Payment Matters: Top 5 PSPs for Forex Brokers
When starting brokerage, you may focus on building a white label trading platform, choosing appropriate liquidity providers, and setting up your risk management tools. But you should never neglect the importance of choosing a right payment service provider (PSP) or more to ensure successful running of your business.
As forex brokers are facing increasingly fierce competition in the market due to sluggish market demand, providing retail traders with a diversified collection of payment methods is of paramount importance. It is impossible for any single forex broker to integrate Mastercard, Visa card, UnionPay, and any other card or e-wallet separately, so that is why PSPs come into play.
To make it simple, a PSP is a third party service provider that creates a single gateway for a forex broker to accept a broad range of payments via credit cards, debit cards, digital wallets (e.g. Netteller, Paypal, Skrill, etc.), and crypto wallets.
As the forex industry is considered high-risk, not all PSPs would like to step into the sector. Established reputable PSPs tend to require forex brokers to provide documentation or certificates to review, and reject most forex start-ups, unregulated brokers, and brokers with only offshore license.
When choosing an appropriate PSP, a forex broker needs to take into consideration high trading volumes, jurisdictions, anti-fraud, currency conversion, integration with the trading software and CRM, transaction costs, number of currencies available for withdrawal and deposit, to name a few.
Fazzaco lists some of the top PSPs below for reference of forex brokers and start-ups.
As a US-based high-risk payment solution provider, PayPound offers a forex broker with various alternative payment methods to comply with local laws and regulations, such as smart cards, e-wallets, online transfer, gift cards, online cheques, third-party payment methods, and wire transfer.
Paypound allows a forex broker to simplify time-consuming operation on back-office, manage payrolls, commission payments, refunds, and tax, and to view statistics in real-time.
Nuvei supports 550+ local and alternative payment methods (e.g. Apply Pay, Alipay, WeChat, PayPal, etc) in nearly 150 currencies as well as crypto transactions, making it more suitable for brokers offering crypto assets to traders. Using its modular, flexible, and scalable technology, Nuvei allows forex brokers to accept payments, view analytics, and stay away from fraud risks. Nuvei has been commonly used by well-known forex brokers, such as Plus500, OANDA, eToro, and XM.
Skrill ensures fast transfers, high degree of security, and good usability for forex brokers. With easy integration through a single API and competitive rates and fees, Skrill helps forex brokers process payments in 40+ currencies, manage advanced reporting from one account. Skrill brokers include FxPro, XM, Exness, HotForex, FXTM and more.
NETELLER has expanded its business across the globe, serving merchants and consumers in over 200 countries and 15 languages, which is a strength for a forex broker to go global. With a single integration, a forex broker can access multiple payment options, credit card, and debit card. NETLLER also supports buying crypo from more than 100 alternative payment methods and 28 currencies.
NETELLER brokers include XTrade, FXGlobe, FXGlory, IC Markets, Juno Markets, Trading Point, Weltrade, Windsor, ThinksMarkets, and more
As a large B2B payment gateway provider specializing in the Asian market, AloGateway is able to provide customer seamlessly payment experience with no coding efforts on a broker's end. It accepts crypto transactions such as Bitcoin, Litecoin, Ethereum, XRP, DASH, etc. It has also estabslished good ties with banks in Asia, Australia, Africa, and Indian Ocean Islands. AloGateway minimize merchants' risk of exposure to fraud by enforcing stringent and thorough procedures, and protects data with encryption and tokenization technologies.
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