Forex Merchant Accounts

The Forex industry is a nearly $100 Trillion a year global marketplace that offers traders the opportunity to take positions in nearly every marketplace. The combination of traders from allover the world and relatively loose regulations between economies, the demand for access to these markets has never been greater and the need for Forex merchant account providers is ever increasing.

Forex markets are operating 24 hours a day, 5 days a week - offering traders of all levels the ability to access and participate in the global exchanges.  Forex trades at levels nearly 20 times that of the New York Stock Exchange, with such potential to make a fortune, it has created a growing demand among traders for news and information throughout the day from all corners of the world.

What is a Forex Merchant Account
A forex merchant account will allow for a brokerage to accept forex credit card payments from their traders. A merchant account is a link between the

Forex Merchant Account Services
Access to the Forex markets is not as difficult as it might appear, with trading platforms and agencies able to assist in the establishment of a licensed brokerage firm, merchants can become licensed in as little as a few months. While many countries are able to provide Forex licenses, it is also possible to open a brokerage without this documentation. Financial constraints can be a reason that some brokerage firms operate as an unlicensed firm, though possible, it can be a very risky proposition.

Being a firm that is unlicensed can create issues for not only the operators, but also puts the customers of that brokerage at risk for disruptions in their trading.  Many banks will not provide banking services to a Forex brokerage if they are not able to provide proper licensing, forcing unlicensed brokerage firms to use offshore banks.  Another issue that can effect an unlicensed brokerage is a halt to their forex credit card processing services once a banking institution takes notice that the firm does not possess a license and decides to hold all funds and freeze the brokerage operations.

How a Forex Merchant Account works
A forex merchant account allows for brokerage firms to offer funding services for their traders. Providing a safe, secure and reliable connection to a bank, traders can confidently send payments to their trading accounts and accept settlements from their brokerage accounts when necessary.

The Benefits of Working with Island Payments

  • Reliable Forex Merchant Account Services
  • Affordable Forex Credit Card Processing Fees
  • Fully PCI Compliant Forex Payment Gateway

For more information about setting up merchant account services with Island Payments, please contact one of our representatives for more information and to get started.



The Forex Marketplace
The Foreign Exchange market, known as Forex, is the largest trading market in the world, averaging over $5 trillion/USD a day in volume, nearly 20 times the daily volume of the New York Stock Exchange. The Forex market attracts users from all over the world, trading every kind of currency against another at all hours of the day.

In a market that is trading for 5 straight days a week, the marketplace for Forex brokers is a substantial income earner and the need to accept Forex credit card processing payments is essential.  Setting up a Forex merchant account is one of the highest risk and difficult types of merchant accounts that can be set up today.

Forex Credit Card Processing Requirements
Since 2015, the National Futures Association has restricted the use of credit cards to fund forex and futures trading accounts.  This restriction has been a driving force behind the difficulty for merchants to establish reliable payment processing services.

Regulation of the Forex industry is loose compared to many of the other high risk industries that operate over the internet. Beside regulation that might be enforced on a national level, the global marketplace for Forex remains generally open to brokers and traders looking to get involved with this nearly $100 trillion dollar industry.

Brokerages starting in the Forex industry can either be set up as a licensed or an unlicensed brokerage, depending on the country of incorporation and the financial capacity of the owners.  Unlicensed brokers run the risk of having traders' fund held due to banking regulations against brokerages operating in that capacity; thus making a license neccesary for the longevity and profitability of a brokerage.

How a Forex Credit Card Processing Transaction Works
Once a trader has determined the amount of money that is to be deposited into a brokerage, the trader will enter their card account information into the payment gateway. The gateway provides a secure connection for the brokerage to transmit cardholder information from their website to the card association via the payment processor.

Once information is received at the card association, the type of card and the card issuing bank is determined and information is passed along.  Once the request hits the card issuing bank, the cardholder account is checked for available credit and any suspected fraudulent activity and a response is sent back to the merchant through the same channels nearly instantaneously.

Importance of a Forex Payment Gateway
Having a payment gateway to handle secure transactions is essential for any business operating online and handling Forex credit card processing transactions through their website. Though there are many different payment gateway options available to merchants, partnering with a PCI Compliant Forex payment gateway will not only provide the needed security during the transfer of information, but will also prevent any potential fines from the credit card associations due to data breaches or fraud.

Working with Island Payments
Partnering with Island Payments will provide Forex brokers and brokerage firms the tools and connections to establish reliable and secure Forex credit card processing services.