Over-the-counter (OTC) trading desks are important for high-volume crypto and foreign exchange (FX) transactions. OTC desks facilitate trades directly between parties, with benefits such as privacy and customized solutions.

Selecting the right OTC desk requires careful consideration of several factors:

Reputation and Reliability

Engaging with a reputable and reliable OTC desk reduces the risk of fraud and ensures smooth transaction processes. Choose an OTC Desk with a good standing in the industry, a track record of successful trades and satisfied clients.

Regulatory Compliance

Adhering to all relevant regulatory requirements in jurisdictions of operation is another key consideration in choosing an OTC Desk. Regulatory compliance not only shows that an OTC desk is legitimate, but it also provides protection for clients transactions. As a business it is well within your rights to verify if any OTC desk you are looking to do business with is licensed and complies with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations. In turn, a reliable OTC desk will also perform KYC/KYB on your entity, also ensuring they are doing business with a legitimate and compliant partner.

Transparency with Transactions

Another critical thing to consider when choosing an OTC desk to do business with is the level of transparency around transactions. A good OTC desk offers clear and detailed information about their fee structure, pricing, and execution processes. 

Liquidity and Market Access

A great OTC desk is one with a deep liquidity pool and access to various markets. These are beneficial for executing large transactions seamlessly, without significantly affecting market prices.

Technology and Security

Robust cybersecurity protocols, secure communication channels and transaction platforms, are important for protecting your digital assets and personal information. Choose an OTC desk that prioritizes security at every level and has the technological infrastructure to ensure safe transactions.

Customer Support

Quality customer support is especially essential for high-volume trading. Go for an OTC desk with responsive and knowledgeable support that provides assistance and can resolve issues promptly. 

Settlement Speed and Flexibility

The speed of settlements may vary among OTC desks. Depending on your unique trading needs, you may require fast settlements or something more tailored. An OTC desk that offers multiple options for settlements that can meet client’s specific requirements is a great choice to do business with!

Fee Structure

It is important to understand the fee structure of any given OTC desk. Fees can include spreads, commissions, and additional service charges. Choose a desk that offers competitive rates without compromising on service quality.

Choosing the right OTC desk for crypto and FX settlements involves multiple levels of evaluation and decision making. By carefully considering the factors above, you can make an informed decision that aligns with your trading and business objectives. With an OTC desk like Quidax’s, you can enhance your trading efficiency, security, and overall experience in the crypto and FX markets. We provide a dedicated support channel open to clients 24/7 and offer a 1-on-1 personalized service from start to finish. 

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