From record highs to harrowing crashes, cryptocurrencies have had an interesting start to the month, to put it mildly. Whether crypto markets continue to flourish or not, now is as good a time as any to remind our readers of some basic OPSEC regarding self-custody of crypto assets.
For many people, keeping crypto assets on Coinbase, Binance or any other centralised platform is good enough. For those in this camp, the following article is of no practical use. However, for those electing self-custody, the following may serve as a crucial reminder of what to avoid.
Being in full control of one’s assets certainly has its advantages, but it comes with a much greater degree of responsibility. The burden of understanding concepts such as network congestion, the hassle of private key storage, and how to use swaps and bridges is substantial enough, but self-custody presents the additional problem of so-called “dust attacks”.
Those who have been in the crypto game long enough may have noticed a few odd tokens sitting in their wallets of which they have absolutely no recollection. Tokens with strange names, or indeed tokens with eerily similar names to legitimate cryptocurrencies. Typically, these tokens are present in extremely small quantities and are worth next to nothing – hence the “dust” description. How did it get there? How strange.
Dust attacks are the new email spam, and they present some very similar characteristics. Firstly, just as with email spam, most dust attacks are a numbers game. They are very cheap to carry out. The scammer has nothing to lose by casting a wide net and trying to ensnare as many victims as possible. It does not matter if 99.99% of their targets escape unscathed; the 0.01% makes the attack worth it.
Dust attacks can be broadly grouped into three different categories: wallet de-anonymising, phishing scams and address poisoning.
1. Wallet de-anonymising
This type of attack only works on Bitcoin, Cardano, Dogecoin and other UTXO-based blockchains. UTXO (unspent transaction output) chains differ from account-based chains such as Ethereum in that transactions can combine inputs from different sources, grouping them together into a single operation. This means a user can sweep up a bunch of small sums from different addresses and collectively send them to a new wallet. This is where the danger of a dust attack comes in. If a user accidentally combines the balance from a dusted address with the balance from another address under their control, the user is essentially proving that they own both, thereby linking the addresses together and potentially de-anonymising them. In extreme cases, addresses may be linked to someone’s real-world identity, opening the door to coercion, extortion and worse. The best cryptographic security in the world counts for very little when faced with a knife-wielding psychopath.
2. Phishing scams
Dust attacks have largely moved away from the case described above in favour of more aggressive tactics. This second type of attack works on Ethereum, Solana and other smart contract-based blockchains. As opposed to linking different addresses together to find patterns, the goal here is much more direct, aiming to drain a user’s wallet by getting them to interact with malicious smart contracts. The process typically works along the following lines:
1. The attacker airdrops a junk token or NFT that looks like a legitimate project or collectible
2. Months may go by before the user even notices the strange token in their wallet
3. Eventually the user notices the token and gets curious enough to investigate
4. A quick search points to a cool-sounding crypto project with a shiny new DEX
5. Once on the website, the user is given the chance to sell or swap their airdrop
6. The DEX prompts the user’s wallet for an approval or signature to initiate the exchange
7. If signed, the attacker gains permission to transfer and spend other tokens from that wallet
8. The user’s wallet is now compromised
The attack vector centres on getting the user to grant permissions far beyond those necessary for a simple transaction. The case above is one example, but some dust attacks do not involve other websites or DEXs at all, remaining confined to the user’s wallet. If the attacker really knows what they are doing, they may craft truly devilish contracts that exploit some of the more esoteric smart contract functions.
On the Ethereum network, a simple ERC-20 token with no privileges will typically only affect the transfer and holding of that particular token. However, even here we advise caution, particularly if the contract in question has not been thoroughly audited. The real danger lies in other token standards, such as ERC-777 and ERC-1363. These tokens have more advanced capabilities; therefore, with the right permissions, they can do far more damage. A greater arsenal of weapons to choose from, so to speak.
Depending on the complexity of the smart contract in question, merely trying to sell or swap the token from a user’s own wallet may prove problematic. The user may have to approve the token for trading and, by doing so, inadvertently grant other, unrelated permissions to the malicious smart contract. Even technical users can be caught out in this way because it is sometimes possible to disguise the true purpose of an operation. At first glance, a contract may look like it performs a certain mundane task, while in fact it does something else entirely. Wallet UIs and dApps can easily be exploited to hide the real intent behind such smart contracts, with disastrous consequences. Even people smart enough to use a hardware wallet can be caught out if they approve the transaction without thoroughly examining the required permissions beforehand.
Rather than cover every dangerous function likely to appear in a malicious smart contract, we simply advise against interacting with such contracts altogether. As complicated and technical as this topic can get, the answer is extremely simple:
Do not touch the dust in your wallet. Do not touch any token that you do not recognise. Do not interact with them under any circumstance. Do not try to get rid of them. Do not try to send them to a burn address. It is a trap. Walk away.
3. Address poisoning
Address poisoning is a very different beast from the attacks discussed above. Firstly, because such attacks work on both UTXO and account-based chains, and secondly, because address poisoning targets singular, unique wallets. Poisoning scams involve real, legitimate cryptocurrencies and require a certain level of finesse to pull off successfully. The attack works as follows:
1. The attacker identifies a high-net-worth target (a whale)
2. The whale must actively move around their assets between different wallets
3. The attacker creates new wallets with addresses similar to the whale’s
4. The attacker sends a small amount of dust from the new wallet to the whale
5. The whale, mistaking the attacker’s wallet for their own, sends a transaction to the wrong address
For example, the whale may regularly send tokens to the following address:
0x32Be343B94f860124dC4fEe278FDCBD38C102D88
Because of the way blockchain technology works, with specialised tools, it is possible to find an address that matches the beginning and end characters, for example:
0x32Be3477e6c13b6A6B25aBcAA29B393777102D88
When people check addresses, this is often how they do it. Check the start. Check the end. Looks good. Send. Wait a minute… Oh ####!
