Since ancient times people have been trading currencies or trading a form of currency for valuables or commodities. Finding some sort of currency and then using it to exchange for something that was needed were important elements of trade in the ancient world. People needed to be able to acquire items like food, pottery and raw materials. Here is a perfect example of how a barter might work: “If a Greek coin held more gold than an Egyptian coin due to its size or content, then a merchant could barter fewer Greek gold coins for more Egyptian ones, or for more material goods.” This is the basis of the foreign exchange market that we know today and have given the nickname Forex.
What is Forex? It is the Foreign Exchange Market, a Global market where all the world’s currency is traded. It is literally the place where one country’s currency is bought, sold and exchanged for another country’s currency.
When you buy a birthday present from London, it is priced in the British Pound, your American Dollar must be exchanged so that the payment can be deposited in the account of the business where it was purchased in their own currency. But, there are some extremely big players in the Forex industry from Central banks and governments to national banks and financial institutions to businesses and individual traders.
All aspects of buying, selling and exchanging currencies happen through the market, either at current or determined prices. There would not be any international trade or investments without the assistance of the foreign exchange market enabling currency conversion.
It is also a very unique market type due to the fact that it is an international market where no central marketplace exists for foreign exchange. This also lends it sovereignty, meaning that no one nation has jurisdiction over another nation’s currency. Because of this the Forex market is largely a free and unregulated market.
All currency trading between traders around the world happens electronically via computer networks, rather than on one centralized exchange.
Forex is a very important part of our global economy.
It is the power behind both businesses and individuals ability to make foreign purchases. You can easily see why “why the Forex market is the largest, most liquid financial market in the world”
In April 2016 the Bank for International Settlements performed the Triennial Central Bank Survey of Foreign Exchange and OTC Derivatives Markets Activity and found that trading in foreign exchange markets averaged $5.1 trillion per day in April 2016
Currencies are traded worldwide, 24 hours a day, across almost every time zone, five and a half days a week. Some of the most major financial centers around the globe are the biggest participants including, New York, Paris, London, Frankfurt, and Zurich, as well as Hong Kong, Singapore and Tokyo.
Each country may choose to regulate the brokers that participate in currency trading however they see fit. In the U.S. the futures and options markets are regulated by the Commodities Futures Trading Commission (CFTC).
Forex brokers still need a reliable merchant account.
However, this ban does not apply to direct debit cards, traditional bank transfer methods (ACH) or electronic checks-anything that allows the immediate collection of funds and fees. And if they are trading with investors outside of the US, those clients still have the legal right to use their credit cards to fund their investments.
AT Bankcard Brokers we understand that because of the global nature of the Forex industry, it needs to be able to accept multiple currencies in order to complete the transactions. And because 30 seconds could mean the difference between making or losing money, it’s customers expect their transactions to happen in the blink of an eye.
As a Forex transaction facilitator you need a merchant account that can provide you with the ability to process the debit and ACH transactions required to facilitate the dynamic currency exchange your business and your customers rely on.
At Bankcard Brokers we can offer you powerful processing platforms, whether you are a domestic forex broker or an international broker.
Our solutions include all of the features your business needs to operate successfully and add value to your business. We can offer chargeback ratio assistance, software that allows for efficient reporting and tracking, we’ve can even promise you surprisingly low rates but most importantly you will enjoy dependable deposits that will keep your cash flow liquid.
When you have an ETA Certified Payment Professional on your side you can put your energy into what you do, knowing that our exceptional knowledge of the industry means you are getting the best and most appropriate solution for your business.
Why do business with Bankcard Brokers? We believe in conducting business the same way you do…”Provide businesses the truth….become their trusted resource, and the result will be a successful long term business relationship”.