Company blog

Crypto liquidity

28.12.2023

Crypto liquidity

Crypto liquidity refers to the ability of a cryptocurrency to be easily converted into cash or other digital assets without affecting its market price. High liquidity in a cryptocurrency means it can be easily bought or sold in large volumes without causing significant price fluctuations. This makes the trading process smoother and faster for traders. Low liquidity in a crypto market, on the other hand, can lead to slow transactions and high price volatility.

 

Liquidity is paramount in the cryptocurrency market. A higher liquidity level leads to increased trading volume, signifying active traders and price stability. This aids in effortless and organic growth of the industry. The cryptocurrency market faces a struggle with liquidity due to its inherent volatility and fluctuation in value. When the liquidity decreases in the crypto market, even flagship currencies, like Bitcoin, may face massive repercussions, making it necessary for this sector to keep a keen eye on liquidity levels.



Lack of liquidity might result in a market's downfall, leading to bankruptcies and loss of market value. On the contrary, sufficient liquidity attracts more traders, promotes more deals, and enables more businesses to adopt crypto as their payment option. It is, therefore, crucial for the crypto industry to facilitate trading volume, earn public trust and attract more investors for healthier liquidity levels, ensuring a stable market environment.

Liquid crypto assets

 

Newcomers to trading and investing in cryptocurrencies often struggle to identify the ones worthy of their investments. Liquidity is a key consideration for those who are new to this market.

 

What methods can be used to distinguish reputable cryptocurrencies from scammy ones? Liquidity in the cryptocurrency market offers assistance to investors. It doesn’t take long to identify valuable digital assets for investment and weed out potentially fraudulent cryptocurrency schemes.



The liquidity of a specific asset relies on these parameters:



1. The price of the digital asset



2. The trading volume in the last 24 hours



Trading volume is an important factor that many new traders or investors heavily rely on. Experienced investors are aware of the mutual dependence between an asset's price and its trading volumes. Bitcoin, for example, is one of the most liquid cryptocurrencies with a daily trading volume of $21.37 billion. Considering its price, its 24-hour trading volume equals 488,676 BTC.



Speaking about the most popular cryptocurrencies, most of them exhibit the highest cryptocurrency liquidity. Specialists advise against investing in assets with a trading volume of less than 10,000 coins per 24 hours.

 

However, a lot of them, including Bitcoin, are highly volatile. Bitcoin, for instance, has experienced a steep decrease, losing over 60% of its value in November 2022. Thus, it isn't really feasible to use such volatile currencies for transactions. Stablecoins, such as Tether (USDT) and USD Coin (USDC), which are linked to fiat currency and supported by bank reserves, are a much more practical option. 

 

 

<a href="https://www.freepik.com/free-photo/bitcoin-is-new-concept-virtual-money-graphics-digital-background-coins-with-image-letter-b_10107475.htm#query=cryptocurrency&position=0&from_view=search&track=sph&uuid=9f1b64f8-0dad-405f-9cbd-9ee5b15af11d">Image by pvproductions</a> on Freepik

Crypto market makers

 

Forex market dominators like the US Dollar, Euro, and British Pound have good liquidity, as they have reigned in the financial marketplace for many years and their corresponding forex markets rarely encounter liquidity issues. In this sector, substantial financial organizations commonly serve as market makers, providing the industry with slim spreads and competitive pricing.

 

Market makers are unique entities entrusted with the duty of maintaining enough fluidity and effective trading quantity. Regardless of the market circumstances, they are constantly prepared to purchase or sell assets. Whether they are individuals, financial institutions, or automated systems, these entities providing liquidity all share a mutual objective: to streamline the process of asset acquisition and disposal.

Market maker operations incorporate a variety of functions:



Stability of Pricing: Market makers deliver consistent pricing, reducing sharp swings in the asset values.
 

Consistency in Trading: By maintaining a constant presence in the market, market makers guarantee real-time trading for various institutions and traders.



Adaptability and Variety: Market makers offer diverse trading tools and offer flexibility in terms of settlement alternatives.



Mediation: Market makers are the link between buyers and sellers, establish the starting prices, generate active quotes, and ensure a balanced market.

 

Market makers essentially serve as brokers that bolster the effectiveness of the market. Their capacity to offer liquidity and shrink bid-ask spreads doesn't just advantage individual traders but also helps to cultivate a stronger, more durable financial system. Through facilitating trading, market makers support the overall constancy of financial markets, permitting participants to carry out trades more competently and with lesser transaction expenses.

 

Cryptocurrency market doesn’t have this stability yet nor is it currently backed by a substantial number of financial organizations. Despite blockchain technology bringing forth a host of innovative and valuable concepts, its most renowned creation, cryptocurrency, has battled to establish innate worth within the market.

 

However, the growth and popularity of cryptocurrency markets have resulted in a significant role for market makers. These entities conduct market making in the crypto world, employing similar basic strategies used in traditional financial markets but tailored to cater to unique crypto market dynamics.



The key task of a crypto market maker is to inject liquidity into the digital asset market by persistently placing both purchase and sale orders. This infusion of liquidity is a lifeline for traders who desire to execute their transactions swiftly and seamlessly.



In their endeavor to keep the gap between the bid and sell prices at the minimum, crypto market makers facilitate in lessening the bid-ask spread. To realize this, they harness cutting-edge technology and algorithms. The resultant slender spread proves advantageous for traders, enabling them to conduct transactions at rates that closely match the existing market valuation of the digital asset.

Various Market Maker Categories within the Cryptocurrency Sector:



Individual Market Participants - These are individuals actively engaged in the cryptocurrency markets, striving to reap profits from the difference between buying and selling prices via placing limit orders on exchanges.



Expert Market Making Companies - These specialist firms concentrate on market making across numerous financial tools, cryptocurrencies included. These companies commonly utilize high-tech trading algorithms and technologies to automate their market-making operations.



Cryptocurrency Exchanges - Certain crypto exchanges function as market makers in their own right. They deliver liquidity through matching buying and selling orders on their platforms. Occasionally, these exchanges utilize their funds to facilitate trades and maintain liquidity.



High-Speed Trading (HST) Companies - Using complex algorithms and rapid trading tactics, these firms can carry out numerous orders within fractions of a second. To take advantage of minor price differences, they frequently engage in market making.



Arbitrageurs - By capitalizing on price variations across different exchanges or trading pairs, these traders involve themselves in arbitrage. They contribute to the market's efficiency by minimizing price differences across various platforms.



Automated Market Makers - Traders and firms utilizing sophisticated algorithmic strategies for market making belong to this category. Their algorithms are constantly updating buying and selling prices, depending on the state of the market, the dynamics of the order book, and other significant elements.



Project Initiators or Token Issuers - Some projects and token issuers within the decentralized finance sector might act as market makers for their tokens. To guarantee a fluid market for their assets, they might deliver liquidity to decentralized exchanges.



Traditional Financial Entities - Conventional financial institutions such as proprietary trading companies and hedge funds could also function as market makers within the cryptocurrency environment. Such institutional market makers can bring in substantial liquidity to the market.



Crypto Asset Funds - Investment funds concentrating on cryptocurrencies may involve themselves in market making as part of their investment strategies. Given their resources and expertise, these funds are well-positioned to actively contribute liquidity to the market.

Why having crypto liquidity is a good idea

 

Organic expansion - Primarily, no method is superior to an organic market expansion in attracting more investment and participation to the crypto sphere. The evolution of this industry is largely dependent on its capacity to minimize fluctuation through the addition of more inherent value and a wider global adoption for transactions.



If present tendencies persist, the crypto environment is geared up to achieve this, with several recent projects emphasizing the value of smart contracts and transnational transactions via crypto assets. Excluding any unexpected events that may hinder this progress, the industry is advancing towards a more stable state, notably improving the liquidity levels universally.

 

Rapid development - The integration of Gold-i's Crypto Switch solution into the Hidden Road financial credit network is a positive development as it promotes robust cryptocurrency liquidity. It does so by harnessing the API features of Hidden Road to ensure dependable liquidity aggregation for cryptocurrencies. This development promises a transformation of conventional trade settlements and could bring about substantial advancements, such as allowing for instantaneous trade duplication.



Gold-i's continued efforts to foster a solid cryptocurrency trading environment play a significant role in this process. The company's Crypto Switch is noted for efficiently providing cryptocurrency liquidity to institutions, as it connects to various cryptocurrency market makers and exchanges. This provides deep liquidity, along with the advantages of low latency and minimal spreads.



The essential role of Hidden Road in managing both traditional and digital assets is recognized and commended by Gold-i's CEO, Tom Higgins. According to Higgins, Hidden Road has effectively created an operational ecosystem within the cryptocurrency sector. This ecosystem includes vital features like prime brokerage, clearing and funding, thereby reducing risk for counterparties. 

 

Revolutionary product - Digital assets are primarily intended to bring about a revolution in the conventional economy, completely overhauling it. Bitcoin, for example, is constructed as a new way of making payments. Numerous cryptocurrencies aim to enhance the current system, offering more convenience to both everyday users and cryptocurrency owners, through features like lower transaction fees, secured anonymity in transactions, and lack of limitations.

 

 

<a href="https://www.freepik.com/free-photo/cryptocurrency-coding-digital-blue-background-open-source-blockchain-concept_17122207.htm#query=cryptocurrency&position=6&from_view=search&track=sph&uuid=25e4dd2e-2aa6-4844-a452-42e3efe89925">Image by rawpixel.com</a> on Freepik

Choosing crypto liquidity providers

 

Choosing the appropriate provider can be a tough task since this choice has a direct impact on your business. Here are a few aspects that may guide you in selecting the most suitable liquidity provider.

 

Pricing Strategy



Prices are a crucial determinant when it comes to choosing the perfect liquidity provider for your company. Liquidity providers often have varying pricing models, dependent on the services offered and your budget.



Opt for a provider whose pricing aligns with your business needs and is cost-effective. There's no sense in getting the greatest liquidity service if it eats up all your earnings as service charges.



Therefore, it's recommended to set feasible objectives and hopes and locate a trustworthy liquidity provider within your budget range.



