Onboarding Friction for UK-based Traders and Broker Payment Gateways
Been doing some legwork lately looking to diversify brokers, specifically for some more niche FX pairs and potentially a regulated crypto derivatives provider. What I'm noticing, especially with some of the smaller, but well-regarded, non-UK regulated outfits, is a real bottleneck around payment service providers (PSPs) for UK clients.
It feels like a significant number of these brokers, who otherwise offer competitive spreads and decent execution, are struggling to integrate with reliable PSPs that facilitate smooth deposits/withdrawals for UK traders without exorbitant fees or multiple hoops to jump through. I've encountered several instances where the advertised deposit methods turn out to be unavailable for my region, or the fees associated with them make the whole proposition less attractive. It's not just about the initial deposit either; the reliability and speed of withdrawals through these PSPs is a major concern. Has anyone else experienced this, and what workarounds or specific PSPs have you found to be consistently robust for international brokers servicing the UK market? It's making the due diligence process far more cumbersome than just evaluating their trading conditions.
Yeah, I've noticed this too when looking at some brokers outside the mainstream. It's a bit of a pain, makes me wonder if there's a good workaround for those of us in the UK or if it just means sticking to the bigger players.