The whale is speared.
An interesting example of such an attack happened in May 2024, and unfolded exactly along the lines described above. The whale in question sent $68 million worth of wrapped Bitcoin to the wrong address. Over the next few days, the whale sent a number of messages to the scammer, embedded in smaller transactions, in an attempt to negotiate. The first message read as follows:
“You won bro. Keep 10% to yourself and get 90% back. Then we'll forget about that. We both know that 7m will definetely make your life better, but 70m won't let you sleep well.”
Swiftly followed by:
“We both know there's no way to clean this funds. You will be traced. We also both understand the "sleep well" phrase wasn't about your moral and ethical qualities.”
Astonishingly, the scammer sent everything back to the whale, even foregoing their 10%. Although the attacker did make a tidy $3 million profit from the token appreciation over the course the event.
Address poisoning is typically reserved for high-net-worth crypto holders, but for wallets great and small, the advice remains the same: double-check that address.
When dealing with matters relating to cryptocurrencies, the conclusion is usually the same. The entire point of crypto, from day one, was to offer people an alternative form of money that was not beholden to other actors. The direct result of this mind-set is that the user assumes full responsibility for their assets. Some people accept the burden; some people do not. Those who do face a far less forgiving path.
If the US President Donald Trump had a toolbox, it probably wouldn’t contain a spanner, a screwdriver, or even a tape measure. No, the only tool in there would be a big shiny hammer labelled “TARIFFS”, and man, does he like to swing it around.
To the average American voter, tariffs might sound like a patriotic plan to “Make America Buy Local Again.” To businesses, they’re more like an extra cost that no one anticipated. And to forex traders? Well, tariffs are a gift that keeps on giving, a bit like a movie with unpredictable plot twists and occasional laugh out loud moments.
But before we get ahead of ourselves, let’s make this clear: tariffs are not just about protecting American steel mills or making the latest Nike’s cost twice as much. They ripple through the entire global economy, jolt investor confidence, stir inflation, and, most importantly for us, send currencies bouncing around like popcorn in a hot frying pan.
Think about it. Every time Trump announces a new tariff (usually with the dramatic flair of a late-night TV salesman), forex traders everywhere suddenly lean closer to their screens, whispering: “Here we go again.” Because when tariffs hit, the U.S. dollar might spike as a safe-haven or collapse under inflation worries. Emerging market currencies either get walloped, or, if they’re lucky, dodge the tariff bullets and rally. In short: Trump’s trade wars are a currency trader’s worst nightmare or adrenaline rush.
In this article, we’re going to unpack Trump’s tariff obsession, look at who pays the price, and, most importantly, explore how these policies affect the currency markets. We’ll keep things light (because trade wars are stressful enough), occasionally make fun at the chaos, and help forex traders see both the risks and the opportunities hiding inside the tariff drama.
Why Trump Loves Tariffs (and Why Currency Traders Should Care)
Donald Trump talks about tariffs the way some people talk about their favourite Tomato sauce, with passion, confidence, and the absolute certainty that it goes well with everything. Steel? Tariff it. Cars? Tariff them. Pharmaceuticals? Hell, why not, slap a tariff on those too. If it can cross a border, Trump believes it can (and probably should) carry a nice big, fat import tax.
Now, to be fair, Trump does have his reasons, and to him, they’re completely airtight. The official line goes something like this: tariffs will encourage Americans to buy more “Made in the USA” products, raise money for Uncle Sam through extra tax revenue, and shrink that pesky trade deficit (the gap between what the U.S. imports and what it sells abroad). In Trump’s words, America has been “pillaged” by foreigners for decades, so tariffs are his way of sending the bill back across the US border.
But here’s where things get interesting (and at times confusing). Tariffs aren’t just about trade. Trump often ties them to… well, almost anything. One week it’s about protecting U.S. jobs. The next week it’s about pressuring Mexico to do more on border security. Another time, tariffs were threatened against countries trading with Russia unless peace magically broke out in Ukraine within 50 days. In other words: tariffs are not just a tool; they’re also a bargaining chip, a pressure point, and occasionally, a megaphone for whatever’s on Trump’s mind that day.
For forex traders, this is where the fun begins. Because every time Trump opens his mouth about tariffs, whether it’s a carefully planned policy or a “let’s see what happens” kind of announcement, markets react. Sometimes the U.S. dollar flexes its muscles as investors pile into it as a safe haven. Other times the dollar slumps, as traders worry that higher import costs will mean more inflation, slower growth, and a grumpier Federal Reserve.
And the foreign currencies on the receiving end? They often get dragged into the ring whether they like it or not. The Mexican peso, Chinese yuan, Canadian dollar, and Japanese yen have all taken rollercoaster rides during Trump’s tariff crusades. One day they’re down because of higher U.S. duties, the next they’re up because a “deal” is supposedly around the corner. It’s exhausting for governments, but for traders who thrive on volatility, it’s pure gold.
