How to Choose a Cryptocurrency Exchange as an International Investor
Risk Warning: Trading CFDs, cryptocurrencies, and other speculative investments carries a high level of risk. You may lose all capital invested. These products are not suitable for all investors. Independent financial advice should be sought before investing. Past performance is not a guide to future results.
For an internationally mobile investor seeking to buy, sell, or hold cryptocurrency, the choice of exchange is one of the most consequential practical decisions. The exchange landscape ranges from fully regulated, institutionally-backed platforms to offshore entities with minimal oversight and fragile banking arrangements. Getting this decision right is as important as the investment decision itself.
This guide explains what to look for when choosing a cryptocurrency exchange, with particular attention to the considerations most relevant to expats and internationally mobile investors.
Regulated vs Unregulated Exchanges: The Fundamental Distinction
Regulated Exchanges
A regulated cryptocurrency exchange operates under a licence issued by a financial regulator in a recognised jurisdiction. Examples include:
- FCA-registered exchanges in the UK (must be registered with the FCA for crypto asset activity under UK AML regulations)
- VARA-licensed exchanges in Dubai
- MAS-licensed exchanges in Singapore
- BaFin-regulated entities in Germany
- CySEC-registered entities in Cyprus (under MiCA)
Regulated status means the exchange has met minimum requirements for AML and KYC procedures, capital adequacy, and in some cases client fund protection. It does not guarantee the exchange will not fail — but it provides meaningful baseline protections and a regulator to whom complaints can be directed.
Unregulated Exchanges
Unregulated exchanges (often registered in offshore jurisdictions with light-touch regulation) have no equivalent oversight. Users have limited legal recourse if assets are misappropriated, if the exchange fails, or if withdrawal access is restricted. The FTX collapse in 2022 — which resulted in significant customer losses from one of the largest exchanges at the time — is the most prominent recent example of what can go wrong with inadequately supervised exchange operations.
For internationally mobile investors, restricting exchange use to regulated or well-established platforms significantly reduces operational risk.
Well-Known Exchanges: Illustrative Examples
The following exchanges are commonly referenced in discussions of international cryptocurrency trading. These are mentioned for illustrative purposes only and do not constitute endorsements or recommendations. Each has different regulatory status across different jurisdictions, different fee structures, and different product offerings. Conduct your own research and verify current regulatory status.
Coinbase / Coinbase Advanced One of the most widely regulated exchanges globally, with licences in the US, EU (under MiCA), UK, and other jurisdictions. Strong compliance standards and a relatively straightforward interface. Generally higher fees than some competitors for small transactions. Coinbase Advanced (formerly Coinbase Pro) offers more competitive fee structures for larger or more frequent transactions.
Kraken US-founded exchange with a long track record and strong regulatory relationships across multiple jurisdictions. Offers a wide range of cryptocurrencies and provides staking services in eligible jurisdictions. Fee structures are competitive at higher volume tiers.
Bitstamp One of the oldest continuously operating exchanges, founded in 2011. EU-regulated (Luxembourg) and with a conservative, compliance-first reputation. Limited to major cryptocurrencies but strong on fiat on/off ramps in EUR and GBP. Popular among European and international investors seeking stability.
Binance The world's largest exchange by volume, though it has faced regulatory challenges and enforcement actions in multiple jurisdictions in recent years. Binance operates regional entities (Binance.US for American users; Binance.com for international users; regional entities in certain markets) with varying regulatory status. Due diligence on its current regulatory standing in your specific jurisdiction is essential.
KYC Requirements for International Accounts
All reputable exchanges require Know Your Customer (KYC) verification. For international clients, expect:
Basic verification (for small transaction limits):
- Email address
- Phone number
- Date of birth
Full verification (for standard deposit/withdrawal limits):
- Government-issued photo ID (passport is universally accepted)
- Selfie / live photo for identity confirmation
- Residential address (utility bill, bank statement, or official letter — typically within 3 months)
Enhanced verification (for high-volume accounts):
- Source of wealth documentation
- Proof of income or business ownership
- Additional background information
For internationally mobile investors with non-standard proof of address (living in serviced accommodation, using a registered address, holding multiple residencies), having clear, consistent documentation prepared in advance is important. Inconsistencies between KYC documents can delay or prevent account approval.
Fee Structures: What to Compare
Exchange fees can significantly affect returns, particularly for frequent traders or investors making regular purchases.
Maker/Taker Fees Most exchanges charge separate fees for market-maker orders (limit orders that are not immediately filled, adding liquidity) and market-taker orders (orders that execute immediately against existing orders). Typical ranges in 2026: 0.05–0.4% for taker fees, 0.0–0.25% for maker fees, declining with volume.
Spread-Based Pricing Simplified exchanges (often consumer-facing products) embed their fee into the bid-ask spread rather than charging a separate commission. These are typically more expensive for sophisticated investors but more transparent for occasional buyers.
