Forex Trading Merchant Account Trade in Peace
The forex market is one of the largest markets in the world for foreign currency exchange. Its per day transaction is $6.6 trillion. Approx 170 various currency exchanges in the forex industry.
The forex industry is continuously changing with every new product launched. It is one of the highly popular and profitable industries. Its popularity rises because of its fast return and potential for high gain. It also allows newcomers to compete with huge hedge funds and banks.
Forex enterprise offers you more and more profit if you establish a forex merchant account. The one looking to start trading in forex should learn about forex merchant accounts and the nature of the forex industries. To know more about the forex enterprise, continue reading it.
What is a forex merchant account?
As you know, forex stands for foreign exchange. It is the place where foreign currencies are brought and sold. It is one of the largest markets all over the masses. Forex enterprises are based on two different business models –
- The first model is based on the interbank market. Here, banks are the ones trading currencies on the interbank market.
- The second model is based on the over-the-counter market. It is intended for people who trade currencies over the counter using brokers or trading platforms.
It does not matter if you are forex traders or forex informational services or forex trading platforms; you all need to have a forex trading merchant account. You can accept credit and debit cards from traders and utilize other payment options if you have a Forex merchant account and use Forex payment processing.
Why does the forex trading business need a high-risk merchant account?
A merchant that deals in forex enterprises are considered high-risk. The Forex industry is labeled high-risk because of the volatile nature of the foreign currency market. This is not only a single reason, many more reasons are there why the forex industry is considered a high-risk business.
- No clear rules and regulations: As the forex industry deals all over the masses, there is no unified set of rules on an international level. Due to this, it is quite difficult to determine the relevant jurisdiction. Most bank and fintech service providers labeled this industry as high-risk.
- High chargeback rates: Chargebacks are one of the most common occurrences for the forex merchant account. The frequency with which forex dealers and brokers handle payments above £1,000 raises the prices and risks of any chargebacks.
- Money laundering concerns: It is one of the forex industry’s major issues. Due to this, most acquiring bank and payment service providers are hesitant to offer their services to foreign exchange dealers, brokers, and platform providers. A Forex business and even their bank could face the consequences for assisting financial crime if the proper standards and procedures are not upheld.
These are some of the reasons forex enterprises need a high-risk merchant account. Getting approved for a forex trading merchant account with proper documents is possible.
What are the eligibility criteria for the forex trading merchant account?
Before applying for the forex high-risk merchant account, you should know the eligibility criteria. Generally, the acquiring bank or the fintech service provider is likely to weigh the risks of opening an account with the income the forex enterprise can generate. Before approving your high-risk merchant account, acquiring bank will consider the following factors –
- License Status – The acquiring bank or service provider checks whether the applicant is authorized or not by FCA(Financial Conduct Authority). Forex merchants cannot apply for the forex merchant account unless and until they have acquired the right license.
- Transaction Statements- If you have well-established businesses and a strong financial background, the chance of getting approved by the service provider is increased.
- Trading Volume – The higher volume of monthly card transactions can help to balance the risk level and improve the chance of getting approved.
What are the benefits of using the high-risk forex merchant account?
Forex fintech service providers can easily understand the issues faced by the forex enterprises as they have experience in dealing with the forex industry. Having a high-risk merchant account offers you many benefits, such as –
- Due to the high risk in nature, standard merchant account providers increase the price. But with the high-risk service provider, you can get lower rates.
- As a global business, it has a high volume of international transactions. A high-risk payment gateway can process a high volume of transactions.
- A high-risk merchant account offers fraud detection and prevention tools to keep you and your client safe.
- A high-risk merchant account can accept multi-channel payments. It easily accepts payment from an online payment gateway and virtual terminals.
- A high-risk merchant account can accept most credit cards from all over the masses. It allows for the integration of the credit card processing system for forex transactions.
Why Amald is the best forex service provider?
Now you know that the forex industry is considered a high-risk industry and most fintech service providers refuse to offer their service to this industry. If some service providers are ready to offer their services, they take advantage of your situation and ask to pay higher fees.
So we suggest you go with the Amald. It is one of the leading fintech service providers. It has experience dealing with high-risk businesses, like the forex industry. Amald has contracts with many acquiring banks all over the masses, so the chance of getting approved for the high-risk merchant account increase. You can say that Amald is an all-in-one solution. You can get all the solutions in one place.
As Amald has the experience, it completely understands the importance of your business and offers you the best possible solutions at a reasonable rate.
Final thoughts –
The Forex industry is one of the largest industries all over the masses. This marketplace is highly profitable. The merchant needs to have a high-risk forex merchant account to gain more and more profits.
The Forex industry is considered a high-risk business because of high-volume transactions, high-chargeback rates, money laundering concerns, etc. So, to run the forex enterprises successfully, it is essential to have a high-risk merchant account.
We recommend you go with the Amald fintech service provider. It is one of the most popular service providers dealing with forex enterprises. You can get all your solutions in a single place. To know more, you can directly contact our experts.