Compliance with Regulation



Financial operations are typically heavily regulated in multiple countries, especially when your operations are on a global scale. Partnering with a regulated liquidity provider is the best approach to reduce risks.



Providers who are unregulated or shady are not dependable, and losing access to liquidity and funds can spell disaster for your customer service.



For instance, financial organizations are subject to strict regulations by the US Securities and Exchange Commission. Any violations can result in hefty fines and potentially affect their capacity to provide liquidity to trading platforms.



Company Reputation



Research client reviews and feedback about liquidity providers to understand more about these businesses. The information gathered from these testimonials can shed light on how these providers operate and treat their clients.



Additionally, feedback can help reveal if a liquidity provider's offerings are genuinely as good as they seem or if the company fails to fulfill its promises.



Products and Services



Investigate the services and solutions offered by liquidity providers and ensure they align with your requirements. Financial firms offer various service packages that you can review and match with your preset requirements.

 

Customer Support

 

Highly-rated providers are always prepared to address your issues.

 

What UpTrader offers in terms of crypto liquidity

 

UpTrader takes the cryptocurrency matter seriously and as such, has enabled the feature to enter/withdraw decimal values for the highest and lowest cryptocurrency funding amounts. If your company handles a lot of transactions through crypto, it would be beneficial to use our streamlined automated system for topping up your cryptocurrency account.



Here's how our cryptocurrency gateway operates:



The user-friendly API of UpTrader’s crypto gateway is designed to flawlessly blend with any CRM. A distinct wallet, dedicated only to the customer making a crypto deposit, is created and connected with every CRM client. To prevent any confusion, this wallet remains the same for all transactions. Following this, our crypto gateway keeps an eye on the incoming funds to the wallet and transmits the payment details to the CRM, which in turn processes and alters the amounts automatically.



We also provide a specialized solution for Crypto CFDs by combining resources from cryptocurrency exchanges, non-bank liquidity suppliers, cryptocurrency brokers, orders from institutional clients, and hedge funds. As a result, we can offer brokers the deepest liquidity pool.



Features of our offering include:



- BTC spread starting at $0.1



- Marginal requirements of 20%



- 7 liquidity platforms



- Rapid execution starting from 12 ms



- Around-the-clock technical support all year round



By partnering with UpTrader, you benefit from our expertise, high-stability product, and excellent pricing for large volumes at premium levels.



Specifications of our crypto CFD pairs:



- 100 Crypto CFD pairs



- Marginal requirements of 20%



- Available for trading 24/7/365

 

 

<a href="https://www.freepik.com/free-photo/silhouette-businessman-with-glasses_851284.htm#query=business%20blue&position=1&from_view=search&track=ais&uuid=845ac09d-5220-4ebd-af49-465a86a0f65c">Image by pressfoto</a> on Freepik

Risks connected with crypto liquidity

 

Volatile assets & the skepticism of general public

 

Even years after the birth of Bitcoin, one of the most widely recognized cryptocurrencies, it remains largely speculative. It fails to deliver a robust technical or practical worth to stabilize its market prices. This implies that the market is primarily ruled by speculative consumer demand.



This further implies that the market can experience abrupt price hikes due to increased buyer interest, but equally, a sudden drop in demand could lead to serious economic falls. What's worse is that there are no effective means to offset the substantial price fluctuations in the market, since cryptocurrency value largely depends on the public's perception.



Hence, liquidity plays a crucial role in the crypto sector. If liquidity declines, leading to a massive withdrawal of traders, even the major currencies are not exempted from severe impacts. Additionally, solutions for cryptocurrency liquidity are fewer in comparison to traditional finances like fiat currency and stocks.



As of now, most central banks show no interest in injecting liquidity into crypto markets, leaving non-bank liquidity providers with the responsibility of ensuring adequate funds. While there's a growing prime broker and market maker sector, depending on smaller entities to provide adequate liquidity poses challenges.



In a nutshell, the sector grapples with maintaining ample liquidity due to its intrinsic volatility and value concerns. To put it plainly, it is imperative for the crypto industry to monitor liquidity levels in different sectors vigilantly, as any significant fluctuations could trigger a major financial downturn.



Though various mechanisms exist to provide superficial relief to low liquidity crypto sectors, their efficiency is not guaranteed, and they can't protect the industry from potential downturns. Quick liquidity boosts, institutional rescues, among others, are mere stopgaps for the deep-rooted issues discussed above.



Presently, Bitcoin has a lot of liquidity. Nevertheless, even this flagship digital currency grapples with maintaining favorable price levels and enticing investors from outside the crypto realm. This is a clear indication that the industry needs to revise its perspective and endeavor to apply revolutionary blockchain technology more pragmatically. If not, the industry will continue facing liquidity issues in the future, leading to more downturns and a potential market collapse.

Liquidity aggregation for the crypto market

 

Liquidity aggregation involves pooling buy/sell propositions for a particular asset from diverse origins and routing them to decision-makers. This operation is critical in producing favorable conditions for substantial volume cryptocurrency trading at a price close to the market rate. It achieves a relative equilibrium between supply and demand through this consolidation of liquidity from various sources, helping to circumvent unfavorable market circumstances such as slippage and spread, which hinder trading effectiveness.



The operation of liquidity aggregation is confidential. Crypto liquidity aggregators take in liquidity from major exchanges and simultaneously form their liquidity pools, thus enhancing transaction volume. Consequently, clients linked to these aggregators perform dual roles as both liquidity consumers and providers, thereby achieving a perfect equilibrium between buyer demand and seller supply levels. Through the formation of a liquidity hub, these aggregators draw from various external sources to supply ample liquidity to all trading instruments, thereby maintaining stable prices even amidst unforeseen high volatility in the cryptocurrency market. A notable instance of such a system is the Marksman liquidity hub, which provides organic liquidity services.



In the crypto world, market liquidity plays an integral role in moderating factors that heighten price volatility. Its aggregation mainly seeks to curtail the influence of specific large-scale investors, also known as whales, who possess the financial muscle to alter the price trend of virtually any asset on any market. The consolidation of financial flows from multiple sources into one liquidity pool through liquidity aggregation also allows for ongoing consolidation of the order book. This guarantees instantaneous execution of both buying and selling transactions, thereby conferring an advantage when purchasing assets at the market price.

 

Advantages of liquidity aggregation for the crypto market

 

Let's begin by exploring the primary advantages of liquidity aggregation within the realm of cryptocurrency.



1. Amplified Liquidity and Market Depth Enhancement



The crypto market is highly reliant on liquidity, making liquidity aggregation an essential element in ensuring a stable trading environment. The aggregation process consolidates a substantial amount of funds for trading specific crypto assets, thereby enriching the market's depth. This enhances the trading experience by facilitating smoother execution of large volume orders. Additionally, higher liquidity levels enable participants to operate seamlessly across both spot and futures markets without the challenges of low market depth or delays in order fulfillment.



2. Increased Market Accessibility and Enhanced Transparency



Higher transparency levels help identify instances of market manipulation where high-value trades by whales may skew market trends to their advantage. Utilizing multiple liquidity providers' resources helps present a clear and accurate depiction of the market and mitigate issues related to market manipulation and insufficient liquidity.



3. Quicker Execution of Orders



It's commonly observed that participants experience order execution speeds far slower than those promised by trading conditions. In such scenarios, if a transaction cannot be executed at the desired price in time, slippage occurs, forcing participants to settle for the next price on the list. The lower the execution speed, the more significant the slippage. The slippage level is directly related to the liquidity level. In the course of aggregation, liquidity amplifies as funds from various sources get diversified across different trading tools.


 

Disadvantages of liquidity aggregation for the crypto market

 

Let's examine the main drawbacks linked to liquidity aggregation.



1. Latency



Despite advancements in electronic trading technology, flaws in systems and procedures, especially those involved in cryptocurrency market liquidity aggregation, lead to certain issues, including latency - a delay between the request and the expected outcome. In the realm of liquidity aggregation, latency implies a delay in obtaining information about the status of cash flow distributions from different liquidity providers. This impacts trading efficiency, hindering the ability of traders to execute large-scale transactions rapidly.



2. Reliance on External Entities



Cryptocurrency liquidity aggregation is facilitated by specific liquidity providers and technology firms that employ suitable technologies to create and disperse cash flows among markets and trading tools.



Considering this, using liquidity aggregation technology necessitates collaboration with a liquidity aggregator, thereby binding the firm to entirely depend on a third-party platform. This requires trusting the safeguarding of all personal and financial information, as well as the consistency of the services rendered. In essence, engaging in liquidity aggregation involves collaboration and dependency on an external party that provides such a service.



3. Security Risks



Security is regarded as a critical aspect of operations in any financial market or with any financial products. Users of cryptocurrency liquidity aggregators encounter considerable security challenges. Typically, when employing trading platforms that facilitate the cryptocurrency liquidity aggregation process, users must link their accounts to several exchanges, thereby escalating the risk of personal information breaches. However, security protocols designed for simultaneous operations on various crypto exchanges can minimize the likelihood of any form of data theft.

 

 

Image by <a href="https://www.freepik.com/free-photo/full-shot-business-rocket-man_52883668.htm#query=business%20future&position=3&from_view=search&track=ais&uuid=5498ef93-97d9-4aca-9342-0f13463bf8e8">Freepik</a>

The future of crypto liquidity

 

While it is difficult to be certain about the future of crypto in general and therefore crypto liquidity given its tumultuous history. Let’s consider one interesting recent development. 

 

Google is going to update their policy regarding Cryptocurrencies and associated products in January 2024. Starting from 29th January 2024, Google will permit advertisements for Cryptocurrency Coin Trust targeting the US, given they meet specific criteria and have been certified by Google. 

Cryptocurrency Coin Trusts which have no detected issues and are positively marked will be permitted. These can include, but are not limited to, financial products which enable investors to trade shares in trusts that hold a large amount of digital currency. 

 

This is a big change since 2018 when Google prohibited all cryptocurrency-related advertisements on its platform due to concerns about scam. This move by Google echoed a comparable step taken by Facebook earlier that same year. During that period, Google revealed it had revised its Financial Services Policy to ban advertisements for cryptocurrencies and associated content.

