Categoria: FinTech

The final counterparty is the traders placing opposite orders in the market, or a liquidity provider. This is the main advantage of the A-Book model – no conflicts of interests. The broker receives its commission irrespective of whether traders earn or lose their money. While perspectively both traders and the broker are interested in the successful trading. The more transactions traders make, the more commission their broker receives. B-book brokers can offer benefits like higher leverage and lower trading costs making them attractive to certain traders.

When a forex broker processes your trades in-house (with a dealing desk), it is a B book. In the case of a B Book, your forex broker acts as a counterparty to your trades. The B book broker goes by different names such as market maker or a fixed spread broker. While this might be the case, there are some advantages that a B book forex broker has to offer. Even when liquidity is low, you get a good execution of orders because your broker acts as the market maker.

However, many brokers use the B-Books and do not even hide it. The matter is that to bring client orders to the external market, brokers need to make contracts with a liquidity provider (and, as a rule, not just one), obtain licenses, provide technological what is a book vs b book support. All these are costs that the A-Book broker compensates at the expense of high mark-up to the spread. Brokers working on the A-book model are less risky but also potentially less profitable because they earn only on margin and commissions.

Binance and CEO Zhao Plead Guilty in Major Money Laundering Case

Then the request fell in the partner relations department’s lap, because they needed to make sure that extra lots did not get into partner payments. Then, in some cases, they had to contact the dealer to make sure that everything was traded according to the rules. Then the application went to the finance department, which once again verified the numbers. And finally, the secretary manually collected problematic requests and took them to the CEO for final approval. This might be a bank, non-bank electronic market maker, hedge fund, or even another forex broker.

It means any withdrawal under $100 will occur automatically, but in a case you want to manually approve any amount, you can do it. John is a professional trader who regularly withdraws profits from Company X. That is why no one was surprised when he sent another request to withdraw his profit for the previous month. The finance department was ready to approve it, but the withdrawal control system was set in a way that all large requests over $10,000 must also be approved by the client’s personal manager. There are two types of broker operating technologies – A-Book and B-Book models, which differ in the way client orders are brought to the market. Akabogu Chukwuebuka Nicholas CEO of Intelpro Forex Trading Limited Nigeria, over the past years I have been encouraging and training young individuals on how to trade on the exchange market.

How B-Book Brokers Make Money

A-Book is a kind of FX execution model, referred to as a non-dealing desk broker or an STP (Straight Through Processing) broker. These brokers make money by charging commissions or by profiting from spreads. An A-Book broker works as a bridge that links a trader’s terminals to a liquidity provider, or LP. Thus, the A-Book approach implies that orders are sent directly to the interbank market, where these orders are filled by liquidity providers.

Thanks to a well-configured withdrawal control system, the broker team noticed that something was wrong, quickly reacted to an unusual situation, and prevented a large-scale case of fraud. We conclude that none of the schemes https://www.xcritical.com/ can be a panacea for losses. You must decide which business model to choose for you, depending on your business plans and strategies. This model is an optimal solution for both brokers and traders, but a tricky one.

On the one hand, such a model encourages competition between liquidity providers, thus narrowing the spread and reducing the commission fees. On the other hand, traders do not receive the best price because of the mark-up added to the spread. Another problem is that the quality of the services offered by liquidity providers is deteriorating over time. The counterparty to the trade is a market maker, which tries to find a matching order from its other clients (if the trader wants to buy 1 lot, the broker looks for someone who will sell 1 lot). If there is no such an order, the market maker acts as a counterparty, thereby arising a conflict of interests. In this case, the trade’s loss becomes the market maker’s profit.

We are going to discover the difference between A book and B book broker models. A-Book models are the most common form of broker operating technology. Each one has its own set of perks and downsides to consider. What this means is that a broker operating under this type of a model passes your orders directly to the liquidity pool.

Advantages of B-Book Brokers

A market maker is often a synonym for the B-Book Forex broker. This scenario involves a broker trading against his customers. The broker does not use an external liquidity pool to carry out deals; instead, the business serves as a counterparty to the trader’s transactions. Essentially, a broker will sell to a trader who makes a buy order and vice versa. It is apparent that this kind of approach leads to conflicts of interest between B-Book brokers and their customers.

