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LH-CRYPTO IN COMPARISON TO CRYPTO EXCHANGES AND FIAT BROKERS

10/05/2018
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  • Comparison of brokers
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A vast expansion of crypto trading has been significantly hindered by the lack of platforms equipped with a professional feature set. Crypto exchanges haven’t provided a sufficient level of safety, while fiat CFD brokers have a limited list of crypto assets. The founders of the first crypto-broker LH-CRYPTO managed to enhance their Frankenstein with the advantages of its rivals and eliminate their rivals’ weak sides.

It is easy to prove that the cryptocurrency broker LH-CRYPTO is a revolutionary tool for trading. Let’s make a step-by-step comparison with crypto exchange sites and an average fiat CFD broker that is working under a European regulation pursuant MIFID2 standards, compulsory for this regulation type.

TRADING ASSETS

Let’s start with the trading assets. The range of crypto exchanges list is not that large, all they offer are crypto assets. An average CFD broker’s asset list is larger: it gives access to Forex, stocks, commodities, sometimes even a certain (most often limited) set of crypto assets.

However, LH-CRYPTO gives far more opportunities for trading. A platform user has access to Forex, stocks of European, American and Asian companies, precious metals, commodities, indexes, a diverse range of crypto assets, including unique synthetic crypto assets (such as Bitcoin/Gold, Bitcoin/Oil, etc.). Comparing to an average CFD broker, LH-CRYPTO offers a 25% larger range of assets.

TRADING TERMINAL

Comparing trading platforms can also give us a lot of food for thought. Most of the crypto exchanges have coded their trading platforms themselves. In 90% of cases, it means only web terminals, the small list of market analysis tools and low reliability.

CFD brokers’ trading software is way better. They usually offer a professional trading terminal certified by financial regulators, which has been repeatedly tested for both reliability and safety.

At the present moment, MetaTrader 4/5 by MetaQuotes Software Corporation is the Gold Standard among trading terminals. LH-CRYPTO runs on the fifth version of this terminal.

MetaTrader is certified by regulators of dozens of countries. It includes a Web Trader, a Desktop version and apps for Android or iPhone. It also boasts a wide range of instruments for technical analysis.

The fact that over 2000 banks and broker companies around the globe choose MetaTrader as their software, must serve as a proof of its reliability and resilience. All of the orders at MetaTrader are processed instantly, even at the highest network load periods. LH-CRYPTO improved this reputable software with its unique server extensions (plug-ins) that make trading crypto assets even more rewardable and safe.

DEPOSIT AND WITHDRAWAL

The next evaluation category is account replenishment. Crypto exchanges accept only cryptocurrencies. CFD brokers accept only fiat currencies, even if they include cryptocurrencies into their asset list. Meanwhile, LH-CRYPTO accepts funds in both cryptocurrencies and bank wires.

Speaking about withdrawal, crypto exchanges generally allow you to withdraw your funds only in cryptocurrencies, CFD brokers – only in fiat currencies, charging the high commission for withdrawal. LH-CRYPTO users are free to withdraw their profits in either fiat or cryptocurrencies. The cryptobroker does not charge any commission for that.

ACCOUNT REGISTRATION AND KYC (KNOW YOUR CLIENT)

One more point of interest for every trader is – what is the account registration period? Crypto exchanges allow users to open an unverified account with a limited feature set instantly, however, account verification may take 1,5-2 months.

CFD brokers have no unverified accounts at all. Their regulators prohibit it even for the smallest accounts. A time-consuming and complicated verification procedure leaves no place to confidentiality, and brokers share all the financial information with Tax Administration services due to the Standard for the automatic exchange of information.

LH-CRYPTO guarantees that users with smaller deposit amounts (Start service) can instantly open a full-featured account with minimum personal information provided. Higher ranks of services (Standard and Pro) require basic documents verification. This process is simple, especially compared to traditional brokers, and takes up to 48 hours. It is worth mentioning that the country where LH-CRYPTO has its registration has not signed the Standard for the automatic exchange of information and provides sufficient confidentiality of its clients’ personal and financial data.

THE LEGAL ISSUE

Today most of the world’s countries legal system either poorly covers operations with cryptocurrencies or don’t regulate at all. In either case, the state of affairs affects a crypto exchange client most. At any given moment the authorities may resolve to liquidate a crypto exchange, and this is sadly often practice.

CFD brokers are far better regulated. Trading with a CFD broker is legal, and there are no specific risks that are typical of crypto exchanges. Still, when it comes to trading crypto assets with a CFD broker, it’s not all roses. Their regulators may put such assets under a ban or significant restrictions.

The first crypto-broker LH-CRYPTO successfully combines advantages of a crypto exchange and a CFD broker, neutralising their weak points.