 

This shift by a large corporation means that crypto currencies are being recognized more and more as legit financial assets and such developments are definitely beneficial for crypto liquidity as well.

 

Read more
Forex CRM - the backbone of your brokerage

11.12.2023

Forex CRM - the backbone of your brokerage

CRM, or Customer Relationship Management, is a strategy used to manage all of a company's relationships and interactions with customers and potential customers. It is essentially a system that helps streamline processes, build customer relationships, increase sales, improve customer service, and increase profitability.



However, when it comes to Forex trading, a standard CRM may not suffice. Given the intricacies of the Forex industry, a system specifically tailored to cater to the complexities and regulatory requirements of this unique market is required. This is where Forex CRM comes in.

 

What is Forex CRM

 

Forex CRM is a dedicated system for Forex brokers, offering a comprehensive solution to manage your clientele effectively while ensuring full compliance. Here's what makes Forex CRM distinct from the usual CRMs.



1. Compliance Features: A key element of a Forex CRM is its built-in compliance features. This system needs to comply with various regional regulations that guide Forex trading. From document verification to ensuring adherence to Anti-Money Laundering (AML) policies, a Forex CRM system offers these crucial features.



2. Trading Platform Integration: The CRM system must seamlessly integrate with multiple trading platforms like MetaTrader 4/5, cTrader, etc. This enables real-time synchronization of data and helps streamline operations.



3. IB/Affiliate Management: Given that Introducing Brokers (IBs) and affiliates are crucial to a forex brokerage's growth, a robust Forex CRM includes an in-depth module for IB and affiliate management.



4. Multilevel Security: Since Forex brokers handle substantial volumes of sensitive information, the Forex CRM must offer state-of-the-art security to prevent any potential breaches.



5. Customization: Lastly, a Forex CRM must be flexible enough to be tailored according to the unique requirements of a brokerage.

 

Why Forex CRM is important

 

Forex CRM is crucial to your business for a number of reasons. Firstly, it offers streamlined operational efficiency by effectively handling key areas of your business, such as client management, compliance, and IB management.



Secondly, it allows you to offer an enhanced client experience. From onboarding to depositing funds and placing trades, everything can be handled smoothly through an effective CRM system.



Moreover, Forex CRM equips you with valuable analytics and reporting tools that provide insights into your business’s performance. This way, you can make data-driven decisions, gauge the success of your marketing efforts, and devise strategic plans to grow your business.



In a nutshell, adopting a dedicated Forex CRM solution enables you to navigate the Forex market’s unique landscape efficiently, stay ahead of the regulatory curve, enhance your client relationships, and, ultimately, achieve your business goals.

 

Image by <a href="https://www.freepik.com/free-vector/gradient-stock-market-concept_20289170.htm#query=forex&position=3&from_view=search&track=sph&uuid=7dc50de8-2c2b-4b50-816e-d6caa2e187a0">Freepik</a> 

 

Choosing the best Forex CRM for brokerage

 

Of course, using non-Forex Customer Relationship Management (CRM) systems like Pipedrive, Monday or others for your brokerage isn't prohibited. However, these options aren't designed with the needs of forex brokers in mind, limiting their functionality and efficiency for forex transactions.



While these trading CRMs might function well for general sales and marketing purposes, they're not equipped with features tailored for the smooth execution of forex operations. So your fee for their services will not go a long way toward being a successful broker.



Alternatively, opting for a cloud-based Forex CRM solution, and paying a subscription fee presents multiple advantages. As Forex CRM providers ensure the product is of high quality and kept up-to-date. The pricing is also reasonable and there is product support you don’t have to keep in-house development team.



A small drawback to this solution could be the subscription fee, but the quality service received mitigates this concern.



Purchasing source code and customizing your CRM forex system to your needs is another option. With a tailor-made product, you can maximize the utility of the software to your specific forex needs.



However, the initial purchase of the source code is often expensive, and to implement and maintain the custom system, you'd still need to employ in-house programmers, thereby escalating costs.



Lastly, constructing your own Forex CRM system from scratch can be a suitable option, especially for a simple product that isn't expected to dent your wallet.



The challenge with this approach is the huge investment required to expand the CRM’s complexity. This would not only demand substantial monetary investment but also require significant effort and expertise. This would consume precious time which you could have spent focusing on your primary business as a broker.



At the end of the day, it's crucial to pick the best Forex CRM system that optimally aligns with your needs as a forex broker, considering both the financial aspect and the ultimate trader's room experience for your clients.

 

As a forex CRM provider, we understand the challenges of operating in a highly competitive and demanding industry. In order to differentiate yourself from your peers, you need something awe-inspiring that will drive clients to you. 



When choosing a forex CRM system, there are several important features to consider. The system should be multifunctional, platform agnostic, and provide an API to make integration with other tools and services easier. It should also simplify lead and sales management, as well as provide tools for multi-level partnership management, customer segmentation, and unified communications tracking. Regulatory compliance is also an important feature to consider, as are reporting capabilities and customization options.



At UpTrader, we have worked in the financial services market for a long time, and we understand the importance of these features. That's why our forex CRM solution offers all the functionalities mentioned above, with a particular focus on user interface and design. Our CRM is fully integrated with trading platforms like MetaTrader and cTrader, and offers features like the Sales Funnel, multilevel partnership program, and integrated marketing tools.



Other forex CRM providers like Kenmore Solutions, B2Core, FX Back Office, and CloudForex also offer unique features and pricing options to meet the needs of different types of brokerages. When comparing CRM solutions, it is important to consider factors like ease of use, flexibility, customer support, and customizations, as well as pricing. Ultimately, choosing the right forex CRM system can help you to differentiate yourself from your competitors, streamline operations, and generate more leads and revenue.

 

UpTrader Forex CRM System

 

Being a leading Forex CRM provider, we recognize the challenges of the forex landscape and cater our solution to tackle those efficiently. What sets us apart from other companies where the CRM solutions remain a secondary focus, is that at UpTrader, our flagship product is indeed our Forex CRM system.



We firmly believe in enhancing not only your work process but also the quality of your work environment. Our CRM has been specially crafted with your office team in mind, to simplify complex procedures and create a pleasant workspace, efficiently organizing every function.



Our Forex CRM system is an epitome of meticulous design, in-depth financial industry knowledge, and tech-adeptness. This carefully woven integration makes our forex CRM solution not only technologically advanced but also intuitive and convenient to use. It only takes a day to implement our Forex CRM, be it with MetaTrader 4, MetaTrader 5, cTrader, or any other trading platform.



We have long-standing experience in the financial services market, and hence we truly understand that in Forex trading, every moment is precious. We therefore put quality and speed on equal footing, assuring that you save time while also guaranteeing high-quality service. 



Our Forex CRM system does more than just client management; it empowers you with tools to control your sales, enhance team's communication with traders and affiliates, keep track of withdrawal requests and assist clients with technical issues. Moreover, our trader's room feature caters specifically to providing an organised, integrated platform for managing all trader activities.



At UpTrader, we don't provide one-size-fits-all CRM solutions. We take the time to understand the intricacies of your business and provide a forex CRM solution tailored to your business needs. This ensures your forex CRM system seamlessly fits into your work process. Moreover, our Forex CRM will carry your corporate identity. We want your CRM not just to perform efficiently but also reflect your brand ethos and resonate with your corporate identity.



UpTrader's Forex CRM stands among the best Forex CRMs available. Our solution encompasses not just CRM for forex brokers but also provides features like copy trading software for MT4, MT5, and cTrader brokers. UpTrader takes pride in its state-of-the-art CRM system and remains dedicated to continuous enhancements and adaptations according to industry standards. We ensure that with our Forex CRM solution, you will be a step ahead in the ever-evolving Forex market.



Now let's take a closer look at the things we offer.

 

UpTrader forex CRM structure

 

When it comes to Forex CRM providers, UpTrader stands out from the crowd due to our unique CRM structure. We offer an all-in-one solution that isn't just powerful, but efficient and seamless. In a market where comprehensive, interconnected systems are scarce, our CRM shines through by delivering an unmatched Forex CRM solution. Every feature, every module of our CRM is interlinked, leading to efficient data flow, streamlined processes and improved business results.



At the core of UpTrader's forex CRM system are six pillars: Forex CRM Admin, Forex Back Office, Trader’s Room, Forex Affiliates, Sales Module, and a Copy Trading Platform. These platforms not only have a rich array of features but also work together to drive successful Forex operations.

 

Forex CRM Admin



Forex CRM Admin is your personal command center. Here, you can manage departments, control payments for forex liquidity, use any of the seven supported languages, use Google Analytics for detailed insights, receive notifications, set up partnership rewards and handle other administrative tasks. 

 

In the Forex Admin Back Office, a tool that forms the upper stratum of business management, you can modify all features of UpTrader Forex CRM. Whether you need to integrate Payment System APIs, establish account types, or devise trading platform integrations, the back office grants you absolute authority. This extends to your team management practices, the introduction of broker rewards, and other forex business functions. As a leading forex CRM provider, we are driven to endorse and provide you with the industry's finest practices. Our aim is to equip you with the capability to swiftly construct your business procedures, picking from the best alternatives.



Forex CRM admin is instrumental in streamlining your deposit and withdrawal process, enabling your users to deposit funds either directly to their trading account or through a wallet. A wallet, or a non-trading account, serves as a conduit for depositing funds, providing clients the flexibility to distribute their resources among all their trading accounts.



Our system offers simplified account management, permitting the admin to open trading accounts for new users or restrict them to verified clients only. With choices such as demo trading or real trading, leverage levels, minimum and maximum deposit amounts, and selection of currency, our Forex CRM presents a bevy of options to create a trading environment that is unique to your forex business.



Further, it supports you in creating partnership rewards. The partnership section empowers you to tailor-make your affiliate program settings and rewards.You can also process partnership rewards either manually or automatically, all at your discretion. The CRM enables you to select the report configurations for your partners, giving you complete control of what type of information is relayed to your affiliates.



