Ensuring that you get the absolute best price for bitcoin and the other crypto assets you want to trade just got easier — and 28% less expensive.
Back in the early days of the asset class, discovering the best prices for crypto assets was a challenge because the overall market was fractured across hundreds of different trading venues, each of which with its own prices. That’s why SFOX developed Smart Routing for crypto: a way of leveraging advanced algorithms to route traders’ orders to the trading venues that have the best chance of filling those orders at the best possible price point.
Smart Routing encapsulates everything we do at SFOX: it empowers our traders to access the best crypto prices available using the best technology out there.
Now, we’re excited to introduce traders to the next phase of SFOX’s Smart Routing technology: Net-Price Routing (NPR), which is now enabled on all SFOX accounts. This is a systemwide update that will initially provide users with 28% lower trading fees, access to more liquidity providers — and, ultimately, access to the best price point for every crypto trade they make, all from a single account.
And there’s power in numbers: perhaps what’s most exciting about NPR is that it will allow us to save you more money as our community of traders grows and trades more on the SFOX platform. We’re confident that this will make your trading experience even better in the weeks, months, and years to come.
Net-Price Routing is the latest step we’re taking in our mission to give our traders an edge. Read on to find out how NPR has solved the problem of uneven fees in the crypto market.
How Fees Interfere with Traditional Smart Routing Tools
Different crypto trading venues have different prices. For instance, at any given time, the best available price of BTC at each exchange can vary — meaning that people who are trading directly on a single exchange can’t be sure that that particular exchange is providing them with the best current price for BTC.
SFOX’s Smart Routing technology was built to give our traders an edge by solving this problem: our integrated order book connects traders to all leading crypto trading venues at once, and our Smart Routing-enabled order types and execution algorithms automatically work to fill their order on the optimal exchange based on a number of factors, ranging from the available liquidity on each exchange, to the likelihood of an order being filled on each exchange, to the available price on each exchange.
However, up until now, SFOX’s Smart Routing technology has made price calculations based on gross prices: that is, the price of the asset on a given exchange before that exchange’s fees are taken into account. The consequence of this is that, even though our Smart Routing order types and execution algorithms have reliably saved traders money and improved price execution relative to trading directly on an exchange, these algorithms may have been missing some even better prices at trading venues with alternative fee structures. Many OTC markets, for instance, have less competitive gross prices but charge no fees, meaning that a gross-price-based Smart Routing algorithm would overlook these markets even though they may be some of the most competitive when fees are accounted for.
Make Even Better Trades with Net-Price Routing
Net-Price Routing (NPR) makes SFOX’s smart-routing algorithms even better by executing trades on the best available venues with the best net price: the price you actually pay when all the fees exchanges charge are taken into account. In other words, net price is the all-in price for any trade you make.
Beyond getting SFOX traders better price execution, NPR also provides four new benefits for traders to enjoy:
- 28% off SFOX trading fees. By enabling OTC markets and other markets with lower fees, the cost of filling orders goes way down — and that means 28% savings that we can pass directly on to our users.
- Deeper liquidity and lower crypto asset prices. By adding OTC markets and additional trading venues, NPR gives you deeper liquidity and less market impact every time you trade.
- Faster trade execution. With more comprehensive price accounting and more liquidity providers added to SFOX’s integrated order book, NPR means that traders may see their orders fill even faster than they did before.
- More savings as the SFOX trading network grows. NPR is our first step in transforming SFOX from a crypto trading platform into a community of traders that trades better together. As the network of SFOX traders continues to grow, you’ll save more money on every trade you make as a result of decreasing operational costs on our end.
Simply put, NPR just improved every aspect of trade execution for SFOX traders — from access to the best prices, to lower fees, to faster trade execution, to deeper liquidity. It’s just the latest way we’re giving our clients an edge they couldn’t get anywhere else.
New Decade, New SFOX
At SFOX, we’ve been providing pro crypto traders with a unique edge since 2014, and we’re always looking for ways to help them trade even smarter. Upgrades like NPR are ways of taking the essential elements of SFOX — our trading algorithms, marketwide analytics, and integrated order books — and making them even better for our clients’ bottom line.
We’re especially excited about rolling out NPR because it underscores another of our goals: building a community of traders who win together. As a prime dealer, SFOX’s costs are lowered as we’re able to move more trading volume on the exchanges and OTC markets to which we’re connected — and the lower our costs get, the lower our fees get for our community of traders. This means that you should expect the savings of NPR to get even better as the SFOX trading community continues to grow.
And NPR is just the tip of the iceberg for the new year and decade still to come: we have quite a few further innovations that we’re excited to unveil to you very soon. So, keep your eyes peeled — and, until then, happy trading.
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The above references an opinion and is for informational purposes only. It is not intended as and does not constitute investment advice, and is not an offer to buy or sell or a solicitation of an offer to buy or sell any cryptocurrency, security, product, service or investment. Seek a duly licensed professional for investment advice. The information provided here or in any communication containing a link to this site is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject SFOX, Inc. or its affiliates to any registration requirement within such jurisdiction or country. Neither the information, nor any opinion contained in this site constitutes a solicitation or offer by SFOX, Inc. or its affiliates to buy or sell any cryptocurrencies, securities, futures, options or other financial instruments or provide any investment advice or service.