LH-CRYPTO is not just a service within an existing CFD broker; it is an independent broker that makes settlements with its clients in cryptocurrencies according to the terms and conditions of a CFD broker. A valid licence for dealer activity from the Republic of Vanuatu enables the company to build such type of service.

Summing up, LH-CRYPTO is legally regulated, still being free from regulations faced by a conventional CFD broker. For instance, the crypto-broker is free to make settlements in cryptocurrencies or set higher maximum leverage.

LEVERAGE

Leverage is a key characteristic that short-term and medium-term traders pay attention to first. The higher the leverage, the more investment opportunities traders have.

Comparison by leverage surely does not favour crypto exchanges, which hardly provide trading with 1:3 leverage, especially for shorting and for operations with coins out of the TOP-5 list.

The maximum leverage provided by a fiat CFD broker under the European regulation is 1: 30 for Forex, 1:20 for precious metals, 1:10 for commodities, 1:5 for stocks and 1:2 for cryptocurrencies.

It may look alluring from the first glance, but comparing to LH-CRYPTO this offer loses all of its attraction. LH-CRYPTO users can benefit from much higher leverage – 1:500 for Forex, 1:100 for precious metals, 1:50 for commodities, 1:50 for stocks and 1:100 for cryptocurrencies.

COMMISSION FOR TRADING

Crypto exchanges charge average 0,2% for trading. CFD brokers reduce it to 0,015-0,1%, depending on the asset. Yet LH-CRYPTO is even more trader-friendly. For example, the first crypto-broker commission for Forex is only 0,01-0,03%, for stocks – 0,05-0,08%. LH-CRYPTO commission for cryptocurrencies starts from 0,2% and decreases by 10% and 30% for Standard and Pro services respectively.

There is no such thing as SWAP (charge for keeping a margin position open for the next day) on crypto exchanges. CFD brokers SWAP fee is around 3% annually for fiat assets and about 35% for cryptocurrencies. Speaking of LH-CRYPTO, its terms for fiat assets are similar to that of CFD brokers. Meanwhile, for crypto assets, the Rolling Swap technology reduces traders’ expenses for the first 3 days, when 90% of all orders take place, by 3-4 times.

SHORT TRADING AND DEALING TECHNOLOGIES

It is literally impossible to go short on crypto exchanges when the market goes down and the asset liquidity is low. LH-CRYPTO and CFD brokers, on the other hand, make short trading possible, and this type of operations is no different from buying orders for any volumes and any market type.

It is much more interesting to compare platforms by the technologies they use for completing orders. Crypto exchanges require finding an opposite order. The execution price may be different from the stated price, it depends on the asset liquidity, trade volume, price, the direction of trade and the market situation. CFD brokers and LH-CRYPTO use over-the-counter model. The deal is completed almost instantly, by the current price, with one click. The execution time varies from milliseconds to 3-5 seconds at high volatility periods.

Add locking (securing your profit by opening an order in the opposite direction), cutting-edge market analysis tools (including neuro-networks and genetic algorithms), a plenty of trading robots, advisors and customised indicators, and you get a clear picture of what LH-CRYPTO, the first cryptobroker, has to offer.

COMPARATIVE TABLE OF THE FIRST CRYPTO-BROKER LH-CRYPTO, CRYPTO EXCHANGES AND FIAT CFD BROKERS

* For an average CFD broker under European regulation pursuant to MiFID 2


CRYPTO EXCHANGE

FIAT CFD BROKER *

(running on MetaTrader 4/5)

LH-CRYPTO

Trading assets

Crypto assets

Forex, Stocks, Commodities, sometimes a small set of crypto assets

1) Forex

2) Stocks of European, American and Asian companies

3) Precious metals

4) Commodities (futures on oil, gas, wheat, etc.)

5) Indexes

6) A wider set of crypto assets

7) Unique Synthetic crypto assets (Bitcoin/Gold, Bitcoin/Oil, etc.)


The list of assets is about 25% larger than that of an average CFD broker.





Trading terminal



  • Rudimentary trading terminals.
  • 90% of the terminals only have web trader function (browser trading);
  • Small list of technical analysis instruments;
  • Low reliability and failure tolerance;
  • Frequent account hacks.


  • Professional software MetaTrader 4/5 certified by regulators of over 20 countries;
  • Web trader, desktop terminal, apps for devices based on Android and iPone;
  • Full set of technical analysis instruments. Installed programming language for trading strategies MQL5
  • High reliability and failure tolerance, the software is used in more than 2000 banks and broker companies;
  • Not a single successful account hack. Certified pursuant bank safety standards.


  • All the advantages of MetaTrader software listed on the left;
  • MetaTrader 5 is used – a later, upgraded version;
  • MT5 is the best solution for professional brokers, but due to its high cost and complexity, it is only used by 20% of brokers, including LH-CRYPTO;
  • Our trading terminal is improved with our unique server extensions (plug-ins) that make trading cryptocurrencies even more profitable and safe.