An invaluable feature of the Admin Back Office is its capability to administer bonuses. Whether you choose to credit bonuses to user balance or credit, it is all up to you. As an admin, you also have the power to permit your managers to provide clients with personal bonuses, fortifying the relationship between your sales team and clients.



Another aspect that elevates our forex CRM system is its role in augmenting your marketing strategies. With the ability to furnish daily technical analysis, economic calendars, and company news, your CRM is also a powerful marketing tool. From setting up special offers to formulating compelling marketing promotions, you have the power to implement all these strategies to foster customer loyalty.



Our Admin CRM solution is proficient in enabling you to motivate your clients towards accomplishing various milestones like higher deposits, live trading, or improved trading volumes, thanks to its comprehensive status system. You can configure the system based on deposit amounts or assign statuses according to the client's funnel level – registration, deposit, trade.



A prime benefit of our Forex CRM is its adaptability in accommodating any trading platform. You can seamlessly add as many servers as required, thus providing a consolidated account data view to your clients. 

 

In summary, our Forex CRM Admin is your go-to solution for running a successful and seamless forex brokerage business. It equips you with all the necessary tools to establish, manage and scale your forex operations effectively and profitably.

 

 

Forex Back Office

 

Forex Back Office provides a critical support system for your staff, ensuring the smooth management of essential functions. Your team has the ability to control bonuses and marketing campaigns, manage client relationships and the accompanying partnership programs, as well as oversee deposit and withdrawal transactions. This may come in super handy to prevent fraud

 

Our Forex Back Office unites front-line operations with critical back-end processes to streamline your business operations, maximizing efficiency and productivity in the process. As a forex CRM provider, we are committed to enabling your operations to run more efficiently, providing you with the best Forex CRM solutions on the market.



Forex Back Office equips your employees with the capacity to manage and scrutinize all client and trading activities. Control over deposits, withdrawals, and the monitoring of Know Your Customer (KYC) processes can be effortlessly achieved. The platform is constructed to ensure a quick and efficient management of all your business processes. In a nutshell, we present you with a robust system to track your clients' activities effectively, from registration and email confirmation to engagement levels and trading behaviors.



Registration and KYC are often the first interaction points between your business and your clients. With our Forex Back Office, you can have control over the email confirmation process by activating or deactivating this feature as necessary, reducing registration barriers for your clients.



Our Forex CRM solution gives your staff complete visibility into your clients and partners' data. This includes access to comprehensive lists, featuring key details like names, contact information, country of residence, partner’s code, status, and more. To ensure efficient tracking, our system allows you to sort and filter clients and partners based on parameters such as registration date, region, and status.



Management of deposit and withdrawal requests becomes straightforward with Forex Back Office. It even has an integrated notification system, keeping clients informed about every stage of their transactions, and aiding in building transparency and trust in your services.



Moreover, with our trading CRM, your business can have greater control over partnerships and affiliate rewards. From the mode and timing of payments to deciding on the type of commissions, we offer a platform that allows you to configure the conditions on an individual basis.



Our CRM for Forex brokers delivers a powerful reporting function. You can obtain insightful reports about partners and trading activities at your desired frequency, helping you to keep abreast of crucial business events. Your staff also has access to an array of charts and dashboards, offering graphical representations of data that can aid in strategic decision making.



Forex Back Office also offers robust management of bonuses – a crucial aspect of client attraction and retention strategies in forex trading. You can introduce a welcome bonus for new clients or offer deposit bonuses as an incentive for first deposits or frequent transactions. Incentivizing account retention with the implementation of monthly interest bonuses is also a breeze. To cater to unique client needs, the platform even allows you to manually customize bonuses based on your specifications.



Forex Back Office offers a suite of tools that streamlines your operations, increases efficiency, and helps improve your business performance.

 



Trader’s Room

 

Our Trader’s Room has been carefully designed to meet your clients' forex trading and financial requirements. Its advanced suite of tools and extensive data resources can seamlessly guide traders on their forex journey, greatly enhancing their trading experience.



We believe that a trader's journey from registration to deposit should be smooth and free of complications. This is precisely where the Trader's Room plays a crucial role. Its user-friendly design and interface help clients quickly learn their way around and start trading. Our streamlined registration and Know Your Customer (KYC) process is a testimony to our commitment to provide a hassle-free trading experience. Verification is completed in just a few clicks, and clients are free of cumbersome and routine processes.



In addition, our innovative Forex CRM solution gives clients the flexibility to manage their deposits and withdrawals efficiently. Regardless of their geographical location, they can select from a variety of payment systems for managing their trading accounts or wallets. The associated commissions are calculated immediately and transparently. Please note, though, that only verified clients can initiate deposits.



One notable feature of our Trader's Room is the wallet system, a non-trading account designed for managing funds. Especially useful for traders operating multiple trading accounts, the wallet enables funds to be distributed across all trading accounts and easily withdrawn back. By utilising the wallet, traders can avoid making separate deposits or withdrawals through various payment systems, simplifying the entire financial management process.



Our Forex CRM system ensures effortless account management for all our traders. They have the convenience of browsing through the available account types, setting up the best match according to their needs, and customising account leverage and execution type from the list approved by us. Moreover, clients can easily access their account history, pending orders and balance operations, eliminating the need to log in separately to the trading terminal.



With our advanced CRM for Forex brokers, your clients can access daily technical or fundamental analysis directly from their Trader's Room. 



A unique feature we've integrated into our Forex CRM solution is a status-based deposit account system. Here, your client can select an account based on the advantages linked with each status.



In conclusion, the Trader's Room is not merely a forex CRM system component but a comprehensive platform that facilitates all trading and account management tasks.

 

 

Forex Affiliates



Moreover, we have dedicated platforms for Forex Affiliates or your partners. The portal features robust reporting capabilities, sophisticated marketing tools and excellent management functionality, to ensure the partnership programs deliver high-value results.

 

Building an expansive network across the globe has become hassle-free with our system. It is seamless for Forex Affiliates to conduct business as all relevant data, including client-specific details and IB report generation, are automatically managed and fully accessible on our platform. We also offer the option of tailoring report generation frequency based on individual needs.



Transparency is our primary goal. Forex Affiliates can gain insight into their client's financial activities by viewing our detailed dashboard charts or reading through our reports. In the same vein, partners can monitor their clients' trading volumes, bonuses, and other significant data necessary for IB rewards through our distinct excel reports. This comprehensive forex CRM solution offers an extensive list of client information, which includes trading details, their funds, and their activity.



Affiliates and partners have access to promo banners for client acquisition. Our trading CRM enables them to manage these promotional tools effectively. 



Ultimately, our forex CRM creates a one-stop shop where partners can efficiently oversee their clients’ operations and gain invaluable insights into their clients’ activities. 

 

With our CRM, affiliates, and partners enjoy top-of-the-line service. Whether it’s fostering their global IB network or streamlining operations, we ensure that they have a comprehensive understanding and control over their business dynamics. Providing such efficiency underlines our dedication as a leading forex CRM provider.

 

Sales Module in Forex CRM



One key enhancement to our forex CRM solution is the new Sales Module, your perfect sales team assistant. This module enhances your CRM experience by offering a simple interface, structured data, in-depth analytics through charts, emails and calls planning features, and much more.

 

Designed to revolutionize how forex brokers manage their business, this forex CRM module acts as a stellar assistant for your sales team. Its intuitive interface, organized data structures, and advanced analytics will streamline your operations and make planning for calls and emails much more effortless.



The sales module of our CRM is designed as an easy-to-use client distribution and comprehensive sales management system, with specific broker tasks as the top priority. It packs a wide array of functions that empower you to independently manage and scrutinize the performance of sales managers and evaluate the productivity of the sales department at large.



Our Forex CRM System's sales module lets you customise client distribution settings based on your preferences. This means you can route clients from different countries and with varying deposit amounts to specific managers or partners. You have the power to differentiate service levels for key clients to truly stand out.



The sales module's flexibility extends to its manager access settings as well. For instance, you get to decide whether your managers are permitted to give out personal bonuses to clients, whether they should be the ones to approve withdrawals or if they should have access to partners' reports. This feature allows for customized authorization settings according to your needs.



In order to make analysis simple and straightforward, we incorporated data visualization tools such as charts and dashboards. By tracking the performance of your sales department, these tools can offer insights into potential improvements or changes.



For those keen on performance motivation, we've also included a unique percentage of sales feature. This lets you establish personalized motivational programs to stimulate your sales team and enhance their performance.



Record keeping and privacy are paramount in forex trading. With this in mind, the sales module of our trading CRM also incorporates a logging feature, archiving all client history including deposit/trade history, conversations with the support team, and personal information updates like phone numbers, emails, and addresses.



Speed and efficiency are of essence for any sales manager. That's why our CRM has integrated quick call features allowing managers to make calls directly from the client list, avoiding the need to open separate windows for each client. Managers also have the liberty to estimate the quality of leads and flag promising or fake registrations to maximize their productivity.



We’ve also made it easy for sales managers to plan and schedule tasks, like planning future calls with clients or postponing tasks as needed. Should a client attempt to make a deposit, the system creates a task for the manager to act upon. This proactive feature ensures a quicker response to clients’ actions, enhancing customer satisfaction.



With all these robust features and customized functionalities, our Forex CRM system and the Sales Module therein act as your reliable partners in navigating the forex trading terrain, allowing you to optimize operations and steer your brokerage to success.



Copy Trading Platform

 

A copy trading platform allows investors to copy positions opened and managed by another selected investor. It acts as a tool for the non-professional part of the market, offering retail traders a unique blend of simplicity, convenience, and potential profit.



Functioning Modes:



Our forex CRM solution provides different operating modes that forex brokers can adapt based on their individual business needs.



MAM Mode: In this traditional operating mode, a manager trades in a common account. All investors have the ability to monitor these transactions and watch their account balance fluctuate. Importantly, the manager can see all funds, and investors are allowed to view individual trades.



Social Trading or Copy Trading Mode: Here, the trader, using their own personal funds, performs transactions in their personal account. Every operation gets duplicated to the accounts of the investors. The significant distinction is that in this mode, the master cannot see all the funds while the investors maintain visibility of individual trades.



