Best Crypto Exchange for Margin Trading 2025
Margin trading lets you trade with borrowed money—amplifying both gains and losses. For US users, options are limited. Here's what's available and the serious risks involved.
Margin Trading Is Extremely Risky
You can lose more than you deposit. With 5x leverage, a 20% price drop wipes out your entire position. Most retail traders lose money with margin. Only use money you can afford to lose completely.
Quick Verdict
For US users, Kraken is the only major regulated exchange offering margin trading — up to 5x leverage on select pairs. Coinbase, Gemini, and Binance.US don't offer margin for US retail users.
International users have more options (Binance, Bybit, OKX with 100x+), but these aren't available to Americans without VPNs (which violates their ToS).
Margin Trading Options for US Users
| Exchange | Margin? | Max Leverage | Notes |
|---|---|---|---|
| Kraken ⭐ | ✅ Yes | 5x | Best US option |
| Coinbase | ❌ No | — | Not available for retail |
| Gemini | ❌ No | — | Not offered |
| Binance.US | ❌ No | — | Removed in 2023 |
| Crypto.com | ❌ No (US) | — | Not for US users |
Why So Few Options?
US regulations heavily restrict leverage trading for retail investors. The SEC and CFTC consider most crypto margin products to be derivatives, which require specific licenses. Kraken is one of few exchanges that obtained the necessary compliance framework.
Kraken Margin Trading: Details
Kraken Margin Overview
What's Available
- • Up to 5x leverage
- • BTC, ETH, and major altcoins
- • Long and short positions
- • Available to eligible US users
- • 0.02% per 4 hours (rollover fee)
Requirements
- • Verified Kraken account
- • Pass eligibility assessment
- • Minimum margin requirements
- • Not available in all US states
Kraken Margin Fees
| Fee Type | Amount |
|---|---|
| Opening Fee | 0.02% |
| Rollover Fee (every 4 hours) | 0.02% |
| Trading Fee | Standard (0.16-0.26%) |
Note: Rollover fees add up fast. A position held for 24 hours costs 0.12% just in rollovers.
How Margin Trading Works
Example: 5x Leverage Trade
You deposit: $1,000
With 5x leverage: You control $5,000 worth of Bitcoin
If BTC goes up 10%
Your $5,000 position gains $500
That's 50% profit on your $1,000
If BTC goes down 10%
Your $5,000 position loses $500
That's 50% loss on your $1,000
If BTC goes down 20%
Your $5,000 position loses $1,000
Your entire $1,000 is wiped out (100% loss)
You may owe additional money if liquidation is delayed
The Risks (Read This)
🔴 Liquidation
If the market moves against you too far, your position is automatically closed ("liquidated") to prevent further losses. With 5x leverage, a ~20% move can trigger liquidation.
🔴 Crypto Volatility
Bitcoin can move 10-20% in a day. With leverage, that means 50-100% swings on your position. Overnight moves during thin liquidity can liquidate you before you wake up.
🔴 Funding Costs
Rollover fees eat into profits on longer-term positions. Kraken's 0.02% every 4 hours = 0.48% per day = ~175% annually if held continuously.
🔴 Most Traders Lose Money
Studies consistently show 70-90% of retail leveraged traders lose money. The house (exchanges, market makers) wins. Margin trading is not passive investing.
Who Should (and Shouldn't) Use Margin
✅ Maybe Consider If:
- • You have experience trading
- • You understand risk management
- • You use stop-losses religiously
- • You only risk what you can lose
- • You're hedging existing positions
❌ Don't Use If:
- • You're new to crypto trading
- • You're trying to "get rich quick"
- • You can't afford to lose the money
- • You don't know what liquidation means
- • You can't monitor positions actively
Frequently Asked Questions
Can I get 100x leverage in the US?
Not legally from regulated exchanges. Offshore exchanges (Binance Global, Bybit) offer 100x+ but don't accept US users. Using VPNs violates their ToS and potentially US law. The maximum from regulated US platforms is 5x (Kraken).
What happens if I get liquidated?
Your position is automatically closed by the exchange to prevent further losses. You lose your margin (collateral). In extreme market conditions, you could potentially owe money if the liquidation price is breached rapidly ("negative balance").
Is margin trading the same as futures?
They're related but different. Margin trading is borrowing to buy actual crypto. Futures are contracts that derive value from crypto prices. Both use leverage, but have different mechanics, fees, and regulatory treatment. Kraken offers both for eligible users.
The Bottom Line
For US users, Kraken is the only major regulated option for margin trading — offering up to 5x leverage on major cryptocurrencies.
However, margin trading is extremely risky. Most retail traders lose money. Crypto volatility + leverage = amplified losses. Only use capital you can afford to lose entirely.
If you're new to trading, start with spot trading (no leverage) until you understand the markets.
Compare All ExchangesLast updated: December 18, 2025
This is educational content, not financial advice. Margin trading involves significant risk of loss.