4 common things you need to avoid to have a successful e-trading business

Whether you’re a seasoned expert or relatively new to the world of running an e-trading business or team, there are some things we don’t realise are hindering success.

Here are four of the most common mistakes we see our clients making, and why they won’t help you in the long-run.

Aggregation

From smart order routing to extra liquidity, you wouldn’t be the first to look at the benefits of aggregation and consider it a no-brainer. However, whilst it appears as if aggregators offer a seemingly endless list of benefits on the surface, the reality is that aggregation can have more of a negative impact than positive:

• Decreased efficiency

• Latency lags

• Lack of control

• Increased transaction costs

• Significant unnecessary costs

Bucket Tipping

Tipping risk out may seem beneficial, but the lack of control over conditions is where we frequently see our clients getting into trouble. Having insight into things like timing, spreads, and what you’re tipping are vital, but this information is not always readily available when you need it.

Lack of Pricing Controls

While it may seem obvious, not having control over pricing is a common issue affecting many e-trading businesses. More LPs doesn’t necessarily mean lower transaction costs - LPs alter their spreads based on their perception of the liquidity environment at any given point in time, meaning you have less control than you think and are reliant on LPs to set your pricing.

Classifying Clients by Spreadsheet

Conducting your client classification by spreadsheet is not only a time-consuming, ineffective method, but it’s also at extremely high risk of human error. At MahiMarkets, we offer automated client classification via our highly intelligent software, making errors a thing of the past whilst ensuring accurate client classification that saves you time and money.