So why should forex traders care about Trump’s love affair with tariffs? Because tariffs are like caffeine shots for the markets: they jolt everything awake, send currencies racing, and keep you glued to your trading screen. Love him or hate him, Trump has turned tariffs into one of the most market-moving forces out there, and in forex, that’s exactly where opportunity lies for you, the savvy currency trader.
The Greatest Tariff Show on Earth (Who’s Paying What?)
If politics is theatre, then Trump’s tariff policies are pure Broadway. What started as a few duties here and there has turned into a full-blown world tour of economic slap downs.
Let’s look at the highlights from the Tariff Greatest Hits collection:
● 50% tariff on steel and aluminium imports. America is the world’s biggest importer of steel after the EU, so this was like slapping a “Do Not Enter” sign on the global metal market. Canadian, Brazilian, and Mexican exporters all winced and so did their currencies.
● 50% tariff on copper. Because apparently, if it’s shiny and industrial, Trump’s putting a toll gate on it.
● 25% tariff on foreign-made cars and car parts. Imagine building a car in Germany, shipping it across the Atlantic, only to find it costs more than a luxury yacht thanks to tariffs.
● 200% threatened tariff on pharmaceuticals. Yes, you read that right. A 200% tariff although, in true Trump fashion, no further details were confirmed. Traders just shrugged and thought: “Is this real, or is it just Monday?”
● End of the global tariff exemption for goods under $800. This might sound boring, but it hit shoppers who loved ordering cheap fashion from Shein or Primark. Suddenly, bargain hunting turned into inflation hunting.
And then there are the country-specific punishments. Trump announced a “baseline” 10% tariff on almost all imports, then dialled it up depending on how much he felt each country had wronged the U.S.:
● India and Brazil got slapped with 50%.
● South Africa, 30%.
● Vietnam, 20%.
● Indonesia and the Philippines, 19% each.
● Japan and South Korea, 15% a piece.
● Canada? A hefty 35% on top of existing duties. (Apparently, maple syrup diplomacy didn’t work.)
● The UK managed to walk away with a 10% deal, the lowest rate so far though it still faces tariffs on cars and steel. It did cost the Brits a full pomp state visit though, courtesy of the British taxpayer.
And in the middle of all this chaos, Trump struck a deal with the EU: 15% tariffs on European goods in exchange for zero duties on some U.S. products. Trump called it “the biggest deal ever made.” Traders called it “slightly less terrible.”
Now, if you’re a forex trader, here’s why this circus matters: tariffs hit countries unevenly. A 50% tariff on Indian or Brazilian goods makes investors nervous about those economies, which can weaken the INR or BRL. Meanwhile, currencies from countries that cut deals with the U.S. like the euro or the GBP might get a short-term boost.
And the U.S. dollar? It sits in the middle of the action, either climbing as a safe-haven currency or wobbling as inflation fears creep in. Every tariff headline is like a drumroll; you don’t know if the dollar is about to take a bow or trip over its shoelaces.
Tariffs may look like a boring tax policy on paper, but in practice they’re a never-ending rollercoaster for forex markets. Or as traders might put it: “Thanks for the volatility, Mr. President. Can we play the game again?”
When Tariffs Meet Forex: The Domino Effect
Tariffs may seem like simple taxes on imported goods, but in the financial world, they’re more like tipping over the first domino in a very long, very wobbly chain. And the last domino? Yes, you guessed it, the currency markets.
Here’s how the cascade usually works:
1. Tariffs go up. Importers suddenly face higher costs on everything from steel to clothes.
2. Prices rise. Companies do not absorb the costs themselves; they pass them on to consumers. Congratulations, your next bottle of French wine might fund the tariff war.
3. Inflation ticks higher. Economists and central bankers start frowning into their coffee cups.
4. The Federal Reserve reacts. If inflation climbs too much, the Fed might raise interest rates. If growth slows, they might cut them. Either way, forex traders are hanging on every word of Jerome Powell’s speeches.
5. Currencies swing. The U.S. dollar either gets stronger (if investors see higher rates coming) or weaker (if tariffs threaten growth and spook investors). Meanwhile, currencies in the affected tariff-targeted countries, like the yuan, peso, real, all get dragged along for the ride.
Take a real example: when Trump raised tariffs on Vietnam and Indonesia, suddenly Nike and Adidas were looking at billions in extra costs. Both companies announced price hikes for American customers. That fed straight into U.S. inflation numbers, which in turn fuelled speculation about what the Fed would do next. And for traders? It meant volatility in USD/JPY, EUR/USD, and even emerging market pairs like USD/VND.
This is why forex traders don’t just watch tariff news, they obsess over it. Tariffs create uncertainty, and uncertainty is the rocket fuel of the currency market. Each new announcement can flip sentiment in a heartbeat. One minute the dollar looks bulletproof, the next it’s wobbling like a Penguin.
Of course, while businesses and consumers groan about higher prices and disrupted supply chains, forex traders often see opportunity. Volatility means wider trading ranges, sharper moves, and more setups for both day traders and swing traders. It can be stressful for sure, but if you’ve ever whispered a quiet “thank you” to Donald Trump after catching a perfect breakout on USD/CAD, you are not alone!
So, when tariffs hit, don’t just think about factories and shipping containers. Think about the ripple effect, inflation, interest rates, central bank reactions, because that’s where currencies really start to dance. And in forex, that dance floor is where the money’s made.
Winners, Losers, and Currency Rollercoasters
Like any good reality TV show, Trump’s tariff saga has its fair share of winners and losers, though “winning” often means “losing slightly less than everyone else.” And just like in forex, one country’s misery is often another countries opportunity.
