Forex is a decentralized marketplace that operates globally, all international currencies are traded over-the-counter through selling, buying and exchanging at current or determined price. Forex is an acronym for Foreign Exchange, the word “FOR” is derived from Foreign while EX is derived from Exchange and hence the whole name is referred to as Forex.
How Do Foreign Markets Operate?
Foreign markets are focused on trading the currency market. In these markets, different financial institutions like banks, big organisations, industries participate in this marketplace and they are referred to as determinants of the market. These determinants trade between each other for currencies.
You need to understand that currency doesn’t only mean paper notes but various sorts of precious metals like iron, nickel, gold, silver and energy such as oil, coal, gas are also traded.
All these instruments are traded by price and bids in foreign currencies. When the price of such instruments goes up or down the traders who have traded for money will get an estimate on the value of currency rate. Currency rate determines if the trade would be profitable or a total loss.
What is Payment Gateway?
Payment gateway is a merchant service purposely designed for the deposit and withdrawal of funds into or from trading accounts. This method is specifically designed for electronic businesses. In electronic or online businesses, as sender of the money and receiver doesn’t meet face to face. Therefore; a medium for payment is used.
You can make payments by using online application of the payment service provider. There are many types of mediums you can use to make payments such as credit cards, debit cards, and QR Scanning, etc. Providers of payment gateway services are called merchants. Some of the most famous payment
gateway merchants that are accepted internationally are Visa Card, PayPal, MasterCard, Neteller, WeChat Pay, and Skrill.
Why Do You Need Payment Gateway Solutions for Your Forex Business?
Well, there are a lot of benefits attached to using payment gateway such as:
- Fastest payment processing:
Forex markets operates within seconds and payments are needed to be made within swish of a wand. Without owning a payment gateway service or account, you need to make requests to banks to make payments on your behalf. Banks take too much time in approving your payments. Sometimes, these payments are not approved at all because of forex being a “high-risk market”. However, during this whole process, the time of the trade get passed and you remain as idle as you were.
On the other hand, when you use payment gateways to make payments, the transactions are made within neon seconds. It doesn’t let you lose even a single trade of yours due to late payment and bring you profits within seconds too.
2. Multiple Payment Methods:
The second thing that becomes reason of favor in owning a payment gateway is that it allows you to make transactions via multiple methods. It means no matter where you live and what services are available in your region, you can engage in Forex trading at the convenience of your home. You are able to use bank wires, electronic checks, or vouchers in order to make forex transactions.
In the absence of these multiple payment method services, you may not be able to keep up with the cash because payment services are limited. However, with payment gateway, you are never out of cash. Moreover, you cannot only make forex transactions but also receive money and make payments for the rest of your online business where normal payment methods are not supported.
3. Make Payments in Multiple Currencies:
You don’t need to run around financial institutions and money exchange service offices in order to perform currency exchanges when you have payment gateway. Payment gateway service allows you to make payments and process transactions in a number of currencies. Due to this, you will be able to make international and national transactions easily by using payment gateways.
It saves your time and effort and also allows you to save the amount of money that foreign exchangers charge you for currency exchange. It is all in all a win-win situation for your business as it saves your time, money, and effort.
4. Secure Transactions:
Online business is full of scams and there’s a lot of reported issues everyday during the process of online transactions. These issues are faced especially by business owners who work in risky markets like forex or selling CBD. What happens during transactions is that, money senders use fraudulent source of cards or checks to make payments.
However, payment gateways are attached to secure and excellently dynamic service institutions. They are able to detect fake checks and fraudulent card payments within seconds. They prevent such online scams to happen. Therefore, you are always secure when you are using the right payment gateway. They have got the tools and skills to save you from these scams and problems.
5. Control Your Transactions:
Payment gateways are designed for the purpose of electronic and online transactions, therefore, they offer you on-the-go solutions to make transactions and control the whole transaction process. You can have apps related to your payment gateway on your phone and computers. By using internet, you can keep an eye on all the details of your transactions such as available balance, money received, or payment paid, etc.
In short, payment gateway offers you complete control of your transactions. It is your perfect partner for business and trading.
Well, from all the above-mentioned discussion, we can get a complete idea regarding what is payment gateway and why it should be used for forex business. We have discussed a number of benefits that a businessperson can enjoy by having proper payment gateway service.
Lastly, remember that payment gateway is not a medium but a service that’s provided by various financial institutions, working on private or governmental basis.