Cryptocurrency exchange Bitfinex releases a new feature on its platform. Institutional traders worldwide can now create up to 100 trading accounts within one master account. According to the announcement, the ‘Sub-Account’ feature in Bitfinex is enabled in response to the flowing customer demand. It will allow users in the first place to deploy various trading strategies – said Bitfinex.

Sub-Account Feature by the Cryptocurrency Exchange Bitfinex

Introducing the Sub-Account feature, Bitfinex says it will allow users to create multiple trading accounts within a single organization and offer control access on an account level. Also, the new feature will provide several benefits to its users.

Some of the benefits are:

Bitfinex will use the combined trading volume of all linked accounts, offering a shared volume with fee discounts across all accounts based on the cumulative fee tier.

The feature will facilitate users with the capacity to experiment with many trading strategies at the same time. This will enable traders to track their strategies more accurately.

If a user’s account is verified, the customer can decide which sub-account to share verification data, enabling the chosen account to benefit from all the advantages of verification status. Alternatively, each sub-account can be verified individually.

A user taking advantage of this service will be able to transfer cryptocurrency funds between the master account into the wallet of a chosen sub-account.

When Paolo Ardoino, the CTO at Bitfinex, was questioned regarding the new feature, he said the media that a trading fund can divide trading accounts between different traders. And reconcile profit and loss across each trading account. As a result, this will create transparency as the performance of each individual trader is available.

Bitfinex: Not the Only Crypto Exchange to Offer this Feature

Indeed, Bitfinex isn’t the only crypto exchange that offers this feature. Binance has been offering up to 200 sub-accounts creation facility since December 2018. Recently, Gemini comes into this offering list by introducing the feature with an unlimited number of sub-accounts.

In general, crypto exchanges appear to be attracting institutional investors. Huobi Group just yesterday launched a brokerage platform targeted at corporates and high net worth individuals. Huobi Brokerage aims to offer the best order execution by routing clients’ orders to several crypto exchanges and over-the-counter trading desks. It also supports block trading, customized financing, and other solutions that appeal to institutional traders.

When a sub-account is created it links to a user’s primary account, which will become the customer’s master account. A master account has exclusive authority to set up sub-accounts with a cap of 100 different accounts. A master account can perform a variety of functions including:

Switch access to view and make changes to the various sub-accounts

Set security restrictions on sub-accounts

Set the desired verification status on each sub-account

So, what you think regarding this new release by Bitfinex? Do let us know in the comment section