I am familiar, very familiar with bitcoin exchanges. I played in several places.
Yobit, binance, bitrex, hitbtc and so many others.
Then I tried to use forex broker.
I wonder in what ways are they are different?
If I send $1000k to a forex broker will the broker save my money in the bank and then let me play?
The only money that can be "played" in bitcoin exchange is the money that are deposited by the player. What about forex broker?
In most bitcoin exchanges, trading on margin is impossible. The exception is polo and bitfinex and they have their own special lending app for that.
What about forex broker?
In bitfinex and polo, players can make a good rate lending money to margin trader. I don't see that in forex broker. Why?
For example, if I want to use bitcoin in bitcoin exchanges I will have to deposit bitcoins.
In bitcoin exchanges the exchange hold the actual bitcoins, usually in some cold wallet.
What about in forex broker?
If I buy or sell bitcoin in bitcoin exchanges, I am buying it from other player. I don't buy it from brokers. Is this the same way in forex?
The spread in bitcoin exchanges are often high. Sometimes we can make small money buying at bid price and selling at ask price. The catch is we need to find market taker. What about in forex?
Do forex brokers really have the money in their platform? If people buy USD EUR in one forex broker, are we buying it from other players or from the broker?
Finally are prices in all forex brokers the same? In bitcoin exchange, prices are not always the same. They are usually quite close. If price of ETH/BTC is high in one exchange, one can buy ETH from another exchange and send it to that unusual exchange and keep arbitrage profit.
What about in forex broker? Say price of GDP/USD is 10% higher in robo forex than in instaforex, what are they gonna do? Buy GDP USD in one and short in another?