Part 1: The Fundamental Difference

Lets start just by covering the fundamental difference between how an exchange and a broker works.

Exchanges pair buyers and sellers using an order book which records the prices that each trader wishes to exchange at. When the buyers and sellers agree on a price or meet in the middle, an exchange happens.

Brokers monitor the market and act on instruction from their customers to buy or sell based on an estimate or quoted price that is generated from live market conditions.

The key here is that if a broker only has customers willing to buy, they can still function and fill orders, whereas exchanges must have a somewhat equal amount of buyers and sellers to function well. A broker could operate with one customer or one million customers (regardless of market direction) however an exchange with very few users would fail.

In Part 2 we’ll address how brokers solve liquidity issues and can in fact reduce risks and costs associated with trading.

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Part 4: All In One

Part 4: All In One To be a successful trader you need easy to use, reliable and accessible tools at your finger tips. It is common knowledge that professional traders and investors should always put high importance on managing risk. These tools and risk management...

Part 3: More Assets & Pairs

Part 3: More Assets & Pairs Many traders and investors regularly struggle with managing their account balances between different exchanges, either that, or they limit themselves to the crypto-assets available on their preferred exchange. It can become very...

Part 2: Liquidity

Part 2: Liquidity What does that mean and why does it matter? Crypto currency daily trade volumes amount to approximately 17 billion and are tiny compared to the Fiat Forex markets that trade over 5 trillion across the same time span. For every asset that is bought or...


Why crypto brokers (Swyftx) can be better than exchanges? In this 4 part series we address several aspects of exchanges and brokers to see why crypto brokers can be better than exchanges if done right! It is especially noticeable in the Australian crypto community...

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