Let’s start with the losers.
Top of the list: U.S. consumers**.** Tariffs might be aimed at foreign producers, but the reality is that Americans end up footing the bill when companies raise prices to cover higher import costs. Clothes, coffee, electronics, toys, even your favourite Air Fryer, all a little pricier thanks to the tariff train. Inflation creeps higher, household budgets stretch thinner, and forex traders perk up, wondering if the Fed will swoop in with a policy response.
Next up: countries directly hit by tariffs. If you’re Brazil, India, or Canada, a 35–50% tax slapped on your exports to the U.S. is a serious blow. Your economy slows, investor confidence wobbles, and here’s the forex angle; your currency usually takes the hit. The Brazilian real, Indian rupee, and Canadian dollar have all had their fair share of sleepless nights under Trump’s tariff hammer.
And of course, U.S. manufacturers also lose out. A modern car, for example, doesn’t just roll off one production line, its parts often cross borders multiple times. With every crossing now more expensive, costs spiral. This dents profits and slows business investment.
Now, onto the winners.
Strangely enough, countries that avoid tariffs or strike favourable deals with the U.S. can sometimes benefit. The EU’s deal to secure 15% tariffs instead of 50%? That’s like haggling down the price of a luxury handbag, you’re still paying a fortune, but you feel like a genius for saving you have made. Their currencies (like the euro) might even get a short-term lift as markets cheer the “deal.”
Another winner? Forex traders. Yes, really. While everyone else grumbles about higher prices and slower growth, traders rub their hands together at the juicy volatility. Tariffs trigger swings in major pairs (EUR/USD, USD/JPY), emerging market currencies (USD/MXN, USD/BRL), and even safe havens like the Japanese yen and Swiss franc. If you like volatility, and let’s be honest, most traders secretly do, then Trump’s tariffs are like Christmas morning.
Finally, there’s gold. Every time tariffs spook the markets, investors often flee into safe-haven assets. Gold rallies, the dollar wobbles, and forex traders find themselves dusting off their XAU/USD charts. Tariffs might not have been designed to boost precious metals, but they’ve certainly helped gold stay at all-time highs recently.
So yes, tariffs reshuffle the deck of winners and losers on a near-weekly basis. And for forex traders, that means plenty of rollercoaster moments. One day your chosen currency is soaring, the next it’s in freefall. But hey, without a little chaos, trading would be boring, wouldn’t it?
Tariffs and the Dollar: A Love-Hate Relationship
The U.S. dollar has a very complicated relationship with tariffs, the kind of on-again, off-again drama that would put a daytime soap opera to shame. Sometimes tariffs make the dollar look strong and dependable, other times they turn it into a jittery mess. It all depends on how investors read their tea leaves.
On one side of the love story, tariffs can strengthen the dollar. Why? Because when global markets get spooked, say, when Trump slaps a 50% tariff on Canadian maple syrup or threatens 200% duties on medicines, investors go running for safe-haven assets. And at the top of that list, alongside gold and the Japanese yen, sits the good old greenback. Fear makes people cling to the dollar like it’s a financial life raft.
But then there’s the hate part. Tariffs can also hurt the dollar by raising import costs, pushing up inflation, and slowing economic growth. Higher prices mean the average American spends more on basics and less on extras, dragging on GDP. If growth takes a dive, the dollar tends to follow. In some cases, traders even start betting that the Federal Reserve will cut rates to soften the blow, which puts further downward pressure on the currency.
The result? A dollar acting like a rebellious teen. One minute it’s storming out of the room in protest (weakening on growth fears), the next it’s back to being the centre of attention (rallying on safe-haven demand). For forex traders, this makes USD pairs, especially EUR/USD, USD/JPY, and GBP/USD, some of the most exciting and unpredictable to trade during tariff drama.
And here’s the kicker: the same tariff headline can trigger opposite reactions depending on market sentiment at the time. A new round of tariffs might send the dollar up if investors panic, or down if they decide it’s bad for the U.S. economy. It’s less about the actual numbers and more about the story the market chooses to believe.
So, if you’re trading during the tariff saga, don’t expect the dollar to give you straight answers. It’s not a loyal partner; it’s a wildcard. But in forex, unpredictability isn’t always a bad thing, it just means more opportunities to profit (or lose, if you’re on the wrong side of the move).
Trade Wars Are Currency Wars
If history has taught us anything, it’s that trade wars rarely stay in their own lane. Slap tariffs on your neighbour’s goods, and sooner or later somebody starts fiddling with exchange rates. Welcome to the world of currency wars, the financial version of throwing spaghetti at the wall to see what sticks.
Take the U.S. and China, for example. When Trump ramped up tariffs on Chinese imports, Beijing didn’t just shrug and accept the bill. Oh no, instead, the Chinese yuan was allowed to weaken. A cheaper yuan makes Chinese exports more competitive, which helps offset the pain of higher tariffs. To Trump, this was “currency manipulation.” To traders, it was just another Tuesday.
And China isn’t alone. Other countries facing heavy tariffs often consider letting their currencies slide just enough to stay attractive in global markets. Brazil, India and even Canada have all seen their currencies take a hit during tariff disputes. Sometimes it’s deliberate policy, sometimes it’s just nervous investors pulling money out; but the result is the same: forex markets light up with activity.
