OTC DESK
& CRYPTO EXCHANGE

An OTC (Over-the-Counter) trading platform allows users to trade stocks, cryptocurrency, and other assets directly through a broker, rather than on an exchange. OTC desks have the following advantages:

• Large trades can be executed without slippage (there is no risk that the price will change while the order is being filled);
• Large transactions are kept hidden from the market and don’t influence the price;
• Buyers and sellers can agree on their own terms, without the strict regulations of an exchange;
• It’s possible to buy stocks that are not traded on exchanges.

CryptoProcessing is one of the few crypto payment gateways that has its own OTC crypto broker. You can buy 20+ cryptocurrencies and 40+ fiat currencies for any amount starting from €1 million at the best terms in the market.

Buying OTC cryptocurrency is much easier than buying OTC stocks. The biggest cryptocurrencies like Bitcoin and Ethereum are available via OTC. Some of the best OTC providers include CryptoProcessing by CoinsPaid (20+ supported cryptocurrencies and 40+ fiat currencies), Binance OTC (crypto-to-crypto), Kraken, and Crypto.com.

Trading OTC stocks is different from crypto because OTC stock desks offer assets that are not listed on exchanges. Most are so-called penny stocks, costing less than $1 per share. To trade them, you’ll need to open an account with a broker or app that allows OTC, such as Interactive Brokers, Fidelity, or TradeStation.

The choice of an OTC platform depends on which cryptocurrency or stock you wish to buy and how much you want to spend. OTC cryptocurrency trading is aimed at large buyers: for example, the OTC desk of CryptoProcessing by CoinsPaid allows you to buy crypto for an amount starting from €1 million. The platform supports clients from most countries in the world.

To trade OTC stocks, you will need to choose a platform that supports your country and doesn’t charge a high commission on trades with OTC penny stocks. Good examples include TradeStation and Interactive Brokers.

Having crypto processing and an OTC on the same platform is very convenient for merchants, as they can convert large amounts of crypto revenue into fiat safely and at the best terms.

However, very few crypto payment gateways have an OTC desk. CryptoProcessing by CoinsPaid is virtually the only solution that combines crypto payments and an OTC that supports over 20 cryptocurrencies and 40 fiat currencies.

OTC trading is much better than using cards/bank transfers and interacting with crypto exchanges. Here are the main benefits that investors enjoy when dealing via such providers:

• Slippage reduction. Slippage occurs when the trade originator can’t fulfill the order in full at the initially specified price. Whenever a buy/sell order takes out many opposing orders queued up in the exchange’s order book, the prices inevitably slip up or down. It’s an open secret that the majority of exchanges suffer from pretty thin liquidity available for non-major pairs. OTC platforms help customers avoid such problems as their traders either seek matching orders throughout their private network or act as the counterparty on their own.
• Fees reduction. Over-the-counter platforms usually charge much lower fees than their open-market analogs as the order amounts are much higher. Trading a 1-million-dollar block would beat up a pretty high fee when operating at a regular exchange.
• Confidential transactions. Dealing via such liquidity providers allows the parties to keep a low profile and avoid publicizing information about their accumulation/divestment strategies.
• Protection against scams. OTCs always make sure that they fully comply with all applicable regulations, provided that they are duly licensed and regulated like CryptoProcessing.com. They treasure their clients and make all efforts to minimize the discomfort and problems of their users. Any scammy schemes or misusing their customers’ funds is unheard of as they would stand to lose much more than they’d gain in any such event.

Due to these benefits, the Trading Desks are steadily growing their volumes and appeal to medium- and large-scale investors. But picking a good OTC trading market requires certain efforts and knowledge of the pertinent details. Let’s look into that process next.

Before choosing an OTC desk, it’s highly recommended to run an in-depth background check on candidate companies. Make an effort to get a scoop on the following data points:

• Registration jurisdiction. Each specific jurisdiction features its own set of regulations and requirements to such platforms and similar liquidity providers. Currently, the EU boasts the most effective and innovative regulations that seek to assure that potential users will enjoy the high quality of the offered services. Such EU-registered companies as CryptoProcessing.com enjoy the ecosystem effect and trust from counterparties from around the globe.
• Supported pairs. Providers like Binance offer only crypto-to-crypto pairs. This can be a deal-breaker for those institutional investors who look for quick access to both crypto-to-crypto and fiat-to-crypto pairs.
• Reputation and track record. Invest time and effort into learning more about the OTC you wish to work with. This will pay off handsomely as partnering up with a gray-market company might easily end up in a calamity.
• Type of liquidity provider. As we’ve talked above, traders are advised to find out whether the OTC is a Principle or Agency trading market. The Principal companies offer faster executions and overall better servicing levels.

With this data on file, your team will be able to easily pick the best OTC market maker for long-term and sustainable trading operations.