That is why, in order to run a successful brokerage, a broker should incorporate a comprehensive, all-encompassing risk management approach. Each of the products iSAM Securities offers is standalone, including the bridge, risk engine, hosting, liquidity, and the risk team. Brokeree provides solutions to address client protection, liquidity risk, yield enhancement, trade profiling, market data discrepancies (i.e. frozen quotes), trading platform performance maximisation and maintenance. Brokerpilot redefines risk management by offering real-time insights, proactive defense mechanisms, and a commitment to evolution.

By partnering with oneZero you join the over 250 successful clients already benefiting from oneZero innovation. They are supported by industry-leading technology and 24/7 global customer support that facilitates tens of millions of trades and billions of quote messages every day. Our perspective of the unique challenges and requirements generated across our entire client base help us drive ongoing product evolution and delivery. We provide brokers with reports on scalpers; in the trade summary, you can easily check the buy & sell percentage, what part turned out to be profitable, and what was their average duration. As for the LP performance, you can easily check how much time in milliseconds the risk engine needed to execute the trade.

It transcends the boundaries of traditional approaches, empowering your dealership with the tools and intelligence to outpace threats, seize opportunities, and maintain a secure and reputable trading environment. EAERA Risk collects trading data from all connected providers and generates advanced execution reports. Receive detailed statistics for liquidity providers and answer client execution complaints accurately. A quality risk manager ought to be able to distinguish between a consistent strategy and regular gambling.

Devexperts has been developing financial software for the capital markets since 2002. The company’s core expertise is multi-asset trading platforms, matching engines, and exchange solutions. Among the clients are retail and institutional brokerages, wealth-management firms, investment funds, and exchanges. Devexperts’ development team consists of 700 engineers located in offices in the USA, Germany, Bulgaria, Singapore, Portugal, Turkey, Georgia, and Ireland. When a risk manager has correctly singled out and hedged the profitable clients, another challenge is to make sure that liquidity providers do not cut off flows of these traders as toxic. Simple math shows that the more liquidity providers you have, the easier it will be to distribute flows from profitable clients.

Hybrid Forex brokers have the ability to decide where to send profitable trades, to liquidity providers or to internal execution. The flow of profitable trades, which is usually sent to liquidity providers, is commonly referred to as toxic. The main advantages of this option are that the results of clients’ trading do not carry any risks for the broker, on the contrary, the latter can profit from the trading turnover. Thus, it is advantageous for the broker that a client trades as long as possible and does not lose their money, which is why many traders consider A-book brokers to be more reliable or profitable. One more advantage of such an approach is the lower cost of the license and simplified regulation conditions. Now it matters a lot because traders tend to choose brokers with the regulation in well-known jurisdictions, and offshore companies without regulation lose clients and trust.

• You will need to understand the dynamics of the market in which you are trading, and also know where the likely psychological price trigger points are, which a price chart can help you decide.
• The Forex Broker Turnkey solution includes all the key components required for effective risk management in Forex brokerage firms.
• It allows brokers to monitor exposure on different levels and manage trading flows, switching between different books manually or automatically.
• It’s not just about managing and recuperating the cost of risks, but preventing them from ever happening – and turning them to your advantage to advance profit, capital, and innovation opportunities.
• Since risk is the opposite side of the coin to reward, you should draw a second line in the sand, which is where, if the market trades to that point, you will move your original cut-out line to secure your position.

The B-book or market maker (MM) is a model of What Is Amazon Prime, where the broker serves as a liquidity provider for a client transaction that does not reach the interbank. Unlike A-Book, the FX B-book model does not imply overlapping trades via liquidity providers. Thus, a B-book broker bears the responsibility to the client with their own funds, i.e. the client’s profit is the broker’s loss and vice versa.

Since then, under the stewardship of its Founder and CEO Tom Higgins,  the company’s software suite has evolved, with its broker business intelligence tool Visual Edge now a key focus for the company and clients. (See this interview with Gold-I’s CEO Tom Higgins and Misha Kipnis, VP of Visual Edge for further reading.) Visual Edge provides data-driven business intelligence for broker risk management and operational efficiency. Brokeree Solutions offers a wide range of plugins and tools for MetaTrader trading platforms for automated/passive risk management, starting from client exposure to post execution hedging. The tools are all coming as individual solutions that can be used independently from each other.