Choosing the right mode can dramatically impact your forex operations. This decision would depend upon factors such as the nature of your client base, the capabilities of your traders, and your business's overarching objectives. As a leading Forex CRM provider, we can guide you in this selection process to optimize your outcomes.

 

 

<a href="https://www.freepik.com/free-vector/sales-plan-business-abstract-concept_12084794.htm#query=business&position=8&from_view=search&track=sph&uuid=883870cd-2f2a-40d0-b5f9-95179908a341">Image by vectorjuice</a> on Freepik 

 

UpTrader forex CRM features

 

Here’s an overview of the features we provide that set us apart from our competitors. 

 

As the trend of cryptocurrency adoption steadily ascends, its application for funding trading accounts within brokerage companies is notably escalating. In particular regions, cryptocurrency takes center stage as the primary method, typically because of hindrances associated with international payment systems and bank card transactions. With this evolving landscape in mind, we at UpTrader, a premier Forex CRM provider, have meticulously focused on expanding our offerings related to cryptocurrency.



Acknowledging the cruciality of efficient financial management, we've innovatively enhanced our forex CRM solution, the UpTrader CRM system, by incorporating the feature to input/output decimal values for maximum and minimum amounts in cryptocurrency funding. For companies where a sizable percentage of payments is done in cryptocurrency, our Forex CRM system is now capable of performing automatic cryptocurrency account replenishment with unrivaled convenience.



Understanding how UpTrader's Crypto Gateway operates can better illustrate its exceptional functionality. Our gateway sports a user-friendly API designed for seamless integration with any CRM. When a CRM client intends to deposit crypto, we establish and link a unique wallet to their profile. This wallet is exclusively for the client and remains static throughout various transactions to prevent confusion. Additionally, our gateway oversees incoming funds to the wallet, conveying payment information to the CRM which then processes and adjusts the amounts automatically.



But our efforts to offer the best forex CRM service do not stop there. The newly added features and changes include automatic tagging of unsuccessful replenishment requests as 'failed', enhancing visibility of 'pending funds' display, introducing a Wallet Balance column in the User Export report, and augmenting flexibility in affiliate commission calculation for our partnership program.



Our CRM forex software also brings forth improvements in handling marketing campaigns. In UpTrader's Trader's Room login page, forex brokers can position banners containing promotions, trading conditions, new services, or any information intended for the clients. Either a single banner or a rotation of multiple ones can be set. What's more, the display of these banners can be assigned to various language versions of the interface, providing a personalized touch for international clients.



Our Forex CRM system's inner mechanisms aren't confined to just managing finances and transactions. We at UpTrader take a holistic approach in providing the ultimate CRM solution for forex brokers. And we strongly believe that quality communication is a key element to building lasting relationships with clients.

 

We understand the importance of real-time analytics and the role it plays in successful trading strategies. This is why we have integrated Power BI analytics into our Forex CRM solution, providing clients with an expansive, easy-to-interpret comparative view of any aspect of their business.

 

Our forex CRM system allows you to fine-tune your business approach using comprehensive filters that display where the most revenue comes from. Analyze data regionally, identifying areas where trading activity is high and markets are prospering. By studying such factors, you can create a roadmap to optimize your offerings.



Furthermore, we also offer insights into preferred trading instruments and identify popular markets across various countries. This crucial feature allows you to design special offers and trading conditions, tailored to meet the needs and preferences of traders from these regions.

 

However, it's not only about market preferences and successful trading patterns. The UpTrader Forex CRM solution also aids in monitoring trading volumes, examining the popularity of different payment systems, and adjusting special conditions for deposits and withdrawals, ultimately improving overall client experience.



Our comprehensive Forex CRM solution brings it all together through its powerful analytical capabilities. It lets you create comparative dashboards for easy data visualization and interpretation, helping you make data-backed forecasts. These features ensure that our Forex CRM solution is an invaluable tool for strategic business development.



Indeed, it is clear that our commitment to crafting an efficient, customizable and innovative Forex CRM system remains our top priority. As we navigate this ever-changing landscape, our objective remains to offer the finest Forex CRM solution designed to assist brokers in improving their services and elevating their customer relationships. 

 

Our Prices

 

Our feature-rich Forex CRM system has been meticulously developed to ensure seamless operations, keeping in mind the specific needs of forex brokers. The spectrum of our offerings is extensive, encompassing a myriad of service tiers suitable for various needs and budgets.



Starting from $999 per month, our Basic service tier, your journey with our robust forex CRM solution begins. This package includes an account management module, a feature-rich support interface, integrated deposit/withdrawal functions, and a built-in wallet, among many other provisions. Also, your operations get the much-needed tech bolster with MT4/MT5 and cTrader integrations. However, if your operations require something more elaborate, our offerings scale accordingly.



At $2499 per month, the Business package ups the ante with an enhanced suite of features and reduced response times. A distinct sales team module and a bonus module ensure that you have more tools at your disposal. The offering of this package is further boosted with the availability of an IB portal and reports.



For the power players seeking the ultimate Forex CRM solution, our Enterprise package is specifically designed to provide an unmatched level of service. Starting from $4999 per month, it features unparalleled service quality with response times as quick as two hours. This package offers customizability on an unmatched level, offering forex brokers a truly tailored CRM experience, promising enhanced performance, customer satisfaction, and business growth.



Across all our packages, a uniform fee of $2000 per PSP applies for additional customization, further providing room for bespoke solutions according to your requirements. Please note that our Basic and Business plans do not cater to non-standard CRM customization, but we certainly offer this in our premium, Enterprise package, at an additional rate of $50/hour.



Our dynamic Forex CRM system may not be available as an open-source CRM; however, recognizing that every client's need is unique, we understand you may want something that isn't in our service range. As such, we're open to discussions regarding the acquisition of the source code to ensure our platform meets your expectations perfectly. We encourage you to arrange a meeting with us if such a requirement arises.

 

<a href="https://www.freepik.com/free-photo/group-diverse-people-with-joining-hands-teamwork_19133673.htm#query=team&position=0&from_view=search&track=sph&uuid=3a8956ef-40cb-49e0-9166-900bf996424d">Image by rawpixel.com</a> on Freepik 



Support

 

In today's hyper-competitive global market, finding the right forex CRM provider that truly understands your business and puts your needs first is akin to finding a needle in a haystack. More often than not, customer support takes a back seat as firms scramble to put their products or services first. However, in the arena of forex trading, where time and money are synonymous, customer support can make or break your success. As a provider of a Forex CRM system, we believe in the transformative power of high-quality support, ensuring we are responsive, proactive, and focused on you.



As a client-centric Forex CRM provider, our team firmly stands by the conviction that you, our esteemed clients, should be at the center of all we do. Whether it’s to set up your trader's room, fine-tune your forex back office operations, or navigate through the nitty-gritty of your CRM experience, we're with you every step of the way. You'll never feel left in the dark.



For us, effective customer support begins with quick response times. Hence, we are always available to tackle any problems or answer any queries as quickly as possible. We work tirelessly to ensure our trading CRM support is rapid and responsive, which in our experience, enhances client satisfaction and retention.



Not only do we take pride in our ability to respond promptly, but we also care deeply about the problems you face. Every issue, regardless of how big or small, matters to us. This empathetic approach enables us to fully understand your needs and come up with the most effective solution. The team won't just stop at identifying your issue, they'll do everything within their power to solve it. Our job isn’t complete until we've resolved the issue, ensuring your operations can run as smoothly as possible.



To us, exceptional support doesn’t just end with resolving the problems at hand. We always strive to go the extra mile. This means we not only help solve your immediate challenges but also make it our mission to improve and refine your entire CRM forex process, effectively empowering you to serve your traders better. 



Being the best forex CRM provider requires more than just offering high-tech products and services. We understand that without strong, reliable, and proactive support, even the most advanced CRM can fall flat. We make it our mission to foster strong, meaningful relationships with our clients, built on trust, mutual respect, and a deep understanding of your needs. This ensures you feel confident and supported throughout your journey with us.



Support, in its many forms, lies at the heart of our philosophy. We firmly believe that it’s our relentless pursuit of top-notch customer support that sets us apart from the rest. The potent combination of quick response times, caring customer service, going the extra mile, and always having the clients at the forefront is what makes us a unique forex CRM system provider. Because at the end of the day, our success lies in your success.

 

Read more
Your Comprehensive Guide to Choosing Liquidity Providers

04.12.2023

Your Comprehensive Guide to Choosing Liquidity Providers

In the world of foreign exchange, having access to liquidity and ensuring a stable, efficient flow of transactions is crucial. Your success as a forex broker largely depends on your ability to find the right liquidity provider that meets your specific needs. A good liquidity provider should help ensure optimal transaction execution, minimizing your transaction costs, and enhancing your operational efficiency. 

A great partner isn't just providing liquidity, they’re paving your way to success in the forex trading market. But, how to make the right choice? Here's a guideline to steer you in the right direction.

Liquidity

 refers to the ability to buy or sell a security or an asset in the market quickly without significantly affecting the asset's price. In other words, it is the degree to which a particular asset can be easily converted into cash.
 

High liquidity indicates that there is a high number of buyers and sellers in the market. It suggests that transactions can be executed rapidly and at a price that does not affect the asset's market price too much. Highly liquid markets are typically associated with less risk because it's easy for you to open and close positions without causing a drastic change in the price.


A liquidity provider is a financial institution that ensures that a specific market remains liquid, thereby facilitating consistent trading activities. Essentially, as a broker, you should understand that liquidity providers act like wholesalers. They sell or buy securities and other assets in large quantities, helping to prevent drastic price movements and providing the market with its required liquidity.

 

Consider their Liquidity Package

 

A key element a broker must scrutinize in a liquidity provider is the liquidity package – meaning, what type of assets and liquidity are offered. Liquidity package offered by your liquidity provider has a direct impact on your brokerage firm's financial success and credibility.

 

The provision of nominal accounts in various currencies can be advantageous, along with the capacity to process deposits and withdrawals using major currencies, metals, stable tokens or cryptocurrencies. 

