For those who are interested in opening an account with a forex broker, there are several factors which need to be considered. First, the broker in question should be regulated and trustworthy. While other features such as a wide variety of underlying assets and amenable spreads are important, payment methods are just as critical – as you must be able to withdraw and deposit funds.
Benefits of choosing a Broker that accepts PayPal
What is PayPal?
As the company defines itself, it’s an online service that allows you to make payments, send money as well as accept payments from other people without compromising your personal financial information. It can be used for business as well as personal needs.
PayPal has grown to become a widely accepted online payment platform across the globe today, even though it emerged from a totally different concept. It was initially started in December 1998 when it was first known as Confinity. It began as a company that created security software for the handheld devices, the great minds behind it being Max Levchin, Luke Nosek, Kevin Howery and Peter Thiel.
PayPal then grew from Confinity as an online money transfer service in the year 1999, with funding from BlueRun Venture.
One thing that makes PayPal a great payment option is that it is so simple to use. With just a few clicks, you can make instant deposits. PayPal service coverage is offered in 202 countries worldwide and in 52 different currencies, including but not limited to USD, CAD, EUR, DKK, JPY, GBP and INR. You can see the covered countries from here.
PayPal also supports a wide range of payment platforms including but not limited to e-Banking, PLAN and MXN. PayPal allows you to make payments online through your email address. You can deposit money to your account, instantly send it to your broker and receive your payout and withdraw it to your bank. It offers a safe and a secure online platform for sending money and receiving money electronically.
PayPal fees are very fair and suit a trader. There are no fees charged monthly for processing of payment. The payment fees for PayPal vary according to your location and the payment method used. If making a purchase, you are charged no fee at all. If selling, you are charged 2.9% of the total value plus an additional $0.3 for each sale. What’s great with PayPal is there are no hidden charges, whether making payments or purchases.
When you make payment either using the credit card or your PayPal account, processing time is instant. The funds are instantly deducted from your account. Payments via eChecks take 2-3 business days. Withdrawing funds to your bank account take about 2 to 3 business days. There’s also the PayPal debit card option that gives you instant access to your funds after.
As a trader, knowing the chargeback policies of a payment service is very important. Basically, chargeback is available through the Purchase Protection policy and is applicable on purchase of products but not services. As of June 2016, PayPal updated their user agreement policies. The updates mainly affected the Section 11 (Protection for sellers) and section 13 (Protection for buyers). These recent policy updates exclude a number of activities from Purchase Protection. These include but not limited to activities that require entry fees and prizes, such as gambling and gaming. Since stock trading is a service and requires entry payments, it is excluded from the activities that are eligible for a reimbursement.
That means that chargebacks policies are not applicable to forex trading. However, you can file your dispute and try to resolve the case if you want. If you are not able to resolve a dispute with your broker, you can head to PayPal’s Resolution Center and follow the guidelines given.
Why use PayPal
There are so many benefits of using PayPal for forex trading, but just to list a few:
• It’s very simple and easy to use. With just a few clicks, you can make your deposits.
• It has a wide coverage. It is available internationally in over 200 countries and 52 currencies including but not limited to USD, GBP, CAD,
• Forex traders don’t need a credit card as PayPal account allows receiving and sending money to up to 202 countries globally, including but not limited to USA, Canada, UK, France and Italy. View all countries from here.
• Payments are instant and withdrawals take less time to reflect in your bank account.
• It’s beneficial to international forex traders as commissions are charged at a minimal rate of 2.9% + US$0.3 per transaction.
• Payments made via credit cards or PayPal account balance are processed instantly.
• Withdrawal of funds to bank account take at most 3 business days to reflect in bank account once approved by your bank.
• Forex companies recognise PayPal as a payment method for speeding up transactions. With the endless number of benefits for forex traders, PayPal is certainly the easiest convenience that any trader can ever need.