Forex Merchant Account

Getting An EU Forex Merchant Account

There have been many changes in the financial markets in recent years, with easy access to fast internet connections and a rising interest in investment products seeing rapid growth in the numbers of people interested in trading those markets. By far the largest is the forex markets, where people can trade the currency exchange markets, and this popularity is something many entrepreneurs have looked at taking advantage of by setting up forex brokerages. An essential component of these kinds of business is being able to accept card payments from around the world, and this is achieved by a forex merchant account.

The financial side of a forex brokerage is complex, however the forex merchant account is straightforward to set up, requiring a credit check, the necessary identity checks and proof of the required licenses and financial backing for the business itself. A forex merchant account falls into what the card companies refer to as a high risk market sector, meaning transactions of these products are at a higher risk of fraudulent charges, more frequent chargebacks and other issues. This does not, however, mean that a business cannot obtain a forex merchant account, far from it.

There are many providers of forex merchant accounts available, and for any business to find the best available for their situation the components that make up that forex merchant account must be understood. There are 2 components to the cost, a per transaction fee for the payment gateway and an annual cost for the account itself. The exact level of both of these can change significantly depending on the transaction volume and the average transaction value, and finding a provider that will reassess rates as volumes increase, for instance with a new business, can be very beneficial. Businesses with a history of payments can often negotiate lower rates, with the risk deemed to reduce with such operational history, and so for current forex brokers, investigating new forex merchant suppliers can be beneficial in terms of renegotiation of rates being paid.

The other aspect of a forex merchant account that differs from many merchant accounts is that the payments received are usually deposits to fund a trading account, and as such the majority of customers will want to withdraw money by the same method, meaning that a forex merchant account sees far more transactions going from the business to the customer than most. This is why the per transaction costs are important, as well as the process of issuing these payments, and a tailored system that includes the payment gateway that is adapted for this is part of the forex merchant account is essential for the success of any forex broker.

A forex merchant account has many aspects that can affect the prosperity of the business, and finding the right one is a matter of seeking the balance of cost and service that suits the individual business model the best, and is a vital aspect of planning for any forex brokerage.

Get started today: [ APPLY FOR A FOREX MERCHANT ACCOUNT ]