Broker automation made easy: Key principles

Author: Ivan Egorov

Automation is one of the most important elements of a modern brokerage.

At TFB, we are constantly promoting automation as a powerful tool to:

• Optimise broker resources
• Cut down on time wasted
• Reduce or completely eliminate risks
• Avoid human errors
• Maximise profits

Automation is not a magic solution for brokers, but it’s as close as it gets to it. Rather than waste hours on tedious tasks and scroll through large amounts of data manually, you can outsource it to technology and focus on key tasks and goals, strategic planning and review, and business development brainstorming.

A couple of weeks ago, the TFB team attended the Finance Magnates London Summit where we were awarded as Best Automated Performance Tool. As a way to celebrate this honour, we decided to review the key principles of broker automation and talk about some of the pain points that software solutions can address.

Pain point 1: Manual swap updates are time-consuming.

Automation allows us to eliminate the tasks that are time-consuming, repetitive, and tiring. Manual swap updates are all that, plus there is a high risk of making a mistake that will cost brokers their hard-earned money.

A solution for this would be, for example, TFB’s Swap Changer, which automates the swap values upload for all symbols that you specify. It works for all users or specific groups you identify. It also allows you to take swaps from Liquidity Providers, apply the broker's markup, and automatically update swaps in MT4/MT5.

Pain point 2: Manual hassle takes too much time, but if you ignore it, financial risks skyrocket.

It’s not uncommon for brokerages to ignore part of the daily tasks because they take too much time. With swap updates, some simply choose not to update them. Although this strategy can work for a while, it creates huge financial risks for brokers.

For example, if a broker doesn’t update swaps in a trading platform for a long time, one day, the difference between the swaps of a broker and its liquidity provider might become too large, putting a broker at significant financial risk. A simple swap update automation tool can eliminate those risks without adding overhead to daily operations.

Pain point 3: Bonus abuse

Unfortunately, sometimes traders find ways to abuse brokerage companies, and it’s really hard to prevent this without automation in place.

If a broker provides its clients with bonus credits, some traders can abuse the bonus program as they may lose brokerage funds (credits) along with their own funds and end up with a negative balance.

The Credit Management application helps to combat the issue. It allows brokers to fully automate bonus campaigns, from bonus allocation to controlling their usage, to prevent the possibility of bonus abuse.

If you’d like to learn more about any of the solutions we discussed today, or want to find out how Tools for Brokers can help you with any issues or plans for your brokerage, please email us at sales@t4b.com.