By
Kseniia Klichova
March 25th, 2024
Seeking to expand leveraged trading, B2Broker has pioneered the industry as the official provider of cryptocurrency liquidity for brokers, crypto exchanges, hedge funds and institutional clients.
In the course of recent years, cryptocurrencies have undergone towering growth wherein cryptocurrency trading has likewise taken off in a big way with most Retail FX and CFD brokers. Today there are over 100 crypto brokers providing crypto asset trading to their clients, yet the demand remains high since opportunities such as leveraged trading and ICOs have resulted in more people wanting a piece of the cryptocurrency action.
Therefore, if a broker is in a position to add leverage as a part of the financing package, ultimately he will able to offer a competitive and very attractive product to the client base and, therefore, generate higher trading volumes.
Currently, there is an easy way for brokers to get cryptocurrency liquidity made possible by connecting to a crypto liquidity provider over FIX API on their MT4/5 platforms.
Benefits of Using B2Broker as a Liquidity Provider
As the moves on cryptocurrencies can be substantial, they are an attractive option for traders who wish to trade them on leverage. This presents a great opportunity for brokers to capture new business, revive dormant accounts and increase trading volumes.
However, the issues of leverage, liquidity and connectivity are still considerable for brokers, who are thinking about adding or expanding leveraged crypto trading.
Firstly, there are only a few companies offering marginal liquidity for cryptocurrencies. B2Broker is the first one to do this both: professionally and in large volumes.
Almost all those, who now offer cryptocurrency liquidity for brokers, are offshore liquidity providers forbidden to work with European regulated brokers. Thus, brokers lack the regulator who is capable of allowing them permission to offer their customers the opportunity to leveraged cryptocurrencies trading.
B2Broker is ready to connect European regulated brokers to cryptocurrency liquidity and makes it possible by simply signing an agreement with the licensed company located in Vanuatu.
Next, there is the issue of integration with crypto-exchanges, regarding aggregating liquidity and ensuring it. It is notoriously dangerous to work with a single cryptocurrency exchange as it exposes to a possible risk of being hacked, or halted in any time, which is why it is better to work with at least three different exchanges.
Still easier said than done as most exchanges require allocating deposits and keeping money there. If you give the client a leverage of 1 to 3, you will need to maintain triple the deposit.
To work decently, you are to have an amount of 100k you need to hedge, and as a result, you need 300k to keep on every exchange. The total is 900k on three exchanges. Indeed, this is a huge problem for brokers, but B2Broker facilitates this process by acting as Prime Broker that already made those deposits.
The next problem to solve is integration and execution. Cryptocurrency exchanges usually have poor executional systems. The broker’s order may be unperformed or rejected, or hang for 15 minutes and be executed only partially. Due to the fact that B2Broker aggregates exchanges, the company always has a very tight pool. Brokers have no slippage and 99% of orders are executed directly without any refusals, as the team of B2Broker has carried out all the integration and aggregation systems in entirety.
Finally, there are also other regulatory issues such as KYC. As exchanges do not like to work with brokers and do not like to open accounts for them, that can make the verification process extremely slow. B2Broker resolves all these issues by providing a complete service for brokers, so they can open an account and quickly gain access to the crypto liquidity.
Choosing B2Broker For Crypto Liquidity
Choosing a liquidity provider requires a thorough analysis of factors such as pricing, economic efficiency, effectiveness of the trading infrastructure, surveillance of the IT systems and legal aspects. As one of the leading liquidity providers, which ticks all these boxes, B2Broker has been listed amidst “The Best Liquidity Providers”.
B2Broker CEO Arthur Azizov comments:
“We are very advanced in terms of liquidity. In our pool there are 29 of trading pairs, the 29 most liquid cryptocurrencies, which have given us a strong competitive advantage. No one else offers liquidity for 29 cryptocurrencies (CFD crypto-currency liquidity). Most offer just 5-10 cryptocurrencies. We have integrated with OneZero, Prime XM, MT5, MT4. Any broker will be able to receive our liquidity via Fix API 4.4 protocol, via the trading systems they are currently using”.
Details of the offering include margin trading with the leverage of 1:3, no swaps and rollover fees, commission from 0.2%, payable once at the moment of transaction execution. Brokers can open a WhiteLabel or connect via the FIXAPI 4.4 protocol.
Arthur concludes:
“The cryptocurrency liquidity service from B2Broker is a promising and easy-to-implement solution for brokers, who want to fill a new niche in the market and can result in a considerable expansion of a broker’s client base, growth of trade turnover, and consequently, growth of the commission income”.
Being fully committed to cut a gaping need for cryptocurrency liquidity, B2Broker works on the continuous expanding on its services. As previously reported by Coinspeaker, a couple of months ago the company participated in the Blockchain Forum Deconomy 2018, where it has introduced an innovative cryptocurrency liquidity aggregator branded B2BX. There are currently more than 70 brokers in the company’s portfolio that have access to the aggregator offering cryptocurrencies to their customers, while B2Broker plans to connect at least 200 brokers by the end of 2018, making B2BX the largest aggregator in the industry.