Deposit


Cryptocurrencies


Only fiat currencies, even if cryptocurrencies are available for trading



Cryptocurrencies / Bank wires




Withdrawal


  • Cryptocurrencies;
  • Automated withdrawal;
  • Commission charged.

  • Only fiat currencies;
  • Manual withdrawal within 1-5 days;
  • Commission charged.

  • Cryptocurrencies / Bank wires
  • Automated and manual withdrawal;
  • No commission charged.


KYC, verification period




  • An unverified account (with limited feature set) is opened instantly;
  • Account verification on the largest exchanges may take a month or more.



  • No unverified accounts allowed;
  • Time-consuming and complicated KYC procedures. No confidentiality, tax transparency due to the Standard for the automatic exchange of information.

  • A full-featured unverified account is opened instantly;
  • Account verification gives extra privileges and takes 48 hours. Minimum document set is required. The broker’s country of registration does not exchange tax information.




Leverage


Trading with 1:3 leverage is either not available or hindered, especially for shorting and coins out of TOP-5 list.


  • 1:30 for Forex;
  • 1:20 for metals;
  • 1:10 for commodities;
  • 1:5 for stocks;
  • 1:2 for cryptocurrencies.

  • Up to 1:500;
  • Up to 1:100;
  • Up to 1:50;
  • Up to 1:50;
  • Up to 1:100.







Per-trade commission








0,2% on average


Depending on brokers’ policies, the commission
is partly or fully included into the spread.

Average expenses per trade:


Forex – 0,015 – 0,05 %

0,01 – 0,03 %

Metals – 0,05 – 0,08 %

0,03 – 0,05 %

Stocks – 0,06 – 0,1 %

0,05 – 0,08 %

Commodities – 0,08 – 0,15 %

0,08 – 0,15 %

Cryptocurrencies – no trading available

0,5 % (for every trade, similar to Maker/Trader order)


SWAP (payment for keeping a margin position open for the next 24 hours)




The term is not used


Around 3% annually for fiat assets, around 35% for crypto assets.



Around 3% for fiat assets. Rolling SWAP system helped us reduce the expenses for the first 3 days (90% of all of the orders) by 3-4 times.


Short trading operations (selling assets the seller does not own)



Practically impossible when the market is falling or the liquidity is low.


Possible, have no differences to buying an asset for any volume and any market situation


Opening orders for the current price



Direct trading. Orders are not executed instantly and require a match (it is required to find an opposite order to close your position). The execution price may differ from the stated price, it depends on liquidity, order volume, price, trend direction and market situation.



Orders are opened and closed instantly, for the best current price, with one click. Execution may take from milliseconds to 3-5 seconds at high volatility periods. It almost doesn’t depend on volume, liquidity or trend direction.





Terminal at network overload periods


May freeze at network overload times


MetaTrader brokers (especially those who use MetaTrader5) are almost not limited technically. All the orders are performed instantly, even at the overload periods with millions of transactions per second.

Pending orders like stop-loss or take-profit

Not guaranteed that they are executed at the stated price

Executed at the stated price

Trailing stops

Not available or not guaranteed

Guaranteed

Locking (opening simultaneous opposite positions)


Not available


Depends on the broker’s regulation


Available

API

Available

Available only with MT5 brokers (10% of the market)

Available



Algorithmic trading



Not available


Sophisticated programming language for trading strategies MQL5. Cutting-edge algorithms for market analysis, including neural networks and genetic algorithms. A large infrastructure for coding and selling trading robots, advisors, customized indicators. Social trading (trade copying), etc.


Negative Balance Protection

Not relevant

Not available

Available

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LH-CRYPTO is an online service for crypto-traders

LH-CRYPTO is an online service for crypto-traders. The service is available to everyone, except for the citizens of particular countries and several categories of people listed in the License Agreement. LH-CRYPTO is a free software for making conversion operations with CFDs on various financial assets nominated in cryptocurrencies.

The project does not manage funds and does not guarantee profits. The project only offers a service that allows to make conversion operations with cryptocurrencies on a specially configured software.

This website is maintained and supported by the following legal body:

LARSON AND HOLZ IT LTD

All the settlements in this project are processed solely in cryptocurrencies. Conversion operations are processed on the terms of margin trading without a direct supply of underlying assets. According to the generally accepted term, these operations are called operations with OTC (over the counter) CFDs (contracts for difference).

Trading with OTC CFDs involves considerable risks. We recommend you pay the utmost attention to both theory and practice of margin trading before making any of such operations.

The services provided by this project are not available for: residents of USA, North Korea, Sudan and Syria.