American Express, often abbreviated as Amex, is one of the more popular credit card brands out there. Given its wide user base, it is only natural for this payment solution to be supported by the Forex industry. As it happens, there are plenty of platforms more than happy to accept deposits made via Amex, giving you access to one of the largest markets on the planet. Below, we will explore how Amex fits as a payment solution in the online Forex trade and how it can serve you when it comes to balance management.
How to Fund a Forex Account with Amex
Using Amex online is quite simple and if you have ever made a credit card payment before, you will be immediately familiar with the process. Basically, you will need to find the payments page on the broker platform and select the Amex option from the list of supported transaction services. When this is done, you will be asked to enter your credit card information. Additionally, you also have to enter the sum you wish to deposit and confirm the transaction.
Deposits made via an Amex credit card are processed instantly and you will get to use your money right away. This payment method offers convenient and quick transfers with practically no downtime. Moreover, the website will likely save your credit card information, so any future payments will be much quicker.
How to Withdraw From Forex Account with Amex
When you are done and wish to take out part of your balance you may have the option to withdraw money to your Amex card. This is not much different to making a deposit and you will have to do much of the same. For starters, find the payments page and the subcategory Withdraw. From there, choose the Amex service and enter the amount you wish to take out. As we stated above, the broker should have saved your credit card information, so you can skip putting it in again.
Once you have requested a transfer, the broker will have to review it and issue it. This can take between 1 hour and two business days, usually. Once the payment is sent, it will clear within 1 and 5 business days, depending on your country of residence and your bank. Furthermore, you need to be verified before a withdrawal request can be processed.
Benefits of Using Amex for Forex Trading
When it comes to advantages of using American Express for your Forex trading needs, there are several main ones that you should be aware of. These the primary reasons why you should use this payment service over others. First and foremost, transfers made via Amex are processed instantly. You can start making trades within a minute and there is no wait time, unlike other deposit options. For instance, bank transfers are notoriously slow to clear in comparison to credit cards, taking anywhere between hours and several business days. Amex payments are convenient and consistent, allowing you a lot of flexibility that other solutions do not.
Furthermore, you should also take into account that the entire payment process is simple and easy to understand. The broker has a ready-to-use form that allows you to enter your card information and make a deposit within seconds. You do not need to bother with finding out the other party’s banking details to get your money through and anyone can go do it.
Credit cards are used in everyday life all the time and it may so happen that you already have an Amex in your wallet. As such, you will not have to bother with setting up another payment method just so you can make trades online. Moreover, there is very little management required with a card, unlike some other services.
There are other benefits of using Amex for Forex trading, but these are the main ones that come into play and will have an effect on your experience.
Disadvantages of Using Amex for Forex Trading
It would be disingenuous for us to praise the benefits of Amex without also mentioning the drawbacks of this credit card type. As it happens, there are a few of them that we would like to warn you about before you begin your trades.
The main issue one can have with Amex is that this credit card type is not nearly as popular as Visa or MasterCard. Service providers are not as fond of American Express due to the higher fees and are many are opting to forgo this payment solution entirely. As a result, your range of potential broker websites will be limited when compared with those that support the two other brands. As a result, you will have to contend with what is available or choose to go for a different payment method.
Something else to take into account is that withdrawals are much slower than deposits when using Amex, much like any other credit card. Simply put, you will need to wait a few days before your withdrawal is processed and the money is placed within your bank account balance. There are services out there that are much more efficient and do a better job at this, namely eWallets.
Last but not least, some customers might be apprehensive about submitting their full credit card information online. You cannot circumvent this without bringing in another service to help out with it. Therefore, if this does not suit you, you would do better with a different payment solution.
Fees and Limits When Using Amex to Trade Forex
When it comes to the cost of using Amex, things are not as clear cut as we would like. Amex cards are issued by a variety of different banks, each with its own fee structure. Since these are different with each bank, we cannot provide any concrete information on the matter. Another aspect to consider is that while Amex payments may sometimes be free for you, certain Forex platforms may also charge commissions on transactions. These cannot be avoided and you should look out for them when choosing a broker website.
As for transaction limits, these are also highly subjective, as well. Forex brokers have widely different deposit and withdrawal limits, though they are all flexible. Usually, they can be increased when you achieve a certain standing with a particular platform. On the other side of things, you will only be able to transact as much credit as the bank is willing to provide you. Going over this amount is either not possible or comes with steep charges. These are both issues that you should take up with your broker or bank, depending on the situation.
Amex Chargeback on Forex Account
In the event that you are cheated or otherwise taken advantage of, you will likely have the option to request a chargeback on an Amex payment. While available, this option should be used when all other ways to retrieve your money have been exhausted. Chargebacks are a messy business for all involved. When you wish to issue a chargeback, you will need to contact your bank to make it happen. The bank staff will review the transaction and reach out to the broker, who can dispute your claim. The review process can take a while, with no exact timeline. If your claim is based in reality, you will most likely see your money back.
Usually, it is best to avoid the chargeback route if there are other avenues to get your funds back. If you have deposited by mistake, you should first try to withdraw your money via normal means. Furthermore, if you issue a chargeback against the broker, this could lead to a ban from the platform.
Security When Trading Forex with Amex
Something you should never ignore is the safety of your private and banking information. Credit card fraud is quite lucrative for certain shady individuals and they will have no issue in milking every dime from you, given the opportunity. Luckily, modern-day Forex brokers employ complex security systems to ensure that this does not happen. It is an industry standard to utilize high-end encryption to protect customers’ data from unauthorized parties. This makes any potential theft quite difficult for criminals and keeps your money safe and sound. Of course, no amount of security software will stop fraud if you are not careful with your credit cards. Usually, common sense can bring you a long way.
Overall, American Express comes with many of the characteristics of other credit cards out there. Granted, it is not nearly as supported as Visa or MasterCard, but Amex can still be of use to you. As long as you are willing to look for broker platforms that accept this credit card, you should have no issued in managing your Forex balance.