BrokerTools now supporting cryptocurrencies as a payment option
The increased demands from our clients regarding cryptocurrencies have not only led to a wider set of liquidity for the end clients investing into these currencies, but also an opportunity of looking into new ways of accepting deposits. It’s becoming more and more common that besides your regular bank account you also have a crypto wallet. The natural step for any broker would, of course, be to enable cryptocurrencies as an additional deposit option.
How does it work?
Basically, the procedure is similar to that of a wire transfer. When a client initiates a deposit in Traders Room and chooses a crypto currency like for example Ethereum as the payment option, the system then converts the requested amount they want to deposit from their wallet base currency into Ethereum amount. This is done by retrieving the latest average price of the seven major cryptocurrency exchanges and use that for conversion. This ensures that a fair and accurate price is used.
Once done, the user is presented with an information screen with the amount to transfer and the address where to. There is also a QR code to scan for the mobile crypto wallet apps that support this to simplify transfer. This information is also sent via email to the end client.
When a client has initiated the deposit, an email notification is sent to the broker or designated email. The broker will then match incoming transactions on his crypto wallet with the pending transactions in BrokerTools.
If broker can find one matching the amount and time, broker can go ahead and approve the deposit and funds will be instantly transferred into client’s trading account. At this point, the client is also informed via an automatic email that the deposit has been approved.
Besides Ether, Bitcoin is also available on our platform. Other crypto currencies can be easily added upon request.
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