Of course, Trump being Trump, he didn’t just complain about other countries playing with exchange rates. He also hinted (more than once) that the U.S. should weaken the dollar too. The idea was simple: if tariffs make U.S. goods more expensive abroad, then a weaker dollar could help American exporters stay more competitive. Whether or not Washington ever acts on this, the mere suggestion is enough to send forex traders scrambling.
This is why tariffs and forex are joined at the hip. A tariff is never “just” a tax on imports, it’s also a trigger for central banks, currency interventions, and market psychology. In fact, some traders argue that every major trade war in history eventually becomes a currency war. After all, if you can’t win by raising prices, you try to win by lowering the value of your money.
For traders, this means keeping one eye on tariffs and the other on central bank talking heads. Because the second tariffs bite, the currency chess game begins. Will China weaken the yuan further? Will the Fed intervene? Will smaller economies like South Africa or Vietnam let their currencies sink to stay competitive?
In short: when tariffs show up, currency wars aren’t far behind. And for forex traders, that means even more volatility, more opportunity, and more caffeine.
How Traders Can Navigate Tariff Turbulence
Tariffs may give politicians migraines and company CEOs sleepless nights, but for forex traders they’re just another part of the crazy game. The trick isn’t avoiding the chaos, it’s learning how to surf without getting wiped out. So, how do you navigate tariff turbulence without losing the shirt off your back shirt (or your trading account)? Let’s break it down.
1. Watch the news like a hawk (or maybe an overdosed caffeinated parrot). Tariff announcements often land with zero warning, sometimes via press conference, sometimes via a tweet that appears at 2am. If you’re trading USD pairs, you can’t afford to ignore the headlines. Keep your economic calendar handy and your news feeds refreshed. Because in Trump’s world, policy is made in real time.
2. Expect volatility, not direction. One of the biggest traps traders fall into is assuming tariffs will always make the dollar stronger or weaker. The truth? It depends on context. Sometimes tariffs drive safe-haven demand for USD, sometimes they spook investors into selling it. So instead of betting your account on a “guaranteed” reaction, prepare for wild swings in both directions.
3. Hedge or protect yourself. If you’re worried about getting steamrolled by volatility, consider hedging your positions or tightening your stop-losses. Tariffs can push markets through technical levels like a bulldozer through a picket fence. Smart risk management keeps you in the game long enough to catch the next opportunity.
4. Look to the safe havens. When tariff drama heats up, investors often pile into safe-haven currencies like the Japanese yen (JPY) and the Swiss franc (CHF), or commodities like gold (XAU/USD). If you see a major tariff headline breaking, check how these assets are behaving, they can be a lifeline when the dollar is acting unpredictable.
5. Zoom out. Tariffs may shake markets in the short term, but don’t forget the bigger picture. If tariffs feed inflation, central banks could respond with policy changes that affect currencies for months (or years). For the savvy swing traders, that’s where the real opportunities lie.
6. Embrace the chaos (within reason). Let’s be honest: volatility is the lifeblood of forex trading. Without it, the charts would be flatter than a pancake. Tariffs inject uncertainty, and uncertainty means movement. If you manage risk, these moments can be some of the most profitable trading days you’ll ever see.
In other words: don’t panic when tariff headlines hit. Get curious, stay nimble, and remember that every tariff is just another chapter in the world’s longest-running financial soap opera. And if your stop-loss gets blown up by a sudden Trump tweet? Well, you’re not alone, half the trading world is right there with you.
The Future of Tariffs: Big Deal or Big Mess?
So where do Trump’s tariffs go from here? If history (and Truth Social) is any guide, the only predictable thing about Trump’s trade policy is its unpredictability. One day he’s threatening a 200% tariff on pharmaceuticals, the next he’s striking “the biggest deal ever made” with the EU. Traders who try to guess his next move often feel like they’re spinning a roulette wheel in your local Casino.
There are a few possible scenarios:
1. The Escalation Path. Tariffs could spread wider and deeper, dragging more countries and more goods into the crossfire. That means higher prices, more global tension, and plenty of fireworks for forex markets. In this scenario, expect safe-haven currencies (JPY, CHF) and gold to keep rallying whenever fresh tariffs hit the headlines. The U.S. dollar might also spike as a short-term safe haven but eventually stumble under the weight of slower growth.
2. The Negotiation Shuffle. This is the dance Trump seems to enjoy the most: announce tariffs, threaten more, then backtrack in exchange for “a better deal.” In forex terms, this means whiplash. One day USD/JPY shoots higher, the next it collapses. The euro, pound, yuan, and peso all end up swinging like pendulums. For traders, this is the perfect storm of volatility, frustrating for governments, but great for anyone who can keep up.
3. The Big Deal (Or….. Miracle Scenario). Could tariffs lead to long-term trade agreements that stick? Maybe, but don’t hold your breath. Even when deals are announced, markets often remain sceptical, treating every handshake as just another photo op. Still, if a genuine breakthrough happened, it could calm markets, strengthen global growth expectations, and give risk-sensitive currencies (like AUD, NZD, CAD) a solid boost.
For forex traders, the real takeaway is this: whatever direction tariffs go, they’ll keep currencies busy. Volatility isn’t going away, and neither are the opportunities that come with it.
So, big deal or big mess? Maybe a bit of both. But one thing’s for certain, as long as Trump is swinging his tariff hammer, forex traders won’t be complaining about being bored.
Conclusion: Tariffs, Tweets, and Trading Screens
If there’s one thing we’ve learned from Trump’s tariff adventures, it’s that nothing in global trade is ever simple, or quiet. Tariffs ripple through factories, boardrooms, and grocery stores, but for forex traders, the real action happens on your trading screens.
