Mille Lees Mille Lees, Wednesday 15th April 2020, 10:20 AM CEST
Traders want Fast Payments

The act of trading is about making use of opportunities that present themselves within emerging markets and focusing on getting the best prices. However, by the time a traders deposit is applied to their account and depending on the method they used to fund their account, an entire day can go by.

The process of withdrawing is even longer and can take upwards to 30-48 hours before reflecting in their bank accounts and in some cases, that can extend well beyond the 48 hour mark, and that has many asking why can’t the transferring of money move at a faster pace.

Traders want Fast Payments

In a recent survey, Trustly, an online payment services provider asked over 2700 traders in various European markets what they wanted most, and a resounding majority said they wanted the ability to make frequent and fast payments.

The reality is, to be successful in a rapidly changing market, traders need to jump on every opportunity they can if they want to get the best price and that only amplifies the need for faster payment processing, a problem that has seen many traders missing out on opportunities as a result of delayed payment arrivals.

The Trade Off

The cost of acquisition for most brokers can be substantial as they look to increase the number of traders under their platform, especially when you consider that after registration more than 50% only make a single trade. That has brokers looking for ways to increase the number of trades each trader makes within their platform. The survey showed that for most traders, it comes down to timing and a brokers ability to process deposits quickly and similarly, process withdrawals in the same manner, and that can be the difference between loyalty and retention.

Cost of Maintaining Support Lines is Expensive

The problem with delayed payments is a burden that is felt by brokers not only in retention of its customers but it support services as many traders reach for the phone and call enquiring about their payments.

This has a direct relation to the brokers’ operational costs and impacts their reputation. Those that offer faster payments are in a position to reduce their operating costs, increase customer satisfaction and retain a larger number of traders.

The Role Payment methods Play

Payment methods play an important role in brokers being able to process deposits and withdrawals rapidly. In an era where most payment offers speedy services, this should not be an issue. However, most traders prefer payments directly to their bank and depending on the brokers locations and the traders, this can create delays due to international banking laws.

The reality for brokers is, using a larger number of payment methods not only speeds up this process but will not only automate the process and save costs. This will result in traders being pleased at receiving their payments quickly and see them investing more with those brokers over those that fail to get the picture.

The Trustly survey showed that 61% of traders would be far happier with the brokers they use if they offers instant payments, and in today’s age, this is not at all difficult to do. It would allow traders to fund their accounts without delay and when withdrawing, receive their cash in record time.

Mille Lees

Author: Mille Lees

Millie has been with whichbroker.com since the start. She has a passion writing financial news after an internship at Bloomberg London. Millie's background in journalism and politics means she has an eye for a good story. Millie graduated from LSE and has a masters from Durham University England. Mille Lees can be contacted at [email protected], View all posts by Mille Lees

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