoin?
Stablecoins are digital currencies pegged to assets with low levels of volatility, such as fiat money like GBP, commodities like gold, or other cryptos like Ripple (XRP). They are essentially a hybrid coin that balances the benefits of cryptos, such as secure money transfer and blockchain technology, with the price stability associated with precious metals, for example.
How Do Stablecoins Work?
There are several types of stablecoins, those pegged to established assets and those that aren’t, known as seigniorage-style. Stablecoins pegged to an asset like gold and are subject to the same price movements, market risks, and regulatory requirements. The purpose of a seigniorage-style mechanism is to use algorithms to control the supply of a coin much like the World Bank printing and destroying money.
Currency-Backed Stablecoins
Fiat-backed stablecoins are tied to a currency, such as the GBP. A third party will hold a reserve of the currency and peg it to crypto, with the stability and value aligned to the cost of maintaining the currency reserve, including any legal requirements such as compliance audits. Stablecoins can be pegged to one currency or multiple, with the US Dollar, Euro, Yen and Yuan the most common. The ratio of the stablecoin vs traditional currency is fixed and reflects the market supply of the crypto.
Currency-backed stablecoins are the most popular type with leading assets including Tether (USDT), USD Coin (USDC), and Gemini Dollar (GUSD). But whilst USDT is the largest by market share, the Bitfinex exchange who facilitated trading in the asset came under public scrutiny after being unable to provide audits for their reserves.
Commodity-Backed Stablecoins
Commodity-backed stablecoins are tied to physical assets such as energy and precious metals, with gold the most frequently used. Because a digital currency is pegged to the value of the commodity, its price may fall if demand for silver drops, for example. Stablecoins are redeemable at the conversion rate to take possession of the asset and can be pegged to more than one commodity.
Crypto-Backed Stablecoins
Crypto-backed stablecoins use smart contracts via blockchain technology while currency-backed stablecoins are validated off the blockchain. Since cryptocurrencies have a history of volatility, if there is a sudden price crash the smart contract may be liquidated. As a result, it’s worth paying off the debt on the smart contract in the event the value of the crypto drops.
There are limited regulations or monetary policy requirements to adhere to with cryptocurrency-backed stablecoins which are often stored on decentralised exchange indexes. Organisations typically over-collateralise and store more of the pegged digital currency to protect against market fluctuations. However, this can be easier to audit as a company’s collateral balance can be checked on the blockchain.
Seigniorage-Style
Non-backed stablecoins do not use a reserve but operate like central banks by increasing or decreasing the supply of a coin to maintain price stability. This is achieved by using algorithms and smart contracts which manage the supply ratio. If the price of the stablecoin surpasses the value of the fiat currency it tracks; more tradable coins will be released driving down the price. The opposite will take place should the price of the stablecoin fall.
Best Stablecoins In 2025
Topping the list of the best 5 stablecoins in 2025 is:
- Tether (USDT) – The best-known stablecoin is pegged to gold, fiat currency and cash equivalents
- True USD (TUSD) – The leading coin is backed by the US Dollar and is among the most liquid options on the market. The company behind the asset, TrustToken, also offers TrueGBP, which is pegged to the Pound Sterling
- Paxos Standard (PAX) – The stablecoin seeks 1:1 parity with the US Dollar
- USD Coin (USDC) – Backed by crypto heavyweight Coinbase, the world’s largest Bitcoin broker has released its own popular stablecoin
- Binance USD (BUSD) – Another of the top 10 crypto exchanges, Binance’s stablecoin is pegged to the US Dollar at a 1:1 ratio
How To Start Trading Stablecoins
Choose An Exchange
Stablecoins are available to trade on key cryptocurrency exchanges, with examples including Coinbase, Binance, Exodus, Kraken and, Crypto.com. Each exchange provides a list of tradable coins and any fees for UK traders. We recommend opting for a provider with good user reviews and a decent range of assets compared with rankings.
Open An Account
Once traders have decided on an exchange they will need to open a live trading account. Some crypto exchanges permit signing up without KYC documentation, however, most will need identity documents to be approved, including Coinbase. This helps to reduce the risks posed by fraud and money laundering.
