Pre-requisites of a Forex Merchant Account and How to Get One?

Pre-requisites of a Forex Merchant Account and How to Get One?

The Forex (Foreign Exchange) market remains one of the most popular and potentially profitable investment opportunities. It can be difficult to understand how to open a Forex Merchant Account.

This article discusses the pre-requisites of a Forex Merchant Account and how to get one.

Types of Foreign Exchange Merchant Accounts

As a business owner, you should accept all payment types. Accepting multiple payment types should help you reach more customers, leading to more sales. Forex firms are accustomed to receiving payments via a range of forms and currencies. When placing transactions in a marketplace that is continuously changing, speed is of the utmost importance.

Here are the types of Foreign Exchange Merchant Accounts available in the market.

1. Card Processing

One of the most popular ways to move money for Forex trading is with credit or debit cards. Many people are starting to use them for Forex trading because it’s easy and quick to move money. Unfortunately, MasterCard and Visa regulations might make it tough to retain a Foreign Exchange Merchant Account for card processing.

2. Cheque Processing

Cheque transfers are a common substitute for debit and credit card purchases for Foreign Exchange. Although settlement periods are defined in days instead of hours, the fact that these Forex merchant accounts have fewer limitations means that they can be simpler to operate. Cheque payments are very popular in certain regions and for certain business models since they allow you to accept the funds directly into your bank account.

3. Crypto Processing

Trading cryptocurrency is quickly starting to catch on, but many Forex traders are hesitant to start using digital currency as a favored method of money transfer. Using cryptocurrencies to complete a purchase is indeed more complicated than just paying with a credit card. However, if you know what you’re doing, the process is very easy. 

4. Bank Transfer

Bank transfers were popular back in the day, but today, they are considered tedious. When attempting to submit a deposit, customers need to fill out multiple documents, some of which include a signature and photograph of the customer. And these methods take several hours or even multiple days to finish. So, these deposit methods have become unpopular, especially with today’s modern and tech-savvy consumers.

Eligibility Criteria of having a Forex Merchant Account:

Banking institutions and payment processing platforms are likely to consider the dangers of establishing an account against the profits that Foreign Exchange trading activity may provide when assessing applications for Forex Company Merchant Accounts.

Merchant acquirers often examine the following aspects when making an evaluation:

1. Status of Licence

This indicates if the company is licensed by the FCA (Financial Conduct Authority) or any other regulatory authority if they function from a location elsewhere than the United Kingdom. Foreign exchange brokerages are typically unable to apply for a Forex Merchant Account if they have not obtained the appropriate license.

2. Recent Statement of Transactions

Reputable and well-established firms have a greater chance of being authorized by Foreign Exchange payment processing platforms since it is simple for them to demonstrate their financial qualifications with past transaction data. Detailed and well-maintained finances can considerably boost your odds of acceptance.

3. Volume of Trading

Because merchant acquirers are primarily motivated by financial considerations, larger monthly card transaction volumes can assist equalize risk levels and boost your odds of approval.

The requirements for obtaining a Foreign Exchange merchant account differ based on the location of your company.

Foreign Exchange brokers and merchants seeking a European account for payment processing must demonstrate an authentic company footprint, such as by setting up a legally administrative headquarters in Europe.

You will also need to supply financial statements once you have fulfilled the basic approval requirements and regulatory barriers. These statements should ideally contain the last 3 to 6 months of payment processing data, as well as evidence of a low rate of chargeback.

If you are unable to produce financial statements or payment processing records, you must demonstrate to the provider how you intend to secure payment safety and reduce chargebacks. The process might involve employing non-intrusive 2FA (two-factor authentication) technologies that yet allow users to make quick payments.

Required Documents

Every merchant acquirer will seek a different set of documentation in favor of your Forex Merchant Account application, however, you will almost always be needed to deliver:

  1. Ownership information for the specific account where processed payments should be sent.
  2. Bank account statements for a minimum of 3 to a maximum of 6 months.
  3. Documents from 3 to 6 months ago to demonstrate your payment processing record.
  4. Corporate paperwork to prove your company ownership.
  5. Photo-ID to pass Anti-money laundering and know your Customer check-ups.
  6. Utility bills of the last few months to verify the address.
  7. Details on the domain registration.

Additional documented confirmation of monthly processing volume quantities may be requested from required global foreign dealer acquirers. Providing detailed and up-to-date information may increase your chances of being approved and authorised for a foreign exchange merchant account for payment processing.

Is Having a License Important?

Indeed, merchant acquirers normally do not accept Forex Merchant Account applications from firms that don’t possess the necessary licenses for their country or jurisdiction. Before applying for a Foreign Exchange merchant account, you need to confirm that your company is legally licensed and in compliance with your local legislation.


To sum up, there are many steps that you should take before opening up a Forex merchant account. First, make sure you understand the basic types of accounts out there and the terminology that goes along with each type. Second, make sure your company is fully licensed. Finally, apply for a Forex Merchant Account with the necessary supporting documents. 

A Forex Merchant Account can allow your firm accept payments from customers with international credit cards or in other currencies. Anyone with a global e-commerce platform can promote their business to a larger audience by using a Forex Merchant Account, which opens up new opportunities for your company.

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