Worried About Forex Payments? Don’t be Just Read Our Guide
By now you should have a short list of possible contenders for your choice of best Forex broker. There is one more factor to consider before signing up for a trading account and that is how you can make payments, both deposits and withdrawals. You may be planning to start off your trading experience by taking advantage of a no deposit bonus, but once you’ve used up the free trading cash you’re probably going to want to continue. There are usually plenty of options including bank wire and PayPal, but what if you don’t have a PayPal account or you want to keep your financial details a little more private?
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There are many different ways to fund a Forex trading account
In a bid to keep options open for as many different clients as possible most of the best Forex brokers offer a range of Forex payment methods, for both deposits and withdrawals. We should mention, however, that most will stipulate the same method be used for both types of payment. On the whole, payment methods can be categorized into three different types.
Offline Forex payment methods
These are a very traditional form of payment and include bank wire, check, Western Union and making a local deposit. These are very good choices if you are planning to make a sizeable deposit, but you should be certain that you trust the broker and are confident in the service it provides. Bank wire and other offline payment methods are often more expensive than other forms of payment and can take much longer to reach your trading account. Often as long as 5 working days. When you make this type of payment, not only do you stand a chance of being charged by the broker, but the bank may also make its own charge as well as the likelihood a currency exchange services fee will be levied. There is one big issue with this type of payment. Should you be the victim of a scam it will be nigh on impossible to get your money back. At the very least, the bank will only provide you with proof of payment and then it will be up to you to try and recover your funds.
eWallet Forex payment methods
eWallets are a relatively new idea but are fast becoming one of the most popular Forex trading deposit methods. This is possibly due to the fact they are so easy to use and offer faster processing times at a much lower cost. A large number of top Forex brokers now offer instant deposits and withdrawals via eWallets. There are a number of well-known methods including:
- Skrill/ Moneybookers
eWallet payments are one of the better ways to fund a trading account and a number of the reputable eWallet providers such as PayPal and Skrill offer adequate protection should you require a refund of your deposit. If you find your chosen Forex broker is causing problems and won’t pay you, these well-known eWallet providers will act as a go-between and try and resolve the situation. You may also find a broker offering a special bonus if an eWallet payment method is chosen.
Funding your account with a credit or debit card
Using a credit or debit card is another popular Forex payment method, and you’ll find that most reputable Forex brokers accept them. Payments can usually be made instantly but you may find individual banks enforcing limits. So, we’d advise you check with your bank first before requesting a payment be made. Another benefit with using a credit or debit card is the opportunity to request a chargeback. But, you will have to pay for such a service and explain to your bank what the problem is. And a chargeback doesn’t guarantee a refund only that the issue will be investigated. One slight drawback with using a card is that the card information could fall into the wrong hands, which could prove very expensive.
There is one other payment method that is becoming very popular and that is a prepaid card. They work pretty much the same as a credit card, and there is no need to input any personal bank account details when making a payment. They are also becoming popular because there is far less risk of getting carried away and running up a huge bill. However, pre-paid cards are only available in certain countries. The voucher is bought from an outlet and then topped up with funds as and when they are needed.
It is very possible that a number of other payment options will be available depending on where you might be located.
What are the best Forex payment methods?
Out of the three we’ve already mentioned, eWallets are possibly the safest and best option when you want a Forex trading deposit method. Why? Because……..
- They are much safer to use – With an eWallet it is much easier to dispute a payment should you find the broker you’ve chosen is trying to scam you. eWallet companies will happily arbitrate on your behalf and it won’t cost any extra money.
- Processing time is quicker – Generally, eWallet payment methods are much faster than others and can even be instant in many cases. Another good thing with an eWallet is it can be linked to a credit or debit card, or a bank account without any trouble.
- Costs are less – The majority of top Forex brokers won’t charge any fees for making a deposit with an eWallet and any withdrawal fees are generally much lower than other methods.
How to stay safe when making Forex payments online
While it may be very convenient to be able to make payments in a number of different ways it does, however, mean you need to be more vigilant in order to safeguard your privacy and security. Cases of identity theft are constantly on the increase, so you need to be extremely cautious when inputting your personal details online. We’ll finish up by giving you some advice and tips on how to keep your money safe when making payments online. Bear the following points in mind, not just when funding your trading account but for any time you are banking or shopping online.
Use only trusted sites
When making any form of payment online you need to be sure the method is secure. There are so many Forex brokers to choose from it is highly likely you will encounter one that doesn’t have adequate payment security measures. A good way to tell whether the site you’re using is secure is to look for the padlock icon at the bottom of the browser.
Be alert to phishing
Phishing has become a very popular way for unscrupulous people to get hold of sensitive information. You might believe you are signing into your bank or credit account but are you really certain? Check the url of the site and only use a security-enabled website that starts with ‘https’. Another way to spot phishing is when you might be asked for information that isn’t normally requested when logging into an account, such as addresses and social security numbers.
Keep your network secure
If you’re making payments via a wireless network make sure it’s kept secure, and don’t be tempted to make any over an unsecured network. A hacker will have no problems gaining access over a network that is open or insecure within seconds, and you won’t even know that they’ve done it. If you’re trading at home, it is very quick and easy to lock your wireless router and ensure your information is encrypted. If you’re the kind of trader who prefers mobile trading use the option that allows you to lock your screen with a password, thereby keeping your data safe. And don’t be tempted to keep personal and financial information on your phone.
Spam is a can or worms that should never be opened
Be very wary of any junk mail or ‘spam’ that finds its way into your inbox. It could be from a phisher or contain a virus that will get into your computer, take all your information and send it to someone who can use it to their advantage. Install spam-filtering software if possible.
Never re-use passwords
It’s very tempting to use the same passwords for every account because it can get very confusing when every one requires a different login. But it really is far more sensible to use a different password for every account. Should someone find out the password for one account they will be unable to access all your other accounts as well.
Make use of additional security questions
If it’s possible, set up optional security questions for logging into your accounts. Many financial institutions provide this option and the questions will be ones nobody else will know the answer to. Multiple security questions will increase security even further.
Set up banking alerts
A number of financial institutions now offer the option of email and SMS alerts when certain conditions are met. An alert can be sent if your account balance drops below a certain level or when transactions over a certain amount have been made.
Review app security
If you download an app to your phone check its security protocols which should be readily available if there are any.
Regularly review your financial paperwork
A good habit to acquire is to regularly check your bank account, credit and debit cards, or eWallet statements, because this will help you catch any errors and spot the first sign of fraud. If there are any withdrawals you can’t remember making get in touch immediately with the card company or your bank.
Let’s finish by giving you a few factors to consider when choosing a Forex payment method for deposits and withdrawals.
Is the payment method secure? We’ve already mentioned a number of different payment providers such as PayPal, Skrill, and Webmoney, and there are a number of other very reliable and trustworthy payment providers.
Is the payment method easy to use? If you haven’t already got an account with a particular payment provider pick one that only takes a few minutes to open an account and one who is able to make payments swiftly and efficiently.
How much will it cost? Finally, take into consideration how much the payment provider charges for its services, as well as any additional charges levied by your broker. All of these charges are going to eat into any Forex trading profits you make.