Forex business is extremely promising, and it has a lot of potentials to deliver profit to the investors. However, the factor of volatility shows the other side of the coin, revealing the risky nature of the Forex business. The presence of risk makes the traditional financial system steer away from the Forex merchants. As a result, the offshore merchant accounts become effective options.
Get an insight into the utility of these accounts while understanding varied aspects of forex trading with forex gateway. It will help you relate the requirement of high-risk offshore merchant accounts to the merchants from the industry.
What is Forex?
Forex is the short-form for Foreign Exchange. It is a global market for the sale and purchase of foreign currencies.
What is a Forex merchant account?
It is a commercial account assigned to a forex company to let it receive payments from its investors/traders for the purchase and sale of currencies. A merchant service provider provides the account.
Forex is a financially unsafe industry, which is why the traditional banking system does not support such businesses. Also, credit card use is banned for Forex trading in some countries with forex gateway. The merchant accounts offer alternative payment methods such as mobile payments, digital wallets, charge cards, bank transfers, etc.
What factors make the Forex industry risky?
Several potential factors make forex trading a high-risk affair for merchants and investors. The businesses opt for the high-risk offshore merchant account for the best possible prevention from the risk factors that may affect the investors.
- Unregulated market – That is true. The regulations and regulatory authorities keep an industry in control. The Forex market is not regulated because people sell and buy currencies here. Legally, no country has any control over the currencies of other countries. It is the reason that the traditional banking systems do not support Forex merchants.
- Volatile nature – No need to explain how bumpy is the forex market. Things here change in a few minutes. If some investors earn millions and billions in a short time, some may face a severe loss. The investors who face loss raise the demand for chargeback, which is quite frequent. A merchant has to struggle with this issue now and then and seeks for a solution in the form of an offshore account.
- High volume processing accounts – According to the latest data, in the foreign exchange market, average $6.6 trillion is traded every day. If you take the worldwide statistics of daily trade, it is $2.409 quadrillion. The merchants have a critical responsibility to take care of the money of millions of people. In that case, they will obviously need support that can help them ensure security for their customers.
- Money laundering – We all know how badly the financial market can get affected by money laundering. It is still a big challenge, and the loss of billion dollars can happen in just a few minutes in the market. As a result, there is the absence of any conventional bank that can help the merchants find a way out. They play in an extremely risky market. They cannot take any chance with their goodwill in the market, and thus a protected platform for trading is required.
How an offshore merchant account supports a forex merchant?
You can easily count the ways in which a merchant service provider helps this industry flourish in the right direction. By simplifying daily, complicated tasks, they help the business owners attain certainty despite working in a highly uncertain sector.
PCI-DSS compliant services –
The merchant services that comply with the data security standards draw a safety line in front of the forex merchants. No need to mention how desperately forex merchants require such security commitments. They need to ensure the safety of financial details and transaction of the customers.
Spot white and black listed customers –
The white listed customers are genuine and eligible for the big size ticket transactions. On the other hand, the black-listed customers are the fraudsters and wrong customers. These accounts can be dealt with according to the due legal procedure. This, in turn, helps control the incidents of cybercrime that are pretty common in the industry.
Network of multiple acquiring banks –
The offshore merchant service providers keep a strong network with many acquiring banks at varied locations. The merchants can get various accounts with varied banks while mitigating the risk. Also, it helps to reduce the expenses on fees applicable on a merchant account, as every bank has different fee policies. Isn’t it great to have so many options when you do not have even a single option for conventional financial institutions?
Identity and address verification –
A forex business can flourish only if it is confirmed about the identity of its customers. Address confirmation is another shield that helps to authenticate the trustworthiness of a customer. At the same time, it helps protect a genuine customer of the merchant from fraudsters.
Encryption of military-grade –
The encryption of sensitive card data makes it easier for the merchant to process the transactions. The encrypted information gets processed as tokens. These are secured in the payment gateway’s secure vault for recurring payments. This technology helps to add funds to the trading accounts. Amald is equipped with intelligent technological arrangements, and we can make you and your business feel secure.
Large ticket size VIP processing –
Conveniently facilitate your VIP customers do big size ticket trading in the market. The offshore accounts make it easy for the Forex merchants to work in a liberal atmosphere. The merchants and the investors can feel that they have the right atmosphere to implement their investment plans.
Searching for a good offshore merchant account provider is a task. But if you have reached here, stay relaxed as you are in safe hands now. With Amald forex offshore merchant account with forex gateway, you get safer payment solutions. We not only facilitate the confidence of a strong payment gateway but also mitigate the risk of chargebacks. The 3D secure payment gateway gives the merchants more chances to win a claim against a chargeback. Our specialization-based solutions for the Forex industry ensure that you can achieve new horizons in the business.