Cryptocurrency Brokerage Services and their Necessity: A Brief Overview of FBS Company
A crypto broker acts as an intermediary and guarantor of a transaction between a seller and a buyer in the digital asset market. Cryptocurrency brokers also provide clients with professional tools for market analysis and investment portfolio management.
Crypto Brokers and their Origins
Since 2009, bitcoin buying and selling transactions have taken place on specialized resources or face-to-face meetings. After the emergence of centralized exchanges, this way of trading cryptocurrency became over-the-counter or OTC.
In 2013-2014, OTC brokers, which acted as OTC intermediaries between buyers and sellers of cryptocurrency, began to appear. OTC platforms verify exchange participants and guarantee the security and confidentiality of the transaction. With the help of such brokers, you can quickly exchange a large amount of cryptocurrency for fiat money at a fixed rate.
Functions and Services of Cryptocurrency Brokers
There are four main reasons, why you should find a reliable broker:
- An OTC broker acts as an intermediary between buyers and sellers of large amounts of cryptocurrencies.
- The broker builds and manages the crypto portfolio in real time. Brokers can perform margin trading on the client’s behalf and use other trading methods.
- The cryptocurrency broker offers clients analytical tools that are superior to the functionality of the exchanges.
- Crypto-broker clients can hone their trading strategies with sample trades and copy trading.
Brokers become your advisors and enforcers in the world of cryptocurrency.
General Benefits and Prospects of Working with Brokers
Four main positive aspects of working with crypto-brokers are:
- Unlike traditional brokers, crypto brokers offer higher leverage. In some cases, it reaches 1:1000 – one client’s dollar can turn into a thousand. Thus, a trader can significantly increase the volume of his deals and the profit with the same capital.
- Brokerage services are also more diverse than those offered by exchanges. Crypto brokers provide analytical tools and charts to help clients better build investment portfolios and manage risk.
- Crypto-brokers can work not only with cryptocurrency and fiat money but also with contracts for difference (CFD), commodities, indices, precious metals, securities, and Forex.
- The cryptocurrency broker can provide liquidity on the trading floors, so it offers customers the opportunity to close orders on time. The broker also offers the possibility of trading with leverage and other ways of trading, allowing to “play” on the fall in prices.
Thus, the demand for cryptocurrency brokerage services will only grow.
FBS is an international broker, which works in 190 countries. The broker company has been working in the market for more than 10 years, and during this time it has earned about 40 international awards. The broker is regulated by the license CySEC (331/17) and provides fairly flexible conditions for trading in Forex. In addition to classical currency pairs, the company’s clients can trade indices, futures contracts, exotic currencies, as well as metals.
Types of Accounts and Their Characteristics
FBS offers both demo and live trading accounts that will give you exactly what you might be looking for, whether you’re a beginner or an experienced trader.
When opening an account, you can choose between a Standard and a Cent account, which are ideal for beginners because of the lower requirements and associated risks. You also have the option of opening Micro, Zero, or ECN accounts, which are designed for more advanced traders.
With FBS, it is up to you to decide how much leverage to trade with – from 1:50 to 1:3,000. Leverage will also depend on your account type. There is a unique service for currencies, with leverage of 1:3,000. If you want to maximize your profits, this offer is for you.
Leverage levels increase the size of your trade by allowing you to multiply your initial balance, opening up greater opportunities for higher profits.
Advantageous Characteristics of the FBS Brokerage Company
The strengths of FBS over its competitors are:
- protection against negative balance;
- wide range of trading instruments;
- 24/7 support service.
Weaknesses of FBS:
- no cryptocurrency;
- auto-copying is not available;
- no PAMM-accounts;
- does not work with clients from Russia;
- not suitable for short-term trading, such as scalping;
- support is in a limited number of languages;
- only two real accounts.
So, FBS is a broker for those who appreciate the variety of trading instruments and prompt support. The company is suitable for both beginners and experienced traders working on PCs and smartphones.
Regardless of the further development of the market, the relevance of brokerage services will only grow. The number of brokers themselves will also increase. And beginners should also take a closer look at further work with FBS.