Thanks to the fact that his broker used the UpTrader withdrawal control system, John was able to keep his monthly profit, and the company prevented reputation losses. It allowed the company to maintain a trusting relationship with their clients and to ensure the safety of their funds. In the previous article, we wrote that UpTrader Forex CRM has a useful system for controlling fund deposit and withdrawal. In short, it allows you to flexibly configure the approval settings for withdrawal requests though a variety of parameters.

Each participant tries to offer the best price, and all traders get the best current Bid/Ask price. At the moments of the EURUSD highest liquidity, the spread could be around zero level, however, there can’t be literally zero spread. A-Book model is the business model of a broker where all trader’s orders are forwarded directly to the forex liquidity provider, who then redirects them to the interbank market. Brokers devised a hybrid model in order to overcome the limitations of the A-Book and B-Book methods.

• A Dealing Desk can change the leverage, spread, affect the accuracy of the quotes, artificially increase slippage, manipulate client’s orders.
• An example of such a model is a combination of cent (B-Book) and ECN (A-Book) accounts.
• Whenever the broker needs to buy, an LP will be willing to sell.
• This means that clients can lose more than their account balance if their trades go against them.

The reality is that the broker still takes the opposite side of Elsa’s trade. It’s important to point out that Elsa is still only trading with her broker. This long EUR/USD position now directly offsets the short EUR/USD position it holds against Elsa.

He’ll also be looking for information on next-generation gaming items and fresh additions to the company’s automotive roadmap. He is optimistic that the company would provide more precise expectations about its software prospects. If there is no DOM of level 2, which can be used to assess supply/demand and the further direction of the price, you do not deal with an ECN broker. Other brokers present themselves as STP, being in fact common Dealing Desks or kitchens. After all, a B-Book kitchen scheme does not always mean a scam, so do not hurry to put labels. Know more about the long-run optimization with hybrid execution in Brokeree Liquidity Bridge.

However, there are a few key indicators that can help traders identify whether a broker is a b book broker or not. To sum it up, none of the solutions is ideal, and none of them will avoid potential losses. If you are a broker, it would be best for you to decide which model is appropriate for your company’s specific goals and strategy.

Another point to remember is that a B book forex broker offers fixed spreads. This means that whether you trade during peak market hours or during off-market hours, a B book forex broker is more beneficial. Forex is different from equities or futures trading because your broker can choose to trade against you. When your broker sends all your trades to the real market or their liquidity providers, this is known as A Booking.

What’s even more important for business traders, B2Core is a package solution; this is why you pay for what you use. Select the best package among Standard, Advanced, and Enterprise options and get a customized WL CRM solution that is ready to drive your
business to new highs. An innovative and eye-catching CRM system called B2Core aims to revolutionize the management of brokerage companies.

Such a portal serves as a bridge between traders and brokers, enabling a platform’s clients to reach different sections, including Verification, Demo account, Deposits, Withdrawals, etc. Our FXOD CRM can operate as a central  customer profile and a single wallet. Multiple Trading Accounts from multiple trading platforms can be integrated with one Customer Profile and Wallet. This gives you great control over your customer’s Compliance and Financials and at the same time it offers the ultimate Digital Customer Experience to your customers. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses. Regulated and trusted across the globe, IG offers traders the ultimate package of excellent trading and research tools, industry-leading education, comprehensive market research, and an extensive list of tradeable products.

Business owners get a back office with a high-level customer and partner experience,
a multi-tier rebate system, and a functional client’s area. No matter which business model is chosen, CRMs are equally important for both independent brokerage companies and White Label Forex brokers. Our goal is to deliver personalised customer support services of the highest standard to all of our clients.

As a result, our FXOD CRM is seamlessly integrated to trading solutions. As the FXOD CRM platform is directly connected with the trader’s room, you can receive the real-time notification of the client’s activity. It means, any action taken by the client, will be notified to you instantly on this CRM for Forex Brokers.

• Business owners get a back office with a high-level customer and partner experience,
  a multi-tier rebate system, and a functional client’s area.
• Interactive Brokers is a highly trusted multi-asset broker with an extensive offering of tradeable global markets.
• Live Support
  Lastly, it is critical to ascertain whether your system provider offers dependable customer service in case of any technical problems or inquiries.
• Our Ticketing Support System feature enables you to streamline your customer support process, ensuring that customer inquiries are tracked, assigned, and resolved in a timely manner.

