WebMoney is a leading global settlement system that was initially oriented towards the needs of users from Russia. The payment system has dramatically expanded its footprint as currently, it lists among the much-used banking solutions on a global scale.
The platform was founded in 1998, and ever since then, it has been successful. Figures come to show that as there are more than 10,000 registrations daily, while the number of the customers that are using the payment service exceeds 40 million.
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This is a digital wallet that has various purposes as it can be utilized when paying for various services or when purchasing goods. What is more, it stands out as a great alternative for Forex traders who are on the lookout for secure means to transfer their funds to and from their brokerage account. It is likely to turn out to be a nice alternative to other popular digital wallets the likes of Neteller, PayPal, and Skrill because of its reliability and promptness.
How to Fund a Forex Account with WebMoney
Although WebMoney is a slightly less-known payment solution, especially when compared to the above-mentioned digital wallets, it is certainly gaining much traction as it is accepted by more and more Forex trading platforms.
It is true to say that there is a surge in the popularity of the banking solution, meaning that finding a proper broker that accepts payments via WebMoney is unlikely to turn into a feat. If you have already found a Forex trading platform, but you have never used WebMoney before, you should first head over to the official website of the company. Before being able to make use of the payment system, you will be required to establish an account. First off, you will need to pick your country of residence and provide your phone number.
The next thing traders need to do is to enter their date of birth, their email, address, and pick a security question. Then, you will be prompted to provide the confirmation code that was sent to you on the phone number you have provided. The last step is to come up with a password and create a purse by picking one of the supported currencies.
Since you will not have any funds in the balance of your wallet at this point, you will need to pick a way of funneling some funds to it. Users of the payment method can do so via bank transfer, their credit card, prepaid card, or to use electronic money, among others.
Topping up your Forex trading account will now be easy as first, you need to enter the amount you would like to upload. Once you have picked WebMoney, you will be redirected to the website of the payment provider where you will be asked to log into your account in order to authorize the transaction. You will also be asked to decide whether you prefer to receive your confirmation code via SMS or email. As soon as the funds are deducted from the balance of your WebMoney wallet, they will be available on the Forex trading platform within a few minutes.
How to Withdraw from a Forex Account to WebMoney
Thankfully, a large number of brokers facilitate banking through WebMoney in both directions, which makes for greater convenience. So as to request a cashout, traders will need to navigate to the section that is reserved for payments, enter the amount they wish to be deducted from their balance, and pick WebMoney as their preferred cashout method. Then, they will be asked to enter the ID of their WebMoney wallet and click on request a payout. As soon as traders are notified that their request is approved, they will be able to use their money for whatever purposes they like.
Once traders have retrieved their profit back to their WebMoney wallet, they will be presented with several means to lay their hands on their money. The options they have when they want to withdraw their money from the respective purse include bank transfer, electronic money, to get them in cash, or to transfer their funds to their card. Please keep in mind that the fees you need to pay if you decide to move your funds to the balance of your debit card or bank account will be the highest.
Benefits of Using WebMoney for Forex Trading
It is only natural that most people want to be satisfied with the efficiency and reliability of the payment method they are about to use, especially when it comes to Forex trading.
One of the biggest positives of paying through WebMoney is that your funds will always be in safe hands. The company has ensured that the service it offers is in line with all industry standards for online money transfers. What helps strengthen the safety of their transactions is that they will be sent unique codes via SMS or take advantage of single-use passwords, which should give you extra confidence that your funds will be heavily safeguarded.
Another great thing about this payment processor is that no matter whether you are making a deposit or you want to cash out your profit, you will not be asked to expose any of your banking details. Deposits will be wrapped up by logging into your WebMoney account, while a cashout can be handled by providing the ID of your pursue.
Speaking of the positives of the banking solution, we should mention that WebMoney users will have plenty of options to pick from when it comes to the payment methods they can employ to fund their WebMoney purse. What many of you might also appreciate is that they can set up purses in a profusion of currencies and even in cryptocurrencies the likes of Bitcoin and Litecoin.
Forex traders will have the chance to handle all their banking with great ease as the payment method is available for deposits and cashouts. This means that traders are likely to have fewer concerns when carrying out their payments as they will not be required to remember extra login credentials or make use of payment processors they are uncomfortable with.
Establishing a WebMoney account takes almost no time and is cost-free. Overall, transactions through WebMoney will not cost the earth, which is not a benefit that should be underrated. Finally, it is a multi-purpose banking solution as you will not only be allowed to use it when speculating on Forex, but also to pay for various services and purchase goods.
