The success of a brokerage very often depends on the ability to quickly receive and send payments from clients. Therefore, the choice of payment systems is one of the most important factors that both a beginner and a pro broker should pay attention to.
Each country has preferred payment solutions. If we analyze the Asian region and, in particular, China, then local traders prefer to use Dinpay.
Self-selection and integration of a payment system often end up wasting time. Delaying the integration of payment systems is also a waste of funds that customers were willing to deposit.
3 Main Obstacles When Choosing a Payment Service
Payment integration. Acceptance of payments from customers is possible only if the payment system is integrated into a user’s area. Let’s say a broker decides to incorporate a payment platform on its own. In this case, the broker will need to reach the contact center of a payment provider and provide the necessary documents.
Licensing. Some global payment systems prefer to work only with licensed Forex brokers. In this case, the license must be issued in one of the so-called “reliable” jurisdictions. The lack of a license very often becomes an excuse to refuse a broker to cooperate.
Commission payments. 5-star payment solutions can set individual commissions. At the same time, the services consider the popularity of a brokerage brand and the company’s revenues. Sometimes brokerages are faced with payment systems introducing an additional commission for currency conversion or limiting their clients in the daily withdrawal amount.
Payment System Mechanism
The algorithm for working with payment solutions looks quite simple:
A client transfers funds to a payment service account and receives an equivalent amount in digital money. At this point, the payment resource becomes the client’s debtor (in some way). The platform retains an appropriate financial commitment to the user and undertakes to reverse the transaction if necessary.
At the next stage, the client reloads his/her account on a brokerage website with virtual money. After conducting trading operations, the client can request a withdrawal of funds at any time.
Further, the broker returns the corresponding amount in digital money to the payment system and receives real funds in return. This method of conducting transactions is beneficial for each of the sides.
Operators who can provide quality service and fast transaction processing speed should always be a priority for a brokerage.
Only in this case, the client’s deposit will be instantly transferred to a brokerage account. Furthermore, this might positively affect the future number of conversions.
Criteria for Choosing a Payment Provider
Choosing a payment service is by no means an easy task. There are several variables to consider before integrating a payment system into a website or trading platform.
Let’s consider the most critical parameters that need to be taken into account when choosing a payment system:
Service foundation date. This is one of the main criteria that traders take into account when choosing a platform. Systems that can boast of a long period of operation have a higher percentage of customer confidence.
The amount of fees. For obvious reasons, each trader strives to choose the service that will provide the minimum commissions when making a deposit or withdrawing funds.
The speed of financial transactions. Very often, this factor turns out to be the essential criterion for clients.
The reputation of the payment service is also an important issue. Often, users are ready to spend hours to find reviews about a particular payment resource.
Intuitive and straightforward interface. A payment service should have an intuitive interface. Otherwise, a client will need additional clarification on how to make a deposit or withdraw money.
Most Popular Operators
Without exception, all payment services have both positive and negative sides. In today’s review, we will consider payment systems that are popular not only in the CIS. We will also analyze the services profitable for brokerages planning to offer services on an international scale.
Here are the Top 5 popular payment solutions:
⚪ WebMoney
⚪ Qiwi
⚪ YooMoney
⚪ Skrill
⚪ Neteller
⚪ PayPal
WebMoney
The service offers users the ability to work with six significant currencies, including:
⚪ Ruble
⚪ Belarusian ruble
⚪ Uzbek sums
⚪ Dollar
⚪ Euro
⚪ Hryvnia
There is a particular type of e-wallet for each of the listed currencies. A user can open an unlimited number of wallets at his discretion. WebMoney carries out currency conversion not only within the system but also using external resources.
One of the primary specifics of this service is that a client needs to obtain one of twelve types of certificates required to verify a user.
The payment service offers quite reasonable prices. Almost all brokerages accept the WM currency without any commission, paying only 0.8% of the amount. Withdrawal of cash to another payment system requires about 2% commission (depends on the amount).
The only disadvantage of this service is the limits for a formal certificate. A client will need to keep within the amount not exceeding the equivalent of 15,000 rubles, which is quite tricky given the specifics of Forex trading. Obtaining a personal certificate looks like a very complicated and time-consuming process.
Qiwi
The brand currently operates in 20+ countries around the world. Note clients using an unverified wallet will not be able to reload their account or withdraw funds in an amount exceeding the equivalent of 15,000 rubles.
To register an account, a user will need to provide a mobile number. It will be used to confirm further financial transactions.
The payment provider allows customers to create e-wallets using dollar, euro, ruble, and tenge. Transferring funds between Qiwi wallets and depositing the account on a brokerage website is carried out with zero commission.
YooMoney
The payment system has established itself as one of the most reliable tools for online payments in the Russian Federation. The main advantage of the provider is a high level of security. In addition, customers can link a bank card to a YooMoney e-wallet in a matter of minutes.
The service also offers certain advantages for brokerage. Companies can independently set their commissions and thus receive additional income.
Among the disadvantages of the payment solution, it is worth noting the low limits on the amount of the deposit and the difficulty with withdrawing funds. Commissions within the system are 0.5% of the amount. Customers who withdraw funds will also be required to pay a commission of 3%.
Skrill
This service is one of the most popular payment systems today, without exaggeration. The platform was founded in 2001, and the total base of active users has long exceeded 30 million people from 180 countries.
Payment solutions allow you to open an account in more than 40 currencies.
Advantages:
⚪ Almost all international brokers accept Skrill payments
⚪ Zero fees for transactions within the system
⚪ Using advanced security protocols to process payments
⚪ Intuitive process of linking bank cards to an electronic wallet
⚪ Low fees for deposits and withdrawals
⚪ The disadvantages of the service are a lengthy account verification process and a low level of technical support.
Neteller
The international service is almost inferior to Skrill, especially regarding customer base and global coverage. The payment solution is currently available in 200+ countries and offers over 20 currencies.
Registered users point out that the main drawback of the service is the high commission – 8% of the transaction amount. Moreover, transfers within the system also involve the payment of additional fees.
Summary
All of the payment systems mentioned in today’s review are safe and popular among the clients of brokerage companies. The only difference between them is the amount of commissions, limits, and requirements for user verification.
Choose a payment system based on the goals and objectives of the brokerage company. Explore which payment solutions are the most popular for clients in the region where you provide Forex broker services. The choice of a payment system should also take into account the specifics of the financial policy of the regulator.
If you need to connect a payment solution and quickly pass the integration process – contact Profit Center FX right away. Our experienced and professional staff will integrate any number of payment services for the brokerage ASAP!