forex payment solutions

Payment Processors for FX Business. How to Choose the Best One


  1. How to Choose the Best Payment Processor for Your FX Business
  2. What is a Payment Processor and How is it Different from Payment Gateways?
  3. Why Do You Need Payment Processors for Your Brokerage?
  4. What Should You Consider While Choosing a Forex Payment Solution?

How to Choose the Best Payment Processor for Your FX Business

Given the intense competition in the financial markets, any advantage you can offer your clients will set you ahead of the curve. This is also true of forex payment solutions. Are you offering traders a smooth and effortless way to make deposits in and withdrawals from their trading accounts? Are you giving them multiple payment options so that they can choose the one most convenient for them?

There can be one simple solution for all this – a reliable and powerful payment processor. You might have already considered several payment gateways for forex brokers. But with a payment processor, you get multiple choices with a single forex payment solution. Here’s what you need to know to make a strategic decision for your FX business.

What is a Payment Processor and How is it Different from Payment Gateways?

Now, every online payment has four parties – the business, the customer, the customer’s bank and the business’ bank. A payment processor completes the transaction between you and your customer by transmitting data between these four parties. A payment gateway, on the other hand, is the means to safely transmit the online payment data to the payment processor. You could think of it as an online POS terminal.

So, essentially, while the payment gateway merely communicates payment approval or rejection, a payment processor enables the entire transaction process. The key differences between the two are:

A payment gateway for a brokerage or any other business is software that encrypts and then transmits the payment details from the customer’s bank to the business’ bank and vice versa, while also communicating whether the payment has been approved, or denied, back to the entity making the payment. On the other hand, a payment processor securely transmits data between all parties involved right till the funds reach the destination bank account.

Why Do You Need Payment Processors for Your Brokerage?

The huge trading activity forex brokers witness on their trading platforms means that they need to process massive volumes of transactions each day. This tends to raise the chargeback rates for FX businesses. Unfortunately, this is also why many international payment systems categorize forex brokers as high-risk businesses. The end result is that these brokers could face application rejections with traditional payment gateways and banks.

This is where payment processors come to the rescue, acting as mediators between the brokerage and the payment systems. With the services of a payment processor, providing convenient, simple and secure deposits and withdrawals for both traders and brokers. They also ensure fast approval of payment requests, while charging low rates. High volume processing is also eased with the help of these service providers, including multicurrency transactions. They also help mitigate the risk of depending on a single financial firm for payment processing with access to a large banking network.

In addition, they offer multiple FX payment solutions and channels, including alternative payment methods preferred in different countries. FX brokers can also remain safe with fraud protection. However, to access all these advantages, the key is to choose the best payment gateway for forex brokers.

What Should You Consider While Choosing a Forex Payment Solution?

To access and offer the smoothest experience of making transactions, make sure the payment processor you choose offers certain features, such as:

Low Fees and Instant Transfers

Given that delays could lead to slippage in FX trading, transaction processing speed is of paramount importance. Plus, low fees are a prerequisite to offering cost benefits for traders. Check their ability to support transactions at scale, across countries, giving you a runway to expand to new geographies.

Chargeback Protection

This protection not only helps gain satisfied clients but also protects against fraud. With chargeback protection, the liability of fraudulent payment disputes or unauthorised transactions is taken on by the chargeback protection provider, rather than the broker.

Multiple Payment Methods and Channels

Since you will be dealing with multiple currencies across jurisdictions, the payment processor should offer multiple options for payment gateways for your brokerage, including credit cards, bank transfers, digital wallets, etc.

Strong Security and Compliance

The need for compliance in the financial sector cannot be stressed enough. So, choose an FX payment solution that ensures the highest anti-money laundering and anti-fraud standards. Also, given that different countries have different regulatory frameworks, the payment processor’s services should comply with each jurisdiction in which you offer your services.

The Bottom Line

Choosing the right payment partner can be a huge support in offering traders hassle-free transactions. Plus, offering local payment options could set you apart from the competition. So, make sure you choose your payment processor carefully. You should also be able to offer a completely branded experience with a powerful white label platform. Learn more about how to ease business operations.


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