Crypto trading refers to the process of buying and selling digital money to speculate on future price movements. A shift in demand/supply or new crypto legislation can dramatically change crypto prices, therefore, traders must ensure that they fully understand crypto price volatility before starting to trade any cryptocurrency. Crypto traders can use crypto exchanges to build their positions or trade Bitcoin via Forex/CFD brokers.

• • A cryptocurrency exchange is an online business that exchanges conventional fiat money for digital currencies. The purchased crypto is stored in software/hardware wallets
  • Forex/CFD Brokers offer cryptocurrency trading on MetaTrader like any other CFD product. In this case, no wallet is involved

Forex brokers are financial companies that provide access to the Foreign exchange market by linking retail and institutional capital and the network of banks that offer liquidity.

How to Choose a Forex Broker?

These are the key issues to keep in mind when choosing Forex brokers:

ENSURING THE SAFETY OF FUNDS

• Is the Forex broker regulated by a trustable authority such as FCA UK, ASIC, or CySEC?
• Is the Forex broker headquartered in a safe country?
• Does the Forex broker operate for more than 3 years in the market?

The Foreign Exchange market is a global decentralized market for the trading of global currencies. Forex brokers provide access to the Foreign exchange market by linking retail and institutional capital to the liquidity of the ECN network of banks.

Understanding the Categories of Forex Brokers

There are two general categories of financial firms offering access to the Foreign Exchange market:

• No-Dealing-Desk Firms (ECN/STP Brokers)

These types of financial brokers are electronically connected to the ECN network of banks or else the Electronic Communications Network. That means they offer fast trading with low slippage and very tight trading spreads.

□ ECN brokers give their clients direct access to the ECN market, and usually, these are very large firms.

□ STP brokers route their client orders electronically to a liquidity provider. 

□ Neither ECN nor STP brokers involve human intervention as they pass their clients' orders directly into the global currency market. This is why they are called NDD brokers (No-Dealing-Desk).

Start Trading in the Foreign Exchange Market

Choosing the right Forex broker is extremely important. There are five key factors that every trader should know before opening a Forex trading account:

(1) Suitability of a trading account

(2) Cost of Trading

(3) Margin Policy & Rollover Rates

(4) Execution Efficiency

(5) Safety of Trading Funds & Compensation in case of insolvency

In the following analysis, each of the above 5 factors is divided into several sub-factors.