Abra Review 2023
Our experts answer readers’ investing questions and write unbiased product reviews (here’s how we assess investing products). Paid non-client promotion: In some cases, we receive a commission from our partners. Our opinions are always our own.
*Abra is currently unavailable to new US and UK users. Existing US Abra users can no longer deposit funds into an Abra Wallet account by July 31, 2023. US users still have the ability to withdraw funds to external crypto wallets or exchanges.
Abra
Account Minimum
$5 minimum deposit; Minimums vary per cryptocurrency
Fees
0% (Spread fee built into exchange rates)
- No fees to trade 75+ cryptocurrencies (excluding spread fee)
- Can borrow against crypto holdings, with payback interest rates of 0% to 9.95%
- Can earn up to 10% interest on crypto or USD stablecoins
- Support in 150+ countries with access for 50+ fiat currencies
- No longer available to new US investors
- High fees for Visa or Mastercard transactions
- Limited transparency on the exact exchange spread rates
Product Details
- Features: 100+ cryptocurrencies, crypto-backed loans, staking, and support for traders in 150+ countries.
- App store rating: 4.6 Apple/4.3 Android
About Abra
Abra is a global cryptocurrency exchange and custodial wallet that offers a range of crypto services in over 150 countries. It is no longer available to US and UK investors.
Abra’s mission is to create a simple, accessible investment platform for folks to easily trade assets like cryptocurrencies. It gives traders access to more than 75 cryptocurrencies as well as the ability to stake crypto, borrow (with interest rates as low as 0%), or utilize over-the-counter (OTC) trading services.
For a $5 minimum, Abra provides straightforward trading, portfolio management, cryptocurrency tracking, and cold storage wallets. Abra doesn’t charge trading fees, but transaction fees, such as for withdrawals, still apply.
Abra is mainly a mobile platform and app for individual crypto traders and institutions. Abra Private is for private clients and family offices to get crypto and wealth management services, 24/7 customer support, and more. Its other platform, Abra Prime, is for institutions to access a suite of crypto investment services, custom quotes, and other premier digital trading services.
US crypto traders can review Personal Finance Insider’s guide of the best cryptocurrency exchanges for alternative options.
Is Abra Right for You?
If you are in the US or UK, Abra is not available, and therefore not a good choice.
In countries where it is available, Abra can be used by cryptocurrency investors looking to invest, borrow, and earn interest all on the same app. Abra’s mobile-forward trading platform provides an accessible, easy-to-use interface for individuals just getting started in trading digital currencies.
However, Abra has popped up a lot in the last few years for allegations of fraud and misleading market practices. Abra also currently has an F rating from the Better Business Bureau.
Abra: Overall Rating
Abra Pros and Cons
Is Abra Trustworthy?
The Better Business Bureau has given Abra an F rating. The BBB rates businesses with scores ranging from A+ to F based on the platform’s customer reviews and history. Abra has received the lowest possible rating from the BBB.
The BBB also considers a company’s time in business, its business practices, and any advertising issues associated with the company. However, the bureau also states on its site that its ratings don’t guarantee whether a company will be reliable or perform well.
In June 2023, the Texas State Securities Board filed an emergency cease and desist against Abra for allegedly concealing financial information, acting in misleading market practices, and being insolvent for months. The Texas state regulator also accused Abra of secretly transferring assets to Binance Holding Ltd.
Maryland General Anthony G. Brown’s Securities Division also filed a lawsuit against Abra in September 2023 for the same allegations. Abra has denied these allegations and continues to offer services to investors.
In 2020, The SEC filed charges against Abra for allegedly offering and selling unregistered security-based swaps to investors. Abra neither agreed nor denied these allegations but did agree to pay a $150,000 penalty fee.
Ways to Invest With Abra
Individual Account
Abra is an investment app offering trading, borrowing, and staking services for over 75 cryptocurrencies like bitcoin, dogecoin, ether, litecoin, and more. Abra implements active investing strategies through a straightforward and simple interface suitable for beginner and intermediate crypto investors.
The exchange also offers mobile wallet storage, granting access to a digital recovery phrase after setting it up. Abra gives investors complete control over their assets by making sure that only users have access to the mobile wallet’s recovery phrase.
Abra also offers a range of OTC services for institutional clients or investors who need to place large trading orders. These services are only reserved for those with a minimum of $50,000 to invest. They include:
- Trade: Abra says you can trade a variety of cryptocurrencies at a better price and faster rate
- Earn interest: Its OTC services allow you to earn up to 10% interest on digital assets and US dollar stablecoins
- Institutional borrow: Institutions also have the option to borrow crypto assets or USD
Abra additionally gives each OTC client access to an account director who provides ongoing one-on-one support.
Abra Boost
You can also earn up to 10% interest by simply holding certain cryptocurrencies and US dollar stablecoins (stablecoins are digital assets that are backed by US dollars) in an Abra interest account. You’ll need a minimum of $5 to get started, and interest compounds daily.
Abra’s interest-bearing account works for bitcoin, ether, ripple, usd coin, tether, and paxos.
Abra Borrow
Abra’s Borrow feature makes it easier for you to hold onto your crypto positions. For instance, if you needed to cash in, or sell, your cryptocurrencies, you might miss out on a surge in market price.
