The Best PayPal Forex Brokers 2019 – Making Deposits & Withdrawals Quick & Easy
Brokers, like any business, are in constant competition for new users. There are various ways in which they can try to attract a new trader, but one way that is a staple now is offering several payment methods. This often includes bank transfers, credit or debit cards and various electronic payment systems, including PayPal.
What is PayPal
PayPal is an electronic payment system that allows users to quickly and safely transfer funds to other people or businesses.
Once your bank account is linked to your PayPal account, you won’t need to use your card details again, payments are sent to email addresses instead.
PayPal is a worldwide platform, supported in over 200 countries, and offers all major currencies as well as lots of currencies from emerging economies, currently the total currencies offered is 25.
Why use my PayPal account to deposit with a Forex broker
PayPal is so popular because of the simplicity of the platform and its process. As you only need to link your bank to your PayPal account once, it means then every time you buy something or transfer your funds, all that is needed is the email address of the recipient. Forex brokers are no different to any other recipient, making a deposit quick and easy.
Comparing to other funding options (especially bank wires, credit cards), PayPal is lightning fast when it comes to funding your forex trading account. To Forex brokers it’s also a convenient option to process your deposit.
No need to share your credit card details with Forex brokers, your information is secure when you make a money transfer with PayPal.
There is no need to guess or worry whether your money has reached your Forex broker. Simply look at your new Forex account balance and if the money was not credited following your PayPal transfer within 24-72 hours (see Forex brokers policies for deposits), you claim a refund with PayPal.
Deposit & Withdrawals
PayPal enables instant deposits and same day withdrawals, meaning that you can deposit instantly when opening a brokers account and that you can have any funds back into your bank account the same day. The same applies to the broker, they can deposit via PayPal as well, meaning that those brokers that offer PayPal as a payment method usually have the lowest waiting period compared to competitors that don’t off the electronic payment system.
It often costs you less or the same in fees compared to other deposit options (PayPal fee currently is approx. 3%). It gets even better – there are Forex brokers who will refund your money transfer fees with PayPal, which means that you incur no additional fees at all when you fund your Forex trading account!
How to pick a broker that accepts PayPal
Whilst picking a forex broker that accepts PayPal is basically the same as choosing a broker in general, there are a few things that you need to consider if PayPal is a necessity.
1- The PayPal service does not serve all countries of the world. Some countries are blacklisted from using PayPal.
2- Among countries which can use PayPal, some are granted “Send Only” status, which means that while deposits can be made to the trading account, it is not possible to withdraw funds using PayPal. Considering that many forex brokers insist on withdrawals being made with the same transaction method as the deposit of the trading capital, this poses a huge challenge for traders.
Therefore, the main consideration is where are you based and PayPal’s terms in that territory. For more information about how PayPal functions in your country, see the PayPal website for details.
Once you have determined that PayPal is fully accepted by your country, then actually deciding which forex broker to choose is a case of deciding which you feel is the best broker for you. When choosing a broker there are various aspects that should be considered, see our list of reviews on specific brokers, and compare them to one another for pros and cons.
When picking a forex broker that accepts PayPal, the logic is the same as picking a broker in general. PayPal is an additional reason to use that broker, but you should research the broker before deciding.
PayPal chargeback on a forex account
Although PayPal doesn’t have specific policies regarding Forex account funding/withdrawal, it’s unlikely that a trader can successfully claim a PayPal chargeback. The reason for that is simple:
PayPal adheres to its own rules, which say: “The item you purchase must be a physical, tangible good that can be shipped”. End of story. Everything online – services, licenses, or, for example, Forex VPS services – that doesn’t require a physical shipment – all that is not covered by the PayPal Buyer Protection, and thus chargeback claims against it won’t succeed.
Having said that, now projecting it onto Forex trading:
Forex brokers provide online services, in which traders agree to participate. Funding a Forex account with PayPal falls under “intangible goods” according to PayPal buyer guidelines. Intangible goods don’t qualify for a chargeback, as there is no physical shipment of goods present.
Due to its simplicity and reliability, we tend to recommend that traders do choose a broker that offers PayPal as an option to deposit. We feel that it adds a layer of authority to those brokers that do offer it when compared to those that don’t.
Simply put, why wouldn’t a broker offer this service? As a trader, you should have the option to deposit using PayPal and so those that don’t accept it can be considered as slightly lower tier of broker.
What is the most secure payment method?
Bank transfers, paying by credit or debit card and some electronic payment systems, like PayPal, are considered the most secure however there is no method that can be considered 100% secure. This is because criminals are always looking for new ways to hack into payment processes.
What are PayPal’s fees?
PayPal fees can change depending on the country you’re based.
How secure is my PayPal account?
PayPal follow the appropriate security measures, including the new two-factor authentication (2FA) process that is now common for most secure login platforms.
PayPal has had no major breaches of security and certainly considers itself a very secure platform. Unfortunately, everything is secure until someone manages to breach it, PayPal continues to test and improve it’s security and for the moment we can consider it a safe place to store your funds.
Why don’t all Forex brokers offer PayPal?
Most major brokers that have been on the market for a considerable time do offer PayPal, it is just some of the newer brokers that don’t offer it. Each broker may have a different reason but one that should be considered is that PayPal may have blocked their account, which is a telling sign to stay away from that broker.
What is a PayPal Forex broker?
A PayPal Forex broker is a brokerage where you can buy, and trade Forex using its platform and accepts PayPal as a payment method when depositing into your account.
How can I deposit into my PayPal account?
To deposit into your PayPal account, you must add a bank account or a debit or credit card. You will then be able to transfer money from your bank directly to your PayPal account. PayPal only let’s you use these two means of depositing into your account.
Additional Payment Methods Forex brokers
Do you know another PayPal Forex broker? Please suggest by adding a comment below.