Many novice brokers open their brokerage company in an unregulated jurisdiction, insomuch as such a business requires a less initial investment. To date, the biggest difficulty faced by a semi-regulated broker is accepting payments and deposits. Methods of withdrawing funds from a trading account also have a significant influence on a trader.
To accept deposits from clients, Forex Brokers can try their luck with opening their own bank account or using an existing one (Learn more on how to open a bank account in our Guide for Brokers – Payment Solution). Not the best option so far, thus traders often face problems when making a deposit directly to a broker’s bank account. So, the process of trading happens to be delayed because bank transfers themselves can take several days. Card payments are a common concern among brokers due to the widespread fraud associated with this type of payment. However, in the modern forex market, there are several alternative solutions that will guarantee hassle-free and efficient payments.
In order for customers to quickly and easily transfer funds to their broker’s account, they need to use one of the solutions available on the market that offer the ability to buy cryptocurrency using credit cards or bank transfers. But by choosing a trusted technology provider, you can immediately get a complete set of payment solutions in one. For example, our Match2Pay payment gateway is already integrated with several BTC exchangers (like Moonpay, Mercuryo.io and many more) to provide a complete solution for buying, exchanging and collecting crypto.
Credit Card PSPs
A payment aggregator is a service in which several payment systems are combined into one single solution. By concluding an agreement with only one system, the Broker longer needs to connect to different payment systems separately. The more payment systems a broker accepts the better since not every trader can use any type of transfer. The more PSPs, the more chances of successful payment.
There are many companies offering these types of solutions. One of the most popular systems on the market today is Praxis. And because we care about the comfort of our customers, in our Client Office, the Praxis Cashier is already integrated. The payment aggregator system supports over 1000 different payment methods, including tier 1 acquiring banks, e-wallets, APM and crypto providers. Praxis provides a full back-office, where brokers can set the parameters they need and monitor all processed transactions in one place. This is important in case if Broker has many different PSPs, that require a lot of manual work for daily calculations and accounting.
Unfortunately, Praxis doesn’t solve all possible problems that may be, and therefore it is in the broker’s interest to have additional options for accepting deposits.
Of course, most Forex Brokers already have an idea of how to work with electronic wallets. Therefore, let’s consider only the key points:
- e-wallets work both in automatic and manual mode;
- a number of e-wallets work with Forex, but only with a license (Skrill, Neteller, PayPal);
- commissions and limits can differ significantly from one another;
- the geography of e-wallets use can also be radically different since some of them (for example, QIWI) serve only a relatively small number of countries, while others, as a rule, work with a much larger number of jurisdictions from all over the world;
The broker can add any electronic wallet to the Match2Pay payment gateway – Paypal, Skrill, Neteller, Revolut or others. After the transfer, the broker receives a notification by email, and after checking his e-wallet, accepts the request for payment in CRM. Thus, the money immediately appears on the trader’s platform.
This type of deposit is called half-automatic, since an unregulated broker, due to the lack of an API, still has to check his personal e-wallet and then manually confirm the payment in CRM.
Accepting cryptocurrency deposits is a must for a major broker. It become a mandatory basic element of the brokerage business, and traders always pay attention to this. For example, as a technology provider, we offer two options: a ready-made Сlient Office with a crypto payment solution already built into the system, or a separate Match2Pay Cryptocurrency Payment Gateway. In the second case, we provide API and the whole integration process with the client’s system.
Connecting a payment gateway is exactly what will give brokerage businesses an undeniable advantage and solve many payments problems. There are two types of cryptocurrency deposits. The first, if the client’s funds are initially in cryptocurrency. As mentioned earlier, in the Match-Trader platform, the Client Office is integrated with the trading platform. The client has the opportunity to deposit money within the platform and send cryptocurrency. Funds are automatically converted into USD and appear on the Client’s trading account. The broker immediately receives this amount into the Match2Pay wallet. The transaction takes only one and a half seconds.
The second type of transaction is when a client wants to transfer money using a credit card, but the broker accepts it in cryptocurrency. Crypto processors (such as MoonPay, Itez, Xanpool and Mercuryo) are already integrated into our Match2Pay payment gateway, which allows the broker’s customers to do this. But the process itself is very simple, so the client won’t’ feel the difference with a regular bank transfer.
Modern businesses must offer their customers convenient solutions so that they don’t face obstacles that could lead to loss of money at any stage. Having a good CRM system with a payment gateway is a key tool that will allow a broker to develop a business. Fewer tasks to be performed in the admin panel means more time to acquire new clients and increase the number of deposits. Our team of experienced professionals will select a high-quality solution that is necessary for your brokerage business.