Rich reporting capabilities
For you to make wise decisions quickly and gain valuable insights from all the data your system captures, Forex CRM solutions should come with a variety of informative and useful reporting features. Customizability
You should select a solution that is easy to tailor according to your broker’s needs. This will help you reach out to customers efficiently and stay ahead of the competition. Live Support
Lastly, it is critical to ascertain whether your system provider offers dependable customer service in case of any technical problems or inquiries. Reliable providers typically offer 24/7 assistance, so you never have to worry about being stranded without help.

Meanwhile, the competition level constantly emerges; this is why brokerage companies need to implement high-end solutions. Through Trade Soft, brokers can access a combination of FX Platform, our fully hosted service, and ultra-low latency connectivity to their choice of liquidity providers. Trade Soft is one of the leading technologies and service providers in the Forex brokerage industry.

Saxo Bank offers the most tradeable CFDs in the industry, with a staggering 60,000+ tradeable symbols available. CFDs, or “contracts for difference,” enable traders to speculate whether the price of a stock, forex pair, market index, or commodity will go up or down without taking ownership of the underlying asset. If you’d like to learn more about how CFDs work (and to see our picks for the best CFD trading platforms), check out our full-length guide to the Best CFD Brokers and Trading Platforms. Cloud Forex CRM is a solution from PHEASANTECH, designed in 2016 to help Forex brokers and traders efficiently store confidential information.

At times you are not allowed to work on your system while updates are running. In fact, Forex IBs and Affiliates are at the core of their marketing and promotion strategy. FX Broker CRM seamlessly integrates with different payment methods including payment gateways, wallets etc. A good Broker CRM shows the simplified version within a few clicks to traders.

All content on ForexBrokers.com is handwritten by a writer, fact-checked by a member of our research team, and edited and published by an editor. Generative AI tools are not a part of our content creation or product testing processes. Our ratings, rankings, and opinions are entirely our own, and the result of our extensive research and decades of collective experience covering the forex industry.

Well Desktop Forex Broker CRM Software is the traditional and conventional mode to get the forex CRM for your brokerage. Most of these desktop broker software comes for Windows, Linux, and iOS. It streamlines the process of handling client deposits and withdrawals, providing transparency and efficiency in managing financial transactions.

Trading with a trusted forex broker is a crucial factor for success in international currency markets. As a contract for difference (CFD) trader or forex investor, you may have specific needs related to which platform, trading tools, or research requirements you have. Understanding more about your investment style needs can help determine which forex broker will be best for you. Customer Relationship Management (CRM) is a technology designed to help businesses manage relationships with customers and prospects.

Moreover, the reliability of the organization selling the CRM system needs to be considered when setting a budget for the purchase. FX Back Office began as a pipe dream between a few highly experienced friends who knew they could revolutionize the FX brokerage business’s day-to-day running. The majority of the company’s sales staff, managers, and directors have been involved in the industry since 2007.

Add languages, group client segments into pools, apply group rules, and designate trading conditions to clients. Classify your internal team, leads, clients and partners with corresponding settings for greater operability. We are a premium broker solutions provider, dedicated to delivering a wide array of innovative solutions and services that enable Forex brokers and financial institutions to minimize risk and maximize growth.

If you don’t know what you want to sell as an NFT yet, those kinds of restrictions could help you narrow down the possibilities. Before the first purchase, the platform stores the NFT data on decentralized https://www.xcritical.in/ storage called IPFS. Once a creator’s NFT has been bought, it is minted, and the buyer pays for the gas fees. OpenSea achieves gasless minting by pushing transactions to the point of purchase.

Users may pay as little as $0.01 or thousands of dollars to produce an NFT. In case you missed the modal or forgot to save the URL, it’s easy to reconstruct it. In such a case go to Metamask (or the wallet you are using) and look at the transaction history. In this example, we’ll be showing a digital art piece turned into an NFT. The content of choice is our cool “Crypto-Bitbonders” design that we came up with for the sake of this demo. Nifty Gateway specializes in expensive, famous and celebrity NFT sales hosted on the Ethereum blockchain.

