Crypto Trading: CFD Broker vs. Exchange - Which is Cheaper?

1. The Fee Structure

• Exchanges (Binance/Bybit): You pay a "Maker/Taker" fee (approx 0.1%) on every trade. Plus, if you move crypto to a wallet, you pay "Gas Fees" ($5-$20 for ETH).
• CFD Brokers (Exness): Zero commission. You only pay the spread. For Bitcoin, spreads can be as low as $10-$30. No gas fees ever.

2. Safety & Regulation

• Exchanges: "Not your keys, not your coins." History is full of exchange hacks (FTX, Mt. Gox). Regulation is patchy.
• Brokers: Top brokers like Plus500 are listed on stock exchanges and regulated by the FCA/ASIC. Your fiat capital is often insured.

3. Ease of Shorting

• Exchanges: Shorting requires borrowing assets (Margin), paying interest, and navigating complex interfaces.
• Brokers: Click "Sell". It is that simple.

The Verdict

• Choose an Exchange (Binance/Coinbase) if you want to buy and hold for 5+ years or use the crypto for payments.
• Choose a Broker (Exness/Plus500) if you want to day trade, use leverage, or short the market without wallet headaches.

Recommended Platforms

• For Active Trading (CFD): Exness (Low Spreads) or Plus500 (User Friendly)
• For HODLing (Exchange): Binance