OneZero’s Retail Hub is a robust Software-as-a-Service price and risk management platform used by clients across the globe to manage their trading functions. Build customized liquidity pools and establish connections to your customers via front-end trading platforms including MetaTrader 4/5 for the receipt and delivery of quotes and trades. Features include pricing and risk management, aggregation, warehousing, market access, price distribution, and more. We offer access to global liquidity providers and venues, and comprehensive regulatory reporting. Tools for Brokers (TFB) is a technology provider of multi-platform solutions for retail brokers, liquidity providers, prop trading firms and hedge funds. The PriceOn™️ from TraderTools product suite allows brokers to replicate the functionality and capability of large banks and HFT liquidity providers.

It aggregates data from all your trading servers and platforms, presenting your dealers with a unified view of your dealing desk. Regardless of the number of trading servers or platforms, Brokerpilot gathers all information into one cohesive interface, allowing your dealers to manage your entire trading operation seamlessly. This dynamic approach allows your dealers to navigate the ever-changing trading landscape with confidence. In fact, a successful trader can lose money on trades more often than they make money—but still end up ahead in the long run if the size of their gains on winning trades far exceeds the losses on their losers. Another trader can make money on a majority of their trades, and still lose money over time by taking small gains on their winners and letting losing trades run too long.

Technically though the customers don’t have to use all the components, Your Bourse understands that some of their customers might have solutions built in-house or by other providers that are working well. In these situations, our customers can use just one particular component of Your Bourse, as all of the solutions we offer have an Open API and can easily be integrated with other systems. The above-listed components empower brokers to boost profitability across their entire flow. With Your Bourse, brokers can take charge of their risk management, making dynamic, ‘on-the-fly’ adjustments in both client flow management and their own trading to seize opportunities and navigate challenges effectively. There are a lot of other scenarios that could easily affect brokers profitability in just milliseconds that a human eye will not catch in time from a dashboard.

The Political Risk Report 2024 is your essential guide to the top risks and opportunities across regions, so you can confidently plan for what’s ahead. In business and life today, our world is dynamic and complex and so are your risks. Our experts bring in-depth industry knowledge to deliver the clarity and strategies you need to face the future with confidence. EAERA Ltd does not provide any financial or other services advertised on this website. Any action you take upon the information on this website is strictly at your own risk and we will not be liable for any losses and damages in connection with the use of our website content.

Additionally, we provide full system training of the Centroid Risk System, in dedicated sessions, for each customer. Furthermore, once the setup is deployed, there is also a dedicated testing and accommodation period of the system. Onboarding includes installation of the solution in the demo environment, a series of presentations to go over the features of the solution to achieve the required brokers’ setup, continuous tech support during active subscription. Secondly, diversifying business models is essential to reduce dependence on specific assets, clients, or geographical regions, thereby minimizing concentration risk.

“We aim to provide a turnkey solution for brokers to mitigate their dependence on costly third-party tools. There is a one-off setup fee and a monthly fee that will depend on the scale of the required setup. Centroid Risk is a standalone product, but at the same time, it can be used together with Centroid Bridge, our connectivity bridge and execution engine, to achieve more. Firstly, by strengthening capital adequacy, broker-dealers can ensure they hold sufficient reserves to withstand losses and sustain operations during periods of volatility. The financial crisis and geopolitical tensions have emphasized the need for resilience in broker-dealers, requiring proactive measures like stress testing, cybersecurity, market diversification, and AI-powered analytics. By analyzing new cases of cheating and unethical practices, we as developers adapt its algorithms and strategies.

If you are trading with $5,000 in your account, you would limit your loss to the 2% of your trading capital, which is $100. In a Martingale strategy, you would double-up your bet each time you lose, and hope that eventually the losing streak will end and you will make a favorable bet, thereby recovering all your losses and even making a small profit. Working collaboratively with the client, we craft a tailored and optimal pricing structure that fits their unique business needs.