In literal terms, Forex stands for Foreign exchange. It refers to a global market where foreign currencies are brought, sold, traded, and speculated on. It is the largest of all markets where a minimum of dollar four to five trillion transactions take place on a daily basis. Furthermore, the FX market operates on two different business models. The first model involves currency trading on the interbank market where banks are the one who does the trading. The second model deals with individuals who trade currencies with the aid of different kinds of brokers or trading platform.
The FX merchant accounts generally used by the broker company, FX informational services, an FX trading platform. As a broker having a merchant account and using the Forex payment processing enables you to accept credit and debit cards from the traders. One can also take advantage of the alternative payment methods.
The broker who wants a merchant account needs to belong from that particular location. One also needs to have their business present in that geographical location. Apart from this, one should also present their revenue earning to the acquiring bank, with which you want your business to be tied up. To impress the acquiring bank, one needs to have three to six months of processing history and a low overall chargeback rate.
Generally, Forex merchant accounts are provided mainly to existing brokers. Fraudulent activities and unnecessary chargeback are common to the brokers who have their merchant account. They are regarded as the most common issue often prevalent in the Forex industry. To earn maximum profit through your broker business all you need to do is find a payment processor who specializes in providing high risk merchant account. They will also be able to understand the specific Forex related challenges that you face with your merchant account.
Now to take our discussion further, we know the reason why the FX merchant account is considered to be at high risk. The FX brokers, with the aid of their merchant account, often face fraud, money laundering, and unnecessary chargeback from distasteful investors. On the other hand, the broker can avoid all these problems if you properly license your FX merchant account at the time of creation. Thus having all the necessary licenses will help you to get your merchant account seamlessly. It will be having all kinds of anti-fraud and anti-money laundering filtered placed within it.
That is why it is necessary to find a reliable payment provider. He will understand all your specific needs at the time of the creation of your merchant account. The provider will also implement a smart anti-fraud filter so that you will be able to distinguish between a fraudster and a genuine client.
If all the filters, present within your merchant account, as a broker, you will witness the rise in the profit accrued by you. Lastly, with the aid of your merchant account, you can use all kinds of payment gateways like the credit card, e-wallet, and bank wire transfer to receive quick payment from your clients.
In conclusion, being a broker, if you want to earn profit from the commission, then you should look for a merchant account provider and a payment processor who will make your account innovative and fraud-free.