The world’s largest economy is a powerhouse in the forex market. The currency of the United States of America, the USD, is the most traded (88% on one side) currency in the world. It also has the world’s largest number of forex traders and brokers. Online forex trading is legal in the USA, and the National Futures Association (NFA) is the primary regulatory authority for forex in the country. The US dollar is the most powerful and stable currency in the world due to the economic and political stability of the USA. No other country can be better than the USA for a start-up forex trading platform. The US market fulfills every need for a forex broker—a stable market, a number of forex traders, and forex payment processors—to launch its forex broker firm.
We are PayCly, the top provider of FX payment processing in the USA. We offer complete forex payment solutions to forex brokers, including forex merchant accounts, forex payment gateways, and so on. I'd like to call your attention to the fact that banks and financial organizations regard forex as a high-risk industry. They, therefore, don't provide any payment options to FX brokers. However, you need not be concerned because we have already reassured you that we are available to assist you. To help forex brokers work without trouble, several payment service providers (PSPs) offer payment solutions to them.
What is a Forex Merchant Account, and why is it considered High-Risk?
A forex merchant account, somewhat like a business bank account, enables forex brokers to accept, hold, and withdraw monies from their traders. After receiving the payments, you can either hold them in your merchant account or move them to your traditional bank account. In comparison, a forex payment gateway connects the issuer, acquirer, card firm, and forex broker to enable online payment by transferring payment details between them. These two tools are required for every forex broker who wants to accept online payments via credit or debit card, wire transfer, cryptocurrency, and so on. A payment gateway and merchant account must be integrated with your FX trading platform in order to accept online payments.
The following factors contribute to the belief that the foreign exchange market is high-risk:
- Potential for higher chargebacks.
- Potential for higher fraud.
- The foreign exchange market is not under the control of any one government because it is a global market.
- Insufficient regulations and legislation.
- Due to a large number of tickets.
How to select a Forex Payment Processor?
It isn't easy to choose a payment processor for your forex business. Before selecting a forex payment processing firm, you should be aware of the major requirements. Let's look at the top characteristics a PSP should have: A forex payment processor must have PCI-DSS compliances.
- A forex payment processing company must have 3D secure authentication, geological tracking, SSL, SET, AVS, and CVV checkers to ensure the highest level of security for its merchants. It might advance its security by using tools like AI and ML to weed out potential fraud.
- Chargebacks are one of the biggest problems facing the FX sector; thus, a PSP must provide cutting-edge tier-three chargeback prevention capabilities to protect its merchant from erroneous claims.
- To boost client retention, a PSP must offer alternate payment options and support for foreign currencies.
- It must keep all of its merchants' information completely confidential.
- A forex merchant account provider must offer timely pay-outs.
- A forex payment processor should have round-the-clock support staff.
- Pricing and package options must be reasonable and comparable.
- It should provide same-day onboarding, quick approval, and simple integration.
We have noted some points here that a forex payment processing firm must provide to its high-risk forex merchants. Furthermore, more functions and advantages can make a PSP more user-friendly. PayCly provides its merchants with more than 100 hidden features, including a powerful dashboard, daily, weekly, monthly, and yearly reports, a user-friendly interface, a large bank infrastructure, and so on. Some of them are mentioned in this infographic:
To Sum Up
Many forex brokers aspire to launch their forex trading platforms in the US, the country with the largest forex market in the world and home to more than 335 million prospective forex traders. The forex brokers require an FX merchant account and a forex payment gateway in order to receive payments from traders online. Many PSPs offer forex payment services to meet the need for forex trading platforms, but PayCly is the best owing to a number of reasons, including customer-centric policies, the lowest MDR, the safest payment environment, dedicated support, and so forth. PayCly offers FX payment processing to both regulated and unregulated forex merchants in the United States. PayCly also provides credit card processing for forex brokers, forex trading merchant accounts, and all other required payment solutions for forex brokers. For further information, kindly visit us at https://paycly.com.
Frequently Asked Questions (FAQ)
1) Is online forex trading legal in the USA?
Yes, it’s completely legal to do forex business in the USA; you just need to obtain a license from the National Futures Association (NFA) of the USA. In fact, the USD is the most traded currency in the forex market.
2) What documents must you collect before applying for a Forex Merchant Account?
- URL of your company's website
- Directors' names and contact information
- Company name and contact information
- Latest three months' business bank account statements
- Business location's
- Memorandum and Articles of Association
- The business licence (if applicable)
- Depending on the business, more documentation can be needed.
3) What other Payment Solutions does PayCly provide?
PayCly is a one-stop solution for all high-risk businesses. It provides clients with all possible payment solutions, such as credit card processing, high-risk merchant accounts, foreign exchange merchant accounts, international payment gateways, and so on. All high-risk industries, including escort services, adult toys, tobacco, e-cigarettes, online dating, casinos, gaming, fantasy sports, etc., are served by PayCly's payment systems. Furthermore, utilizing our experience in the following industries, we have created certain state-of-the-art merchant accounts with high-risk and industry-specific characteristics: