The advantages of tokenization for Forex and Binary Options brokers
Why Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term and Binary option brokers should seriously consider implenting Tokenization Tokenization Tokenization represents the process of substituting a sensitive data element with a non-sensitive equivalent, i.e. token, which bears no extrinsic or exploitable meaning or value. In essence, the rights to the ownership of an asset are converted into a digital token. Tokenization can be used to own an entire unit of an asset. For example, one token that represents the ownership of a piece of real estate or to split ownership of a single unity of an asset such as 200,000 tokens, each one represen Tokenization represents the process of substituting a sensitive data element with a non-sensitive equivalent, i.e. token, which bears no extrinsic or exploitable meaning or value. In essence, the rights to the ownership of an asset are converted into a digital token. Tokenization can be used to own an entire unit of an asset. For example, one token that represents the ownership of a piece of real estate or to split ownership of a single unity of an asset such as 200,000 tokens, each one represen Read this Term to improve their traders deposit experience
Tokenization refers to the encryption of traders’ credit card details when entered into the payment page of a broker’s website so that the broker receives a data encrypted token (piece) of the credit card number while the rest of the encrypted data is kept by the payment processing company.
The system is useful for online brokers because payment reconciliation is possible without handling sensitive data, the token is of no use to hackers thus enhancing security, and most importantly, the merchant who uses tokenization can perform all mentioned functions within the boundaries of PCI DSS compliance, without having to be certified. Thus, brokers are legally permitted to store the tokens and the last 4 digits of the credit cards. This allows them to legally constitute a fully PCI compliant database of their traders credit cards details, without any fear of security breach.
From a business point of view, brokers benefit from Tokenization for two main reasons, over and above what has already been mentioned:
- A professional member’s erea can be built, where previously used credit cards are listed with their last 4 digits and traders can easily choose the credit card and the amount they want to charge to increase their balance thus creating an improvement on the trader’s deposit experience and therfore on its value, eventually resulting in an overall increase of deposits
- Tokenization also allows for easy top-up features for the convenience of depositing funds from smartphones, tablets and other platforms, again creating ease of use for traders who do not need to go back to the payment page of the brokers' website each time they wish to make a deposit
So for all Forex and Binary Options brokers, thinking carefully about the different options offered by your payment providers is crucial, and Tokenization is definitely one to look for.
You may also find our insight about payment pages interesting.
Why Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term and Binary option brokers should seriously consider implenting Tokenization Tokenization Tokenization represents the process of substituting a sensitive data element with a non-sensitive equivalent, i.e. token, which bears no extrinsic or exploitable meaning or value. In essence, the rights to the ownership of an asset are converted into a digital token. Tokenization can be used to own an entire unit of an asset. For example, one token that represents the ownership of a piece of real estate or to split ownership of a single unity of an asset such as 200,000 tokens, each one represen Tokenization represents the process of substituting a sensitive data element with a non-sensitive equivalent, i.e. token, which bears no extrinsic or exploitable meaning or value. In essence, the rights to the ownership of an asset are converted into a digital token. Tokenization can be used to own an entire unit of an asset. For example, one token that represents the ownership of a piece of real estate or to split ownership of a single unity of an asset such as 200,000 tokens, each one represen Read this Term to improve their traders deposit experience
Tokenization refers to the encryption of traders’ credit card details when entered into the payment page of a broker’s website so that the broker receives a data encrypted token (piece) of the credit card number while the rest of the encrypted data is kept by the payment processing company.
The system is useful for online brokers because payment reconciliation is possible without handling sensitive data, the token is of no use to hackers thus enhancing security, and most importantly, the merchant who uses tokenization can perform all mentioned functions within the boundaries of PCI DSS compliance, without having to be certified. Thus, brokers are legally permitted to store the tokens and the last 4 digits of the credit cards. This allows them to legally constitute a fully PCI compliant database of their traders credit cards details, without any fear of security breach.
From a business point of view, brokers benefit from Tokenization for two main reasons, over and above what has already been mentioned:
- A professional member’s erea can be built, where previously used credit cards are listed with their last 4 digits and traders can easily choose the credit card and the amount they want to charge to increase their balance thus creating an improvement on the trader’s deposit experience and therfore on its value, eventually resulting in an overall increase of deposits
- Tokenization also allows for easy top-up features for the convenience of depositing funds from smartphones, tablets and other platforms, again creating ease of use for traders who do not need to go back to the payment page of the brokers' website each time they wish to make a deposit
So for all Forex and Binary Options brokers, thinking carefully about the different options offered by your payment providers is crucial, and Tokenization is definitely one to look for.
You may also find our insight about payment pages interesting.