Cryptocurrency Brokers

The big bitcoin and altcoin exchange and trading broker list.

What is a Broker: Definition and Functionality

You probably know that you need a broker if you want to trade shares, CFDs etc. But what exactly is a cryptocurrency broker? What does a broker do for a living? Do all crypto brokers work the same way? How do the different providers in the market differ?

This article provides a broker definition, concretizes the meaning of online brokers and explains how brokers work, which different types of brokers there are and which services are typically offered beyond trading. Take a look behind the scenes of the trading platform!

What is a Broker in General?

A broker is a service provider. In the broadest sense, brokers provide you with technical equipment with which you can trade on the markets. A securities broker receives orders from his customers by telephone, fax or via an online platform and forwards the orders to the stock exchange or acquires the securities for you by way of a commission transaction.

An online broker accepts orders primarily via the Internet. If you use an “execution-only” online broker to implement strategies, you make decisions yourself without the need for tied consultation. In most cases, brokers manage accounts and securities accounts at the same time. If you order a security from a broker, it is then held in the custody account for you. The broker charges fees for trading in securities as well as for managing the securities account and other services, if applicable.

Broker Definition: There are different Types of Brokers

The services provided by CFD brokers are somewhat different from those of brokers in the securities business. With a (cryptocurrency) CFD broker as such you do not order securities traded on the stock exchange, such as shares. Instead, you conclude a contract for the settlement of differences with the broker. Such contracts for difference (CFDs) provide for a mutual claim to cash settlement after price movements.

If you win, the broker must credit your account. If you lose, the loss is debited to your account. A contract with a CFD broker therefore involves more than just the execution of orders.

There can be no single definition of a broker, because there are very different types of brokers. For example, a distinction must be made between brokers and broker-dealers.

Broker for Securities Trading

For securities trading, private customers need a broker and a securities account. Usually both services are offered by one provider. Most brokers in the securities business are now online brokers.

What is an online broker? An online broker essentially accepts orders via the Internet and not by telephone or fax. This is obvious, as orders received by the broker by telephone are also forwarded to the stock exchange via this channel anyway.

In order for a broker to forward orders from customers to an exchange, he must be registered as a participant on that exchange. For this reason, it is not possible to trade with all brokers on all exchanges. Some providers restrict themselves to German exchanges, others allow trading exclusively on European exchanges and yet others additionally enable the purchase and sale of securities in North America, Asia, etc. If a broker is registered on a futures exchange, he can also offer trading in futures and options.

Broker for Cryptocurrency Trading

There are now a large number of online brokers that offer trading of Cryptocurrency CFDs with leverage. The trading product offers of such crypto brokers can differ a lot. With some of them you can only trade cryptocurrency while with others Bitcoin and altcoin CFDs are only a part of their product range. This means that there are also CFD brokers where you can speculate on classic markets as well as on crypto markets.

With some crypto brokers you can only deposit cryptocurrencies while with others you can also fund your account with Fiat money.