Not offering a selection of cryptocurrencies is a severe disadvantage for a brokerage
Bloomberg
This article was written by Adinah Brown from Leverate.
With the growing profile of Cryptocurrencies amongst traders, forex brokerages are beginning to expand beyond traditional currencies, into digital currency offerings. Whilst it might seem like forex brokers are only now beginning to offer these currencies, they have in fact been offering cryptocurrencies since 2013, when two well-known brokerages began offering Bitcoin and Litecoin.
At the time, this strategy was simply to attract traders that were specifically interested in trading cryptocurrencies. Today, with cryptocurrencies attracting unprecedented levels of attention, not offering a selection of cryptocurrencies is a severe disadvantage for a brokerage, where traders may jump ship to another brokerage to pursue their interests in crypto.
Quick fix
Thankfully, there are a variety of different turnkey solutions that allow for a brokerage to offer cryptocurrencies, whether within their existing platforms or as a standalone cryptocurrency platform. This makes it easy for a brokerage to upgrade quickly to provide a digital currency offering and keep up with their competitors.
However, the turnkey solutions only solve part of the problem. Even with the ability to offer these new instruments to traders, a broker still needs to link their instrument to an exchange or a Liquidity provider. Cryptocurrencies, being both relatively new and smaller than its forex cousins, simply doesn't have the same breadth of options in this regard. Below are the advantages and disadvantages of an exchange versus a liquidity provider.
Direct linking – Exchange
Linking directly to a cryptocurrency exchange sends the client’s trades direct to the exchange. Whilst this seems simpler from an integration perspective, it is actually more complex, since you need to adapt your software to meet the needs of the exchange feed. With different cryptocurrencies having different exchanges, integrating multiple cryptocurrencies can create significant complexities.
Exchanges tend not to be geared to offering leverage, meaning that at most, the leverage will be 3:1. From a commission perspective, using an exchange is actually beneficial, since there are less parties involved cutting into the potential profits. Exchanges therefore tend to offer better base points per trade (somewhere between 20 - 30 base points), which is better than liquidity providers.
An exchange can have poor market depth, which means that positions do not get filled, volatility is high or spreads are particularly wide. These issues tend to frustrate traders and impart a negative impression.
Most cryptocurrency exchanges require that the margin be posted in Bitcoin, rather than USD or major fiat currencies. For a company that does not want to hold Bitcoin, this can present a challenge. This is a further issue when considering that cryptocurrency exchanges are unregulated, meaning that the funds posted do not have regulatory protection in place to ensure they are safe. Therefore, putting large amounts of funds into an exchange is a significant risk.
Liquidity providers
Liquidity providers (LP) are an intermediary between the broker and exchange that facilitates the transfer of the trade on to the exchange. As a result, they can aggregate multiple exchanges and provide stronger leverage and have easier integration, since their software is made to integrate into existing broker’s software.
Possibly the strongest advantage is the ability to fund the margin account in a variety of traditional currencies, as well as provide a greater level of fund safety due to the provision of broker protections. As a results of these services and the minimized risk involved, the cost is higher than using a direct exchange.
Although it may not seem particularly important, the added benefit of customer support can be critical if there is a technical issue. Resolving management or operational issues tends to be easier with liquidity providers, and depending on their size, LPs are able to confer greater benefits than what a broker would be able to generate.
Though each method has its advantages and disadvantages, each integration of a new cryptocurrency will determine what the more advantageous method for a broker. As time goes on and cryptocurrency exchanges generate higher trading volumes, the advantages will become more similar to those that currently exist for forex exchanges.
This article was written by Adinah Brown from Leverate.
With the growing profile of Cryptocurrencies amongst traders, forex brokerages are beginning to expand beyond traditional currencies, into digital currency offerings. Whilst it might seem like forex brokers are only now beginning to offer these currencies, they have in fact been offering cryptocurrencies since 2013, when two well-known brokerages began offering Bitcoin and Litecoin.
At the time, this strategy was simply to attract traders that were specifically interested in trading cryptocurrencies. Today, with cryptocurrencies attracting unprecedented levels of attention, not offering a selection of cryptocurrencies is a severe disadvantage for a brokerage, where traders may jump ship to another brokerage to pursue their interests in crypto.
Quick fix
Thankfully, there are a variety of different turnkey solutions that allow for a brokerage to offer cryptocurrencies, whether within their existing platforms or as a standalone cryptocurrency platform. This makes it easy for a brokerage to upgrade quickly to provide a digital currency offering and keep up with their competitors.
However, the turnkey solutions only solve part of the problem. Even with the ability to offer these new instruments to traders, a broker still needs to link their instrument to an exchange or a Liquidity provider. Cryptocurrencies, being both relatively new and smaller than its forex cousins, simply doesn't have the same breadth of options in this regard. Below are the advantages and disadvantages of an exchange versus a liquidity provider.
Direct linking – Exchange
Linking directly to a cryptocurrency exchange sends the client’s trades direct to the exchange. Whilst this seems simpler from an integration perspective, it is actually more complex, since you need to adapt your software to meet the needs of the exchange feed. With different cryptocurrencies having different exchanges, integrating multiple cryptocurrencies can create significant complexities.
Exchanges tend not to be geared to offering leverage, meaning that at most, the leverage will be 3:1. From a commission perspective, using an exchange is actually beneficial, since there are less parties involved cutting into the potential profits. Exchanges therefore tend to offer better base points per trade (somewhere between 20 - 30 base points), which is better than liquidity providers.
An exchange can have poor market depth, which means that positions do not get filled, volatility is high or spreads are particularly wide. These issues tend to frustrate traders and impart a negative impression.
Most cryptocurrency exchanges require that the margin be posted in Bitcoin, rather than USD or major fiat currencies. For a company that does not want to hold Bitcoin, this can present a challenge. This is a further issue when considering that cryptocurrency exchanges are unregulated, meaning that the funds posted do not have regulatory protection in place to ensure they are safe. Therefore, putting large amounts of funds into an exchange is a significant risk.
Liquidity providers
Liquidity providers (LP) are an intermediary between the broker and exchange that facilitates the transfer of the trade on to the exchange. As a result, they can aggregate multiple exchanges and provide stronger leverage and have easier integration, since their software is made to integrate into existing broker’s software.
Possibly the strongest advantage is the ability to fund the margin account in a variety of traditional currencies, as well as provide a greater level of fund safety due to the provision of broker protections. As a results of these services and the minimized risk involved, the cost is higher than using a direct exchange.
Although it may not seem particularly important, the added benefit of customer support can be critical if there is a technical issue. Resolving management or operational issues tends to be easier with liquidity providers, and depending on their size, LPs are able to confer greater benefits than what a broker would be able to generate.
Though each method has its advantages and disadvantages, each integration of a new cryptocurrency will determine what the more advantageous method for a broker. As time goes on and cryptocurrency exchanges generate higher trading volumes, the advantages will become more similar to those that currently exist for forex exchanges.
Coinbase Enters Prediction Markets as the Amazonification of Financial Platforms Gathers Pace
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