 

With an expansive array of instruments at its disposal, such as Forex, crypto, spot metals, indices, shares, bonds, and futures, UpTrader can aid you in sourcing liquidity. Ensuring that the liquidity provider affords you multi-asset liquidity in conjunction with historical data is crucially significant.

 

These days, it's crucial for a provider to have access to crypto liquidity. Even with the volatile nature of demand for cryptocurrency trading, having ready access to them is necessary to cope with sudden surges in demand without losing customers. Hence, when selecting a provider, consider their crypto trading conditions.

 

Execution speed and spread width are key indicators by which your clients will determine the profitability of working with you.

 

  • Order execution speed in trading refers to the amount of time it takes for a trade order to be processed once it's been submitted. In a fast-paced trading setting where prices can alter within milliseconds, a broker's capacity to quickly execute orders can significantly influence trade profitability. Swift order execution can assist traders in implementing their trading plans more effectively, particularly in volatile markets.

 

  • A dealing spread, or bid-ask spread, is essentially the difference between the highest price a buyer is willing to pay for an asset (bid) and the lowest price a seller is ready to sell it for (ask). The narrower the spread, the more liquidity the market tends to have, which can be advantageous for your clients. This means that the securities can be bought or sold rapidly at predictable prices. Clients who engage in numerous trades are particularly affected by this, as it can have a substantial impact on their overall profitability.
     
  • Impact on Traders: Traders typically aim to have their orders executed at optimal prices with minimal costs. Therefore, brokers offering faster execution and tighter spreads are usually more attractive to traders, especially those engaged in day trading or scalping.
     
  • Overall Competitiveness: The ability to offer fast execution and competitive spreads can significantly enhance a broker's market appeal, attracting more clients and improving their satisfaction and loyalty.
     
  • Technological Aspect: The speed of execution also depends on the broker's technological infrastructure, including server quality, data center locations, and the efficiency of trading platforms.

 

However, it's important to remember that each instrument has its own liquidity. For example, the EUR/USD pair has very high liquidity as the most demanded instrument, while the IRR/XAF pair is significantly lower. Additionally, different times of the day can also affect liquidity. Therefore, it's not always fair to blame the providers.


 

Have Multiple Liquidity Providers

 

When it comes to brokerage operations, liquidity is a key factor. The dependency on one liquidity provider leaves brokers vulnerable to potential disruption and unforeseen consequences. Hence, working with multiple providers is crucial for brokers to mitigate such risks.

 

Partnering with multiple liquidity providers allows you to scan and choose the most competitive rates for your transactions. This way, you can take advantage of price competition among various providers to secure the best deals for your clients, thereby boosting your profitability and competitiveness.



However, it's important to bear in mind that managing too many liquidity providers comes with its own set of challenges. As a broker, you're expected to assure each provider a certain volume of transactions.



Even so, it's essential for you to have access to a minimum number of diverse liquidity providers. You should distribute the provided liquidity based on each liquidity provider's specific strengths, type of asset, specific currency pairs, and customer groups.



Meeting all your clients' needs is the ultimate goal, hence the need for your liquidity providers to have the appropriate technology to meet their needs.

 

At UpTrader, we're committed to assisting you with connecting to any of your preferred Forex or crypto liquidity providers. Rest assured that all trades are conducted on a dedicated liquidity server.

 



Tier 1, tier 2…etc

 

Liquidity providers can be classified into several categories, namely tier 1, tier 2, tire 3 and so on. Tier 1 providers, also referred to as Prime Brokers, are typically accessible only after meeting their stringent compliance requirements.

 

Generally, securing access to Tier 1 liquidity providers necessitates holding a valid license and being recognized within a white-list jurisdiction. Should these criteria not be met, you might consider exploring other options amongst intermediary providers. These intermediaries act as a bridge, connecting you with liquidity providers even if you don't meet all the necessary compliance requirements.

 

But is it really that bad to have a tier 2, tier 3, or even tier 4 liquidity provider?

It depends on the type of your business and on the scale of your operation. If you're a broker just starting out in the industry or running a smaller scale operation, working with a Tier 3 or Tier 4 liquidity provider could be suitable for your needs and you’ll be able to provide great trading conditions for your traders. You don't necessarily need to have a Tier 1 or Tier 2 liquidity provider if your business model is geared towards smaller volume trades. We previously discussed how A-Book and B-Book models work, and what benefits each of them and their hybrid model provide. 

 

Consider Your Specific Needs and the Model You Use

 

In a nutshell, the A-Book model, also known as agency model, is when you, as a broker, pass on all trades directly to liquidity providers. Your income is primarily derived from spreads and commissions. This model completely removes the potential conflict of interest as you won't stand to gain if your trader loses.



The B-Book model involves brokers taking the other side of the traders' transactions. This means you keep the trades on your own book instead of sending them to liquidity providers. Here, brokers might stand to profit if a trader makes a loss. Although it involves a certain degree of risk, this model also offers higher profitability.



Lastly, the Hybrid model is a combination of the A-Book and B-Book model. Using this model, you would handle the less profitable trades using the A-Book model, passing them to liquidity providers. The potentially profitable trades would be kept on the B-Book. Essentially, this model gives you the best of both worlds. You get the higher profitability potential from B-Booking and reduced risk from A-Booking.



Choosing the appropriate model will be contingent on your firm’s trading volume, capitalization, risk tolerance, and overall business strategy.

 

Evaluate Their Transparency and Reputation



Transparency in trading is non-negotiable. Your potential liquidity provider should maintain high levels of integrity, including full disclosure of fees and charges, no hidden terms, and clear communication. Knowing what you're getting into, without any unpleasant surprises, is integral to fostering trust. The best liquidity providers are those who offer transparent pricing, execution, and trade-cost structures. They should also offer you full visibility over your trades.

 

Please ensure that you take the time to research your potential liquidity providers thoroughly. Their longevity in the market can often serve as a good indicator of their reliability, especially considering the high-speed nature of trading.



Compare Price Competitiveness



In a sector where profitability is closely tied to spreads, getting a liquidity provider that offers the most competitive prices becomes critical. Remember, as a broker, your earnings come from the gap between the spread your liquidity provider sets and the spread for your traders. To ensure you offer compelling conditions to your traders, yet also guarantee your own profitability, it's paramount to opt for a liquidity provider with tight spreads.

 

With UpTrader, you have the power to set your own spreads. Utilizing the liquidity of crypto and Forex gives you the capacity to lure clients with tight spreads. By determining your own spreads, you can tailor it according to your business model.



Consider Your Target Clientele



For brokers who generate income from spreads, large volume trading is more profitable. Consequently, your provider of choice should be able to attract and serve professionals who are prone to high volume trades, thereby securing better profit margins.



Choosing a liquidity provider shouldn't be rushed, and as highlighted, several criteria are worthy of your consideration. Therefore, analyze, compare, and make the best choice for your business's unique needs. Your right liquidity provider will certainly make your path to success a lot smoother.

 

Take Note of Their Technology



You don't want to fall behind due to outdated technology. Look for liquidity providers who invest in innovative trading technologies that assure efficient transactions, enhanced security, and reduced slippages. Technology and connectivity are key components to an optimal trading environment.



UpTrader utilises two key technologies in its platform; Straight Through Processing (STP) and Electronic Communication Network (ECN). These technologies play vital roles in improving the efficiency, transparency and speed of your transactions, thereby giving you an edge in today's competitive marketplace.



STP allows for seamless processing of trades from order initiation to completion, without any manual intervention. This significantly reduces errors and delays in trade execution, providing you a significant advantage especially during times of high volatility in the market. It allows your brokerage firm to become more productive and responsive to market changes. By reducing human involvement, STP can save time, reduce costs, and most importantly, minimize risk of manual errors. As a broker, this gives you peace of mind and ensures your clients have a smoother, more efficient trading experience.



On the other hand, ECN connects traders directly to liquidity providers like banks, other brokers and market participants over a global network. It is characterized by its high speed of transactions and low spreads. ECN increases the transparency in your transactions as it displays the best bid and offer prices available in the market, with immediate trade execution. This allows you as a broker to provide a fair and transparent trading environment for your clients, where trades are executed instantly and at the most competitive prices. Moreover, by displaying depth of market data, ECN can empower your clients to make informed decisions.



In a nutshell, the combination of STP and ECN technologies brings an unparalleled level of efficiency and transparency to your brokerage operations, delivering better customer service and driving the success of your brokerage firm in the long run.

 

Financial Instruments

 

At UpTrader, we offer an extensive portfolio of over 700 financial instruments across 7 distinct asset classes that you, as a broker, can take advantage of. 

 

We offer you exposure to the highly dynamic FOREX market which deals with the exchange of global currencies. Indices trading can provide you access to a group of stocks representing a particular market sector or economy. You also have the opportunity to deal in company shares, allowing you to tap into the potential profits from various corporate enterprises. 

 

Our precious metals asset class provides the opportunity to diversify your investments with secure and tangible commodities like gold and silver. For those interested in the energy sector, we offer energy assets, covering products such as oil and gas. 

 

Lastly, cryptocurrencies have grown significantly in popularity, becoming an indispensable part of the financial world. Our cryptocurrency assets present an innovative avenue for potentially high returns in this evolving market. 

 

Leveraging our solid reputation, in-depth understanding of financial markets and access to the best solutions, UpTrader aims to offer you a robust and comprehensive trading platform. Trust us to guide your financial journey.

Market depth

 

Market depth is essentially a real-time list showing the quantity of buy and sell orders for a particular asset, typically at different price points. In the trading environment, you can see this information as an electronic list of buy and sell orders, structured by price level.



As a broker, it is important for you to understand market depth because it gives you a snapshot of both the liquidity and depth for a specific security at any given time. A market with good depth is one that will not experience a drastic price shift with significant orders. If a market has good depth, it can absorb order flow without significant impact on the price level.



The significance of market depth comes into play when choosing a liquidity provider. A provider with good market depth allows you to have plenty of room to make trades without worrying about a massive impact on prices, while one with poor market depth may not be able to absorb larger trades. The liquidity provider should be able to supply adequate liquidity to maintain smooth operation of the markets without creating excessive volatility.



