Forex is also known as currency exchange. It is the place where the world currency trades. Daily trading volume exceeded $7.5 trillion in April 2022.
Each year, more people trade on the forex market and make money from changes in currency and exchange rates. So, it is essential for the Forex platform to have a suitable forex payment gateway to complete transactions securely and quickly.
The forex business owner needs to register a forex merchant account to accept payments, which is becoming increasingly necessary for Forex brokers due to the growth in customer numbers. However, most acquiring banks and financial service providers classify forex trading as a high-risk industry and are hesitant to issue Forex treading merchant accounts.
Due to the high risk, finding a forex payment processing that is a perfect fit for the forex businesses can take time and effort.
So, here in this blog, we will discuss the forex market in the U.K. and the features of forex payment gateway. So, let's start.
In April 2022, currency exchange hit a record $7.5 trillion per day, with the dollar retaining its hegemonic status. It is up from $6.6 trillion in 2019. You can say that 14% rise.
The Bank for International Settlements, the umbrella organization for central banks, conducted research using data from April when markets were still reacting to the Ukraine War and the start of the aggressive cycle of U.S. interest rate hikes.
By value, spot trading came in second place in April 2022 with US$2.1 trillion daily, followed by foreign exchange swaps of US$3.8 trillion.
According to the Wikipedia - The $7.5 trillions break down as follows -
| $2.1 trillion | Spot Transactions |
| $1.2 trillion | Outright forwards |
| $3.8 trillion | Foreign exchange swaps |
| $124 billion | Currency swaps |
| $304 billion | Options (other products) |
With 88% of all trades, the dollar became the most widely traded currency. Over the last ten years, this level has been sustained. The euro is the second most active currency. Check out the top five currency shares globally.
Twenty-seven financial institutions involved in the foreign exchange market in the U.K. took part in the semi-annual turnover survey for the Foreign Exchange Joint Standing Committee (FXJSC) in April 2022.
The survey's key conclusions are:
| FX swaps | $1689 billion |
| Outright forwards | $371 billion |
| NDFs | $136 billion |
| Spot | $884 billion |
For a forex merchant, it's crucial to understand the features of a payment gateway. The features that determine which payment gateway is appropriate for the Forex industries are significant for several reasons, including:
Forex is a high-risk business, so merchants should look for a service provider with top-notch security features. It must have PCI Compliances, 3D or No-3D Secure, SSL Certification, etc. These security features are essential because they help your business and provide you with the best consumer experience. Additionally, it adds significantly to the trustworthiness and credibility of the Forex industry because customers who observe the compliance check tend to have greater faith in the company.
The best service provider also offers anti-fraud and chargeback tools to protect the merchant from fraud.
Due to the widespread usage of credit cards as a form of payment internationally, this functionality is essential for the forex industry. Therefore, a payment gateway with a credit card processing feature enables the company to expand more firmly in the global market and to build a solid foundation for the users. Go with a service provider that can accept most credit cards from all over the world.
It is vital for a forex business' payment gateway to integrate easily into its website once the trading platform is ready for people to begin using it. The site's online visibility will suffer from a drawn-out process. Therefore, payment service providers generally prefer API, Mobile SDK, and Plug-ins to quickly integrate the payment gateway for forex brokers into the website.
As the forex industry deals with various currencies, this feature is essential for the forex broker payment gateway. With these features, the forex business can hassle-free grow to different countries and offer users the ability to make payments in their local currency. It is a huge problem for any user to convert one currency to another currency and then make the payments. Conversion is the key to the success of the forex industry.
As credit card is one of the most popular payment methods, but not all customers like to make payment through credit cards. So, along with credit cards, the merchant should offer other alternative payment methods like mobile payments, e-wallets, net banking, and some popular alternative payment methods.
Today, some customers also prefer crypto-currency. So, it is a good decision if you choose a service provider that can accept crypto-currency as it is a future of digital payments.
Forex is one of the most active markets in this world, so as a forex merchant, you must look for the best service provider for your forex business. One such type of service provider is PayCly. It is one of the leading and best service providers with lots of experience dealing with high-risk businesses such as Forex.
As "PayCly", we offer a complete payment solution to the merchant. It means that we offer you a suitable forex merchant account, forex payment processing, and payment gateway for Forex.
With us, forex merchants can get many benefits. Some of the best benefits of using the PayCly forex broker payment gateway are -
As "PayCly," we have extensive knowledge of the high-risk and F.X. markets. We comprehend exactly what makes your company profitable. Using industry-leading credit card processing and anti-chargeback solutions will be a perfect fit for your forex business.
If you're looking for a merchant account, credit card processing, or a provider of payment services, we can help. We have experience dealing with high-risk businesses, so we understand and offer you the best solutions.
Reach out to the knowledgeable team immediately to complete your transaction with us and enjoy the prosperity of your business.
