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Gerard Moore 15 / March / 20

Differences between cryptocurrency exchange and broker trade

May a beginner trade cryptocurrency with minimal capital?
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As part of this topic, I would like to consider cryptocurrency trading with forex brokers. Especially the information will be relevant to those who trade on cryptocurrency exchanges, but before that did not work through brokers in the open foreign exchange market.


I propose to make a comparison between cryptocurrency exchanges and forex brokers according to the following criteria:

  1. Reliability.
  2. Deposit / withdrawal of funds.
  3. Opportunities for trading.
  4. Working platform.
  5. Support service, quality of service.


I think many people who work with cryptocurrencies have heard about hacking exchanges. Indeed, this is a fairly common incident in the world of the crypto community. Therefore, the reliability parameter is higher for brokers. They are regulated, funds are stored in bank accounts, from where it is not possible to steal from, they are protected from hacking, hacker attacks.

If you have chosen a quality forex broker, then be sure that your funds are properly protected.


Account replenishment, withdrawal of funds

It is also worth giving an advantage to forex brokers, since they all primarily work with fiat money. Most cryptocurrency exchanges do not support traditional currencies and only work with cryptocurrencies. Of course, there are exchanges where you can get fiat, but they are not so popular, they have fewer cryptocurrencies, respectively, and fewer trading opportunities.

Trading Opportunities

Forex brokers do not offer a wide range of cryptocurrencies, as a rule they choose the most popular. If we take Instforex as an example, then they can only be traded with:

There are much more opportunities on cryptocurrency exchanges, about 300 coins on the same Binance.

Forex brokers also provide margin trading with leverage, which can help experienced traders increase their deposit many times more. But some cryptocurrency exchanges are also starting to offer such services. For example, Bitmex.

Working platform

Here many argue and there is no consensus. Some say that forex brokers have advantages because they provide modern platforms like MetaTrader that quickly process orders. In general, MetaTrader is not particularly attractive to me, I use other sources of quotes, where there are a lot more instruments and it is much more convenient to use. Most exchanges also provide quite good trading terminals. Everything is individual.

Support service

In general, the industry of forex brokers exists much more and they provide technical support at the highest level. Cryptocurrency exchanges are still very far away. Only one verification can take six months. Personally, I know such cases. Let me remind you that without verification, the use of the exchange is limited.



In general, choosing between a broker and an exchange is worth understanding one main difference. Brokers provide trading only in pairs with fiat money, while the cryptocurrency exchange is aimed at trading exclusively cryptocurrency. Basically, all cryptocurrencies move after Bitcoin, only with different amplitudes, so there is no difference in whether you trade Bitcoin or Ethereum, anyway, the movement of quotes goes in one direction. But you can earn by trading, for example, BTC / ETH and earn both in a falling market and in a growing one.


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