Types and differences between brokers

Types and differences between brokers

traders instruments

For example, there are only pure stock brokers or pure forex brokers. However, many providers do not limit themselves to financial products but offer a wide range of investment opportunities.

I have already written articles about the following brokers: 

  •     Online Broker (Multi-Asset)
  •     Stock Broker
  •     Cryptocurrencies Broker
  •     Forex Broker
  •     CFD Broker

Multi-asset brokers

Multi-asset brokers are very popular with the average investor and trader. There is usually a range of over 10,000 different markets. The largest multi-asset broker is Interactive Brokers. With this provider you can actually trade all financial products that are available worldwide for private investors. A multi-asset broker is not always the best choice for traders who know exactly what they want to trade. Brokers who specialise in a particular product can usually offer better conditions than a multi-asset broker.

Stock brokers

With stock brokers you can buy and sell securities. An important criterion for this broker is also the choice. There are countless stock exchanges worldwide. If you want to buy shares from Russia, for example, not every stock broker offers that. Therefore, you should know which offer is available at the broker before registering.

Cryptocurrencies Broker

Cryptocurrencies are usually offered on unregulated platforms. However, the broker industry is not idle and is now increasingly trying to offer regulated trading in cryptocurrencies. This is done either via derivative or direct coin. There is still a lot of growth and undiscovered opportunities in this market segment.

forex broker

Forex and CFD brokers

Forex and CFDs are usually offered together by one broker. They are also derivatives that are traded with leverage. Here is good explanation in Thai from forex-exness.net:

คุณสามารถแลกเปลี่ยน CFD (สัญญาสําหรับความแตกต่าง) ในทุกตลาด. ข้อได้เปรียบอยู่ที่การใช้ประโยชน์และความเป็นไปได้ของการขายชอร์ตเช่นกัน. เป็นวิธีที่ง่ายและรวดเร็วในการเข้าสู่ตลาด. โบรกเกอร์ Forex และ CFD เช่น เล่น Exness ให้รวย รักษาความปลอดภัยให้กับผู้ผลิตตลาดภายนอกที่มีใบอนุญาตที่เหมาะสมสําหรับสิ่งนี้.

You can trade CFDs (contracts for difference) on actually all markets. The advantage lies in the leverage and the possibility of short selling as well. It is an easy and quick way to enter the markets. Forex and CFD brokers secure themselves in the background with external market makers who have the appropriate licences for this.

Futures Broker

Futures (forward contracts) are traded transparently on the stock exchange. There are also many specialised brokers for futures that offer an easy way to this financial product. The fees are very low and the leverage is high. For futures contracts, you need larger sums of money. It is not recommended for the beginner because you are forced to trade with large positions as there are no smaller ones. The financial product was developed for hedging for the economy. However, many traders speculate with these contracts because they are transparent and liquid. Futures are also available for very many markets. Speculations on rising and falling prices are possible.

My conclusion on the broker - a highly competitive business model

On this page I have given you an insight into the world of brokers. Brokers sometimes have a bad reputation because of dubious business practices, so it is all the more important to choose a good provider.

Brokers make money by charging trading fees. In return, they provide infrastructure and services to clients. It is a legitimate and lucrative business. However, the competitive pressure in the industry is also very strong. A bad broker will only be able to survive on the market for a few months. As a broker, you can earn a lot of money, but the effort required is also very high.

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