Key takeaways
- A broker offers convenience and familiar oversight; an exchange offers range and withdrawals.
- Always check custody, withdrawal rights and compensation coverage.
Some brokers now offer spot crypto next to shares and ETFs, while dedicated exchanges offer hundreds of tokens. The product can look the same; custody, regulation and costs differ.
| Regulated broker | Crypto exchange | |
|---|---|---|
| Typical range | A short list of large coins | Hundreds of tokens |
| Custody | Held by broker or custodian; often cannot withdraw to a wallet | Usually withdrawable to your own wallet |
| Oversight | Broker's financial regulator; coverage varies by product | Local crypto registration; differs widely |
| Fees | Spread or fixed percent; no network fees if you cannot withdraw | Maker-taker fees plus network fees |
| Best for | Small exposure alongside other assets | Active crypto users who want self-custody |
How to choose
- Decide whether you need to withdraw coins. Some broker products give price exposure only.
- Ask who holds the asset. Look for named custodians and segregation.
- Compare total cost. Spread, fee percent, and conversion fees if you fund in another currency.
- Check protection. Investor compensation schemes may not cover crypto held at the venue.Tip: Read the product disclosure.
VolatilityCrypto prices can move 10% or more in a day. Only risk money you can afford to lose entirely.