CryptoPunks to Cool Cats: How to make your own NFT collection and put them up for sale

Nifty Gateway charges no minting fee for on-platform transactions. In addition, it lists non-fungible tokens that are on sale on external platforms, such as OpenSea. The money for this transaction is only going towards gas, not a fee for OpenSea, so how much it costs depends entirely on how much Ethereum’s gas fees are at the moment. In my original tests in December 2021, I saw prices from around $240 to $450, but in June 2022 those prices had dropped to $50 to $60. Depending on the options you’ve selected and what kind of file you’re selling as an NFT, there might be a bit of a wait as things upload. After it finishes, you’ll see a screen saying that your NFT was created.

The non-fungible token interest grew beyond the cryptocurrency community and became a pop culture phenomenon when musicians like Eminem and Snoop Dogg joined the bandwagon of NFT investors. Lastly, you have the option of choosing to mint your NFT at a fee or publishing it for free. Next, set your royalty price – the amount you will earn for every resale of your NFT. The next steps include filling out the title, description, and type of sale that you would like to offer for your NFT.

Step-by-step guide

You can also choose how many copies of the NFT you would like to sell (if there is more than one copy). Now that you have set up a collection, you can start minting NFTs. You can set images (including logo, featured, and banner), and you now pick a name for your collection, customize the collection’s URL, and add a description of your choice.

NFTs, short for non-fungible tokens, are essentially proof of ownership for a digital file stored using blockchain technology. They’re not as hard to understand or create as they may initially seem. After choosing a format, creators must consider the content of their NFTs. Serious artists will want to consider How to Create an NFT what the public might desire or find valuable in a digital work of art. They might also consider making only a limited number of NFTs to make their product offering rare. Just like in the world of tangible art, content, messaging, limited editions, historical significance, and intent all matter in digital art.

• In this article, I will only focus on the OpenSea platform and the Polygon (MATIC) blockchain.
• To list your NFT for sale, click the “Complete listing” button.
• Make sure that your image is in PNG, GIF, or WEBP format and that it’s under 100MB in size.
• So, by combining these two methods, Appy Pie’s AI NFT Generator helps you create a unique NFT collection in mere minutes.
• Avast One will also scan for known data breaches and alert you if your details have been compromised so you can act quickly to secure your online accounts.
• Regardless of the format, an NFT creator needs to choose one that’s easy for an NFT marketplace to support.

If you’re working on a premium collection, Nifty could be a great place to mint it. Unlike other platforms, Nifty uses “open editions,” which creates an unlimited number of variants of your work for a limited time, retailing at a fixed price. Seeing this immense rise, it is a good time to create your own NFT collection and make money selling it on different NFT marketplaces. If everything’s gone well, you’ll now have an NFT listed for sale on either Rarible, OpenSea, or both. The first question Rarible will ask is which blockchain you want to mint your NFT to, offering you the options of Ethereum, Flow, Tezos, or Polygon. Unlike OpenSea, the site doesn’t cover Polygon fees, so you’ll have to pay to mint or sell an NFT if you’re using that blockchain.

How to mint an NFT with Token Tool

Click on the create option that will redirect you to the NFT minter and here, you will need to upload the file you want to be converted to an NFT. Select the blockchain on which the NFT is being created and then your quest on how to make an NFT for free is completed. Note that the file to be uploaded and converted to NFT can be music, videos, and any other type of supported files. Rarible is an NFT marketplace where you can create and sell NFTs. It might be a good choice if you want to sell art-focused or photography-focused NFTs.

If you sell an NFT for $X, you will initially earn $X, but if the buyer then resells the NFT to someone else, you will make money again by earning a percentage of that new sale. The two leading NFT marketplaces, OpenSea and Rarible, both offer the option of gasless minting, where you pass the cost to the buyer. So, yes, you can create NFTs without coding by utilizing available marketplaces like OpenSea, Rarible, NBA Top Shots and Binance. These NFT marketplaces are decentralized, digital platforms for buying and selling NFTs, Forbes says.

On Polygon, the transactions are free, and you’ll get a screen saying that your item’s been listed. If you have Metamask or Coinbase’s extension installed, you’ll see a pop-up asking you if you want to connect your wallet, which can be done with a few button clicks. If you’re using the Coinbase Wallet app, you can also connect to the marketplace by using the QR code scanner (which you can find to the right of your balance on the main wallet screen).

