The forex trading industry is touching the sky with unstoppable growth. It is a high-profit industry but is prone to high risks too as it contains so many threats.
Regular transactions of millions & billions of dollars make it a high-risk business. On top of it even an unsafe place to play.
Various reasons prevent forex businesses from owning a merchant account from local and traditional banks. Fraud and data infringement is one of those reasons.
It gives rise to a question after that, where are they supposed to receive the client’s money? Or money from traders?
Well, the Forex trading merchant account enters the scene & gives an outstanding performance. It not only lets forex merchants get money from investors but also helps in processing their payments when they want to withdraw. A perfect rescuer, isn’t it?
In this article, we are going to focus on getting a reliable high-quality forex trading merchant account at an affordable price.
Learn the basics about Forex merchant accounts then choose the best one
You must be familiar with the forex merchant account if you are a business owner in that industry. It has a lot of features to offer along with varied aspects, rules, and regulations that need to be followed.
It is obligatory to have the subject knowledge to own the merchant account from a reliable traditional bank and a payment processor.
You have to have all this information in mind if you want to choose an affordable and top-quality merchant account.
Let us first discuss what exactly a forex and forex trading merchant account is. Later then we will move on to its function and how it works.
What is forex?
You might already be familiar with the term Forex Exchange, yes its short form is what we call Forex. It is a type of trade that includes buying, selling, and trading currencies among several other merchants.
It is a high-risk business, and why is that? Well, it involves the regular transfer of money which possesses risks of money loss and online fraud. There are fewer chances to get services from banks. As they avoid businesses that involve high risks.
What is a Forex trading merchant account?
It is a type of merchant account that helps merchants to receive online transactions. It very well keeps the flow of transactions and smoothens it without any hassle. This process helps the merchant receive the payment with ease.
How does a Forex trading merchant account function?
The forex trading merchant account works exactly like any other merchant account. But there is a huge difference in industries. That is why features are quite different from any other simple merchant account.
Let us take an example. The forex trading merchant account accepts debit and credit card payments. Also, it supports alternative payment methods, as credit card payments are not allowed in every country for forex trading.
Any PSP (payment service provider) connects the merchant with the acquirer’s bank. It offers various methods of payment other than credit cards.
The forex trading merchant account has to offer a multi-currency transaction feature. Therefore it makes it more convenient. Only a margin limit of amount is available to the investors for the transactions. This feature makes the account adaptable to other new currencies.
A forex merchant account has the absolute goal of providing secure transactions to the customers. It also provides a predictable financial atmosphere to its customers and businesses.
Steps to get the suitable and budget-friendly Forex trading merchant account
Forex companies need to work under rules and regulations. They have to work sincerely to get their hands on reliable merchant accounts. A high-quality merchant account is completely equipped with the smart latest technologies. It can be only obtained after completing certain formalities.
Let us look at some of those formalities:
License is compulsory
The merchant should have a license of the forex business to get access to the merchant account. Having many risk factors makes it risky for banks & PSPs to consider a forex merchant account.
But it is quite easy to get the merchant account at a low price having the license of the business on hand.
Complete the research
Traditionally, merchants have to spend a hefty amount to acquire the merchant account. However, this doesn’t affect them anymore. There are some PSPs that provide the merchant account full of multiple features at a reasonable price.
You can find those PSPs by researching, all it needs is full-time scrutiny. These PSPs are not hard to find as they are quite popular.
Good credit history of the merchant
Merchant and businesses both should have a good credit history. So that you can qualify for the account. It all depends on the financial behaviour of both business and merchant if their application will be either accepted or rejected.
Their records for the last year are checked and are considered crucial. A company should maintain good financial behaviour. As it reduces the total cost of the account.
Focus on reducing the chargebacks
A business needs to reduce the chargeback if they are high in percentage. Not every PSP believes in flexibility which makes it necessary to have a clear and suitable strategy. Strategy for a chargeback to display on websites.
Specialized Account provider
It is always a better choice to get a specialized account provider. There is a good reason behind it, as they have a good network of clients and acquirers in that same industry.
They are very well aware of the needs of customers. Merchants can even get their hands on some perks like a good discount on fees and applicable charges.
Features to look out for in High-quality Forex Trading Merchant Account
You will always study the syllabus before sitting for the exam, this same case applies here. Merchants need to have the basic knowledge of the features of a high-quality forex merchant account.
Forex merchants always seek the availability of multi-currency transactions. Merchant accounts should always bring innovations like adding new currencies in the future.
The forex business is indeed full of risks. But you should not forget about the opportunities it provides. It is essential for business owners to have a multi-currency transaction option. In order to wish to expand the business further.
The license of the merchant account provider
There is always the same guideline for everyone. Just like a forex merchant needs a proper license to get the account, service providers also have to follow the same procedure.
Forex business owners confirm the authentic license of the payment processors to work for high-risk clients.
We know very well that the forex market works 24*7. It is quite common for technical and operational issues to happen. In an online world, fraudsters are always active.
This makes the 24*7 support system is important for the merchants because of the timely assistance they will seek for. The merchant should also look out for a live client support facility as a customer support strategy.
Watch a video: Forex Merchant Account – Paypound
An applicant of the forex trading merchant account should be very cautious about all the guidelines and formalities. Even a small mistake can lead to the rejection of the application for the account.
Regular innovations and rising technology are changing the circumstances. And you know what helps? The fraud detection tool. This tool of PSPs makes it quite easier to accept high-risk merchant applications. This was the main reason for the merchants to look out for merchant account service providers. Paypound, a reputable payment processor, has collaborated with various forex companies to give the easiest and most cost merchant account facilities. The PSP has a massive network of purchasers and an affordable price structure.