Moreover, having a liquidity provider with significant market depth gives you more flexibility to execute trades, whether small or large, at any given time. It also enables you to provide better services to your clients as their trades are likely to be executed swiftly and efficiently without excessive price slippage.



Therefore, in your decision-making process about which liquidity provider to partner with, consider their market depth. By doing so, you ensure a smooth trading experience for yourself and your clients.

 

Data flows

 

Data flows are streams of information that pass between two points in a system. These data are crucial in financial trading as they reflect a vast array of metrics and information that traders and brokers use to make informed decisions. Data flows can include price information, transaction histories, liquidity availability, order execution times, and more. Essentially, data flows make the backbone of trading as they connect all market participants together and provide necessary data for informed decision-making.



Now, let's talk about why data flows matter when you, as a broker, are choosing a liquidity provider.



1. Accurate pricing: High-quality data flows from liquidity providers ensure that you have the most accurate, real-time pricing data. This helps you provide competitive and reliable prices to your clients, increasing their satisfaction and trust in your services.



2. Swift transactions: Timely and smooth data flows also guarantee swift order executions. If data flows are inefficient or delayed, it can lead to slow transaction times which can ultimately result in slippage - a cost your clients would want to avoid.



3. Real-time risk management: With up-to-the-second data flow, you can offer real-time risk management solutions, providing your clients with necessary precautions to minimize losses.



4. Transparency: Consistent data flow ensures transparency. It lets you provide your clients with immediate updates and access to important trading information, thus increasing their trust in your operations.



5. Strategic decision-making: The more quality data you have access to, the more informed decisions you can make on behalf of your clients. Reliable data flows allow you to analyze the market more effectively and formulate the best trading strategies.



So, considering the importance of these factors, it's clear that when you're choosing a liquidity provider, the quality and reliability of their data flows should be at the forefront of your evaluation. You want to ensure your liquidity provider can deliver robust, reliable and real-time data that can assist in every aspect of your trading operations and meet your clients' expectations.

Reporting requirements

 

Reporting in brokerage refers to the act of creating and maintaining a detailed record of all your trading activities. It involves compiling comprehensive, well-documented reports that reflect various aspects of your trading activities. This is crucial for managing operations effectively, making strategic decisions, adhering to regulatory compliance, and providing transparency to your clients.



The variety of reports includes trade reports, FIX bridge reports, swap and rollover reports, and order book access.



1. Trade Reports: As a broker, these give you detailed insights into executed trades, enabling you to manage your transactions efficiently and measure their effectiveness. They provide you with essential information like trading volumes, assets traded, the profitability of each trade, time of trades, and so on.

2. FIX Bridge Reports: FIX (Financial Information eXchange) bridge reports involve tracking and monitoring FIX messaging activities between you, the broker, and your liquidity providers or exchanges. This is vital to ensure a smooth, effective, and secure transmission of your trading orders.

3. Swap and Rollover Reports: As a broker, swap or rollover reports are crucial for your operation, as they provide you with insights on interest fees that you've either received or paid for keeping positions open overnight. This helps you analyze the cost-effectiveness of keeping trades open beyond the trading day and decide on suitable trading strategies.

4. Order Book Access: This refers to a record of all pending orders for a specific financial instrument. By having access to this, you get an understanding of the market depth and the supply and demand of various assets. It assists in decision-making, as it gives real-time information about other market participants’ trading actions and their possible impact on prices.



When choosing a liquidity provider, reporting is a critical factor to consider as it can directly impact the efficiency and profitability of your trades. Good reporting allows for an efficient, streamlined operation, improves the ability to make strategic decisions, helps to identify any irregularities or discrepancies early, ensures regulatory compliance, and increases overall transparency for your clients.

As a broker, accurate and detailed reporting should be a priority. The right reports help in decision-making, can influence trading strategies, help you keep track of all your trades and ultimately enable you to run your brokerage business efficiently and profitably. It can provide insights that could be the key to your success in the brokerage world.



Customer service
 

There are several reasons why customer service is important for you as a broker:

 

1. Fast Problem Resolution: Financial markets operate at lightning speed, so any technical issue, delay or error in data feed can translate into a significant loss. When problems occur, a good customer service department is instrumental in getting things sorted quickly, thereby reducing potential financial risks.



2. Reliable Support: Being able to contact your liquidity provider quickly and easily when needed is crucial. It allows you to solve any problems that arise, clarify uncertainties, and receive immediate advice about optimal service use.



3. Increased Trust: Consistent and reliable customer service increases your trust in the liquidity provider. In a sector where massive financial transactions take place daily, trust and reliability are key. The better the customer service, the more confidence you will have in your liquidity provider.



4. Optimizing Service Use: High-quality customer service can help you understand how to make the most of the products and services provided, making your operations more efficient and profitable.



5. Retaining Competitive Edge: A liquidity provider with great customer service helps you meet your client’s expectations more efficiently, ensuring you keep your competitive edge in the marketplace. In a fast-paced environment where quick decision-making is critical, you need all the support you can get to maintain the performance level of your operations.

Hence, while considering a liquidity provider, you shouldn't underestimate the value of excellent customer service.

UpTrader is a trustful liquidity provider
 

At UpTrader, we provide forex brokers with top-tier liquidity solutions, offering advanced access to market liquidity, essential infrastructure, and diverse connectivity options. Our solutions are tailored to seamlessly integrate with even the most sophisticated HFT systems. Leveraging our extensive experience and state-of-the-art technology, we deliver tailor-made liquidity solutions, meticulously crafted to meet the specific needs of each of our clients.
 

By partnering with UpTrader, our clients gain access to:

  • Marginal requirements: 1%
  • Non-stop trading: 24 hours a day, 5 days a week
  • Entry to 7 markets with over 700 trading instruments
  • Competitive STP pricing for Forex pairs and a variety of other trading instruments and asset classes

Learn more about liquidity options in UpTrader:

https://uptrader.io/en/news/162/enrich-your-trading-conditions-with-crypto-cfd-liq

https://uptrader.io/en/news/163/best-forex-liquidity-your-brokerage

 

Contact us for more details via live chat or email at [email protected]

Your UpTrader Team

 

Read more
Everything You Need to Know About Liquidity

27.11.2023

Everything You Need to Know About Liquidity

Understanding the concept of liquidity is essential for individuals who engage in Forex trading. As such, we'll provide you with comprehensive information about liquidity, how it works, and why it is an essential component in Forex trading.
 

Liquidity in Simple Terms: a box of chocolates

Think about the market like a box of chocolates. Each chocolate in the box represents a different commodity, and each chocolate has its popularity or demand, like how a dark chocolate might have higher demand compared to other flavors. In the context of the market, liquidity can be defined as how quickly a commodity or an asset can be bought or sold in the market without affecting its price.

Market Liquidity

Market liquidity is a financial term that refers to the ability to promptly buy or sell securities or assets without triggering a severe change in the asset's price. High levels of market liquidity suggest that transactions can be executed rapidly and at low costs, while low market liquidity may imply slow execution and high transaction costs.
 

High market liquidity examples

1. Foreign Exchange Market: With a daily turnover of more than 6 trillion USD, the Forex market is one of the most liquid markets in the world. It is easy for traders to enter and exit positions at the market price due to the high volume of currency trades conducted globally.

2. U.S. Treasury Bonds: These are considered some of the most liquid investments in the world. They can be sold for cash almost instantly, and the risk of loss in their value is extremely low.

3. Stock Market: Stocks of large corporations such as Apple, Microsoft, and Google are highly liquid due to the large number of buyers and sellers trading them daily.

4. Real Estate: In high-demand locations like New York or San Francisco, properties are known to be sold almost instantly after being listed on the market. These properties have high market liquidity.

5. Mutual Funds: Most mutual funds, especially those managed by large fund houses, are easily sold due to their broad market and active secondary markets.

6. Exchange-Traded Funds (ETFs): These assets can be bought and sold throughout the trading day like stocks, thus making them highly liquid.

7. Gold: It's a highly liquid asset since it can be converted into cash quickly and has a globally accepted value.

 

Low market liquidity examples

1. Small Cap Stocks: Small-cap stocks, those with a market capitalization of under $2 billion, often suffer from low liquidity. They aren't as popular or heavily traded as their larger counterparts, so finding a buyer or seller may take more time.

2. Rare Art or Collectibles: Assets like fine art or rare collectibles may have few interested buyers, making these assets less liquid.

3. Real Estate Market: Can also be illiquid. Depending on the market conditions, it can take a significant amount of time to buy or sell property, particularly for commercial real estate. During economic downturns, this liquidity can further decrease.

4. Certain Bond Markets: Certain types of bonds, especially junk bonds or bonds from emerging markets, have fewer buyers and sellers which results in low market liquidity

5. Non-Publicly Traded Companies: Stocks from privately-held companies, also known as private equity, are considered illiquid because they aren't publicly traded and thus are not easy to sell.

6. Illiquid Exchange-Traded Funds: ETFs that track less popular indexes or have few assets tend to have low liquidity because they're not as widely traded.

7. Exotic Derivatives: Financial products like exotic options or swaps are not widely traded, so selling them can be difficult. This makes them a prime example of assets with low market liquidity.

8. Certain Cryptocurrencies: While some cryptocurrencies like Bitcoin are relatively liquid, others have fewer buyers and sellers which leads to low market liquidity.

9. Start-up Investments: Investments in start-ups can be illiquid because they might not have an established secondary market. Until the company either goes public or is acquired, investors may find it challenging to sell their shares.

10. Specific Forex Pairs: Although the foreign exchange market is the most liquid market globally, some currency pairs are traded less frequently and, thus, have lower liquidity.
 

Liquidity for Brokers

Liquidity is crucial for brokers as they need to provide seamless services to their traders, and it determines their potential to fulfill trading orders. They typically rely on liquidity providers and market makers to ensure their transactions are completed in a smooth and prompt manner.

Market Makers and Liquidity providers - similarities and differences

Market makers and liquidity providers are two fundamental entities in the financial market. They both help maintain liquidity and efficiency in the market, yet their roles and responsibilities are distinctly different.