Every new tariff announcement has the potential to shake currencies, move gold, rattle emerging markets, and test the patience of even the most seasoned traders. The U.S. dollar is as moody as ever. And the other currencies? They’re doing their own dance, twisting and turning as they respond to both economic realities and market speculation.
Yet despite the chaos, there’s a silver lining for traders: opportunity. Volatility is the lifeblood of forex, and Trump’s tariffs provide it in spades. With careful risk management, a keen eye on news, and a sense of humour about the absurdity of it all, traders can navigate this turbulent landscape and even profit from it.
Whether tariffs escalate, deals are struck, or markets continue to swing like a rollercoaster in a hurricane, one thing is certain: trading in the era of Trump’s tariffs is never dull. And for those who thrive on action, unpredictability, and the occasional eyebrow-raising tweet, it’s the ultimate playground.
Remember: tariffs might raise prices, slow growth, and frustrate CEOs, but in the forex world, they’re just another chapter in the never-ending story of global markets. Strap in, stay alert, and maybe keep your sense of humour handy , because in this game, the tweets are fast, the tariffs are heavy, and the opportunities wait for no one.
Cryptocurrencies have gone from being a niche obsession of tech geeks and libertarians to a mainstream asset class, that even your neighbour Dave brags about owning (usually right before the market tanks). From Bitcoin pizza purchases to billion-dollar funds, the digital asset rollercoaster shows no signs of slowing down.
But here’s where things get interesting: not everyone buys or trades crypto the same way. Some people use crypto exchanges, those digital marketplaces where you can swap your hard-earned dollars for Bitcoin, Ethereum, or a coin with a name that sounds like a Pokémon character. Others, however, are quietly doing something different: they’re trading crypto through their good old forex broker.
Wait, what? The same broker you use to trade EUR/USD or GBP/JPY also lets you trade Bitcoin? Yes. In fact, many forex brokers now offer crypto trading right alongside currencies, commodities, and indices. And for some traders, this feels as natural as ordering fries with your burger.
But here’s the million-dollar (or one-Bitcoin) question: why would anyone choose to trade crypto through a forex broker instead of a crypto exchange? Isn’t that like buying sushi from a petrol station? Maybe… but as it turns out, there are some pretty solid reasons people do it. Of course, there are also some major downsides, which we’ll explore later.
So, grab your digital wallet (or at least your sense of humour), because in this article we’re going to explore:
● What makes forex brokers different from crypto exchanges.
● Why traders sometimes prefer brokers over exchanges.
● The sneaky disadvantages brokers don’t shout about.
● And whether crypto prices are actually the same on both platforms (spoiler: not always).
By the end, you’ll know exactly whether trading Bitcoin via your forex broker is a stroke of genius, or the financial equivalent of paying extra for bottled water when the tap’s just fine.
Forex Brokers vs. Crypto Exchanges: The Big Picture
Before we start throwing shade at either side, let’s get clear on what we’re actually comparing.
Forex Brokers
A forex broker is like your financial middleman, the person who makes it possible for you to buy and sell currencies, and increasingly, other instruments, without having to fly to Wall Street and start waving your hands around in a pit full of sweaty traders. Brokers usually give you access to slick platforms like MetaTrader 4 (MT4) or MetaTrader 5 (MT5), where you can click, drag, and chart your way to trading glory (or financial ruin, depending on how your last gold trade went).
They make money mostly from spreads, commissions, and sometimes sneaky overnight financing fees. But the key point? Forex brokers are usually the adult in the room, financial authorities that make sure the broker doesn’t just run off with your cash.
Crypto Exchanges
Crypto exchanges, on the other hand, are like bustling digital bazaars where people swap Bitcoin, Ethereum, and thousands of other coins you’ve probably never heard of. Some exchanges are highly professional (think Coinbase or Binance), while others look like they were built in a spare room above a Kebab shop in a rundown area of town way back in 2009 and they still haven’t updated their customer support line.
Here, you are often trading “real” crypto. You buy it, you own it, and if you want, you can transfer it to a private wallet where you hold the keys (and nervously triple check you didn’t send your life savings to the wrong address).
Exchanges aren’t always regulated in the same way brokers are. Some have licenses, others are still trying to figure out how to explain themselves to governments. And of course, some have collapsed spectacularly (cough FTX cough), reminding traders that “not your keys, not your coins” is more than just a catchy slogan.
The Overlap
What is the overlap? Both let you trade cryptocurrencies. Both give you platforms to click “buy” and “sell” with frightening ease. But the philosophy is different:
Forex brokers usually give you derivatives (like CFDs), so you’re speculating on crypto prices rather than actually owning the coins.
Crypto exchanges let you buy the real deal, though they also offer leverage and fancy futures contracts for those who want to get spicy.
In short, forex brokers are like the controlled environment of a gym treadmill, while crypto exchanges are more like trail running in the wilderness. One is predictable and regulated; the other has more freedom, but you might twist your ankle.
Why Traders Choose Forex Brokers for Crypto
If you’re wondering why someone would trade Bitcoin through a forex broker when shiny crypto exchanges are a click away, don’t worry, you’re not alone. But as with most things in finance (and life), convenience and comfort often win out. Let’s explore the main reasons traders cosy up to their forex brokers for crypto action.
1. One-Stop Shop Convenience
Imagine logging into one platform and being able to trade EUR/USD, gold, the WS30, and Bitcoin, all without juggling multiple logins or trying to remember which two-factor authentication app you used. That’s the magic of forex brokers. Everything’s under one roof.
