I want to automate my brokerage. Where do I start?

Author: Ivan Egorov

Brokers deal with large amounts of data, large trading volumes, and have endless lists of things they should watch out for. All that puts immense pressure on the broker, which leads to burnout and mistakes.

Luckily, nowadays, there are many automation solutions that help in all areas of business and allow the broker to:

• Spend less time on monitoring, reporting, and general management.
• Automate repetitive tasks that involve working with data (i.e., collecting information for the end-of-day reports).
• Have free time for creative and strategic thinking.
• Minimise risks or errors and subsequent issues with clients and regulators.
• Streamline operations and reduce the workload across the team.

Below, we’ve identified three key automation areas with tips on what to upgrade first using the Tools for Brokers solutions.

#1 Automation for daily operations

One of the best things a broker can do to make their life easier is to automate daily, repetitive operations.

• The Swap Changer application automatically updates swaps for short and long positions and prevents servers from crashing due to bulk swaps updates.
• The Sharia Account plugin is a must for anyone working in Swap-Free Account policy regions. It permanently withdraws fees for positions opened over specified time intervals and helps brokers stay compliant with local rules with little to no overhead.
• The Dividend plugin automates dividend distribution. It calculates the dividends each trader is entitled to, saving brokers from hours of manual work and reducing risks or errors and subsequent issues with traders.

#2 Automation for risk management

When brokers and hedge fund managers come to us to talk about automation, they most often want it to enhance their risk management. And we agree! One of the best ways to avoid errors and negative consequences when dealing with ever-changing large volumes of data is by automating as many processes as possible.

If you’re at the start of your journey, here’s what we would recommend:

• If a trader does lose all their equity and goes into a negative balance, the Negative Balance Protection plugin will return it to zero and withdraw all credit facilities from the account to help the broker remain compliant.
• The Dynamic Leverage Changer plugin will change the position’s margin rate and dynamically update the leverage for accounts with opened positions.
• Quote freezes represent a real risk for brokers. To avoid all issues with outdated pricing, install the Quotes Watcher plugin that will monitor quotes for each symbol and disable trading if prices aren’t updated within a predefined period of time.

#3 Automation for customer relationships

Client management does not need to be resource intensive and time consuming. Automation can take care of many tasks and activities that will boost customer satisfaction and help maintain healthy relationships.

• The Credit Management app offers flexible campaigns for credit deposit and transfer to balance. Moreover, the app monitors various factors, such as equity value, free margin, and a user’s balance. It then deposits or removes credit based on the data it collects and sends email notifications about the performed operations.
• For smart rebate systems that will encourage traders to be more active, use the Multi-level Agent Commission (MLAC) application to create unlimited hierarchy levels, agent commission structures, and apply several rebate types.
• Manager Event Alerts automatically updates traders on their status via email, SMS, or internal MetaTrader mail. Brokers can provide it as a service at an extra fee, and traders can get guaranteed updates on their trading, pending orders, limits, and critical events.

If you implement the solutions we shared today, your brokerage will become a much more advanced and easy-to-run enterprise. Remember that a liquidity bridge is the heart and soul of the company, so it makes sense to invest in a reliable bridge first. It will serve as a powerful base for anything else that you do.

If you’re interested in trying a modern liquidity bridge by TFB - Trade Processor - go to our website or email us at sales@t4b.com to get a demo license and more information.