Becoming a broker means, having enough knowledge, experience, and will to educate yourself continuously about the trading market. A license and a certificate are a must, and nobody got the for free. There are years of work and analysis involved, while you also observe politics and the economy.
Being a broker also means being able to establish good connections with people and recognizing the patterns quickly, whether it’s on the market or in the trader’s behavior. Here, we analyze two types of brokers – crypto brokers and crypto-forex ones. How different are they, and are they at all?
First of all, what is a broker?
A broker is a person who is there to guide you once you sign with a brokerage company and open a trading account. Helps you with your trading endeavours and offers you practical trading solutions. If you decide to trade cryptos, everything has to go through a specific broker. After all, this is a business that profits from being reputable, and the better the service, the bigger chances of new clients. One of the characteristics of a good broker is being available for their clients virtually whenever it’s needed.
Devising a good trading plan is equally essential whether you want to trade cryptos or currency pairs. That means talking to your broker about your income, your goals, what you want to achieve by trading, and so on.
A good broker should also tell you that the process shouldn’t be too fast and that you should focus on learning at the beginning or revising your plan if you already come up with one. There is always more to learn, and you don’t have to invest everything you have (nor you should).
What does having a crypto license/certificate mean?
Like we briefly mentioned, it means that you can have complete trust in the company, and scams are taken out of the way. There are numerous regulations regarding cryptocurrencies. Naturally, every severe company strives to meet all the requirements, so they can be safe in that way and protect their customers as well.
The importance of good customer support
Your broker will be available on various platforms, but even they need a break. Therefore, if you are in a different timezone, or you are browsing in the middle of the night, there should always be customer support available 24/7 in case of something urgent.
What every right brokerage must have
Nowadays it should be a completely normal thing to have brokers who are experts in forex and cryptos. Customer support should also be able to provide necessary information about both “topics”.
Regarding the system, since they operate online, they should have a website that is easy to navigate, an application would be an ideal addition and a system where you can contact them where it suits you the best.
It would be best if you established with your broker when and how is best for you to get in contact whenever you want something, and they should be able to meet your requirements.
What is the difference between crypto brokers and forex (only) brokers?
Crypto brokers differ from forex only brokers because they tend to focus on analytics and charts correlated with cryptos only, forex brokers have to know a lot more, since there are also regular currencies included. Crypto brokers can focus on one currency if they want and make it their field of expertise, while a Forex broker has to do much more. Forex is an online trading platform that works 24/7 and involves currency pairs (major, exotic, minor) while dealing with cryptos as well. This means that a forex broker, depending on its client, has to be informed about the latest changes and observe the market in general, as well as political climate and economy. There is much more variety if you are a forex broker. Hence, a forex broker is more likely to know more about regular currencies than be an expert on cryptos (of course, you can always ask for one or come across one that is knowledgable on both).
Once you set your priorities and figure out what is most interesting to you and profitable, then you should check what type of broker you want. There is much difference, but on the other hand, there is not. Every kind of broker will know more or less about the different topic that they don’t specify in. Still, if you want to trade only cryptos – try crypto brokers. If you are interested in forex in general – then try good old Forex Brokers. Good luck!