00:01cfd brokers versus on-chain trading platforms i'm talking about cfd brokers versus perpetual
00:08dexes right so today we'll be doing that uh comprehensive uh comparison uh looking at the
00:14fees funding the custody and the risks and uh at the end of the day people do understand that
00:19cfd brokers and on-chain trading platforms can provide exposure to many of the same markets
00:26right but uh what differs is uh that you know sometimes they do place trust custody and risk
00:33in very different places if you are using those platforms so a cfd trader relies on a broker
00:40its pricing system and custodians withdraw purchases and also the regulatory entity right so an on-chain
00:48trader relies more on smart contracts wallets oracles liquidity pools keepers stable
00:55coins and blockchain infrastructure pretty much uh this review that we did kind of combines
01:02and examines account structure and legal counterparties uh the broker custody versus the protocol smart
01:10contracts and the cfd spreads versus on-chain price impact you also want to be thinking about
01:16things like overnight financing funding borrowing costs retail leverage limits versus a high on-chain
01:25leverage as well as uh the withdrawal reviews versus uh kind of our blockchain in contract delays
01:32centralized execution versus oracle keeper based settlement these are some of the things that
01:38you need to be thinking about right if you think about negative balance protection formal compliant
01:43uh procedures smart contract oracle bridge stable coin risks uh whether you know you think about
01:51how cfds or perpetual traders uh own the underlying asset and uh whether they do own the underlying asset
01:59uh on uh any of these uh platforms prime xbt ostium g trade um a lot of uh uh kind
02:07of uh uh
02:09platforms that we also analyze in in this video uh at the end of the day uh what we conclude
02:14is simply that
02:15uh uh neither a cfd nor an on-chain perpetual normally gives you as a trader ownership of the underlying
02:22asset right so you could be uh for example a stock cfd uh does not create a shareholder rights right
02:29a gold
02:30perpetual does not represent ownership of physical gold both are leveraged derivatives whose value
02:37follows another market right so the key difference is where you place the trust i'm sure if you're a
02:44derivatives trader we're comfortable with these kind of uh um uh what we do in trading price
02:50exactly that or synthetics right but a cfd broker uh where you use that kind of a system the trust
02:58sits
02:58with the regulatory company is balance sheet the market makers custody arrangements and the legal
03:04frameworks with an on-chain protocol you know trust actually sits with code contracts oracles
03:10liquidity governance and uh the blockchain itself right so regulated cfd accounts can offer strong
03:16retail protections in account recovery on-chain platforms can offer wallet-based access custodial
03:23you know access public settlement and just greater transparency but uh at the end of the day when you
03:29trade with leverage there's always risks uh associated with the actual trades themselves but uh check out
03:35the guide that we've included in the description of this video so you can actually see the differences
03:41between uh uh pip dix's and uh these are contract for difference uh broker uh type platforms uh because
03:48i think the future is going on chain things are getting tokenized and uh if you're going to be trading
03:54whether it's effects or equities uh the place to trade now is going to be on chain on the blockchain
04:01so
04:01check out the full guide let me know what your thoughts are like share and subscribe and turn
04:05on the notifications and i'll see you guys in the next videos peace
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