As of today, Forex is a major interbank currency exchange market, with a daily turnover of trillions of U.S. dollars. Thanks to the development of state-of-the-art communication technologies, this area of business now involves millions of users worldwide. Could the services of a processing company prove useful in this regard? And what are the aspects to be taken into account here?
According to a report of the Bank for International Settlements, in 2013, Forex had a daily turnover of 5.3 trillion USD. Though it showed a decrease to the level of 5.1 trillion USD last year, forecasts made by a number of experts predict that it could rise up to 10 trillion USD a day by 2020.
Of course, the data provided above are approximate: due to the decentralised nature of Forex, precise amounts of training are virtually impossible to determine. However, opinions exist that it does make about 95% of the aggregate daily turnover on financial markets.
“Forex for Everyone”
Certainly, global colossi such as Morgan Stanley, Deutsche Bank or Barclays Capital are still the main liquidity providers and Forex players. The next hierarchy level is comprised of the so-called liquidity aggregators. These are large corporations or local banks. Accumulating the funds of wealthy individuals or legal entities willing to take risks and earn on this market has long been a traditional domain of operations for such entities. Today, however, the situation has changed drastically.
Development of Internet technologies, most notably, the financial ones, enables just about any person from any part of the world to become a trader. However, the law prohibits individuals from trading directly on a currency market. Hence the considerably increased importance and number of Forex brokers, licensed intermediaries between a common trader and the currency exchange market. Today, one may talk of an entire hierarchy of brokers operating at different investment levels.
And here is the key difference between Forex and a traditional exchange: all transactions are carried out remotely, through the use of Internet technologies. That is why traders and brokers can be situated in different countries, even in different continents. This also inevitably increases the importance of choosing the right processing company and an appropriate batch of processing solutions for successful operation.
To remind, a processing company is in fact a provider that specialises in managing financial interaction between a customer, the acquirer bank and the emitting bank.
Of course, each customer, whether it would be an online store, an offline business, a municipality or any other entity, would benefit most from a specific set of services most appropriate for the customer’s needs. So, what is there to be emphasized as most important, from the standpoint of specific features peculiar to the operations of a Forex broker?
Three key aspects
Clearly, the specific nature of earning on Forex makes multi-currency accounts with brokers the most comfortable, even natural tool to use for these purposes. Processing allows replenishing the balance in different currencies.
Moreover, during the economic instability period, a multi-currency account is the optimal solution. Thus, the selected processing company must be proficient in working with multi-currency accounts.
Availability of OCT payments (Original Credit Transaction) allows withdrawal of the earned funds to one’s payment card. In a broader sense, the OCT is an interbank information network intended to counter money laundering and inspect any transactions that cause suspicions.
Cooperation with an experienced and reliable processing company ensures maximum transaction passability, which is an essential and critical requirement for a broker.
“Safety first!”
Another mandatory element is the presence of an anti-fraud mechanism. This is a system intended to counter attempts of financial fraud online. It provides the so-called fraud monitoring.
Simply put, it uses a certain set of algorithms to trace any potential transactions deemed suspicious from the standpoint of a bank, an international payment system or a processing centre and blocks these until the subject of the transaction takes a decision on the issue. In particular, this includes fraud monitoring of online payments with bank cards. The anti-fraud service is offered by banks and serious processing centres.
Last but not least, a rather useful element of a service batch provided by a processing centre is the opportunity to make recurrent (automatic) payments. These are regular or automatic payments paid on a periodic basis into the account of the same beneficiary. The system is set up when the funds are transferred for the first time; further regular transactions are carried out without any direct intervention by the customer.
The only condition is the availability of the required amount on the account at the respective moment. Since the earnings of a Forex broker are definitely legal commercial revenues, a recurrent payment system could come in handy in this case; for example, it could be used to pay taxes automatically.
Taking the tense dynamics of this business into consideration, the opportunity to rid oneself of any worries regarding this essential aspect of business should be given due credit. In the meantime, recurrent payments are deemed to carry increased risk, as these transactions do not require confirmation. This is yet another reason to pay utmost attention to the choice of a processing company.
To summarise the above, cooperation with a serious and reliable processing company is not simply justified, but often necessary for a Forex broker. At that, when opting towards a specific company, one must pay attention to the following elements of the service batch it provides:
- Practice of working with different currencies.
- Availability of OCT payments.
- Usage of anti-fraud monitoring.
- Opportunity to use recurrent payments.
It stands to mention here that the service package offered by Bilderlings Pay includes all of the above. Apart from that, our customers can benefit from:
- Fast document processing for connection and a simple integration process.
- A flexible pricing policy depending on the amounts of the broker’s transactions.
- A reliable anti-fraud system with lots of customisable filters.
- A convenient merchant panel allowing the user to work with financial statistics online.
- Highly responsive customer support.
- Optimum design of individual payment pages, created considering the psychological peculiarities of perception.
Finally, it is our long-term experience and diversified practice in the domain of processing solutions, warranting the reliability of Bilderlings Pay.
Subscribe to our Facebook profile to stay aware of the latest news in the world of electronic commerce, and feel free to contact the experts of Bilderlings Pay if you need to set up a means to receive payments; we will gladly pick the best offer for you.
