The foreign currency exchange market is one of the largest and most highly risky markets all over the masses. There are approx $6.1 trillion transactions occurring per day.

Forex traders buy or sell different currencies on the foreign market. Brokers which accept the payment from this market ought to need the forex trading merchant account. Having the right forex trading merchant account helps you to accept credit and debit card payments from traders.

There are various service providers available today which set your business all over the masses in a hassle-free manner.

Let’s discuss in more detail about forex trading merchant account.

What is a forex trading merchant account?

As we all know that forex stands for foreign exchange. It is the global market where foreign currencies are brought, sold, traded, and speculated. It has two extend -

• Interbank market – Here, the large bank trades currency.

• Over-the-counter market – Here, either individuals trade through brokers or online trading platforms.

A forex trading merchant account is necessary in both cases. Forex merchant account helps individuals to accept credit/debit card payment from traders. An individual can also get the benefits to accept the payment via some other alternative payment methods.

Is it a high-risk account?

YES! a Forex trading merchant account is considered a high-risk merchant account. There are several reasons which make the forex industry a high risk when applying for the forex merchant account including – the high chance of chargeback, the complexity of international regulations, fluctuating currency values, the potential for money laundering, etc.

Let’s discuss this in brief-

High risk of chargeback -

Chargebacks are a typical occurrence for owners of Forex merchant accounts, just like any other 'high-risk' sector. The frequency with which forex dealers and brokers handle payments above £1,000 raises the cost and danger of any chargebacks.

No clear regulations -

Now, everyone knows that the forex industry deals across the global currency markets. So, there are no clear rules or regulatory agencies to oversee trading on a global level. This makes it complex and challenging to identify the proper jurisdiction in conflicts.

Generally, banks hesitate to conduct such businesses where there is a weak regulatory environment.

Money laundering concerns -

It is one of the major issues with all the high-risk over-the-counter industries including forex. This is the reason some merchant acquirers hesitate to provide their service to foreign exchange traders or forex exchange providers.

Types of forex merchant accounts?

The Forex industry accepts payment in different modes. Credit/debit card payments are the most popular, fastest, and most convenient way to fund a trading account. This is the reason most customers prefer to make the payment via credit/debit card.

Below are some of the most widely used types of forex merchant accounts.

Credit card processing account :

Most forex brokerages prefer credit card processing account as it provides fast service. It offers their client to transfer money in a hassle-free and fast manner for foreign currency trading purposes. But, it's not an easy task to maintain a forex credit card processing merchant account due to the regulations imposed by Visa and Mastercard.

Cheque processing account :

It is one of the most popular methods to accept forex payments. It does not require any middleman as the payment and deposit process has been done within one company. It takes a day to proceed with the payments.

As compared to the credit card processing account, it has fewer restrictions, so it is easy to maintain these types of merchant accounts.

Cryptocurrency processing account :

Nowadays, cryptocurrency becoming more popular. Many forex traders prefer digital currency to transfer money.

But transferring money via cryptocurrency is more complex as compared to any other method (credit/debit card or check process) as this digital currency value is not stable.

Bank Transfer :

Generally, it is used a few years back. Nowadays, there are many fewer brokers who prefer bank transfers. You can say that it is an unfavorable method of payment for both traders and brokers. Here, customers have to submit many forms to deposit. Its risk is similar to that of credit card processing.

What documents do you need to have a merchant account?

The eligibility criteria to open a merchant account depend on the location where your business is established. Once the basic criteria are accepted, it's essential to provide the financial records which include 3 to 6 months of the transaction history. Once this process is completed. You need to submit the documents.

Different merchant acquirers have different lists of documents to support the account applications. But the below-required documents are essential for every merchant account.

• Three or six months of bank statements that show payment processing history.

• Ownership details

• Utility bills as address proof

• Photo-ID for AML and KYC checks

• Domain registration information.

Paycly: the best solution for your forex merchant account

Today, you can get many options for your merchant account. With PayCly, you can get all-in-one solutions. It offers you the forex payment gateway as well as opens your forex merchant accounts. It offers you the complete solution from high-level security to a reasonable rate.

With the PayCly solution, it becomes easy for you to reach the next level of success for your forex business.

Wrapping Up -

After reading it, you completely understand what is a forex merchant account and why it considers a high-risk business, as it has a higher chance of high-risk chargeback, money laundering concerns, and No clear regulations.

At Paycly, we completely understand the forex industries and your forex business needs. Paycly offers you the complete solution from an anti-charge back solution to credit card processing. With Paycly you can get all solutions in one place.