Broker
Crypto broker: A crypto broker is a service that buys and sells crypto for you at a quoted price, usually from its own inventory, rather than matching you with other traders. Brokers are often simpler to use, and their cost is built into the spread between the buy and sell price as well as any stated fee.
How a crypto broker works
You choose a coin and an amount, the broker quotes a price and the trade happens instantly at that price. Behind the scenes the broker sources liquidity from exchanges or market makers and adds a margin. Many Australian apps that offer instant buy work this way.
Broker vs exchange
On an exchange you place orders on an order book and trade with other users at market prices, often with lower costs but a more complex screen. With a broker you trade with the platform itself at its quoted price. Comparing the quoted price with the live market price shows the real spread you pay.
Frequently asked questions
Is a broker more expensive than an exchange?
Often, because of the spread, although it depends on the platform and trade size. Compare the total cost, not only the stated fee.
Do brokers hold my crypto?
Usually yes, as a custodian, unless you withdraw it to your own wallet.