With Abra Borrow, you can borrow against your own crypto balance at rates ranging from 0% to 9.95% (plus there aren’t any penalties for early loan termination). You can only use bitcoin or ether as collateral. Abra issues out the loans in US dollar stablecoins. Stablecoins are less volatile than most crypto assets since you can always redeem one stablecoin for $1).
In addition, you can choose a six-month, 12-month, 18-month, or 24-month loan term. Abra offers the following borrower rates:
- 0% APR with 15% LTV
- 3.85% APR with 20% LTV
- 6.75% APR with 33% LTV
- 9.95% APR with 50% LTV
You can borrow up to $500,000 but Abra says the exact amount may vary per location.
Abra Private
Abra Private Clients and Family Offices is a self-directed investing account with access to additional wealth services, such as 24/7 guidance from an expert wealth management team. Aba Private account holders receive personalized crypto trading solutions with one-on-one meetings with a dedicated industry specialist.
It also offers borrowing, earning, and OTC trading options. In addition, Private accounts have no withdrawal fees, penalty fees, or origination fees. Rather, Abra Private operates on an open and fixed-term fee and rate pricing model.
Abra Private has a very high $500,ooo minimum deposit to open an account. Accounts over $5 million get access to exclusive platinum services from Abra.
Abra Prime
Abra Prime is for institutional clients who want to gain cryptocurrency exposure, crypto funds, and financial services through Abra. This account offers a wide range of digital trading services like lending, asset management, pension plans, sovereign wealth funds, treasury, and custom quotes.
You’ll also get access to over 80 cryptocurrencies for trading, as well as crypto-to-crypto and fiat-to-crypto pairs. You can get increased market exposure and liquidity when you build custom crypto and digital asset programs through Prime. Moreover, the corporate treasury feature comes with custom hedging, yield, and cash management strategies for your company.
Another perk of Abra Prime is that institutions can provide their clients with access to registered investment advisors (RIAs), as well as Abra’s suite of crypto-trading services for competitive fees, trading pairs, OTC solutions, and more.
Abra Fees
Though the crypto app doesn’t charge trading fees, it says it earns exchange rate income from the spread between different crypto assets. This means that Abra will add a small spread rate to your exchanges (you’ll likely pay a bit more than the market price for certain assets).
Fees also vary depending on which payment method you use. For instance, ACH deposits and withdrawals are free. Visa and Mastercard transactions, however, may cost well over 3.5%.
Abra — Frequently Asked Questions (FAQs)
Yes, Abra is legit. Abra is registered as a money service business with the US Department of Treasury Financial Crimes Enforcement Network (FinCEN). Abra also says it holds partnerships with other regulated institutions, including money transmitters, banks, and chartered trust companies.
No. While Abra was formerly a non-custodial wallet (meaning the exchange held no control over user crypto assets and private keys), it’s now a custodial wallet. In fact, it uses Bittrex as its custodian. This means that if you choose to store your assets through Abra, they’ll ultimately be hosted and controlled by its custodian. However, you’ll still have the option to withdraw your assets to a non-custodial wallet if you prefer that form of storage.
Abra is not a good investment for US and UK investors, where it is no longer available.
No, Abra does not work in the USA. Abra is no longer available in the US as of June 15, 2023. Existing US Abra account holders can no longer deposit funds in the Abra app. But consumers should still be able to withdraw assets.
How Abra Compares
Abra vs. Binance.US Binance.US is a peer-to-peer crypto trading platform for investors and institutions looking to access OTC trading and low trading fees. Abra and Binance.US both offer large cryptocurrency selections, low minimums, and interest-earning accounts. Plus, both platforms allow for over-the-counter (OTC) trading for larger orders.
Right off the bat, if you’re a US investor then Abra isn’t an option. That puts Binance.US as our top pick for US investors (Binance is no longer opening new UK accounts).
It’s important to note, however, that Binance. US’s CEO Changepeng Zhao pleaded guilty to anti-money laundering violations on November 2023. Zhao agreed to a $4 billion fine to keep Binance.US running. Therefore, we don’t consider Abra nor Binance.US to be trustworthy investment platforms.
Abra vs. Kraken Kraken is an online crypto trading platform offering more than 200 cryptocurrencies and low-cost trading. Kraken also offers an NFT marketplace which is currently live for beta testers. Like Abra, Kraken has staking reward options, a range of crypto trading products, and low-fee crypto loans.
Kraken is overall the better investing platform, as it offers top-notch ITC trading, human advisor access, expert market insight, and margin trading. Kraken is also the better crypto platform for beginners as it offers webinars, blog posts, and a Crypto 101 video series. And, if you’re a US investor, Abra isn’t available.
Why You Should Trust Us: How We Reviewed Abra
We examined Abra using Personal Finance Insider’s rating methodology for investing platforms to compare and examine account types, fees, investment options, and overall customer experience. Platforms are given a rating between 0 to 5.
Investing platforms offer multiple assets, trading tools, fees, and other resources. Some investing platforms are better for more advanced or active investors, while others may better suit beginner and passive investors. Abra was evaluated with a focus on how it performed in each category.