Did you know “ThinkForex” in Australia and UK, and “Tradeview Forex” in New York?
These names of brokers are already gone now, and “ThinkMarkets” and “TradeView Markets” are born.
And did you know why a number of brokers are changing names and getting rid of the “Forex” tag from their brand? Now that no one prefers to re-brand a broker name to another one with “Forex” in it.
The reason is simply because “Forex” name seems not trustworthy for payment companies and many people in general.
From “Forex” to “Markets”
“Forex” is the most liquidated and volatile financial markets in the world, as everyone already knows. Millions and billions of dollars of money is being transferred at this moment, and most of them are “Forex” related.
As there are hundreds of brokers in the world, they are all processing deposit/withdrawals as their clients wish through some payment providers but not in Cash, of course.
And these payment providers are happy to transfer funds as requested, unless the users are intending to do something not preferable.
Some troubles caused to Payment Providers(such as Banks, Neteller, Skrill, Card Company etc) by brokers using their systems are as follows:
1. Users cancelling payments
After making deposit via credit/debit card to a broker, your funds will most likely be withdrawn by cancelling the payments made before.
And as a result of this, many card companies see these brokers as a company where payers often wish to cancel their payments. For card companies, that is often a black listed action. Some of them have already banned to make payments to some certain online Forex brokers.
2. Users claiming that they have been robbed by a un-regulated broker in their country
This is something very much illegal thing to do though, several card companies have reported that traders are making deposit to foreign Forex broker and start trading, then they report to the company that they have been robbed the money by the broker which is not regulated in the country where the trader is residing in.
In this case, the card company will need to refund the amount to the trader, because the broker is not registered nor regulated by its jurisdiction.
A number of card companies in Japan have already banned transferring funds to foreign brokers already.
ThinkMarkets and Tradeview Markets are two nice examples of this case study.
As according to our source, these two companies are now able to accept payments/transfers from some companies where used to reject payments when they had “Forex” in their company names.
One of the reason of changing the name to the one without “Forex” is simply to make their business process smoother.