How much does it cost to make an NFT?

Its security is tight and of course, it is free; if you don’t want to make use of the app, you can easily add the extension to your Web browser. OpenSea is the most preferable to make an NFT for free on Polygon and we would be providing you with a step-by-step guide on how to make an NFT for free. Nifty Gateway is responsible for some of the largest NFT sales in history. Beeple’s CROSSROAD, one of the most expensive NFTs, for example, sold on Nifty Gateway for millions in US dollars.

It’s also worth noting that paying gas does not 100 percent guarantee your transfer will go through. You can pay more to give yourself a higher chance, but it is never a sure thing. However, if something does happen and your transaction isn’t completed, you won’t get the gas fees you paid back. Listen, there’s no judgment if you’ve arrived here without much understanding of what NFTs are.

Appy Pie’s AI NFT Generator allows you to create your own unique NFT collection using pre-existing NFT templates in minutes without any coding or designing skills. OpenSea also lets you add text that acts as unlockable content, which the buyer / owner of the NFT will be able to see. You could use this toggle-able field to include something like an invite link to a private Discord, a code to redeem something on an external website, or even just a message thanking them for buying. You can also use the explicit and sensitive content toggle if your NFT is NSFW in nature. Avast One blocks incoming threats like malware and encrypts the data you send and receive with its built-in VPN. Avast One will also scan for known data breaches and alert you if your details have been compromised so you can act quickly to secure your online accounts.

These marketplaces have the technology necessary to add media to a blockchain — like Ethereum and others — which is an essential step when minting any NFT. OpenSea supports various blockchains, including Ethereum, Polygon, and Klatyn. You can also trade using more than 150 different cryptocurrencies. Since transactions typically occur on Ethereum, expect to pay a higher gas fee on transactions.

And because of its massive size and excellent partnerships with creators of new tokens, Binance NFT has become an excellent and suitable place to launch your first NFT. Binance is a leading crypto exchange with an NFT marketplace that offers excellent opportunities for anyone looking to mint on a well-supported platform. By holding RARI tokens in your wallet, you get to vote on any new items that developers want to be added to the platform. Next, you will need to choose what kind of NFT you want to create.

Rarible is a leading Ethereum-based platform for creating and selling NFTs. NFT creators can make and sell NFTs for free, enabling digital artists from all walks of life to participate in the NFT market. Some platforms like Rarible have up-front fees for sellers while others take a cut from the sale proceeds, Slate says. Two economic professors from George Mason University think this is cheaper than the cut art galleries take for displaying and selling your collectible. Both the platforms take a percentage fee from any sales you make.

Since the amount can be “slashed” by the network (if a validator fails to behave appropriately) validator nodes have a vested interest in behaving in a way that benefits the blockchain. A Proof of Stake (PoS) network is a system that uses staked cryptocurrency to secure itself. Every validator node must have “locked up” a security deposit consisting of ETH on the network in order to participate in consensus. By using the crypto as collateral, it compels the nodes to behave properly and helps to keep the network secure. Different proof-of-stake mechanisms may use various methods to reach a consensus. DACs, including restaking-based solutions, introduce a significant trust assumption for L2s.

The 32 Ether deposited as collateral should push validators to behave appropriately. But there are also punishments for validators who are deemed lazy or malicious, including the loss of up to their full deposit. In the Ethereum PoS system, the sum of crypto staked by validator nodes (32 ETH) acts as a security deposit.

Increased scrutiny and regulations have also been an ongoing fear for crypto enthusiasts. During the merge, crypto exchanges paused trading for ETH and Ethereum-related tokens as a precautionary measure. If everyone else kept their stake at one coin, they would up their chance of winning the work to 25 percent, while everyone else’s chances would go down to 8.3 percent. Most recently, ether fell some 8% on April 11 after an Ethereum lead developer said plans for the event set for June had been pushed back as tests on the software continued.

The hash function used in this study is SHA-256, and asymmetric encryption is applied using Elliptic Curve Integrated Encryption Schema30. The Elliptic Curve Digital Signature Algorithm is adopted, and the VRF function described by Goldberg is used31,32. Proxy Re-Encryption technology and AFGH algorithm are utilized for access management. The simulation parameters used in the implementation of the non-licensing chain DLattice prototype system in the evaluation of the model experiment are shown in Table 1. The term ‘consensus mechanism’ is often used colloquially to refer to ‘proof-of-stake’, ‘proof-of-work’ or ‘proof-of-authority’ protocols.

