Crypto exchange Coindirect launches OTC brokerage in South Africa

Crypto exchange Coindirect launches OTC brokerage in South Africa

Coindirect cryptocurrency exchange has launched an over-the-counter (OTC) brokerage system that targets large volume traders. The service was launched for South Africa, with the exchange promising its traders the lowest fees and the best prices.

The decision to launch the OTC desk was informed by extensive research conducted by the firm, the exchange’s COO Nic Haralambous stated in a press release:

“During our first two years in the industry we have paid close attention to which users are driving the volume of crypto trading. Our approach is to bring cryptocurrency to as many users as possible, however, the data shows that a majority of the daily trading volume in South Africa right now comes from a very small percentage of traders.”

This group of traders spends a lot of time conducting research so that they can make their trades at the lowest fees and best prices, he went on. The new service will solve both of these challenges for the traders. Coindirect will use global integrations to create a wide pool of liquidity sources that will enable a best price guarantee. Haralambous added:

“What we’ve done is offered the best price with no hidden fees, no slippage and instant transactions, so that means that the big guys can come and do transactions of up to R1million ($66,000) or R2 million ($132,000) worth in a single trade without worrying about anything. They just come on, place their order. They get no fees, no hidden fees, no issues.”

Large volume traders who use the OTC service will avoid the long delays associated with such transactions, he added. Such delays can cost the traders up to 12 hours, during which the prices may fluctuate greatly and end up eating into the traders’ profits. Coindirect will also save the traders the 2% fee charged by most exchanges for instant large volume trades.

Coindirect has been consulting the traders who use its platform so they can create a better trading experience for them. This will help the exchange get an edge over its competition, especially with the South African crypto market becoming increasingly cluttered.

He remarked, “We have decided to come in competitively and take on the most professional type of trader that we think just wants to come in, buy half-a-million rand or R1m ($66,000) worth of crypto and get on with their day without having to spend three hours going for that, so the ease and simplicity of the platform is definitely something we focused on.”

New to blockchain? Check out CoinGeek’s Blockchain for Beginners section, the ultimate resource guide to learn more about blockchain technology.