Fiat Conversion Fees When depositing or withdrawing fiat currency (GBP, EUR, USD, AED), exchanges charge either a flat fee or a percentage of the transaction. Bank transfer deposits are typically cheaper than card deposits. Some exchanges offer free GBP deposits via UK Faster Payments; others charge 1–2%.
Withdrawal Fees Cryptocurrency withdrawal fees (to send crypto to a wallet) vary by asset and by network congestion. Bitcoin and Ethereum withdrawals carry network fees (gas fees for Ethereum) that fluctuate; some exchanges absorb these, others pass them on.
Fiat On/Off Ramps by Country
A fiat on-ramp is the ability to deposit regular currency (GBP, EUR, etc.) into an exchange to buy cryptocurrency; a fiat off-ramp is the ability to sell cryptocurrency and receive regular currency to a bank account.
For UK-based or UK-banked investors: Faster Payments (instant GBP bank transfers) are widely supported by UK-regulated exchanges. CHAPS and SWIFT are available for larger amounts.
For UAE-based investors: AED fiat on-ramps are available through VARA-licensed exchanges in Dubai, and through some international exchanges with UAE banking relationships. The availability of AED on-ramps fluctuates — verify before depositing.
For Cyprus-based investors: EUR on-ramps via SEPA bank transfers are broadly available across European exchanges. MiCA regulation creates a harmonised framework for EU-based investors.
For investors in other jurisdictions: availability of local currency deposits varies significantly. USD wire transfers are the most universally available fiat option on major international exchanges.
What to Look for in a Secure Exchange
- Proof of reserves: does the exchange publish verifiable evidence that customer assets are fully backed?
- Cold storage policy: what proportion of customer funds does the exchange hold in offline cold storage versus internet-connected hot wallets?
- Insurance coverage: does the exchange carry any voluntary insurance against specific loss events (hacking, internal theft)? What are the limits and exclusions?
- Withdrawal functionality: are withdrawals processing normally? Check community forums and status pages for any current issues.
- Track record: how long has the exchange been operating? Have there been any previous security incidents, and how were they handled?
The information in this guide is for educational purposes only and does not constitute financial advice. Trading CFDs, cryptocurrencies, and other speculative investments carries a high level of risk. You may lose all capital invested. These products are not suitable for all investors. Independent financial advice should be sought before investing. Past performance is not a guide to future results.
How Global Investments can help
Global Investments does not provide cryptocurrency exchange services directly. However, our advisers regularly assist clients in understanding how to access cryptocurrency markets safely and how any cryptocurrency holdings integrate with their overall financial planning, including tax reporting obligations, portfolio allocation, and custody strategy.
If you have questions about cryptocurrency within the context of a comprehensive wealth plan, or if you need guidance on the regulatory and tax implications of your existing holdings, contact us for a consultation.
Frequently Asked Questions
Is it safe to leave cryptocurrency on an exchange?
Exchanges carry risks that direct custody (hardware wallet) does not. Several major exchanges have failed, been hacked, or frozen withdrawals in recent years. For amounts you intend to hold long-term, withdrawing to a hardware wallet is advisable. For active trading, keeping a working balance on exchange is practical — but keep long-term holdings in self-custody.
What is a maker/taker fee structure?
On most exchanges, maker fees (paid when you place a limit order that adds liquidity to the order book) are lower than taker fees (paid when you execute a trade against an existing order). High-volume traders benefit significantly from maker rebates on some platforms. For occasional buyers, a simple flat fee structure may be easier to understand and compare.
Are cryptocurrency exchange accounts covered by any compensation scheme?
In most cases, no. Unlike bank deposits (covered by national deposit guarantee schemes up to set limits) or securities held with regulated brokers (covered by investor compensation schemes in many jurisdictions), cryptocurrency held on exchanges is not protected by any equivalent guarantee. Some exchanges carry voluntary insurance policies, but these typically cover limited and specific risks.
What fiat currencies can I deposit or withdraw on major exchanges?
Major exchanges support GBP, EUR, USD, AED, and other major currencies for fiat deposits and withdrawals, though the specific currencies supported vary by exchange and by the banking relationships each exchange maintains. Some exchanges have struggled to maintain reliable fiat banking relationships — check that a specific fiat currency corridor is operational before selecting an exchange.
Does the exchange operate in my country of residence?
Exchanges are subject to local licensing requirements and may not be available in all jurisdictions. Some exchanges have withdrawn from certain markets due to regulatory requirements. Always verify that the exchange is licensed or operationally available for your specific country of residence before opening an account.
This guide is for general information only and does not constitute financial advice or a personal recommendation. The value of investments can fall as well as rise and you may get back less than you invest. Past performance is not a guide to future returns. Tax rules, investment regulations, and the availability of specific investment vehicles change — always verify current rules and seek advice from a qualified independent financial adviser before making any investment decisions.