An inter-dealer broker (IDB) is a specialized financial intermediary who helps with transactions between broker-dealers and other large financial institutions. The inter-dealer broker focuses on trades where there is no formal exchange or market maker system. It operates in the over-the-counter markets and normally works with large blocks of assets where there is low trading volume.
No, Prudenze does not charge fees on withdrawals. However, blockchain network fees charged may be applied.
No, Prudenze does not charge fees on deposits. However, blockchain fees charged by the relevant network may reduce the amount of digital assets received in your account at Prudenze when you make a deposit.
Commission on Discount/Premium
Prudenze takes 20% on the discount or premium on the dealer side if the transaction is done via our RFQ system. The discount or premium will be calculated as the difference between the winning bid and the median bid.
Example A: Buy Order RFQ
Dealer submits a buy order using Prudenze RFQ system
Buy Order of 100 Bitcoin
Market Price = $5050
Bid A = $5100
Bid B = $5150
Bid C = $5025
Winning Bid (Lowest Price) = Bid C @ $5025
Median Price = Bid A @ $5100
Discount = $5100 – $5025 = $75
Commission on Discount per Bitcoin = 20% * $75 = $15
Total Commission on Discount = 100 * $15 = $1500
Example B: Sell Order RFQ
Dealer submits a sell order using Prudenze RFQ system
Sell Order of 100 Bitcoin
Market Price = $5050
Bid A = $5075
Bid B = $5025
Bid C = $5050
Winning Bid (Highest Price) = Bid A @ $5075
Median Price = Bid C @ $5050
Premium = $5075 – $5050 = $25
Commission on Premium per Bitcoin = 20% * $25 = $5
Total Commission on Premium = 100 * $5 = $500
Prudenze takes 0.1% finder’s fee on the broker side for providing matchmaking services via both the RFQ system and Direct Request from the marketplace.
In order to be able to apply to become a broker on Prudenze, the user must be verified to a level 2 verified account. Level 2 verified account requires the user to provide proof of identity and proof of address.
Once the user is level 2 verified, the user can proceed with the brokerage application.
To ensure the quality of the brokers on Prudenze, Prudenze will conduct business due diligence to each brokerage applicants. Some of the factors Prudenze may investigate include but not limited to:
- Business transactions
- Business incorporation
- Public information on the broker
- Industry credibility
- Business capability
- Owner’s background
- Customer’s feedback
The brokerage application process may take up to 2 weeks. During the meantime, Prudenze may contact the applicant via email or phone for further business due diligence.
Prudenze have 3 levels of account verification.
Level 1 Basic Account
The basic account is an unverified account with basic information of the user. User with a basic account can act as a dealer and trade via direct request or RFQ system.
Level 2 Verified Account
The verified account is where the user’s identity and address are verified up to our KYC and AML standard. At this level, the user can apply to become a broker.
Level 3 Trusted Account
The trusted account is where the user’s bank account is verified and therefore increasing their credibility in trading with the counterparty. However, a trusted account is an optional level, the counterparty may deem to see this as an extra level of security.
For Level 1 Basic Account
- No documentation required
For Level 2 Verified Account
- ID/Passport Back and Front
- Selfies of holding the ID/Passport with a paper written date, Prudenze, and signature
- Proof of address (Recent 3 months utility bill or bank statements)
For Level 3 Trusted Account
- Bank statement of recent 3 months that match with the corresponding name of the user
The verification process may take up to 7 days. However, it usually takes 24 hours.
Prudenze adheres to industry standards of information security to ensure the safety and integrity of your information. Prudenze implements multiple security measures to best protect our users’ data and digital assets.
all transactions are protected by escrow. When a transaction is started the amount of digital asset for the transaction is automatically reserved from the broker’s or dealer’s Prudenze wallet. This means that if the counterparty attempts to conduct fraud and does not release the digital asset to the counterparty after receiving the payment, Prudenze support can release the digital asset from the escrow.
There are 2 ways to trade on Prudenze.
Via Direct Request
Via RFQ Marketplace
Under the Asset tab, click on the Deposit link where you will be provided an address to deposit digital asset. After 1 confirmations, funds will be credited to your account.
Under the asset tab, click the withdrawal link where you can input your withdrawal address to withdraw digital assets.