Whether it is for a client’s trading account or for your own proprietary portfolio, choosing the right clearing house is a crucial decision. You must pick an agency that satisfies your needs and requirements while providing adequate precision, security, accuracy, and support. Clearing houses handle currency, spot-security, derivative, and commodity transactions; in addition, it also ensures that it has all the resources required to satisfy their clearing mandate.
500 Markets is one of the best brokers clearing firms in the country and, in this blog, we will discuss the elements that make the firm so desirable.
Table of Contents
What Makes 500 Markets one of the Best Broker Clearing Firms in the Country?
Reliability and Accessibility of Interface Files:
It is important for clients to receive timely electronic information about their processed activities, including trading history, gains or losses, margin, fees, bank balance, and collaterals. 500 Markets sends all of this and other essential information, importing it directly into the clients’ own accounts. Clients can acquire this information either through flat files or in a more sophisticated fashion through automated queries.
Regardless, 500 Markets explicitly describes the specifications of every file as well as the functions that it can serve, along with the frequency and format of each deliverable.
Instrument and Multimarket Settlement Accuracy:
500 Markets not only clears multiple business model types but is also capable of adapting according to its clients’ changing needs and requirements. 500 Markets settles, with immaculate accuracy, every product type including currencies, spot securities, and derivatives. Moreover, the brokerage firm can settle all of these financial instruments both through organized exchanges and OTC (Over Counter), as per what the client requires.
500 Markets ensures that, even in the face of changing and evolving client needs, there are no compromises on the accuracy and swiftness of the settlement process.
Accurate Margin and Collateral Requirements:
Trading is synonymous with risk. However, if the margin goes up or the collateral value declines below the client’s exposure level, the resulting losses could lead to a potential deficit account.
500 Markets strives to reduce this settlement risk by using multiple counterparties to net the transactions, accurately calculating margin demands and requiring deposits, performing an independent valuation of each collateral and trade, and using ‘risk-based’ margin techniques to assess the level of risk in each client’s portfolio and accounting for the worst-case scenario.
Accurate Handling of Fees and Commissions:
Clearing and exchange transaction costs have become excessively complex, primarily due to the introduction of novel market standards. Fee schemes are constantly being designed and redesigned in an attempt to lure new investors. 500 Markets ensures that, regardless of the complexity of these charges and fee schemes, all transaction costs and rebates are dealt with efficiently and accurately.
Moreover, the firm offers trade settlement services at highly competitive prices – prices that can vary according to the transaction volume involved.
Efficient Reconciliation Process:
500 Markets believes that clients should have a way to confirm the reliability and accuracy of the results produced by their clearing firm. Hence, the firm offers an internal system to each client which, when fed with input data, calculates settlement balances, fees, margins, and processes. This allows clients to identify discrepancies in a timely fashion and take the required correctional measures. Therefore, 500 Markets ensures that clients gain access to real-time clearing files on a daily basis.
In addition, the brokerage firm conducts frequent cross-checks to further confirm the reliability of the outputs.
Efficient and Direct Support:
The financial derivatives market never shuts down, which is why it is important for clients to have effective and specific support at all times. Therefore, 500 Markets customer representatives are available 24 hours a day and can be contacted through multiple means including live chat, phone, and email. This allows clients to obtain prompt support and not waste time or money.
Wrapping Up:
Naturally, choosing a clearing firm is not a straightforward decision since you need to factor in not just your current and future requirements, but also any changes to the external financial and economic environment. Fortunately, 500 Markets is capable and flexible enough to cater to these changing requirements and conditions. To know more about the platform or to register yourself, please feel free to check out the 500 Markets website.
Disclaimer: This is sponsored marketing content.
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