Finding the Best Payment service providers for Your Brokerage


If you’re a brokerage, online payments are one of the key aspects of the business you’ll need to consider, and in order to be successful, you’ll need a reliable Payment Service Provider (PSP).

A PSP is essentially a payment gateway through which a brokerage operation can pay and receive electronic payments such as credit cards or e-wallets. This kind of facility is necessary for a brokerage to function properly.
In order to get started with the payment processing, a merchant account needs to be opened. This kind of service is provided by a PSP agent who is then able to provide access to major banks through which the transfer of funds can be made.

A merchant account is extremely important for this kind of business and it is only possible to establish them through a third party with a proven track record. It is also necessary to have the right technology within your actual brokerage operation.

There are a large number of trading systems on the market, some better than others so it is important to ensure that you get the correct advice on the most suitable PSP for your platform.

Because of the fast-paced nature of the business, Forex transactions need to be fast, and the number of transactions per minute is substantial. Hence, the appropriate technology to handle these requirements as well as managing the risks involved will be carefully considered when a bank onboards new clients, especially if they don’t have a track-record of successful activity.

As traders open and close accounts quite regularly, this is another aspect that must be controlled by a PSP. It’s fair to say that brokerage companies will only stay in business for as long as they are earning commissions. This means the flow of customer deposits needs to be operating around the clock.

A solid PSP needs to keep things working at all times, and for this reason it is important to select an experienced tech provider with industry knowledge as part of your decision.

Another factor that continues to impact on players in the international financial markets is regulatory control, particularly where brokers are concerned. This is due to concerns about transaction protection, fraud prevention, and customer security. In a similar way, the design of your own trading platform should incorporate robust settlement and processing systems.

An easier way to do this is through a trusted brokerage technology and services provider who can handle this side of the business and allocate the best PSPs for your company, with little effort on your part.

There are two kinds of merchant accounts that a broker can set up. The first is an aggregate account where brokers’ transactions are amalgamated into blocks together with other transactions, and the second is direct merchant accounts.

Direct merchant accounts are the preferred option, but this route is only available to players that have a long-established operation behind them.

Mobile and web presence is also a must since many traders make transactions from their mobile phones or computers, so it is important to build in these facilities into a trading platform to meet these requirements.
These factors must all be taken into account when seeking out a PSP that will facilitate your brokerage services while allowing your business to grow.

An increasingly popular route to take when opening a brokerage firm is a white label solution. This is a great choice considering the stronger regulation and enforcement now in place across Europe, hence, it is clear that a knowledgeable and experienced provider is a sensible way forward.

As an example, leading technology and liquidity provider, B2Broker offers, a complete turnkey solution for various kinds of brokerage businesses, including Forex and Crypto Broker, along with instant licensing and company incorporation, and B2BinPay cryptocurrency payment solution. It is therefore able to provide all the technology a broker needs to have to run a successful operation.

In summary, PSP hunting can be a difficult process, but cost-effective business shortcuts exist which will allow you to entrust the difficult aspects to others who are more experienced in this field.

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