Forex is short for Foreign Exchange. It is a global market in which foreign currencies are bought, sold, traded and speculated. Forex is the largest market and the most liquid since it operates 24/7, five days a week, recording transactions on average of over $5 trillion per day.
It’s a very lucrative business that can see very high returns—but as we shall see, without having a secure Forex payment processing solution to accept credit and debit cards, traders may also incur dreadful losses.
Why should companies use Forex?
The financial rewards may be reason enough. However, what makes using Forex especially necessary for companies or traders is that working with currencies is not akin to working with stocks: currencies do not move independently as stocks do.
Moreover, choosing an experienced Forex payment processor will enable you to benefit from having a global economic hedge, allowing you to evaluate or speculate which currencies will lead to a better return on your investment. — It also gives you a hedge against political situations worldwide: by keeping in the ‘know’ regarding political unrest or other events in the world that may affect the dollar, you can always switch currencies to avoid a loss. It’s a risk, but a calculated one. Lastly, Forex trading offers you great capital appreciation, similar to stock investment and trading.
Why is Forex considered ‘High Risk’?
Banks and other institutions mark Forex as a ‘high-risk’ industry because of its potentially volatile and seemingly capricious nature. Forex businesses are remarkably high risk for reasons such as the exchange rate risk, the interest rate risk, the credit risk, the country and liquidity risk and the leverage risk.
The lack of regulation is the principal concern to banks, and for this reasonable concern, banks classify Forex payment processing as high-risk merchants.
Since there is no centralised foreign exchange market, all currency trading is done electronically. Forex payment processing companies have faced increased scrutiny, making forex merchant account services a high-risk industry. This has created difficulty for merchants to find stable Forex merchant account providers.
What is the problem with Forex?
Owing to the Forex market having a high trading volume, Forex assets are classified as highly liquid assets; and because they are leveraged products, there is great risk associated with Forex trading, which may result in hefty losses.
Considering this, traders need to account for these various risks when actively trading on the Forex market. Such risks are: margin risk, political risk, interest rate risk, exchange rate risk, volatility risk, credit risk, operational risk, broker risk, devaluation risk and fraud risk.
The Forex trading market allows trading companies and individual traders to leverage a considerable amount of money, which can generate substantial profits or incur considerable losses. Since banks and other financial institutions will not open a merchant account for your Forex business due to its being labelled ‘very high risk’, it may limit the number of investors you could attract worldwide, who might prefer using Forex as a payment method.
What is the solution?
With any business, the solution is to partner with experts in Forex trading. The best solution is to have your Forex trading account register with a professional payment processing company in order to help facilitate your Forex business.
It’s beneficial for your Forex business to acquire a Forex merchant account so that the risks are minimal and the pay-outs optimal. — It is vital to have financial confidence when using the Forex Trading Merchant Account online, as well as to keep your account safe and have your payment processor offer top performance when trading by way of their extensive capital and risk-management procedures.
iPayTotal’s ‘total’ and bespoke offering for Forex Merchants
iPayTotal has expansive knowledge and expertise in creating and supporting Forex merchant accounts. With its access to offshore acquiring banks, iPayTotal has the capacity to leverage its connections and relationships worldwide to secure a financial-banking solution to suit your Forex business trading account.
To mention a few, these are some of the highlights you can expect when partnering with iPayTotal and its ultimate and total Forex merchant account solution: —
_Low rates, fast pay-outs and best terms available
_Your Forex account’s special needs are kept in mind always
_Extensive banking network
_Innovative and powerful anti-fraud management tools
_Multi-channel payment solutions
_Forex credit card payment gateway
_Robust reporting system to track your transactions.
Make contact for your ultimate Forex merchant account
iPayTotal has many other solutions for your Forex trading merchant account to put your mind at ease and enable you to concentrate on the business at hand rather than worry about the many payment processing issues. This will give you more time to concentrate on what you do best, enabling you to focus more actively on your customers.
Make contact with us today and find out why you should have a merchant account for your Forex trading business. The benefits simply outweigh everything.