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The payment systems
The choice of a payment system for Forex brokers is one of the crucial moments for traders in Forex trading. Let's have an in-depth consideration of this issue.
The algorithm of payment system work
The customer conducts a money transfer to the payment system account from the get-go and receives a certain amount of electronic money in return; this is the equivalent of the money transfer. The payment system becomes a kind of debtor of the client and has financial obligations to him/her, undertaking to perform a reverse transaction, if necessary.
With the help of electronic money, the client replenishes his/her deposit or investor account by logging into a personal account linked to the platform of the brokerage company. Then, using virtual money, the trader performs some speculations and increases the deposit at his conceit.
The brokerage company returns the electronic money to the payment system and receives real money in return.
This method is profitable for all three parties: trader, brokerage company and payment system.
The advantage is the payment system, which can provide the most qualitative and the fastest service. It means the payment system should work in such a way that the client's account can be funded in a heartbeat; also, the funds can be withdrawn quickly and safely.
What aspects should be taken into account when choosing a payment system?
There are different indicators according to which traders prefer to deal with a particular payment system.
The operating time on the market is the first thing traders pay attention to when conducting transactions. The payment systems which have been working on the market for a long time have more trust among clients.
The second thing traders pay attention to while transacting is fees, rates and possible limitations.
The third important parameter is the speed of transactions. In most cases, this characteristic is more important than the rates of the payment system for financial services.
Another vital factor is the security of transactions. Information about the payment system, its reliability and security can be found on the Internet and mass media.
And the final criterion, which works in favor of the payment system, is the ease of usage.