Between 54-87% of retail CFD accounts lose money. Based on 69 brokers who display this data.
For our credit cards comparison, we found 3 brokers that are suitable and accept traders from United States of America.
Between 54-87% of retail CFD accounts lose money. Based on 69 brokers who display this data.
Credit cards are one of the safest and easiest methods to fund or make withdrawals from your online trading account. They are widely accepted by most online forex brokers. Brokers that are registered with the Financial Conduct Authority (UK) will only accept credit cards from the forex account owner to prevent money laundering/fraud.
An important consideration to take if you are opening an online trading account is that Mastercard do not accept refunds from spread betting or CFD trading companies.
A few things to consider before using a credit card to fund your forex account is:
Regulated by the Financial conduct authority (UK) #124721
ETX Capital is a top choice for traders looking for a trusted and regulated forex broker that also accept credit card payments. Why ETX Capital?:
There is a mix of brokers who do not charge the trader any fees for making deposits/withdrawals while others charge a fee, usually around 2%. Some credit cards may also treat payments to forex brokers as cash advances rather than a regular purchase and charge a high interest rate. It would be best advised to check with your credit card provider first to see how they would view the payment. Generally using a debit card will always be free to use and may be the better option.
If you just register your card without making a payment, most brokers will make a pre-authorisation charge of 0.01p from your account. This will be reversed within a week and is only to ensure that it is a real card. This is a usual practice for businesses that require a credit card to make a reservation like hotels.
Before making any withdrawals, the brokers will generally require a few documents to verify who you are and to prevent fraud.
Once registered payments and withdrawals are simple and take only a few days.
Different brokers may have different requirement so it would be best advised to check what your chosen broker requires before you are allowed to make any withdrawals.
Some brokers will even offer their own branded Mastercard debit cards such as AvaTrade, HotForex and XM. These cards are directly connected to your trading account and allow you to instantly withdraw funds from your account.