Forex Broker Payment Methods
All traders have there own preference on how to deposit funds into their trading account. Some prefer the safety of a bank wire transfer, others the speed of online debit/credit card payments, and some, the flexibility of third party processors. Choosing which method suits you depends on several factors. We detail these below.
Types of payment methods:
Every broker will provide its client’s several ways to deposit funds. As trading is a global marketplace with participants from all geographies, brokers must offer a diversified stream of methods to on-board a clients funds. Here are some of the main.
Most regulated brokers also offer the option to deposit by bank wire. This transaction usually will see funds transferred into a client segregated account the broker must hold as part as there regulation. So essentially if the broker goes out of business the segregated account is separated from there commercial banks meaning they cannot use a clients deposit for business activity.
See a list of our regulated brokers.
Which Payment Method Should I Use?
Debit or credit card deposits are usually favoured by both brokers and traders. With processing times usually within the same working day this enables instant access to the live markets. New traders wanting to get started immediately, or existing traders wanting to re-deposit to maintain margin levels would usually fund via this method.
When withdrawing funds the processing time should be within 24 hours and reach your card within 1 – 3 working days thereafter.
Third Party Processors:
Using a third party offers similar processing speeds to using a debit or credit card. The main difference here is you will usually be charged a transaction fee by the processor. Some countries have restrictions on certain online transactions, meaning that traders in these regions may not be able to deposit directly using traditional payment methods, so use services like Western Union to facilitate the payment on their behalf.
Bank wire transfers offer a sense of security. Some traders who may be depositing large sums of capital may prefer this method. Debit/credit card providers or even third parties usually have a daily cap on how much a client can deposit. This makes it inconvenient for those who want to invest more and do not want to make several smaller transactions.
If you are looking for your broker to tick several pieces of criteria, then see our other lists of broker categories and how we rank certain brokers: