Hi all Could somebody please explain the difference between a broker and an exchange. I understand coinspot is a broker and Binance is an exchange. They both have fees etc so what are the main differences? Regards
Coinspot is a broker - you can deposit fiat, and buy crypto with fiat. You can also sell crypto and withdraw fiat. Binance is a pure exchange - you can only send crypto in and get crypto out. You trade there for different coins, e.g. trade Ethereum for Ripple etc. You can't deposit fiat, you need to have crypto from elsewhere to play. https://www.binance.com/?ref=13311931 is the forum's referral address for Binance if you don't already have an account there.
An exchange like Binance is where you actually trade yourself with other people, so there's no middle man so to speak, but Binance takes a small fee as they provide and maintain the platform A broker like CoinSpot is basically the middle man just going to an exchange and doing that for you, and they charge a higher fee to do so. CoinSpot offers a much easier to use service and a fiat gateway, without the need to do your own trading on exchange and that's why they charge what they do
