The NON-ZERO Ethereum-based platform is a revolution of the broker-client relationship in the CFD trading industry. NON-ZERO allows brokers to redistribute warehousing net revenues back to their loss-making clients, rebalancing the relationship and building a community ecosystem
Non-Zero is a true revolution in the way retail Forex brokers interact with their clients, because it creates a win-win situation where previously it was a zero-sum win-lose.
In the FX Retail Brokerage industry, revenues have two main sources:
- Spreads and Commissions
- Principal (warehousing)
The warehousing component is necessarily a zero-sum outcome in favour of either the broker or the client. Non-Zero Token (NZO) rebalances this relationship to a true Non-Zero paradigm.
The foreign exchange market is the deepest and most liquid market in the world, with daily trading volumes averaging around USD 5 Trillion.
Internet-based brokers opened the market to retail investors, resulting in a boom in retail FX trading over the last two decades. However, low industry barriers to entry resulted in a proliferation of competitors, rapid growth and undereducation of clients.
The Non-Zero token reward system solves this problem, by allowing industry participants to redistribute broker warehousing net revenues to loss-making traders:
- Brokers get a more sustainable and loyal client base
- Traders are rewarded for their engagement and interest in the market
Non-Zero has significantly invested in the engineering, development and build of the NZO token platform, utilizing industry-leading blockchain developers, cryptographers and security auditors.
Centroid Solutions combines real time analytics, sophisticated risk management, and state of the art technology with extensive deep industry knowledge and experience to improve risk-adjusted performance and strengthen sustainability for brokers.
Centroid Solutions’ groundbreaking real time risk management and reporting software identifies and separates brokers’ commission and spread revenue from warehousing revenue and creates a distribution model for the allocation of NZO reward tokens, enabling loss-making clients to share in any warehousing profits the broker has earned from them, thus making the relationship Non-Zero-sum.
Centroid Solutions has deployed software in over 30 clients. At least one large broker is expected to adopt the Non-Zero reward system upon public release, with several expected to follow.
Centroid 24 is a real-time market-risk management and reporting software for brokers. Centroid 24 is not a trading platform but complements the various trading software, mainly MT4 and MT5.
Centroid’s regulatory reporting is a fully automated EMIR & MiFIR reporting directly to Centroid’s repository partners.
Centroid’s analytics connectivity bridge is designed to handle thousands of trades per second. The low latency plug-in connects the Meta Trader platform with Centroid 24, the risk management solution, and any of the main liquidity aggregators (or any single liquidity provider).
Centroid’s proprietary engine is designed to simulate revenue scenarios driven by the broker’s choice of different factors, applied to filter trades for running a B-Book. The outcome of the scenarios will be highly dependent on the broker’s tolerance for risk.
It is expected that early adopting brokers will benefit the most from being among the first to market with a new superior value proposition that will attract more clients and volumes for them.
We expect that Non-Zero adopting brokers will be the ones seen as the most pioneering among their peers and as the ones more likely to serve their client needs, add to their client’s bottom line and look out for their client’s interests. Clients may feel more reassured with Non-Zero adopting brokers. As a result, there may a larger chance that the client will remain and trade more, and that new clients will be attracted.
The Non-Zero token platform will serve to strengthen the existing value proposition of adopting brokers and serve as a complement to existing client acquisition approaches like marketing and rebates which are paid upfront rather than on the back end.
Amana Capital, a leading brokerage in the UK, Continental Europe and the Middle East and an affiliate of Non-Zero, is the first adopting broker. Amana Capital (amanacapital.com), a member of 180 Capital, is a specialist in online trading. It provides institutional and retail clients around the world, direct access to the global financial markets. Amana Capital comprises four main entities: Amana Financial Services-UK, Amana Financial Services (Dubai) Limited, Amana Capital Ltd., Amana Capital SAL-Lebanon. It also includes the educational portal TradeCaptain.com.