Some are saying the merge only laid the infrastructural foundation for future solutions to these issues. There’s hope that quicker transactions and a reduction in fees could lead to more investors on the Ethereum network. Many Bitcoin supporters still feel that proof-of-work is more secure and that the blockchain shouldn’t switch over. Ethereum, on the other hand, has been talking about this move for many years now.

It is a format for storing data units, where each transaction is a data unit. The chain refers to each block containing the hash index of the previous block, and the block is broadcasted by a distributed network composed of a point-to-point network. Upon receiving a new block, each node will compare it with their existing block data. If the block is not yet included and its validity is verified, it will be updated to the longest blockchain data22. Its accounting model is relative to the traditional central model and uses a decentralized distributed network of nodes to record data together (Fig. 1).

This is how the consensus mechanism that secures Proof of Stake networks works. Slashing is a disciplinary system used by PoS protocols to penalize validators for any harmful or irresponsible behaviors. This usually involves the network deducting some of their security deposit (their initial staked coins). Each validator node has the same copy of the blockchain’s history. Using this common history, they assess whether new blocks of transactions are valid.

Himeur et al.14 investigated the horizontal challenges that arise when developing intelligent recommender systems, such as scalability, interpretability, distributed processing, and load balancing. These challenges present new research opportunities for blockchain developers and researchers. Kaur and Ali15 investigated the use of distributed computing in blockchain for enhancing the security of IoT systems.

The term “downtime” refers to the period of time during which a validator is offline and unable to produce new blocks. This can be due to network delays, software issues, or hardware problems. Under Proof of Stake (PoS), Ethereum uses “checkpoint” blocks to manage validator votes. The first block of each epoch (a period of 32 slots where the validators propose and attest for blocks and is of 6.4 minutes) is a checkpoint. Shard chains will allow for parallel processing, so the network can scale and support many more users than it currently does. Many see the inclusion of shard chains as the official completion of the Ethereum 2.0 upgrade, but it’s not scheduled to happen until 2023.

Through the Ledger Live app, you can easily and securely stake Ethereum coins to a validator and start earning ETH rewards, passively. Later on, a technique called “rollups” will speed transactions by executing them off chain and sending the data back to the main Ethereum network. By demanding a significant upfront investment, “proof of something” keeps bad actors from setting up large numbers ethereum proof of stake model of seemingly independent virtual nodes and using them to gain influence over the network. Ethereum’s mechanism has other drawbacks—it’s tediously slow, averaging 15 transactions per second. CryptoKitties, a game where players breed and trade cartoon cats, caused a transaction pileup on the network in 2017. One of the world’s biggest blockchains is testing a new way to approve transactions.

As you can imagine, all of this drama with the SEC could lead to serious issues. We can’t comment much on the topic until further announcements are made, but this news has continued to impact the already damaged prices of crypto. The price was down about 20% around the morning of September 21 (1,245.65) and has now risen more than 5% per coin since. Sign up for free online courses covering the most https://www.xcritical.in/ important core topics in the crypto universe and earn your on-chain certificate – demonstrating your new knowledge of major Web3 topics. And that has been a source of excitement for many within the Ethereum community, including Dima Buterin, Vitalik’s father. It will begin with the Bellatrix upgrade on the Beacon Chain, and about a week or so later, the merge will likely activate Sept. 15.

Many expect that a significant number of cryptocurrencies will migrate to proof of stake. In PoS systems, miners are scored based on the number of coins they have in their digital wallets and the length of time they have had them. The miner with the highest at stake has a greater chance to be chosen to validate a transaction and receive a reward.

• Thousands of existing smart contracts operate on the Ethereum chain, with billions of dollars in assets at stake.
• But recently, there have been a lot of arguments that proof of stake might not be as secure as the PoW model.
• Then several blocks are chained together to create a record of all the transactions in order.

The PoS consensus mechanism leads to larger pools of token holders controlling the processing of transactions. With the rapid development of artificial intelligence (AI) technology, all walks of life have produced massive data. While analyzing data information, various recommendation systems have also risen.