A wide selection of plugins and applications target specific issues to help brokers and hedge funds manage their unique circumstances with minimal cost and maximised performance. Some of the risk management tools we offer help provide dynamic leverage, control and limit bonus credit usage, comply with regulations, and much more.
All our plugins and applications are available via a user-friendly TFB Toolbox interface that streamlines TFB plugin management and offers powerful risk-management functionality, such as 4 access levels, installation on a dedicated server, and live logs that can be used for real-time monitoring.
Contact us today to ensure your MetaTrader 4, MetaTrader 5, cTrader, DXTrade, and Match-Trader risk management strategy is up to date.
Data is everything today. Yet, it’s not enough to simply have the data; it’s also necessary to analyse it and adapt your strategy accordingly. Our data analysis and reporting platform allow brokers to:
Use real-time alerts to track any abnormalities
Run regulatory reports to avoid penalties and internal use reports for analytics
View large amounts of data via a user-friendly interface
Multiplatform liquidity bridge
and risk management
Our Trade Processor system combines an ultra-low latency liquidity bridge with an advanced risk management system to minimise the risks of unpredictable market events. A powerful multiplatform bridging solution plays an integral role in any risk management plan, as its performance directly impacts the trading process. TFB’s Trade Processor liquidity bridge system can be hosted in the cloud or installed on a client’s site. It provides
Automated A/B-book switch
hedge risks during high volatility
Automated A/B-book switch
hedge risks during high volatility
Automated A/B-book switch
hedge risks during high volatility
Automated A/B-book switch
hedge risks during high volatility
An ecosystem of TFB products for risk management
All businesses face risks daily. While we cannot avoid all of them, a robust risk management strategy can save you time, money and your reputation. We provide an ecosystem of products, each designed to target and mitigate certain types of risks that together create a bulletproof risk management strategy.
Learn more about risk management with TFB
A/B-book Auto Switch
Switching trades between A-book and B-book is one of the most important tools to protect and maximise a broker’s revenue. An A/B risk management solution enables clients to hedge risks or benefit from rapid market growth.
Disclaimer: We recommend clients consult with local authorities before commencing any B-book operations.
MT4/MT5 risk management plugins and applications
Risk management is the cornerstone on which every successful broker is built. We have designed a curated list of plugins and applications that bring together the right solutions to help our clients stay protected against external risks and stay compliant with regulations.
For example, the Dynamic Leverage Changer monitors exposure on each particular symbol and dynamically modifies the leverage of open positions.
Another helpful tool for a trader’s risk management is the StopOut plugin, which allows the trader to set trailing stop out levels to protect them from losses during high volatility periods.
Order and execution management
Risk management plays a crucial role in the success of brokerages, hedge funds, and prop trading firms. Thanks to the fast-paced and unforgiving nature of the trading world, companies have to keep their guard up at all times and work on risk management strategies proactively.
An average brokerage faces many different risks, with the significant categories being:
High market volatility
High market volatility creates the potential for fast and significant losses.
Credit risk
Credit risks if the client suffers from losses and the broker is forced to cover them.
Liquidity risk
Liquidity risk, i.e., dealing with illiquid markets and struggling to execute trades at the best prices.
Reputational risk
Reputational risks if the broker is not transparent enough or fails to keep the client’s data safe.
Regulatory risk
Regulatory risks where the company’s future could be at risk if it fails to report accordingly and comply with ever-changing regulations.
Operational risk
Operational risks can occur if the company relies on outdated or weak technology, fails to automate processes, and suffers from cyber attacks.
Geopolitical risk
Geopolitical risks that affect the company’s performance on the market and can even lead to the termination of operations in the event of trade restrictions.
You can’t possibly predict and eliminate 100% of business risks, but you can mitigate the majority of them using the right technology and by partnering with the right people.
All of TFB’s solutions are covered with 24/7 professional support. No matter when a client has a question or an issue, our experienced and knowledgeable team is there to help. Additionally, all clients get access to a detailed user guide and other materials through our client portal. Trade Processor liquidity bridge clients can also utilise the AI assistant that helps with how-to questions and allows you to customise the bridge when it’s most convenient for you.
The pool of 100+ liquidity providers ensures clients can get the best pricing and find a reliable partner to work with.
Components of the solutions are installed separately to avoid server overload.
Multiplatform support helps clients to avoid paralysing platform dependency.
Flexible configuration allows customisation for individual clients’ cases.
A/B Switch tool helps prevent trader and broker losses during high volatility periods.
Backup LP functionality automatically rolls over to a backup liquidity provider if the primary one is unresponsive.
Large orders are split into smaller ones with Continuous Execution to secure the best pricing.
End-to-end encryption guarantees data protection from malicious attacks.
Proactive system of 24/7 monitoring prevents disasters from happening.
Restrict opening orders without a Stop Loss to protect trader funds and comply with regulatory requirements.
Risk management FAQ
Why is risk management essential for brokers?
Risk management is important for all businesses, not just brokers, hedge funds, and prop traders. However, the stakes are higher than ever when it comes to investing and trading. So much depends on the accuracy of the technology, and so much data is sent back and forth at an incredible speed that even the slightest delay or error can easily snowball into a catastrophe. If a broker mismanages their trader’s funds, they’ll be liable for financial compensation, suffer through a painful PR crisis, and could even potentially have to terminate operations if the regulator deems it necessary.
How can brokers manage risks?
A big part of risk management is a timely dedication of resources to it. Too often we get caught up in the hectic pace, leaving it to chance. Unfortunately, after the risk has already happened, there is far less you can do about it compared to being proactive. The best way brokers can protect themselves and manage ongoing risks is by putting systems in place that reduce the threats. For instance, automating manual report generation or swap updates means that brokers get a lot of their time back while ensuring risk-free task execution. Using a liquidity bridge that is flexible enough to adapt to changing environments is a big part of risk management too.
Trade Processor, for instance, works with multiple trading platforms, supports over 100 liquidity providers, and offers 6 different modes of order aggregation. With so many options in place, even if something goes wrong with the primary scenario, you can easily switch and continue working without a dip in performance.
