Corporate Actions: Dividends in Forex Trading

Author: Petros Kalaitzis

In business, corporate actions are events that companies initiate that can potentially impact shareholders and/or the company’s valuation. One such corporate action is dividend distribution.

In CFD trading, there are also dividends that brokers and liquidity providers can distribute to traders.

Timely and accurate, dividend distribution is critical for maintaining good partnership relationships, and keeping traders and brokers motivated to expand and perform better. It’s also vital for compliance with regulatory requirements.

Dividend solutions by TFB  

At Tools for Brokers, we have two solutions for dividends.

Dividend Payout Application

The Dividend Payout Application for handling dividends in the MT5 platform:

• By trading instruments
• Within defined periods of time
• As balance operations on the MT5 platform  

With the recent update, the Dividend Payout Application allows you to change configuration files automatically, reducing the management overhead and saving time.

There are also 3 new custom actions available:

• Getting the rules execution report
• Getting the payments report
• Paying dividends

If you provide instruments that distribute dividends, this tool will give you the flexibility and efficiency you need to do the work better and faster.

Last but not least, we’ve added a new parameter – override dividends – that helps with the very real issue of dealing with mistakes in dividend updates. TFB clients can now correct human errors even if the dividend was already paid, meaning that the resolution will be much quicker, and there is far less chance of a mistake that could become a major issue.

Dividend plugin

The Dividend Plugin for handling dividends in the MT4 platform.

Here is what it can do:

• Calculate dividends according to the pre-configured amounts
• Configure dividend distribution at specific points in time
• Perform withdrawal/deposit balance operations

Overall, the plugin automates a significant portion of the divided-related work, allowing brokers to optimise their workdays while fulfilling all their obligations.