With daily transactions totalling more than $6.6 trillion, forex is the biggest and most liquid trading market in the world. The foreign exchange market is open every day.
There are two distinct business models used to operate the forex market. In the first model, banks are the ones trading currencies on the interbank market. And the second is intended for people who trade currencies over the counter using brokers or trading platforms.
You can accept credit and debit cards from traders, use other payment options if you have a Forex merchant account, and use Forex payment processing.
Compliance & Legal Requirements for Forex Merchants
In both the United States and Europe, forex trading is legally acceptable. In terms of compliance and legal requirements, the latter is friendlier while the United States has some of the strictest forex trading laws in the world.
The CFTC (Commodity Future Trading Commission) and the NFA are the two organizations in charge of keeping an eye on the foreign exchange market at the moment (National Future Association). Brokers must be registered with the former and a member of the latter in order to provide services to traders based in the United States.
While an American broker must have USD 20 million in locked capital in order to operate legally, a European broker only needs between $100,000 and USD 500,000. This significant difference provides a reasonable justification for why there are more active Forex merchant accounts in Europe than in the US.
Benefits of Forex Payment Processing
We offer the most competitive rates, expedient approvals, and favorable terms for Forex merchant accounts. Easy payment acceptance is made possible by high-volume processing capacity. Several of these benefits include:
- Low Rates
- High Volume Processing
- Multicurrency Processing
- Multiple Payment Methods
- Multi-Channel Processing
- Broad Bank Network
- Forex Credit Card Processing Gateway
Types of Forex Merchant Processing
- Credit Card Processing
The most popular payment processing option for forex brokerages is credit card processing, but Visa and MasterCard regulations make this option very unstable.
- Check Processing
Accepting forex payments via check processing is growing in popularity. The majority of check processing activity occurs in Canada and the United States.
Since most forex traders do not want to transfer their funds to cryptocurrency before depositing them to trade forex, cryptocurrency is one of the least used payment methods. Do you, as a broker, really want to direct your customers to a different website so they can make their deposit?
Although bank wire transfers appear to be the preferred payment option for forex brokerages, they actually carry a risk resembling that of credit card processing. This makes it a very unfavorable payment method for both traders and brokers when combined with the fact that the trader has no recourse for payment.
How do you link your website to a forex merchant account?
Let’s think about the fundamental conditions that a website must satisfy in order to connect to a merchant account. Remember that the list of requirements may change from bank to bank. However, the overall situation is unchanged.
- The company website should be available and running smoothly first. Connecting to unfinished sites is probably impossible. Banks don’t even consider applications from businesses whose websites are still being built.
- The security of communication will be guaranteed by an SSL certificate, which is also required.
- The company’s name, address, and contact details must inevitably be on the website.
- The website should also include a detailed description of the products and services offered.
The logo of the payment systems that the business will use must be present on the website’s home page in order for banks to open a merchant account.
For forex brokers, the website must include a comprehensive list of the services they offer (such as trading, analytics, and consulting services), as well as, preferably, a brief but meaningful description of each service. Prices for services (or goods) should also be listed concurrently in the accepted form of payment.
Additionally, all businesses, including forex brokers, must provide the following information:
- Details regarding the protection of the client’s personal information.
- Information on the website regarding transaction security.
- Transactional terms and conditions throughout the entire ordering process.
- The existence of the “Click to Accept” button, which signifies agreement with the product return or refund policy.
With Radiant Pay, Start Your Forex Merchant Account Services.
Those looking to open a merchant account for forex brokers and apply for payment processing services from businesses. A simple application must be completed and a few supporting documents delivered to our organization. Contact a member of our team at Radiant Pay, a renowned provider of payment services in London, UK, right away to get started.