For traders who already spend their days glued to MT4 or MT5, adding a Bitcoin chart to the mix feels natural. Why learn a brand-new exchange interface when you can just slap another chart on to your screen?
2. Familiar Platforms (MT4/MT5, cTrader)
Let’s face it: most crypto exchanges have interfaces that feel like you’re piloting a spaceship. Order books, charts, liquidity depth, and a hundred different order types, it’s enough to make a newbie’s head spin, not to mention an old sweat like me!
Forex brokers, on the other hand, stick to what traders already know. MetaTrader might not win awards for beauty, but it’s simple, reliable, and lets you run all your favourite EAs (Expert Advisors) while pretending you’re not over-leveraging again.
3. Leverage and Margin
This is a big one. Most forex brokers let you trade crypto CFDs with leverage, sometimes up to 1:10 or 1:20. That means you can control a much larger position than your actual deposit would normally allow.
Of course, leverage is a double-edged sword. It can make you feel like a genius when Bitcoin moves in your favour, or like you’ve just donated your account balance to the market gods when it doesn’t. Still, many traders love the thrill (and the possibility of multiplying gains), and brokers are more than happy to provide you with the rope.
4. The Trust Factor
For some traders, the idea of wiring money to an offshore crypto exchange feels about as safe as sending your wallet to a stranger on Instagram. Forex brokers, at least the trusted ones, have to follow strict rules about client funds and reporting. That extra layer of oversight can give traders peace of mind.
Sure, not every forex broker is squeaky clean, but compared to the Wild West of unregulated exchanges, it feels a bit like moving from a dodgy back street casino into a proper Las Vegas venue. The house still wins most of the time, but at least the drinks are free.
5. Lower Learning Curve
If you’ve been trading forex for years, switching to crypto on your broker’s platform doesn’t require you to learn anything new. It’s like ordering your usual coffee from your favourite café; no need to explain yourself, no surprises, it just feels familiar and right.
For traders who just want exposure to Bitcoin or Ethereum without diving into the deep end of blockchain technology, forex brokers are the easy button.
The Downsides of Trading Crypto with Forex Brokers
Of course, trading crypto through your forex broker isn’t all sunshine and Lamborghinis. In fact, for every shiny perk, there’s usually a catch hiding in the small print. Let’s dig into the not-so-glamorous side.
1. Limited Menu of Crypto Coins
Most forex brokers only bother listing the “A-list celebrities” of crypto, Bitcoin, Ethereum, maybe Litecoin if they’re feeling generous. Don’t expect to find meme coins, obscure tokens, or that weird project your mate in your local bar swears will be “the next big thing.”
If you’re the type who likes browsing the full crypto buffet with thousands of coins to choose from, a forex broker will feel more like a sad hotel breakfast.
2. Higher Spreads and Hidden Costs
On exchanges, fees are usually clear and upfront: a small percentage per trade. With forex brokers, the cost often hides inside the spread (the difference between the buy and sell price).
Add to that the potential overnight financing charges (a.k.a. “swap fees”), and suddenly your “cheap” trade isn’t looking so cheap. Brokers know you’re here for convenience, and convenience rarely comes free.
3. No Real Ownership
Here’s the biggie: in most cases, when you trade crypto with a forex broker, you’re not actually buying Bitcoin. You’re trading CFDs (Contracts for Difference) or another type of derivative. That means you’re just speculating on the price, not owning the underlying asset.
So, forget about transferring your coins to a private wallet, staking them in decentralized finance, or bragging about “hodling” (long-term investment strategy) through the next bull run. With a forex broker, you can’t send Bitcoin to your hardware wallet, because you don’t actually own any. It’s like betting on horse racing without ever seeing the horse.
4. Fiat Withdrawals Only
On a crypto exchange, if you want to move your coins, you can send them directly to your wallet. With a forex broker? Nope. You deposit in fiat, you trade in fiat, and you withdraw in fiat, although many brokers are looking to add crypto withdrawals in the future.
If your dream was to stack sats and live off crypto someday, you’ll be disappointed. Forex brokers keep things old-school: dollars, euros, pounds. Digital coins stay on the screen only, for the moment.
5. Overnight Fees (a.k.a. Death by a Thousand Cuts)
Planning to hold Bitcoin for months at your forex broker? Brace yourself. Many brokers charge daily overnight fees for holding leveraged positions. Over time, these fees can quietly chew through your account like termites in wooden furniture.
Crypto purists laugh at this, since on an exchange you can buy and hold Bitcoin for years without paying a cent in “overnight financing.” But with a broker, it’s more like paying rent to keep your coins parked there.
Are Prices the Same on Forex Brokers vs Crypto Exchanges?
Here’s the million-dollar question (or 9-Bitcoin question, depending on which way the market’s swinging): are crypto prices the same whether you trade on a forex broker’s platform or a crypto exchange? The short answer: not quite. Let’s explore why this is the case.
How Pricing Works on Exchanges
On a crypto exchange, prices come straight from the order book, a live record of buy and sell orders placed by real people (and lots of bots pretending to be real people). The price you see is the result of supply and demand in that particular marketplace. More buyers push the price up; more sellers push it down. Pretty simple.
Liquidity is key here. The bigger the exchange, the deeper the liquidity pool, and the closer the price will track the global market average. That’s why the big names like Binance or Coinbase usually stay in line with each other, while smaller exchanges might look a bit… off.
