What is a merchant account for Forex trading?
Merchant account for Forex is used to bridge the monetary trading network with its users. Forex traders directly incorporate the payment portal into their websites, enabling brokers to approve their clients’ transactions.
Although traders use the payment system for Forex to finance their accounts and withdraw cash, the Gateway transfers to the merchant’s account an amount received from the users (e.g. trade fees).
Why is seeking a merchant account difficult for forex brokers?
When you first attempt to open a commercial account on a conventional payment portal, Forex companies frequently have their transaction denied.
But why is this phenomenon happening?
Since forex brokers experience huge trading on their platforms, every day they manage large volumes of transactions, increasing the company’s charging pace.
Payment processors are therefore classified as high-risk firms, which means brokers are likely to have to face applications with conventional gateway solutions that they have rejected.
Alternatively, forestry brokers may start a dealership account at a specialist, high-risk merchant account solution. These programs also benefit from the situation, however, by charging excessive fees and retaining consumer funds for longer periods.
Luckily, a third alternative is open.
Merchant account service providers such as eMerchant Pro provide advanced security and anti-fraud features with robust KYC/AML surveillance to enable licensed enterprises even in some high-risk industries such as Forex to provide merchant accounts.
However, it is important to stress that only dealers who comply strictly with the regulatory legislation of all nations they are engaged in are accepted in the aforementioned payment solution.
Why are Forex firms known as high risk?
Many banks and financial institutions will not open their Forex account because they are branded “high risk” because of their ability to set up this form of account at very low prices. Some companies do not deal with all sorts of forex companies, for example, limiting trading and only allowing those that offer educational services, software, etc. Also, if the trader has more issues, the situation may become even more complicated. They may involve low credit, issues with the previous company that handled the card, etc.
When choosing a Forex merchant account, what do merchants consider?
Foreign companies need to consider several considerations before selecting a merchant account solution, for example:
Speed: Forex traders must act rapidly to discover possibilities and profit from currency movements. That is why traders must choose a merchant account for the rapid processing of customer transactions.
Foreign exchange companies need a supplier that doesn’t pay merchants for longer periods also to keep their cash levels up.
Fee: Because forex brokers benefit from price spreads and other trading fees, and economic merchant account is necessary for sustaining profits for their company.
Exchange of currencies: high exchange costs in the currency will deter traders from using brokering platforms. Therefore, a Forex payment platform solution providing decent currency rates is necessary. It is critical. In an even better situation, the service provides both retailers and their customers with multi-device accounts to ensure the lowest cost of currency conversion.
Methods of payment: while some clients prefer the speed of the payment, others can invest time on deposits and withdrawals for saving money. Therefore it is important to provide traders with multiple payment methods and select a gateway solution.
How will a Forex trading merchant account be integrated?
Foreign brokers must first register for a commercial account with a service provider if they want to set up a merchant account.
The forex trading merchant account solution can be incorporated directly into your platforms through an application programming interface (API).
Forex dealers can quickly set up using the service provider’s API documentation.
Simply Convenient Forex Trading merchant account
As a forex broker, a commercial account could be demanded at conventional merchant accounts.
They will, however, deny your submission.
Given that high-risk processors charge huge fees and have sluggish transactions, forex traders often do not have a proper payment gateway solutions.
Fortunately, the problems are solved.
eMerchant Pro, the world-class service provider, offers low-risk business merchant account service. Also, eMerchant Pro provides risky marketing strategies for licensed forex companies that comply with the applicable regulatory legislation.
In the USA, Canada, Mexico, Greenland, Iceland, Cuba, Colombia, Guyana as well as the international transactions of eMerchant Pro have collaborated with financial institutions from seven APAC nations.
How to book a trading account for Forex?
We try to find the best choice for you, and we need to know about your business. Contact our representatives for customer service. They answer all your questions and direct you through all our service integration processes. Our contacts include a telephone, e-mail address, postal address, and on-line contact form available on our website in the “Contact Information” section.
What is the cost of our service?
We maintain a fair price but we need to be mindful of your requirements and need to decide the price for you. To find out more details, please contact our customer service representatives. We will help you choose the best choice you can use in favorable circumstances for your company.
API requirements for Forex Merchant Account
Several documents are mandatory for your brokerage to authorize and develop Forex trading merchant services. The approval takes a day or two until the processor has them.
- Request completed
- ID released by government (Passport)
- Corporate documents
- Record of use (Confirming Address)
- Domain Registry Snapshot (Proving Domain Ownership)
The provision of a full application to the underwriters would help improve the account’s approval period. Similar to other forms of financial items, banks must know with whom they work to avoid the risk of illicit activities, including money laundering and terrorism.