Forex brokers definitely don’t underestimate the importance of their back-office software. They can’t operate without it, after all. However, the range of back-office systems on the market might be confusing, leading to brokers missing out on useful features they might not have known about.

Forex back-office software vendors also tend to think that if their systems don’t face end clients, it’s not worth investing in good UX. Let dealers deal with clogged and outdated interfaces! (Actually, no.)

In this article, we’ll delve not only into the significance of back-office software and its key features but also mention vendors that care for the middleman by providing dealers with a friendly user experience.

What is forex back-office software?

Forex back office software refers to the systems and applications that handle a brokerage’s non-client-facing operations. Unlike front-office software, which deals with trading and direct client interactions, back-office software focuses on managing daily operations, dealing settings, and risk.

Who uses forex back-office software?

Forex back-office software is designed to cater to the needs of brokerage staff, including dealers, customer support representatives, marketing professionals, and sales managers. They all rely on this middleware to efficiently carry out their respective responsibilities within the brokerage.

What are the key features of forex back-office software?

Operation and client management

Forex back-office software provides extensive control over all aspects of user accounts. Its features include creating new accounts, editing account details, and assigning account groups. Additionally, it can monitor and terminate live account sessions and manage trading statuses.

Configuration of commission plans

FX dealers use such software to set commission plans based on percentage volume, flat rates, basis points, or combinations. These plans can be applied at an instrument, group, or account level.

Client reporting

Detailed client reports on profitability, exposure, and rebates provide valuable insights into client performance and activity.

Session monitoring

Live user sessions, including login times and IP addresses, can be comprehensively monitored, and any client session can be terminated as needed.

Dealing and risk management

Real-time exposure monitoring

Risk managers use exposure monitoring to hedge positions and see an up-to-date view of risk and P/L. Exposure and P/L can be filtered by group, instrument, and asset level.

Setting up risk management groups and profiles

Risk management involves setting limits on trade size and exposure across instrument, group, and account levels.

Price stream management

Forex back-office software allows dealers to configure multiple markup profiles at instrument, group, and account levels. Options include fixed and floating price streams, minimum and maximum spreads, advanced price filters, and pricing failovers.

A/B-book execution strategies

Execution strategies based on specific parameters help balance risk and reward for each trade. Managing trade flow ensures expected revenue by configuring the execution of A/B-book hedging destinations for instruments or groups.

Client position management and trading on behalf

A good portion of dealers’ work is managing client positions and trading on behalf of clients. Naturally, forex back-office software helps them place market and pending orders at current rates and filling orders at specific prices.

Account monitoring and management

Multiple accounts, groups, and metrics can be monitored in real time, and custom account tagging for high-volume or abusive traders can be implemented.

Benefits of implementing back office software

Firstly, high-quality forex back-office software increases brokerage productivity and efficiency through automation. Getting out of the way such routine tasks as transaction processing, reporting, and account management significantly boosts staff productivity and reduces the possibility of human errors. Instead, the human force can focus on more strategic activities.

Second, with real-time data and advanced analytics, back-office software enhances a brokerage’s ability to manage risk. It provides insights into market exposure, margin requirements, and potential vulnerabilities, enabling brokerages to proactively mitigate risks.

Lastly, while implementing back-office software involves an initial investment, the long-term cost savings are significant. Automation reduces the need for manual labor, minimizes errors, and streamlines operations, leading to lower operational costs and higher profitability.

How can Devexperts help?

Devexperts has been providing forex brokers with back-office software since 2002. We know what they need, and we believe brokerage staff shouldn’t suffer from a bad user experience just because they have no choice.

Our turnkey trading platform, DXtrade CFD, includes broker tools with a user-friendly interface that facilitates efficient back-office operations and accommodates all brokers’ needs.

In addition to the features mentioned above, DXtrade CFD also offers the following benefits.

Seamless operation

When developing DXtrade CFD, we carefully considered every aspect to ensure dealers do not need to worry about restarting servers. Our risk management groups are set up differently, providing a seamless experience.

In DXtrade CFD, each trading account has various parameters assigned to settings, which we refer to as profiles. These parameters include commissions, limits, margins, spreads, rebates, etc.

If you need to alter a specific parameter for a trader or a group of traders, you simply create a profile with the respective settings and assign it to these traders. This process does not require a server restart, ensuring uninterrupted trading and immediate implementation of changes.

This feature of DXtrade CFD allows for real-time modification of dealing settings, enabling brokers and their dealing staff to quickly respond to market dynamics, news events, and changes in trading conditions.

Swaps and swap-free accounts

Dealers can manage overnight financing charges using configurable swap and interest rates, tailored by group and instrument. Markups on swap rates are available for each instrument or group and can be assigned to the relevant client group or account. Swap-free settings are available for Islamic account clients and can be applied to instruments, groups, and accounts.

In-platform rebates

DXtrade CFD offers brokers rebate plans to increase user engagement. Based on trading volumes, custom rebate plans can be configured weekly, bi-weekly, or monthly and applied at group and account levels.

Turnkey integrations

Devexperts also partnered with numerous client portal and CRM providers, so DXtrade brokers have the luxury of choosing what fits best for them.

  1. FXBackoffice is a Cyprus-based provider of a client’s cabinet, CRM, and back office with customization possibilities.
  2. FYNXT is a Singapore-based provider of a client portal and client manager
  3. TradeCore is a UK-based client portal and CRM provider that helps manage multiple platforms.
  4. UpTrader is a tech provider that offers a CRM with a back office, trader’s room, and copy trading.
  5. Resalt is an agency that provides CRM automation, brokerage visual design, branding, and marketing communications.

Conclusion

It’s evident that forex back-office software plays a pivotal role in the efficient functioning of brokerages. The comprehensive features offered by such software not only streamline operations and mitigate risks but also contribute to higher productivity and cost savings in the long run. It’s crucial for brokers to invest in high-quality back-office software that not only meets their operational needs but also provides a user-friendly experience for their staff. With the right back-office software, brokerages can enhance their overall performance and stay competitive in the dynamic forex market.