Foreign exchange is also known as Forex or FX. It is one of the most active markets in the world. Both individual and institutional traders have a great chance to make more and more money on currency trades in the FX market. However, forex traders require a forex payment gateway solution and Forex treading merchant accounts to deposit and withdraw funds quickly with affordable transaction costs.
But, finding a suitable forex payment processing that offers a forex merchant account and forex payment gateway is challenging work.
Here, in this blog, we will discuss the payment gateway for forex brokers and how to choose the best. So, let's start.
Overview of Forex Market -
Forex is one of the most liquid and largest markets in this world. To help you understand what you're getting into if you decide to trade Forex, we've compiled a compilation of significant, current, and valuable statistics.
This information comes from reliable, reputable websites, international surveys, central banks, and other financial organizations.
- The daily turnover of the forex industry was $6.6 trillion in 2019.
- The forex industry's total value was approximately $2.409 quadrillion in 2019.
- It is the only market in the world open 24*7 a day.
- Forex market deals in more than 170 different currencies.
- The US dollar is the king in the forex market, with 88% of all forex trades on one side.
- In US approx, 175,000 active forex accounts are available.
- After the US, Australia has the most significant number of forex accounts, approximately 100,00.
- By trading volume (70,000), TD-Ameritrade is the largest broker in the USA. Interactive Brokers, however, has the most outstanding customer profitability rate at 43%.
What is Payment Gateway for Forex?
The payment gateway for forex brokers acts as a bridge between the forex websites and the customers. Forex merchants must integrate the forex payment gateway into their websites or platform, allowing them to accept customer transactions.
The gateway transmits the money received from users to the broker's merchant account, while traders use the forex payment system to deposit funds into and withdraw funds from their accounts.
Before sending the money to the merchant, the FX payment gateway deducts a percentage-based, a flat fee, or both as payment for the service.
Why is it Challenging to Find the Payment Gateway for Forex Brokers?
At first, when merchants try to open a forex merchant account at a traditional payment gateway, they have to face rejections. Do you know what the reason behind this rejection is?
Forex is one of the most active markets, and forex merchants process large volumes of transactions daily. As a result, the forex business chargeback rate is much higher than any other business.
Due to this, payment service providers consider the forex industry a high-risk industry and deny working with this particular industry. It means forex merchants must go with a service provider with specialized experience in dealing with the forex industries. However, this type of forex payment processor has higher fees than the traditional one.
What to Consider When Choosing the Best Forex Payment Gateway?
It isn't easy to find a payment gateway for Forex that is willing to provide its services to this high-risk industry. For the forex merchant, it is essential that their forex payment processing meets several requirements -
- Speed: Instant transfer is one of the essential requirements for forex brokers. As you know, the forex industry makes a profit on currency movements, so merchants should look for the forex gateway for fast customer transactions. Along with this, the merchant also needs to maintain cash flow. For this, looking for a service provider who only holds merchants' funds for a short period is essential.
- Fees: As you know, the forex broker makes a profit from price spreads and other trading fees, so it is essential to have a cost-effective payment gateway to make the forex business profitable.
- Payment methods: Since you are dealing with multiple currencies all over the world, the forex merchant must offer their customer various options of payment methods, including credit/debit cards, net banking, mobile payments, e-wallets, and even cryptocurrency.
- Currency exchange: Expenses associated with currency conversion can deter traders from using brokerage platforms, and because of this, choosing a solution for a forex payment gateway that provides reasonable exchange rates is crucial. Even better, the service offers multi-currency accounts for businesses and their consumers to reduce the cost of currency conversion.
- Futuristic Security tool: Since the forex industry faces a high risk of chargeback and fraud, the merchant should look for one that offers futuristic security tools like anti-fraud tools, anti-chargeback tools, etc., to protect customers' funds.
- Regulatory compliance: Even though it is challenging to control the forex market internationally, some nations have rigorous guidelines for who can be a forex trader and a forex broker. Payment gateways must also abide by several rules to support FX trades. A payment gateway might only be able to cooperate with FX merchants with regulatory compliance legally.
Why Choose PayCly as your Forex Broker Payment Gateway?
Today, many service provider is available, but the most challenging work is to choose one among the thousands. So, without wasting any time, we recommend you go with PayCly.
PayCly is one of the leading payment service providers with experience in dealing with the forex industries, so it completely understands what you expect from us. It delivers many benefits that help you run your high-risk businesses smoothly and successfully. Let's check some of the best benefits of PayCly -
- Multi-currency support from all over the world.
- Allow customers to make the payment the way they want. It offers credit/debit cards, net banking, mobile payments, e-wallets, and cryptocurrency.
- Extremely easy to integrate on websites.
- Offers the best services at the best rate in the market.
Final Thoughts -
I hope this blog will help you and you can find the best Forex treading merchant accounts for your high-risk forex industries. While choosing the forex payment gateway, you should keep some points in mind. These points include the following -
- Payment methods
- Currency exchange
- Futuristic security tools
- Regulatory compliance
Still, if you need clarification or help to decide which is the best, you can choose PayCly without second thoughts. PayCly is one of the best payment service providers with lots of experience in dealing with the forex industry.
Contact the PayCly expert team right now and finalize your deals.