How Pricing Works on Forex Broker Platforms
Forex brokers don’t usually have order books for crypto. Instead, they get their prices from liquidity providers, essentially, big banks, market makers, or other exchanges. The broker takes this feed, adds a spread (their cut), and serves it up to you on MT4, MT5, or whatever platform you’re using.
While prices on a forex broker’s platform generally follow the broader market, they’re not identical to exchange prices. Think of it like buying a Coke at the airport: it’s still Coke, but you’re paying airport prices.
Spreads and Slippage
On top of that, brokers often bake wider spreads into their quotes. For example, Bitcoin might be $50,000 on Binance but show up as $50,100 / $50,300 on your broker’s platform. That $200 gap is your cost of convenience.
There’s also slippage, the difference between the price you click on and the price you actually get. Fast-moving crypto markets love to play this game, and spreads plus slippage can add up to a nasty surprise if you’re not careful.
The Arbitrage Question
At this point, the clever traders might be thinking: “Aha! I’ll just buy on the exchange at $50,000 and sell on my broker at $50,200, free money right!” Unfortunately, brokers have already thought of that, and the mechanics of arbitrage between a CFD platform and a real exchange are messy (not to mention, brokers tend to close loopholes faster than you can say ‘risk-free profit’).
Bottom Line
Prices on forex brokers and crypto exchanges are usually similar but not identical. For long-term traders, the small differences may not matter much. But for short-term scalpers and day traders, those extra spreads and tiny gaps can be costly.
Which Type of Trader Benefits More?
Not all traders are created equal. Some like fast-paced scalping, some like long-term investing, and some just like to tell everyone at parties they “trade crypto” without ever opening a chart. So, who actually benefits from trading through a forex broker, and who’s better off sticking to exchanges?
Short-Term Traders (Scalpers and Day Traders)
For traders who live on 5-minute charts and survive on coffee and adrenaline, forex brokers have a few perks:
● Leverage lets them amplify small moves.
● Familiar platforms (MT4/MT5) make rapid-fire trading easier.
● Fiat accounts mean quick deposits and withdrawals without messing with wallets.
But there’s a catch: wide spreads and slippage can quickly eat into the razor-thin profits scalpers chase. It’s like running a marathon while someone keeps moving the finish line a few steps further.
Long-Term Holders (“Hodlers”)
If your idea of trading is buying Bitcoin and forgetting about it until the next halving cycle, a forex broker is basically useless to you. Why?
● You don’t actually own the coin.
● You can’t transfer it to cold storage.
● And overnight fees will bleed your account dry if you hold leveraged positions for months.
Exchanges (or better yet, private wallets) are the clear winners for hodlers. Brokers are for speculating, not storing.
Regulation Seekers
Some traders don’t trust crypto exchanges after seeing headlines like “Major Exchange Collapses, Billions Lost”. For them, a regulated forex broker feels safer. At least there’s someone to complain to if things go south, even if that someone is a regulator who politely tells you, “We’re looking into it.”
Variety Hunters
If you’re the type who likes dabbling in meme coins, DeFi tokens, or anything Elon Musk tweets about, forex brokers will disappoint. You’ll find Bitcoin, Ethereum, maybe Ripple if you’re lucky, but that’s it. Exchanges win hands-down here, offering thousands of tradable assets, from serious projects to coins that sound suspiciously like recipe ingredients.
The Hybrid Trader
Then there’s the smart middle ground: traders who use both. They trade short-term crypto moves on their forex broker (for the convenience and leverage) but buy and hold real crypto assets on exchanges or private wallets.
In Conclusion
Question: - Should you trade cryptocurrencies through your forex broker or stick with a dedicated crypto exchange? The answer, like most things in trading, is, it depends: -
Forex brokers bring convenience, familiarity, leverage, and regulation to the table. If you’re already trading forex, adding Bitcoin or Ethereum into the mix on the same platform is as easy as ordering dessert after dinner, no need to change restaurants. For short-term traders who just want to speculate on price moves, brokers can be a comfortable, streamlined choice.
But the downsides are hard to ignore. Limited coin selection, higher spreads, hidden fees, and, most importantly, the fact that you don’t actually own any crypto. If your dream is to hodl coins, keeping them long-term, transfer them to a cold wallet, or dive into the weird and wonderful world of altcoins and blockchains, forex brokers cannot provide you with this.
As for prices? They’re usually close enough between brokers and exchanges to not cause chaos, but small differences (plus those wider spreads) can nibble at your profits faster than you’d like. Arbitrage fantasies aside, the “cheap and cheerful” trade is rarely as cheap as it looks.
In the end, it comes down to your style.
● If you want convenience and speculation - forex brokers fit the bill.
● If you want ownership, variety, and long-term investing - It is exchanges.
● If you want both - well, why not? Many traders keep a foot in each camp, using brokers for short-term trades and exchanges for building long-term portfolios.
The key is knowing what you’re really getting into. Trading crypto through a forex broker isn’t “wrong”, it’s just a different flavour of trading. Some prefer vanilla, some prefer Caramel Chew Chew. As long as you know what’s in the tub before you dive in, you won’t get any nasty surprises.
Personally, being old school, I like the Forex broker angle, it is convenient and simple. Crypto trading is just another asset that I can make money from, and I don’t have to deal in complicated wallet numbers and blockchains. If the price of Bitcoin tanks I am out of the trade and not worrying that I am going to lose my pants if it keeps dropping as I don’t actually own anything.
