How We Make Money | NLVX Exchange

NLVX Maintains Transparency between Both Brokers & Their Clients

NLVX, being an NDD, ECN, and STP broker, functions to enable traders to make informed decisions regarding forex trading. We intend to make a family of traders, brokers, and clients who get to trade in a healthy environment without worrying about fraud and glitches.

How Do We Earn?

At NLVX, being associated with an ethical trading platform, we earn through various ways, which never include making use of clients’ funds and making profits. Let’s check out what we follow:

Spreads - We earn through spread income by including a mark-up to the real-time market price. Spread income indicates the difference between your trade price and our hedge price. Such a situation may occur during small trading operations, which we group hedge on through out commodity or index CFDs going to an efficient liquidity provider.

Interest - The interest rates that the liquidity providers offer us via our commodity & index CFDs & trades add a small spread to the same and earn through it.

Swaps - We add a small spread to the swap costs received through the interbank institutions via Metals & Forex trades.

Commissions - We opt for charging commissions on Metals & Forex trades of a defined USD amount per round turn lot.

How Do We Generate Money based on Per Asset Class?

Asset Class	Commissions	Spreads	Swaps & Financing	B-book (trader losses)
Forex
Metals
Indices*
Energies*

We use ‘non-bank market makers,’ as well as brokers to fund & then perform Energy & indices trades. At NLVX, we generate income through a specific spread percentage earned via the associated trading counterparties. The defined counterparties don’t execute a B-book in respect to NLVX.

The list of non-banks associated with us can be searched in the ‘Trading Counterparties’ section on our site.

Scroll down to the page's bottom to check full disclosure on spread earnings through non-banks.

NLVX runs on a ‘No Deal Desk’ platform that functions all-automated. We do not include any human discretionary traders in our system. Also, we never make hedge execution strategies & decisions on the basis of trader’s trade behavior, or account leverages.

NLVX prohibits to:

Earn through clients' losses or execute a B-book.

Let other companies run a B-book on NLVX’s behalf. Thus restricting any sort of profit- sharing through an entity relating to our traders’ losses.

Make arrangements in association with trading counterparties to execute a B-book on NLVX’s behalf.

Hold proprietary risk positions or perform proprietary trading operations.

NLVX neglects the sustaining conflict of interest among your best-executed trades & our profits.

Does NLVX Get Benefited with Clients’ Losses?

The answer is a strict no. NLVX doesn’t operate like other CFD providers and Forex brokers who make a profit from clients’ losses or run a B-book. Rather, we function as an ‘A-book broker’ who hedges all the market risks and thus never gain benefits through clients’ losses.

We follow the ‘A-book net’ trade model for small-level Metals & Forex trades, which go below our prime broker minimum to decrease even the minimum-possible ticket fees. There’s a chance for NLVX to earn profits through these Metals & Forex Trades, while a trader has ever made a loss, but this implements to certain scenarios only. These scenarios or cases turn out to be incidental & exceptional in terms of the ‘A-book net model.’

Scenario 1: If we opt for accepting an order from a trader and then hedging that particular trade at increased pricing.

Scenario 2: If a trader opens as well as closes a comparatively smaller trade, in succession, before letting NLVX hedge it. And then, such a trade closes in a loss scenario.

It would be inappropriate to dictate that we make profits via clients' losses, due to several reasons, which are:

While considering Scenario 1, if any client loss is associated, then it will remain for a certain time horizon only. It simply means that it is an unrealized loss through an open trade, which can be converted into profit by closing the trade.

While considering Scenario 2, as the risks in the market are hedged by us, all in all, we don't come up to gain or lose via market activities. Also, our profits don’t remain contingent on clients' losses.

We never bifurcate or discriminate our traders into different books. Also, we don't go ahead by make hedge-execution-decisions on the basis of clients' profits or trade behaviors. In simple words, we never take any measures to monetize the procedure by performing odds-skewing in our favor.

Spread Income Via CFDs

Commodity & Index CFDs turn out to be ‘market tracking derivatives or synthetic index derivatives’. Contrary to Forex & Metals' trades done through a ‘prime broker,’ Commodities & Indices CFDs don't have any central counterparty by which trades get cleared & given up.

Due to the same, all the trades lead to a solo liquidity provider on the basis of per product scenario. This indicates that these products dont belong to ECN. We follow certain measures to be sure of the prices we attain through our CFD liquidity providers remain consistent while we deal with other providers.

Frequently Asked Questions

Who are NLVX’s liquidity providers?

NLVX’s LP’s consist of Tier-1 banks, non-bank market makers, ECNs and dark pools. Some of our LP’s include the following: Goldman Sachs, Saxo Bank, Deutsche Bank, BNP PARIBAS, UBS, LMAX, XTX, CREDIT SUISSE, HSBC, Natwest, STANDARD CHARTERED BANK, Vidarr Capital, Citadel Securities.

Are all my trades taken to the underlying market?

All FX/Metal trades > 50,000 are executed in the real market directly and will be filled by our LP’s.

FX Trades < 50,000 are executed in the real market once the net position of small trades exceeds the batch hedge size. This is due to the high cost to hedge individual small trades.

All CFD trades go to our non-bank market makers who specialise in indices and commodities trading to ensure the tightest prices and best execution. Find more information here https://www.globalprime.com/best-execution/

What is the difference between A-book and B-book brokers?

B-book brokers take the opposite side of clients positions and assume the role of market maker. What this means is that clients trades are not hedged in the real market. This means the broker profits when the client loses, creating a clear conflict of interest between broker and client. B-book brokers have a vested interest in the client losing money as this becomes their profit.

An A-book broker is a broker that executes all clients trades in the real market. In this model, the broker has no interest in clients losing as client losses are not earned by the broker. There are fewer conflicts of interest between A-book brokers and their clients, and when the clients win, the broker is better off - as they are making the broker commissions.

Is NLVX a B-book broker?

NLVX does not run a B-book. This means that we do not profit from client losses or trade against our clients. We believe the role of a broker is merely to act as the intermediary between the banks.

How We Make Money?

How we make money?

How Do We Generate Income?