What is Forex?

Forex is an Acronym of foreign exchange. The foreign exchange market is the global market for the trading of foreign currencies. It is, by far, the largest trading market in the world and is worth a whopping US$2.4 quadrillion.  As of 2020, each day a massive US$6.6 trillion is traded on the forex markets. Because it’s such a lucrative, albeit volatile marketplace, awareness has grown exponentially, and more and more people are racing to claim their piece of the profits. This gives rise to the need for Forex merchant account providers.

The Forex market has two tiers. The first is the interbank market, where the large banks trade with one another on a global platform. The second is referred to as over-the-counter trading. This is where individual users perform trades through brokers and online trading platforms.

So why the need for a Forex payment gateway?

Basically, it serves as the intermediary between the Forex user and the trading platform. Traders will use the Forex payment system to both deposit and withdraw funds from their trading accounts. In order for this to happen, a gateway is necessary to transfer these sums between the users and the broker’s merchant account. Therefore, Forex brokers need to need a solid payment gateway for their platform, allowing their traders to move funds in the most efficient way.

As is evident from the numbers above, brokers also handle extremely high amounts of money over short periods of time. This leads to a surge in fraudulent opportunists trying to illegally get their hands onto some of this wealth. With Forex merchant accounts, the payment processor must have the latest in security features, and their payment gateway needs to leave both the user and the merchant confident that their assets are protected.

With the growth of the market, there is also a growing need for information. This is where Forex educational services come in. These can be in the form of providing services including seminars, newsletters, fundamental research tips and data analysis software. Coming in at a price, these services will require the use of a high-risk merchant provider.

What methods are used to deposit and withdraw money

There are a few ways that traders are able to move money into and out of their accounts. These are the most popular:

1. Credit cards:  This is by far the most popular method, as funds are transferred almost instantly. This is important for traders as the market is volatile
2. Bank transfers: These are the most cost-effective for both merchant and trader, however, take the longest to process. Also, if the transfers are international, the processing time will be much longer, and cost more.
3. E-Wallets: These are online wallets that not all clients have access to. Most traders will always prefer credit cards to wallets.
4. Cryptocurrencies: These are of the fastest ways to send and receive payments. They are also becoming more popular among Forex traders.

Opening a Forex merchant account

At Octapay, we have leading experts in the Forex trading field. We know what your company needs to start making a profit, and we have ideas that you may not have thought of to make your business great. We want you to succeed because your success is inevitably our success.  Our cutting-edge security measures will ensure your confidence in every transaction, and your assurance is our priority.

If you are wondering about opening a forex merchant account, you have no doubt been informed that this type of merchant account is classified as high risk.  Don’t let this discourage you from getting the best possible deals. We are here to help do just that. Give us a call and one of our Forex experts will be happy to talk you through the process.