| Updated: Are you looking for regulated and trustworthy Forex brokers that accept Western Union? Our team of expert traders tested numerous Forex brokers using real accounts and compiled a list of the best ones that support this payment method.
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Western Union is a financial services company that is well known worldwide. It is based in the United States and is considered one of the leading money-transfer companies in America. For years, Western Union has remained a leader in payment solutions and is used in more than 200 countries around the world.
The company itself has several divisions, such as money orders, person-to-person money transfers, commercial services and business payments. Through its official website, users can send and receive money, purchase gift cards or even pay bills. If you are a Forex trader, you can also use Western Union for your payments.
How to Fund a Forex Account With Western Union
The service offered by Western Union acts as a mediator between a sender and a receiver, both of whom may be in different parts of the world. In the past, the only way to send money via Western Union was to visit one of the company’s cash offices; nowadays, there are convenient online services that allow you to transfer money without leaving home.
In the case of a Forex broker, you can send funds directly to the broker’s bank account. You can also use Western Union’s online service to transfer money without visiting a physical agent location.
Before you can top up your Forex account, you first need to obtain the broker’s banking details, which you can request from the broker’s support team.
The next step is to visit the Western Union agent closest to you and fill out a form with the receiver’s details. Depending on your country of residence and the Forex broker, your money may be transferred in just a few minutes or within 2-3 business days. After you have sent your money, you will receive a tracking number (MTCN). You will then need to contact the broker’s support agents and provide the MTCN so they can receive your funds. In addition, this number will allow you to track when your money is credited to the broker’s account.
How to Withdraw From a Forex Account to Western Union
Some Forex brokers also allow you to withdraw funds via Western Union. The process, however, differs slightly from making deposits with this service.
Whenever you are ready to withdraw funds, go to the payments section of your Forex account and select the withdrawal option. Enter the amount you would like to cash out and choose Western Union from the available payment methods.
Once you have requested the withdrawal, you will receive an MTCN, which you will need to collect your money. Visit a nearby Western Union agent and provide the tracking number. Keep in mind that it may take two or more business days to receive your funds via Western Union.
Benefits of Using Western Union for Forex Trading
If you decide to trade Forex with a broker that accepts payments via Western Union, you can expect several advantages that help you enjoy hassle-free trading. One of the main reasons the service is so popular is the security it provides. Western Union has been a leading payment solution for decades, offering secure money transfers across the globe.
Because you receive a tracking number whenever you send money via Western Union, you can see exactly when the funds reach the receiver. This transparency makes Western Union very reliable, which is why it is preferred by many traders.
Depending on your country of residence, you may also be able to transfer funds within a few minutes. This feature lets you top up your Forex account quickly and start trading whenever you wish.
In addition to the standard Western Union service that requires traders to visit a nearby agent, newer options provide even easier ways to transfer money. You might be able to open a Western Union account online and use it to send money with your credit or debit card, bank account or prepaid card.
Disadvantages of Using Western Union for Forex Trading
While Western Union is a good option for those who do not have access to other payment solutions, it does have drawbacks. Although this popular service has been around for many years, plenty of modern methods are more convenient. As a result, Western Union is not commonly accepted by Forex brokers, and you may have difficulty finding a broker that allows you to use it for both deposits and withdrawals.
Another disadvantage is that you must locate the nearest Western Union agent to make a deposit with a Forex broker or to receive your money. This requirement is inconvenient, especially compared with numerous other services that offer instant payments you can make from home.
Western Union has faced criticism for not dealing effectively with money laundering, which is another reason many Forex brokers avoid the service. It is also one of the reasons you cannot request a chargeback when you pay via Western Union. Unfortunately, anyone who encounters a rogue broker will have no way to retrieve their money, a drawback you should keep in mind.
Although Western Union is available in numerous countries, not all jurisdictions have access to the company’s full range of services. For instance, residents of certain countries can only receive money via Western Union and cannot send funds through the service.
Even though you can choose the Money in Minutes service for faster transfers, remember that its fee may be quite high, depending on the destination country. In addition, the other surcharges that accompany Western Union transfers can also be costly.
Fees and Limits When Using Western Union to Trade Forex
If you decide to use Western Union to fund your Forex account, you should be aware of the fees you might incur during the payment process. It is impossible to state with certainty the exact amount you will be charged, as Western Union’s fees vary according to the country of residence of both the sender and the recipient.
Whenever you make a payment in a currency different from the one used in your jurisdiction, you will be charged a conversion fee. The maximum amount that residents of most countries need to pay as a conversion fee is capped at 6%. If you are based in a country that is part of the Eurozone, however, this surcharge will not apply to your Western Union payments.
As mentioned earlier, you can also choose Money in Minutes transfers via Western Union. Because this service enables faster transactions, it comes with higher fees. The exact fee depends on the country where you reside. If you live in Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Sri Lanka or the Philippines, you may also make transfers that take only 12 hours to be processed. As this is still faster than the usual processing time of a couple of days, it also involves higher fees.
Western Union Chargeback on a Forex Account
When choosing a Forex broker, it is essential to pick one that is properly regulated. Always check which authority supervises the operator, as this will be crucial if you encounter issues with your money.
If you notice that funds from your Forex account have been removed without your knowledge, or if you have requested a withdrawal but have not received your money within the acceptable period, you can request a chargeback. Of course, this is only possible if the Forex broker is regulated and you contact the regulator directly.
To request a chargeback, you must send the broker’s regulator your transaction history so it can clarify any misunderstanding. Once you have done that, everything is in the hands of the regulator.
Unfortunately, one of the downsides of Western Union is that the way payments are processed does not allow chargebacks. Once you have sent money via Western Union to your chosen Forex broker, there is no way to retrieve it, which is why you should be careful when selecting a broker for your trading.
Security When Trading Forex With Western Union
Western Union has long been a preferred payment method because of the security it provides. Transferring money via Western Union is straightforward, and you can be confident that your funds will reach the recipient safely.
In addition to its standard service that requires you to visit a physical agent location, Western Union allows some customers to make payments online or on the go. If you use any of the company’s services, you can be sure that every piece of information, as well as your money, shared during payments is protected with SSL encryption technology. This measure prevents any third party from accessing your personal information and exploiting it.
Conclusion
Western Union is one of the oldest payment solutions available worldwide. It provides a simple and secure way to transfer money from point A to point B, and you can also use the service for payments to and from your Forex account. Although Western Union is secure, it is not commonly accepted at Forex brokers, and you may often find other options that are more convenient. Nevertheless, if you do not have access to other methods, Western Union can still be a viable solution for your Forex trading.