Categorise Clients in Realtime. Optimise PnL.
For most brokers, EAs are an integral part of doing business. Our clients have found that it’s difficult to differentiate the good from the bad. Ignoring harmful trades will damage PnL.
FX is fast-paced, and market conditions demand real time decision manking to remain competitive. Built by traders, few analytics products on the market can rival the range of information required to diagnose problems and avoid losses.
Identify
It's important for a broker to be able to to determine when they have been hit by an EA or if a move has been caused by something else. Using MFX Echo, brokers can very quickly visualise which counterparties are part of an EA.
What to look out for:
- Identical trades across multiple accounts
- Same instruments and similar quantities
- Understand how much an EA had impacted PnL
Categorise
Not all EAs are equal, while some attract quality business others are simply a drain on PnL. A broker needs to be able understand what makes an EA good or bad. This cleanses the B Book and makes sure only quality risk that can be monetised is B booked.
How do you categorise EAs?
- Good EAs attract losing clients
- Bad EAs cost brokers with multiple winning trades
- Bad EAs target illiquid crosses
Manage
Once EAs are categorised a broker needs to be able to manage them profitably. MFX Compass can automatically optimise good EAs and minimise the risk of losing against ones that are bad.
How to profitably manage EAs?
- Automated client classification makes decisions in real time
- Monetise good EAs
- Avoid taking on risk from bad EAs
How To Profitably Manage EAs.
- Identify who is an EA and understand their behaviour
- Categorise those EAs accordingly
- Manage their flow so it's profitable for you
How Can We Help?
Having had key roles in building successful eFX businesses,
we feel we're well placed to guide and support our customers and build the right eFX business for them based on their individual goals.
