Profit, profit, profit, that’s what it’s all about, right?In just the past decade alone, trading has evolved significantly. There are new players in the game like cryptocurrency; then there’s good’ol forex trading.
As if forex wasn’t already exciting, cryptocurrencies such as bitcoin have introduced an interesting new dimension to trading. In recent years, many forex brokers and crypto exchanges have sprung up.
Well, let’s find out how!
1. Forex broker
A forex broker acts as a go-between you and the interbank system. If you’re unfamiliar with the word “interbank,” it refers to banks’ networks that trade with one another.
A forex broker can usually sell you a price from a bank for which they have credit lines and access to forex liquidity. For pricing, many forex brokers use several banks and will give you the best one available.However, the forex industry was unregulated for many years, and although it has greatly improved, you may still come across some less-than-reputable forex brokerages.
Therefore, it is necessary to check who the best forex brokers are. FX•Listprovides a list of quality brokers in the game, so if you search for the best broker, this list can be a dream come true.
2. Crypto exchange
If you want to trade cryptocurrencies directly with other buyers and sellers, you should consider using a cryptocurrency exchange.As opposed to a forex broker, a cryptocurrency exchange offers an online forum for buyers and sellers to swap cryptocurrencies for other digital currencies or fiat currencies with each other, rather than a broker centered on current market rates.
As a result, the exchange of fiat currencies and/or cryptocurrencies occurs directly between buyers and sellers, with the exchange company’s platform.
So, what are the major differences?
Now that you know what forex brokers and crypto exchanges are, here are some of the differences between the two:
1. Sign up process
All you have to do in a crypto exchange is to add your email address, create a password, and verify your email address, and you’re done! You’ve signed up.
Signing up with a forex broker is also not difficult; the process is similar to that of an exchange. However, in order to deposit funds and begin trading, you may need to first verify your account.
2. Deposits and withdrawals
Depositing fiat money into crypto exchanges is often inconvenient. As a result, you cannot deposit USD or EUR and must instead use cryptocurrencies, which means you must first buy any crypto.
In contrast to exchanges, depositing with a broker is easy. A broker’s client may make a deposit using a variety of methods, including credit cards, traditional e-wallets, and so on. Deposits may be made in US dollars, pounds, and, in some cases, other currencies. This greatly simplifies the entire procedure, and there are usually no deposit fees.
Trading on a cryptocurrency exchange is not difficult. All you have to do is choose your trading instrument, open your trade, and keep an eye on the price chart.
When you use a broker platform, you gain access to a plethora of features that will allow you to precisely plan your strategies and risks. As a result, you will be able to add more indicators to the chart and use other technical analysis tools.
When selecting a forex broker or a cryptocurrency exchange, one should carefully consider both pros and cons. Since both broker and exchange trading have advantages and disadvantages, the final decision will be based on your priorities and personal preferences.