If you plan to start a brand-new Forex business, you are probably impressed by the increasing volume of the market. Especially during the pandemic, the number of active Forex traders has increased by nearly 50% according to research. While the market keeps welcoming more and more people, it looks appetizing for those who want to invest in a new business. The rapid increase of the market may make you think that it is easy to survive. However, there are lots of things that a broker has to perfect in order to maximize their profit. Finding the most suitable payment method for your business model is definitely one of them.
A payment system is necessary to collect online payments coming from the clients. What they do is create a bridge between the customer’s account and your payment portal. The security of the transactions is usually guaranteed by encrypting data. In that way, the card and bank details of the customers cannot be reached by those who try to sneak into the system.
Types of Payment Methods
- Bank-Wire Transfer
Bank-Wire is perhaps the oldest and most widely accepted payment method. It simply refers to the money transfer from clients’ bank account to the bank account of the broker. The beauty of this system is that transfer is happening over the banking system and does not require any other third parties to involve. The dynamics of the market have changed over the years but a classic SWIFT transfer is still preferable for those who use nothing but bank deposit for the transactions.
- Digital Wallets and Payment Portals
Digital payment gateway solutions are the rising stars of the industry. What they offer is a secure and convenient space to deposit and withdraw funds at a very high level of speed. Especially in these volatile and vulnerable market conditions, many traders seek to gain an advantage from fast and frequent transactions. Unlike the Bank-Wire option, digital payment platforms are more flexible to the market changes by adding a third party into the formula. PayPal, Skriller, and Neteller are the most popular digital payment gateway options around the world.
Cryptocurrencies are not as popular as the first two options but they also started to soar in the market. The decentralized structure of cryptocurrencies is actually very beneficial for the Forex industry since the absence of a regulatory body reduces transaction fees by a huge amount. Moreover, every transaction should be validated to be added to the ledger and they are immutable. This transparent function makes cryptocurrencies scam-proof and increases the credibility of the brokers.Share this article