The Intelligence Layer Beyond Your Own Book

A medium-sized broker could be losing over $5m/month to high-risk clients they cannot identify early enough.

Network Alerts cuts through the noise, helping risk teams identify the clients worth focusing on before they impact P&L.

The Problem

Organised abuse & high-frequency trading is draining P&L, and most brokers only find out long after the money has gone.

Single traders often run dozens of accounts under different names, countries or brokers. These traders employ a range of methods to earn from, and often exploit, brokers who don’t have a network-level view including bonus abuse, swap abuse and high-frequency trading.

Each account behaves modestly in isolation, passing typical broker reviews. Together,  these traders can cost brokers more than $5m/month, with our data showing that ~1% of logins generated an average loss of $26,000 each.

The Solution

Utilising Radar’s cross-broker clustering, 66% of accounts within flagged groups were never individually flagged based on their HF trading activity alone.

Network Alerts acts as an early warning system to help preserve your P&L through a two-step process:  

1. Leverage iSAM Securities’ network to identify clusters of accounts that belong to the same trader, providing access to information that would otherwise be unavailable through isolated broker analysis alone.
2. Filter these clusters based on their High Frequency (HF) Score. In our study, HFT client accounts rated High and Very High represented only ~1% of logins and ~11% of total volume, yet account for 74% of total losses. This allows risk teams to clearly identify clusters of sharp & abusive clients harming their book.

The Case Study

We applied the Radar Network Alerts system to a subset of the network. The system identified 4,180 groups of accounts linked to the same underlying traders.

Within the sample, ~1% of logins generated a loss of $62m in broker P&L reducing overall profitability by ~30%. These are precisely the type of accounts that Network Alerts would flag to Risk teams.

The table below shows how Radar’s proprietary HF Score classifies the sharpness of client flow and highlights the commercial impact of HFT activity:

For a medium-sized broker, our data suggests that over $5m/month could be saved by brokers who effectively mitigate HFT traders.

This makes HF scoring an essential metric for risk teams looking to reduce noise, prioritise clients that matter most, and protect P&L before losses scale.

Dennis Weissert, Chief Commercial Officer, iSAM Securities Apex commented, "For a broker to offer high leverage and negative balance protection, I believe that Radar Network Alerts is the only true protection against traders who act cross-brokers."

To find our more about Radar Network Alerts or book a demo, click here - Radar Network Alerts