Deposit Funds
Before you can start buying and selling stablecoins, you will need to deposit funds. This can usually be done via traditional depositing methods such as Mastercard or e-money transfers. Traders can protect their Stablecoin portfolio by investing in a hardware wallet such as those seen on the XRP Ledger, though it’s worth doing your own comparison of providers before investing. Crypto wallets help protect a user’s private keys (transaction data codes) from hackers.
Research
Stablecoins are becoming an increasingly popular investment vehicle leading to a growth in the volume of information available online. Popular research articles include ‘Stablecoins: A Brave New World’, ‘Stablecoins: The Quest for a Low- Volatility Cryptocurrency’, and ‘Stablecoins: Use Cases and, Stablecoins for Dummies.’ Prospective investors can also make use of online lists that publish data on popular assets, including CoinMarketCap.
Pros Of Stablecoins
Reasons to start buying and selling stablecoins include:
- Crypto technology – Retains the secure nature of cryptocurrencies by executing transactions on the blockchain
- Online information – Traders can educate themselves with the wealth of free online articles and reports
- Hybrid asset class – A medium of exchange that bridges the gap between fiat currency and altcoins
- Earn interest – Interest rates on stablecoins are typically greater than high-yield savings accounts
- Less volatile – Stablecoins offer a safer alternative to day trading erratic cryptos like Bitcoin
Cons Of Stablecoins
There are also some drawbacks to buying, lending and selling stablecoins:
- Unclear tax policies – Charges and taxes may apply when trading stablecoins
- Complex setup – The novel nature and differences of this emerging crypto class may deter investors new to altcoins
- Centralisation – The central influence of fiat or commodity-backed stablecoins arguably contradicts the decentralised nature of cryptocurrencies
- Profit potential – The stable nature of these coins means reduced price swings and trading volumes which may limit the profit a day trader could generate, for example. Instead, investing in stablecoins is likely a longer-term game
- Transparency – As highlighted by the Tether lawsuit, some companies issuing and selling stablecoins may be untrustworthy. This lack of transparency can affect the value of coins and impact investor confidence
- Global market regulation – The world, including the UK, is still grappling to introduce rules and regulations to monitor the use of cryptocurrencies. Aside from differing rules, it’s difficult to predict what the future holds for cryptos and stablecoin stock which makes it challenging to forecast their future value. Keep an eye on news announcements from the likes of Rishi Sunak, Chancellor of the Exchequer, who has been involved in potential crypto risks and regulations.
Final Word On Stablecoins
Despite some challenges, trading stablecoins is on the rise. They are emerging as a prominent class of cryptocurrencies that aim to bring stability to a hugely volatile marketplace while retaining the flexibility and underlying technology behind altcoins. Several exchanges offer the best stablecoins in 2025, with Coinbase topping our list of recommended brokers.
FAQ
How Do Stablecoins Work?
A stablecoin is a crypto whose market value is tied to an external asset. These assets can be a currency (fiat), commodity (gold), or another digital currency (Bitcoin). The most common stablecoins are USD-backed coins. A reserve of the asset is held by the issuing company.
Are Stablecoins Safe?
Stablecoins retain the same level of security as other cryptos by using blockchain technology but are more stable because they’re tied to a robust reserve asset like gold. The reserve is held by a third party meaning some stablecoins retain an element of decentralisation.
Are Stablecoins Taxable?
The tax treatment of stablecoins and cryptos varies from country to country. In the UK, for example, gains from crypto trading are usually subject to capital gains tax. It could be worth seeking professional tax guidance before you start buying and staking stablecoins.
Are Stablecoins Decentralized?
It is debatable as to what extent stablecoins are decentralized. It can be argued that because the digital currencies are pegged to assets controlled by central banks and governments, such as fiat currency, they are not decentralised. With that said, they can still sit on a decentralised blockchain ledger. As a result, it’s more accurate to say they retain some decentralised qualities but are less so than pure cryptos like Bitcoin (BTC), Stellar (XLM), or Ethereum (ETH).