you quick and easy access to the largest financial market in the world. However, Forex trading is not for anyone, so you must carefully research this topic and determine if this is something that you can do right.
Becoming a successful trader usually takes a lot of time, nerves and money, but the final result will allow you to quickly make more money than you would with a regular job. Assuming that you’ve already chosen a Forex broker, then the next step is to invest money into your account. One of the ways to do this is to use PayPal – a unique online payment system that is used by millions of people around the world.
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How to Fund a Forex Account with PayPal
PayPal is one of the best payment solutions for Forex traders as it allows fast and secure payments. If you decide to use this e-wallet to fund your Forex account, you will have no issue utilizing this payment method.
If you have chosen a broker for your Forex trading and you have created your account, you will be ready to use PayPal for your deposits. All you will need to do is head to the payment page of the broker and select the option for deposits. Select the amount you would like to deposit and pick PayPal as the method you wish to use.
By selecting the digital wallet as your preferred payment solution, you will be redirected to a PayPal page that will ask you to log in to your PayPal account. The only type of credentials you will be asked to provide is the user ID and password that you use to log in to your account. This makes the payment process very secure as you will not be asked to expose any type of sensitive data. What is more, if you are using a mobile device that allows fingerprint scans and you are trading via your smart device, you can easily choose to log in to your PayPal account by scanning your fingerprint. Once you have verified the payment, your money will instantly appear in your Forex account.
How to Withdraw from a Forex Account to PayPal
If you decide to initiate a withdrawal of your funds, most brokers will allow you to use your PayPal wallet to cash out your money. The payment process is very similar to the deposit one with the exception that withdrawals take longer as they need to be approved once you have requested them.
When you are logged in to your Forex account, head to the payments section and select the “withdraw” option. The next step is to enter the amount you would like to withdraw and pick PayPal as the method you will use. This will redirect you to another page that will prompt you to log in to your PayPal account and verify the transaction. Yet again, you will not be asked to provide any type of sensitive information.
Once you are done with your withdrawal request, it will usually take between 1 and 2 days for your money to appear in your PayPal account.
Benefits of Using PayPal for Forex Trading
It isn’t a surprise that PayPal is currently the most popular way to pay and get paid. The service is very quick, easy-to-use, and the taxes that apply to all transactions are fairly low. PayPal’s services are preferred by a major part of all Forex traders because it is incredibly easy to deposit funds into your PayPal account and then instantly send them to your trading account.
Speed is one of the most important qualities for Forex traders because they must be sure that they can always rely on their money and participate in all trades. The ability to quickly fund your account is essential to sticking with your trading schedule. This is why you should find the most convenient payment method for you in order to enhance the positive results of your trading activities. Apart from depositing money, PayPal can also be used to withdraw funds from your account.
Forex trading is a risky business in itself, which is why traders should not be willing to take additional risks with the payment solutions they use to fund their trading accounts. Another major positive quality of PayPal is the security it provides for your online payments. Since transactions initiated via the digital wallet do not require exposing any type of sensitive information, you can be sure that your Forex account will be funded in a safe manner.
As most Forex brokers do not impose any additional charges for deposits via PayPal, you will also discover that this payment solution is extremely budget-friendly. This is definitely a good reason to consider using this e-wallet for your Forex trading.
Disadvantage of Using PayPal for Forex Trading
Although PayPal is used by millions of people, the service is still not available in all countries. This is why you must carefully check PayPal’s terms and conditions, and find out if this payment method is available in the country you are residing in. Of course, even if you cannot take advantage of PayPal’s services, there are still plenty of other online and offline payment methods that can be used to deposit funds into your Forex trading account.
Another issue that you may find rather disappointing is the fact that not every Forex broker accepts PayPal. Keep in mind that if a Forex broker is reputable, renowned and respected, then it is almost certain that it will allow you to deposit/withdraw funds via PayPal.
PayPal offers chargebacks only on physical goods which is bad news for Forex traders as they will not be able to request a chargeback if they come across a racket broker. What is more, PayPal has quite a few restrictions when it comes to payments, which is why many Forex brokers choose to accept payments via other e-wallets rather than via PayPal.
Fees and Limits When Using PayPal to Trade Forex
Since there are numerous different Forex brokers you can opt for, it is hard to define specific limits for payments via PayPal. This being said, most brokers will set up a minimum for PayPal deposits along the lines of $100/$200. The maximum amount that you can deposit via this digital wallet may be capped at somewhere around $10,000.
Most Forex brokers will not charge a fee if you decide to fund your trading account via PayPal. This is one of the reasons why this method is considered a good deposit options for Forex traders as they will not have to worry about surcharges imposed by the broker. Keep in mind, however, that if you initiate a withdrawal without embarking on any trading, the Forex broker might charge you a fee of 2.7% for the PayPal transaction.
Although most brokers will not impose surcharges for deposits via the e-wallet, there might be some fees imposed by PayPal for different types of transactions. The foreign transaction fees when using PayPal may reach 4.5% while some transfer fees may range between 4% and 12%. This is why it is always a good idea to check the surcharges that using the service of PayPal may incur.
PayPal Chargeback on a Forex Account
When you are choosing the Forex broker where you will trade, you should be very careful. Make sure that the operator is properly licensed and regulated as this will be of help in instances when you cannot receive your money or, to your surprise, your account is emptied without any reason. If that happens, your best chance to get your money back is to request a chargeback which is fairly easy, provided the broker is regulated by a trustworthy jurisdiction.
In such cases, you can contact the regulator and send them your transaction history. This will allow you to prove that your money has been withheld unfairly and you can leave the issue to the regulator. Unfortunately, this process can sometimes be very burdensome and if you have stumbled upon a racket Forex broker that is not properly regulated, you might have a difficult time getting your money back.
Although PayPal does have a chargeback policy, you must keep in mind that only physical goods are qualified for a chargeback. Unfortunately, Forex trading does not count for chargebacks and you might actually lose your funds if you have become a victim of a racket broker.
Security When Trading Forex with PayPal
If you decide to rely on PayPal for your Forex trading, you can be sure that your payments will be processed in a very secure way. In fact, some claim that using PayPal for your deposits and withdrawals at Forex brokers is even safer than using credit/debit cards.
One of the reasons why this service is considered safe is the fact that it does not require exposing any sensitive information. When you are asked to verify a transaction via PayPal, you will be asked to simply log in to your e-wallet account by using your username/email address and password. If you are trading on your mobile device, you can also set up your PayPal account so that you can log in by simply scanning your fingerprint. This adds another layer of protection to your payments via PayPal.
What is more, the service of PayPal utilizes the latest security technology to protect your money whenever you initiate payments online. The data that you might share is protected on PayPal’s servers, guaranteeing you that your sensitive information is always secured from unauthorized use.
When you are looking for a safe method to boost your Forex trading balance, you can rely on PayPal. Not all Forex brokers accept payments via this digital wallet but those that do, are trustworthy and comply with all of the strict rules of use of PayPal. This e-wallet allows easy, fast and secure payments which is definitely something to be on the lookout for when you are trading Forex.