When it comes to brokers, you should always choose as thoughtfully as you can. But there are lots of different aspects to consider, so where to look? Don’t worry, many novice crypto traders ask the same question, so we’ve decided to compile a list of 4 key characteristics you should check when choosing a broker for crypto trading.
What brokers do
A broker on the crypto market serves as an independent agent that allows traders to access financial markets. While brokers can seem similar to crypto exchanges, they actually offer more assets for their clients to choose from. Each broker has its own list that may include stocks, commodities, metals, and so on. This is especially beneficial when you don’t want to limit yourself to crypto. Crypto brokers don’t always allow you to trade crypto directly, sometimes you can only use derivatives like CFDs.
How to choose a broker
A good broker may help you earn much more, so don’t be afraid to spend some time on choosing the most suitable one for you. While you can always look through pre-made lists of reputable brokers, it’s still important to find the one that suits your trading style. If you don’t know where to start, check out at least these aspects.
Security and insurance
This is very important. What’s the point of having favorable trading conditions if your money is not well protected? The older and more well-known the broker, the better. Find out where it is registered, what financial authorities regulate it, anything you can find.
Anyway, trading conditions are another key thing to consider. Check out the fees and commissions, all trading and non-trading ones. Read about available coins and other trading tools, including derivative instruments, and make sure you understand how they work.
Having a wide variety of analytical tools at your disposal is extremely valuable for crypto trading, so be aware of what brokers have to offer here. While things like newsfeed and technical analysis tools are great, try to find a broker that provides analytics for as many assets as possible, not just for crypto.
This aspect is important for beginners. While you can always learn to trade crypto elsewhere, it’s nice to have valuable manuals at hand. It also shows that the broker cares about its clients, which is a plus no matter how helpful the materials will be for you. Customer support is another great feature, if you’re just a novice trader.