With the development of Internet technologies, the brokerage business has taken a new form and has greatly facilitated. Times of the telegraph tape, as well as work through the phone have already passed. Today, it is enough to have a computer with Internet access, and you can already make trading transactions. But the broker must provide all these operations and put them on the market. And if before the traders or investors directly contacted the brokerage firm for opening and closing deals, today this moment is completely excluded. However, the broker still needs to monitor all transactions and quickly execute everything. To fulfill this important function, the forex broker must have comprehensive software of regulation and monitoring of all the trading positions, both in the context of the client and the company as a whole. To provide these operations, you need to use a bridge technology. Today, the most multifunctional software for brokerage companies at the best prices in the market is FX MARS BRIDGE (http://4fxbrokers.com/mt4-bridge/)
FX MARS BRIDGE is a huge database, which contains all the trading information in the brokerage company. This software allows you to optimize all the processes in the brokerage business and directly monitor the company’s future financial result. If you just started your brokerage business, FX MARS BRIDGE must be in your arsenal. Here is why:
FX MARS BRIDGE allows you to see trading operations in the context of each customer, financial asset, p/l indicator, automatic or manual trading. This gives flexibility in managing all the open operations in the company. At the initial stage of the brokerage company’s operation, the quality of orders execution, as well as the possibility of paying out returns to the customers is very important. Therefore, your dealing should work 24/7 to support these processes in the company;
- It is possible to create templates that on the basis of certain characteristics, sift out the trading operations. Thus, you can expand the monitoring list by categories, the examples of which we wrote about in the paragraph above. For example, you see that the client uses a high-frequency algorithm to perform trading operations (this can be checked in the deposit with logs in our software, which show all the smallest measurements on the trading account). At the same time, trading is carried out according to the algorithm only for the EURUSD currency pair, and the other deals the trader makes by “hand”. And if the algorithm is stable and brings additional profit to the client, you can block such operations in the market by supplying them to the clearing centers (prime brooders). By creating a template that will analyze this particular customer, software will supply all of its EURUSD transactions on the market. This at times reduces your brokerage risks.
- As we already mentioned above, with the help of FX MARS BRIDGE, the broker can insure his risks and at the same time fulfill all the obligations to his clients. So, if there is a distortion in the volume of a tool, it must be blocked in the market. If the client has put transactions on risky assets, you need to overlap them in the market. If at the time of publication of fundamental data there are positions on the assets that this news relates to, then it is also necessary to overlap these transactions on the market.
As you might already understand, with the help of FX MARS BRIDGE, your brokerage company has the opportunity to trade based on the market conditions. Two key methods of trading operations have been implemented in the software: a-book and b-book.
A – book
The goal of this approach is to ensure that the trading operations are executed directly in the prime broker. Thus, in liquidity providers based on the market conditions. Often, forex brokerage companies bring transactions to the market only to reinsure their risks and this is a normal practice. If your dealing is large in volumes or trading in risky assets, it can immediately send the deal to be executed on the market. Moreover, for this group, you can specify your spread, slippage, and commission parameters.
Also, this technique is best used at the initial stage of the company’s life, so that it is possible to increase the client base, promptly pay out profitability to the customers, and reduce the financial risks.
Let’s give a little tip: if you and the client have stipulated working conditions under which all the operations will be delivered to the market, you should reduce the spreads and delays of order execution (less than in b-book), but set an increased commission.
B – book
This technology implies the opening of positions directly on the server of the brokerage company. If you already have a significant client base, then you can overlap directly with customers. Thus, large profits can be compensated for by the losses of smaller players. Statistics confirm their dynamics and most traders lose their money in the market. And their losses should also be monitored and regulated in order to increase your brokerage profitability. To put it simply, b-book performance is your direct profitability. That is why, we need constant monitoring of all operations and, in case of increasing risks, direct transactions from the b-book to a-book. Our FX MARS BRIDGE software allows you to do this.
Trading on the b-book system can also have its commission from the broker’s side: spreads, delays or markups. By the standard, all margins duplicate the performance according to the a-book principle, but you can set your own value to increase the financial result or set certain margins/delays based on a group of customers.
Here is a small tip: if a client trades on this technique, it is best to remove the commission for opening a deal and install more markups.
In order for the dealing to react quickly to a change in this or that situation in the context of all trading operations, we have implemented the MT4 trading terminal in FX MARS BRIDGE software. Thus, you can open trading operations right from the bridge and insure or overlap positions. This makes FX MARS BRIDGE the best technical and software solution for a broker.
Using FX MARS BRIDGE for your business, you get our ten years of software development experience for both traders and brokerage companies. The simplicity of using and systematization of all internal operating processes will allow you to increase the profitability of your brokerage business in the long term.