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Normal Forex & Crypto Trading · Chapter 8

How Exchanges & Brokers Work (Forex + Crypto)

Fees, wallets & custody, and topping up safely in the Philippines — so the operational side of trading feels simple and familiar before you risk real money.

⏱ 90–120 minutes 🧠 Hands-on practice 📖 5 sections + workbook
⚠ Important Reminder Forex and crypto trading are high risk and speculative. Everything on this website is for education only and not financial advice. Never trade with money you cannot afford to lose. Always start with a demo or paper trading account. For real investment decisions, consult licensed financial professionals in the Philippines.

What you’ll be able to do after this lesson

  • Explain how forex brokers (OTC market) differ from crypto exchanges (CEX/DEX), and where fees really come from.
  • Identify and compute key fees: spread, commission, swap/rollover (forex); maker/taker, gas/network, deposit/withdrawal, funding rates (crypto perps).
  • Set up custody and security: 2FA, withdrawal allow-list, device approvals, and when self‑custody makes sense (“not your keys, not your coins”).
  • Top up and cash out safely in PH using common rails (InstaPay/PESONet/e-wallets) via PH-licensed VASPs — test small first.
  • Avoid common funding mistakes (wrong network, memo/tag errors) that can permanently lose funds.
  • Place orders correctly using market/limit/stop orders and understand how orders sit in the book.

Introduction: Understanding your trading infrastructure

Before you place your first real trade, you need to understand the infrastructure that makes it possible: brokers, exchanges, fees, wallets, and payment systems. Think of this chapter as learning how the “mall” works before you shop — where the entrances are, how to pay, and how to keep your money secure.

PH Safety Note Always verify licensing (BSP VASP) and check SEC advisories before funding platforms. When testing a new deposit/withdrawal route, start small (e.g., ₱200–₱500) to confirm the correct network and details.

Lesson roadmap

Section 1 — The Market Structure

10–15 min
  • Forex OTC model and how brokers route access to interbank liquidity
  • Broker models: ECN/STP vs market-maker
  • Crypto paths: centralized exchanges (CEX) vs decentralized (DEX)

Keywords: OTC · Interbank · ECN/STP · Market-Maker · CEX · DEX

Section 2 — The Fees You Actually Pay

25–30 min
  • Forex costs: spread, commission, swap/rollover, conversion, inactivity
  • Crypto spot: maker vs taker, tier discounts, gas/network fees
  • Perpetual futures: funding rate mechanics

Keywords: Spread · Commission · Swap · Maker/Taker · Gas · Funding

Section 3 — Wallets & Custody

10–15 min
  • Custodial vs self-custody (and when each makes sense)
  • Security setup: 2FA, withdrawal allow-list, device approvals
  • Network + memo/tag mistakes and how to avoid losing funds

Keywords: Private Keys · 2FA · Hardware Wallet · ERC‑20/BEP‑20 · Memo/Tag

Section 4 — Funding & Cashing‑Out in PH

15–20 min
  • PH rails: InstaPay, PESONet, e-wallets (GCash, Maya)
  • Use PH-licensed VASPs; test deposits first
  • Regulatory hygiene: BSP licensing, SEC advisories

Keywords: InstaPay · PESONet · VASP · KYC · Compliance

Section 5 — Placing Orders Correctly

10–15 min
  • Order types: Market, Limit, Stop/Stop‑Limit
  • Order book visualization and execution basics
  • Practice with TradingView / DOM simulation

Keywords: Market Order · Limit · Stop · DOM · Liquidity

Practice + Workbook

45–60 min
  • Fee calculation drills + funding/withdrawal safety checklist
  • Order types practice scenarios
  • Workbook exercises for PH funding flow + custody best practices

What’s next: Chapter 9 focuses on Do’s & Don’ts (habits that protect your capital and sanity).