Forex trading is known as foreign currency exchange. It is a business activity that runs 24/7 because of the global market's timing. According to a report from the Imarc group, the global forex market size was US$ 753.2 billion in 2022, which is expected to reach US$ 1,143.2 billion by 2028 with a compound annual growth rate of 7% between 2023 and 2028. But as we know, forex trading is a business that is conducted online, which means a forex trader needs a merchant account to accept online payments. So this article is going to be forex special because you will get here everything that needs to be known about forex trading and forex trading merchant account.
Forex trading is the systematic exchange of one currency for another at a predetermined exchange rate. It operates through a network of online brokers, traders, banks, and other financial organizations. It enables the transmission of funds using a variety of credit instruments, such as bank drafts, foreign currency bills, telephone transfers, etc. The forex market runs nonstop 24/7 for 5.5 days a week.
Forex trading is considered a high-risk business by financial institutions, banks, and payment processors. This is why a forex merchant or trader needs a high-risk merchant account.
Forex trading is classified as a high-risk business by banks, payment processors, and financial institutions. Because it fulfills the criteria for being a high-risk business. These are some of the characteristics that contribute to a business being labeled high-risk. A high chargeback ratio and refund rate, the bad credit history of the business, the unregulated business market, and the risk of fraudulent activities are some of the traits that are responsible for a business being listed as high risk.
Of these traits, forex trading has many, such as:
Usually, the chargeback rate must be under 1% of the sales, but in the forex industry, the chargeback is higher. Because the traders who lose money mostly try to dispute specific transactions by issuing chargebacks. The forex industry also has a risk of a chargeback from investors who may have lost money.
As we all know, forex trading is a global activity. And there are no such rules that show that one country has jurisdiction over another country's currencies. Banks and payment processors face a big problem due to this. With the need for more regulation, there is just one way to regulate the industry. By running only licensed trading platforms. But it is a problem in itself to regulate all the trading platforms running across the globe; this is why forex is labeled as a high-risk business.
Fraudulent activities are always a risk in every business. But because forex is a market that runs only on liquid assets, there is always a threat of illegal and fraudulent activities such as fraudulent transactions and money laundering. Money laundering is the most concerning aspect of forex because the past has so many impactful examples of it.
Due to these reasons, forex trading is considered a high-risk business, and payment processors and banks label it as such, which eventually makes it difficult for a forex merchant to find a merchant account service provider that can provide a forex trading merchant account.
Before selecting a merchant account service provider for forex trading. A forex merchant has to keep in mind some points, and those points are given here:
So these are a few of those important points that a forex trader must keep in mind before selecting a merchant account provider for services.
Paycly is a payment gateway, credit card processor, and merchant account service provider, especially for high-risk ones. This Singapore-based service provider is an exceptional platform in Southeast Asia for high-risk merchant accounts such as forex trading. Why Paycly is said to be the best forex merchant solutions provider, here are some reasons for it.
If you also want a high-risk merchant account for forex trading or any other high-risk business. Then you are just a few steps away from getting one. Just follow the below-given procedure, and you will instantly open a high-risk merchant account with paycly.
Follow these instructions to sign up for a high-risk company account on Paycly.
You can quickly establish a high-risk business account with Paycly by following this procedure.
So this was a long, brief introduction to a forex trading merchant account. We hope, as a reader or forex merchant, it was a value-added article for you. And don’t forget to try Paycly if you need a high-risk merchant account.
