Must-have solutions for LATAM brokers

Author: Ivan Egorov

Tools for Brokers has been working with LATAM brokers for many years, and we are committed to expanding in the region by helping more brokers enhance their services and grow their businesses.

Through many conversations with local clients and partners, we’ve realised that several solutions are necessary for all LATAM brokers, as these tools allow them to deal with issues and requirements specific to their region.

In today’s article, we will share some of the most common requests we get from our clients and the tools that help them meet the demands of traders and advance their operations.

Issue #1: Latin traders operate with high-leveraged accounts that create additional risks

Solution: Dynamic Leverage Changer

Most Latin traders like to operate with high-leveraged accounts, which exponentially increases their available margin with low deposits but also increases the risk of burning through it faster. This creates unwanted risks for both traders and brokers.

The Dynamic Leverage Changer enables brokers to offer different tiers of leverage based on the volume opened by the trader to mitigate the risks and benefit them both.

Issue #2: Bonus campaigns are too hard to manage manually

Solution: Credit Management  

One of the common ways for Latin brokers to attract and retain their clients is by creating extensive bonus campaigns. These campaigns work very well, but result in high management overhead, requiring dealing desks to spend hours manually orchestrating them.

The Credit Management application helps automate the entire process and free up valuable time while simultaneously reducing the chance of errors. The application creates automatic rules to give the bonuses upon certain deposit conditions, sends cashback as a reward from the bonus to the balance for reaching a specific turnover, and removes the bonuses upon certain triggers that can easily be pre-configured with simple rules.

Issue #3: Traders, especially inexperienced ones, look for money management and social trading services

Solution: TFB PAMM and copy trading plugin

LATAM is a booming region, and many people choose to dive into trading every day. Some of them have had previous experience, others haven’t. What unites them is an expectation that local brokers will provide more than just the basic service.

One of the most in-demand products by Tools for Brokers in LATAM is TFB PAMM. This money management system allows investors to entrust their funds to experienced traders, a.k.a. Money Managers, who trade these funds for a commission from the profits. This way, traders who are not yet confident enough to trade on their own don’t miss out on the opportunity to invest, and more proficient traders use it as a strategy diversification technique.

The Copy Trading plugin follows similar logic and allows traders to follow their more experienced or successful peers.

Issue #4: Trader competitions are hard to manage in real-time

Solution: StopOut plugin

PropTrading is booming in Latin America, and companies need rules to control the drawdown of their clients during their challenges, automating the processes when their accounts should be stopped-out without requiring monitoring by the dealers.

The StopOut plugin automates the entire process and ensures trader competitions follow all the rules.

The plugin is also used by many retail brokers in the region who want to hedge themselves or their clients to prevent massive losses during periods of high volatility.

Issue #5: Order execution is not well-optimised, resulting in delays and not giving traders the best pricing

Solution: Trade Processor

Quite often, brokers in LATAM are based too far from their liquidity providers’ hosting location, which leads to latency and delays. Additionally, many of their bridges do not offer extensive pools of Liquidity Providers (LP) to ensure they get the best quotes for their clients.

Trade Processor, the multiplatform liquidity bridge by TFB, resolves both of these issues for our clients. It’s built with the principles of decentralised architecture and can be installed anywhere. This means that brokers can have the bridge configured as close to them as necessary and also install it in a way that creates the most stable and fast performance.

Having a wide range of approved LPs that partner with Trade Processor means that getting multiple quotes and picking the best pricing is not an issue, no matter what kind of order the client is placing. Order execution settings are highly customisable to fit every

Trade Processor has functionality that automates many tasks for dealers, Market Makers, and prop trading firms.