Similarities:

1. Provide Liquidity: Both market makers and liquidity providers serve to maintain and increase the liquidity of financial markets, which facilitates transactions and reduces costs.

2. Facilitate Trading: Both are pivotal in helping buyers and sellers to complete their transactions by offering to buy or sell financial instruments.

3. Help Reduce Volatility: Both play roles in ensuring that the markets are stable and that there isn't an excess of price volatility.
 

Differences:

1. Role: Market makers essentially set the bid and ask prices and ensure that trades can be made at any given time by standing ready to buy or sell on their account. Liquidity providers, on the other hand, don't set prices but offer a pool of liquidity in the market to ensure transactions can be smoothly executed.

2. Obligations: Market makers are obliged to provide continuous bid and ask quotes for specific securities and stand ready to buy or sell them, while liquidity providers have no such obligations.

3. Relationship with Exchange: Market makers often have formal agreements with exchanges to provide liquidity in return for trading fee rebates or other benefits. Liquidity providers typically do not have these types of agreements.

4. Risk: Market makers inherently take on more risk, as they're obliged to buy when no one else is buying and sell when no one else is selling. Liquidity providers simply make offers in the market without the obligation to hold securities.

5. Strategy: Market makers earn their income from the bid-ask spread of the securities they cover. On the other hand, liquidity providers can potentially make profits from placing trades that are more advantageous in terms of price movement.

6. Example: Banks, brokerage firms usually act as Market Makers whereas High-frequency trading (HFT) firms, institutional investors often serve as liquidity providers.

Overall, while they may seem similar, market makers and liquidity providers perform different, yet complementary, roles within the marketplace. Both are vital to maintaining a healthy and efficient market.

 

Liquidity pool

A liquidity pool is a collection of funds locked in a smart contract, used to facilitate decentralized trading and lending on various cryptocurrency platforms. It helps to create markets that are resistant to manipulation by providing a reserve of tokens that can be traded at prices set by a smart contract algorithm, rather than an individual or market-maker. These pools provide liquidity to decentralized exchanges and are often funded by users who earn trading fees based on the amount of liquidity they provide.

Liquidity and Compliance

Regulatory bodies often require brokers to have a certain level of liquidity, also known as net capital requirements, to ensure they have sufficient capital to absorb losses. This aids in minimizing potential disruptions and protects consumers from sudden bankruptcies.

A-Book, B-Book and hybrid Models

The A-Book model involves brokers transferring all client orders to the interbank market or liquidity providers, such as banks, other brokers, or hedge funds. This approach minimizes the broker's risk, as they profit through commissions or spread instead of trade outcomes.

The B-Book model, also known as the Dealing Desk model, sees brokers keeping client orders internally and acting as the counterparty to trades. While this could raise concerns about conflicts of interest, a reputable broker can offer significant advantages in this model. These include lower spreads, instant execution, and attractive bonus programs, especially beneficial for clients with smaller deposits. In this scenario, the broker must pay out profits to winning clients, which can potentially lead to conflicts of interest, especially in the case of large sums. Therefore, adept brokers employ robust risk management and a hybrid model, directing high-risk or large trades to the A-Book to hedge the company's risks.

The hybrid model combines elements of both A-Book and B-Book models, allocating trades based on risk assessments and other criteria. This method is often unnoticeable to the client in case of serious and well-managed brokerage firms, which focus on efficient fund management rather than opposing clients. Concerns typically arise with brokers who retrospectively alter quotes, cancel trades, or offer implausibly favorable trading conditions, practices that can quickly tarnish a broker's reputation.

What Kills Liquidity 

Extreme market volatility, economic uncertainty, and unforeseen disasters are among the factors that can affect liquidity negatively. For instance, during the 2008 financial crisis, there was a massive drop in liquidity as many investors preferred to hold on to their cash rather than invest it.

Crypto Liquidity

Crypto liquidity refers to the ease and speed at which cryptocurrencies can be bought and sold without impacting the overall market price. Inefficient crypto liquidity can lead to high slippage, slow order fulfillment, and price manipulation.

Forex brokers

They assist individuals and companies in executing foreign exchange transactions. They provide access to a trading platform where clients can buy and sell currencies, and offer advice on forex market trends and strategies.

Forex Liquidity

Forex liquidity refers to a currency pair's capacity to be bought or sold without causing significant price movements. Currencies like the USD, EUR, GBP, JPY, and others, have high liquidity as they are frequently traded worldwide.

The Importance of Liquidity in Forex Trade

High liquidity ensures low bid-ask spreads and swift order execution. It means trades can be completed at lower costs and quickly, which is beneficial for both traders and brokers. This promotes price stability and prevents large fluctuations in exchange rates.

Factors Affecting Liquidity in Forex Trade

Just like market liquidity in general the level of liquidity in forex markets can be influenced by a variety of factors, including market volatility, political events, economic reports, and time of the day. It is worth noting that during trading hours of large markets like the U.S. or London, the Forex market generally experiences higher liquidity.

How UpTrader Ensures Liquidity

UpTrader.io ensures uninterrupted liquidity by providing a range of liquidity management solutions for brokerage firms, including forex CRM and sales interface solutions that help to optimize operations and enhance customer retention.

Want to dominate forex? Join UpTrader.io and unleash game-changing solutions, including an unrivaled Forex CRM and marketing support. Let's trade!

Read more
Forex CRM Lifehack: Real Cases “HACKER ATTACK”

30.11.2021

Forex CRM Lifehack: Real Cases “HACKER ATTACK”

In the previous article, we wrote that UpTrader Forex CRM has a useful system for controlling fund deposit and withdrawal. In short, it allows you to flexibly configure the approval settings for withdrawal requests though a variety of parameters. The system lets you control the requested amount, the departments that approve the withdrawal, which managers are allowed to approve the requests, whether account details are mandatory, whether or not the CEO approves the requests and many more. All these settings are extremely useful and allow the broker to protect themselves from many unpleasant situations. Only a few of our clients take advantage of these features, while they are available in UpTrader Forex CRM completely free of charge. We highly recommend using them! As an illustration, we would like to share with you a recent case from one of our clients’ operations. Thanks to a well-configured withdrawal control system, the broker team noticed that something was wrong, quickly reacted to an unusual situation, and prevented a large-scale case of fraud.

The company asked us to change the names of the client and the manager and not to mention their own name, but allowed us to tell their story in detail.

 

Hacker attack

John is a professional trader who regularly withdraws profits from Company X. That is why no one was surprised when he sent another request to withdraw his profit for the previous month. The finance department was ready to approve it, but the withdrawal control system was set in a way that all large requests over $10,000 must also be approved by the client's personal manager.

When Casper, John's personal manager, contacted him, he immediately suspected that something was wrong. John's voice sounded unusual. Casper always builds relationships with each client, so he started the conversation with small talk and asked how John's children were doing. John replied that everything was okay and that they were at school. But Casper knew perfectly well that John's youngest child was born only a few months ago, which meant that he was talking to somebody else!

A few days later, it turned out that the hackers were able to create a duplicate of John's SIM card and used it to hack into his account. Thanks to the fact that his broker used the UpTrader withdrawal control system, John was able to keep his monthly profit, and the company prevented reputation losses. It allowed the company to maintain a trusting relationship with their clients and to ensure the safety of their funds.

 

"The Planet of Vogons"

In this user case, we will talk about a medium-sized Ukrainian broker who has been working in forex for many years, has an extensive departmental network and a complex withdrawal control system. Before adopting the UpTrader withdrawal control system, the company processes were barely automated.

The broker N started working on the Ukrainian market many years ago. At that time, the broker only had clients from Ukraine and the CIS. The withdrawal approval was coordinated by two people: the dealer and the CFO. The process was manual but smooth and fast. Then the broker began to grow, got foreign clients, then foreign partners, and launched several types of affiliate programs.

Each affiliate program has its own conditions for the accrual and payment of affiliate fees. In some cases, additional conditions can exist for different partners within the same program. The broker also allocates bonuses for the deposits. It means, for instance, that if a client came to the broker through a Vietnamese partner who works for the lots, and deposited 5,000 dollars to the account, they get a bonus: + 100% of the deposit for 1,000 dollars. According to the terms of the bonus, for every 100,000 units of currency traded, they kept $3 for themselves. The broker then must pay the bonus for this client to the partner without taking into account the bonus funds and the funds received from the bonus trading, remove excess lots and draw up the balance. Imagine then that such a client requests a withdrawal.

All the numbers were compiled manually. As a result, 6 departments, the secretary and the CEO of the company were engaged in approving requests for the broker. First, the withdrawal had to be approved by the client’s personal manager to make sure that the request was not a scam. Then the request fell in the partner relations department’s lap, because they needed to make sure that extra lots did not get into partner payments. Then, in some cases, they had to contact the dealer to make sure that everything was traded according to the rules. Next, the application went to the compliance department, which may find that the client has not fully completed KYC and that they need to finish the process (the client corrects errors and resubmits the request, and it follows along the same path). Then the application went to the finance department, which once again verified the numbers. And finally, the secretary manually collected problematic requests and took them to the CEO for final approval.

Thus, one request could take 5 days, 10 days, or two weeks to get approved. Needless to say, everyone was tired of it. Not only did this situation take up a lot of time and resources, it still did not prevent the company from making mistakes. Ultimately, the broker adopted the UpTrader withdrawal control system. It helped automate calculations, divide clients into groups, set conditions for calculating an affiliate program for different groups, and automate some of the withdrawals that do not require additional attention. A system of quick notifications pinging the team about new requests was set up, and the request statuses became visible in the CRM.

Now even the most complex requests take 1-2 days to approve. At the same time, the number of errors in calculations decreased significantly. As an additional bonus, the broker was able to take a closer look at the terms of affiliate programs and, in some cases, it became obvious that it was extremely unprofitable for them to continue working under the conditions they previously set themselves. The broker removed all unprofitable programs, freed up a lot of resources, and significantly increased their income from affiliate programs.

 

Read more

Subscribe to our news

Subscribe to our news