The Best Cryptocurrency Exchange is not an Exchange — SFOX Edge

The Problem: How to Find the “Best” Cryptocurrency Exchange in an Opaque Marketplace of Crypto Trading Venues

Fees

  1. Different trading venues use incommensurable fee structures. While most cryptocurrency exchanges show explicit fees associated with any given trade, some other venues-like many OTC desks, for instance-may have better overall prices but bake their margin into the asset prices that they quote, not charging any additional fees. This makes it all the harder to settle the question of best price just by looking at fees.
  2. Many trading venues undercut their clients with hidden fees. “Hidden fees” are the myriad ways besides explicitly quoted fees through which trading venues can hinder trade execution. We’ll consider three of these more hidden factors below.

Spread

Liquidity

Actionable Prices

  1. Time to execution. Not all trading venues are created equal, and poor infrastructure could create delays between the time you submit an order and the time it’s actually sent to the book. In that time, the book might have moved away from your limit order, or the order you were looking to take may have already been taken.
  2. Exchange outages. When exchanges experience unexpected downtime (as we’ve seen happen fairly regularly in the last few months), users can end up being locked out of their trading interface, unable to make new orders-nor even to edit open orders.
  3. Bots. Virtually all major exchanges are crawling with trading bots that can often prevent trades from filling with tactics like penny-jumping, using your trades as signals for their own strategy without ever allowing your orders to be filled. Especially for users who are trading manually rather than algorithmically, this has the potential to significantly impede trading strategies.

The Solution: One Low-Latency Order Book Unifying All Crypto Trading Venues from One Account

Clearer Fees: Net Prices Rather than Gross Prices

Tighter Spreads: The Best Bid and Ask from the Entire Crypto Market

Deeper Liquidity: Every Crypto Order from Major Trading Venues in a Single Book

Resiliency and Efficiency: Always-Accessible Prices

  • Transactions execute in 5 milliseconds. Once you’ve hit the button to place your order, you don’t need to worry about it reaching the order book-it’s probably already there.
  • The SFOX platform and order book stays up even if one or several of the venues to which it’s connected experience downtime. SFOX has 99.99% uptime, allowing its traders to keep making trades and managing their positions even if exchanges have operational hiccups and go down.
  • SFOX’s advanced order types are built to dodge bots. Order types like the recently upgraded Hare are designed to take advantage of the integrated order book by moving your order in between different trading venues until it fills, working to stay ahead of bots and find the best price execution no matter what.

Trade Smarter

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SFOX

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The first crypto prime broker for sophisticated traders and institutional investors.

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