Many large cryptoser investors are switching to counter trading, especially against the backdrop of break-ins exchanges. We show how attractive the OTC broker is and which company has proved itself in the crypto-currency world.
The important task of over-the-counter (OTC) brokers is to provide liquidity to whales, that is, the exchange is a wealthy investor with a portfolio in betacone from thousand dollars. However, Bitcoin-Millionaires who do relatively less in this size transaction, and today the goal of brokers is for new types of customers: Institutional Investors.
In the last one year, success cryptocurrency, thanks to institutional investors - kriptovalyutanye hedge fund, traditional fund and exchange also some mutual funds - are slowly entering this market.
The fact is that despite the social network, people who specialize in their private cryptocurrency call a host of brokers, actually did prove to themselves, and that on these companies, we will tell
BitStocks
British brokerage and consulting company with expertise in Bitcoin was established in the year 2014 - it provides bitcoin liquidity to rich British private and institutional investors.
Bitstokke does not charge the service, but takes part in the rates. Nevertheless, unlike other "clean" brokerage services, Bitstox provides market consulting services to customers, whose profit is 25% of revenue from profitable operations.
Today, bitstocks has not been regulated because, in Britain, bitcoin is considered "private money", which means that such activities do not require a license
Divisional trade
Circle Trade is a department of over-the-counter brokerage services for the financial startup circle, which is invested by Goldman Sachs. Circle Trade provides private brokerage services for wealthy individuals and digital assets for institutional investors, in which the estimated turnover is approximately $ 2 billion in almost a month.
Publications Business Insider reports that the company has recently increased the size of "entry ticket" to 500 $ 1 thousand thousand dollars on average transactions in the area of 250 million - .. Some transactions to CEO Circle Jeremy Allaira 100 According to lakhs
Cumberland
The subsidiary company, DRW Holdings, Cumberland Mining was established in the year 2014 and has also been established as a market leader in brokerage bitokine services.
It's a Chicago firm that has recently opened offices in Europe and Asia, provides liquidity in the popular digital assets for wealthy private and institutional investors, and also gives them the opportunity to participate in the ICO.
The minimum transaction size is $ 100,000, and the trade charge is included in the spread between the buying and selling
Origin business
New York-based Origination Global Trading is perhaps the most popular Bitcoin-Broker. The company received investment from the second Second Market Business Unit and its investment is owned by the leading investment firm Digital Money Group, specializing in blocking the investment.
Originally launched the brokerage service in 2013 and being one of the digital currency groups, has become one of the most prestigious players on the market.
Minimum "entry ticket" of 25 thousand dollars, and a certain commission percentage is not here. Including a fee for the reporting of their services, XBX Bitcoin Index in Originating Trading Promotions
IBC Group
The IBC Group provides an over-the-counter brokerage service that allows rich individuals and organizations to gain access to bitcoin-liquidity without the involvement of exchangers.
According to the company's website, "IBC helps investors transfer money through crystal-currencies from traditional currency through safe and non-public transactions through the flexible network of channels, personal delivery of Treasure wallet is also possible.
itBit
The New York currency exchange itebit, launched in XNANX, also provides over-the-counter brokerage services for the service of large investors.
The minimum transaction size is 25 btc, and for every transaction, 0,1% is charged. According to the company's website, the brokerage service of this bit operates in more than 100 countries, and the exchange corresponds fully to the US State regulation
Jump trading
The Chicago-based jump trading firm is a relatively new brokerage service for investors who prefer to take stock of past stock exchanges.
Brokerage start-up has developed a graphical interface for investors, through which it is possible to conduct transactions through a secure channel - unlike the circumstances when you have to work through a messaging platform like Skype
Why do institutional investors use the services of over-the-counter brokers?
The activities of institutional investors are governed by the state, so it is necessary to follow the many requirements. Trading in digital assets through an exponentially unsafe (and often foreign-based) exchangers is an unacceptable risk for them, and they prefer to change the known brokerage firms for the transaction.
Brokers act as mediators and, in particular, ensure the compliance with the rules of customer identification by all the counterparties, which reduces the chances of fraud.
In addition, in this situation, for the transaction, the investor does not have to keep any money on someone else's account, which means that the risk of losing money as a result of hacking is very low. A representative of Over-the-Counter Broker who decides to remain anonymous in an interview with Reuters said:
"When the next big-scale break-in of the exchanger is done, our business is growing."
Eventually, through a broker, a large investor receives a more favorable price than the exchange, because the order offers a big offer for selling in the book once, the cost of bitcoin starts falling.
Thus, there is a possibility of growth in the OTC market regarding the growing number of institutional investors: they are waiting for the same financial services which is used in traditional financial markets.