Disadvantages of Using WebMoney for Forex Trading
Despite the advantages we enumerated, WebMoney has several downsides traders should not undervalue if they are yet to determine whether it will be the right means to handle their deposits and cashouts.
First and foremost, when you take a closer look at the fees you need to pay when using WebMoney, it will hit you that certain charges are applied to almost all services. There are fees when funding your purse and when withdrawing funds from it. Although they might not turn out to be that substantial, they are worth paying heed to.
Another thing some WebMoney users might not be comfortable with is that some of the information on the website of the company is in Russian. This might pose as a major issue, especially if you are not fluent in that language.
Finally, WebMoney might not be available at such a large number of Forex trading platforms. If you insist on using that banking solution, you might end up with a slightly narrowed scope of options to pick and choose from. As it seems, there are also platforms where you cannot execute cashouts through the banking service. Although this might not be a widespread occurrence, it is worth ascertaining of that ahead of time.
Fees and Limits when Using WebMoney to Trade Forex
One of the best ways to figure out if WebMoney is capable of measuring up to the expectations of Forex traders is to check out the limits and the fees the usage of the payment solution entails.
First off, users of WebMoney will need to pay attention to the charges applied on behalf of the company. What Forex traders should be mindful of is that a fee of 0.8% will be applied to every transaction they make. The ceiling on this type of fee might not be the same across the different currencies, which is why it will be best to examine the table where this information is posted. Thus, if we take as an example USD, your daily limit will be either $300 or $600, while the ceiling per month will be $1,000 or $3,000.
If you visit WebMoney’s website, you will also be able to check out the timeframes within which your funds will be added to your purse and will be retrieved from it, depending on the payment method you have opted for.
Speaking of fees, we should note that the better part of the brokers refrain from imposing any extra charges on deposits that are carried out through WebMoney. Although in most cases this refers also to cashouts, some brokers might add extra commission on withdrawals, which is why we recommend making sure of that prior to requesting a cashout so as not to end up unpleasantly surprised.
In terms of the least amount traders will be asked to upload before they start speculating on Forex, we should say that it varies greatly between the brokers. Still, in most cases, traders will need to go for deposits of as little as $50, $100, or sometimes, even $200.
WebMoney Chargeback on a Forex Trading Account
In the event that traders have fallen through to find a decent broker and they have ended up fleeced, they should be in the know that there are several possible moves they can make.
One possibility traders have is to reach out the license issuer that should check out how matters stand. What might compound the situation is that some brokers are not licensed by a local regulator, which means that it might turn out to be a lot more difficult to deal with such an issue.
As long as you have realized that you are using the services of a rocket broker, you might also have the opportunity to request a chargeback. What you should keep in mind, however, is that whether or not this opportunity will be at hand depends exclusively on the payment method you have used, as well as whether you will be able to prove your rightness.
Unfortunately, traders who have picked WebMoney as their preferred banking solution will not have the opportunity to request a chargeback. As it turns out, transactions that are executed through the payment gateway will be irreversible, which might turn out to be one of the reasons why some traders might rethink their decision to utilize that payment processor.
Security When Trading Forex with WebMoney
It is only natural that traders tend to be apprehensive not only when it comes to the safety levels maintained by brokers but also when the safety of their payment method of choice is concerned. Thankfully, WebMoney provides all means for safe transactions at all times.
First off, while establishing your WebMoney account, you will be assigned a unique number you will need all the way down the line. The company utilizes several means to strengthen the safety of your transactions as traders can make use of security codes that are sent via SMS or make use of one-time passwords.
What guarantees the safety of your payments is that in practice, you will not be prompted to expose any of your debit card information or other such data. What is more, when performing payments through WebMoney, your funds will be either in your wallet or in the wallet of the receiver. Thus, in practice, it will be impossible for your money to be lost.
Finally, all WebMoney users will be allowed to decide which of their information will be exposed to the other participants in the transaction, which can also bring them some confidence that their safety is guaranteed.
WebMoney might turn out to be a viable payment solution for traders who are unwilling to utilize their credit/debit card or bank account when speculating on Forex. One of the main reasons why WebMoney might turn out to be a good alternative for traders is that most of the time, it is available when funding your account and when retrieving your profit. On the downside, it is not accepted by that many brokers, which might impede finding a proper Forex trading platform that supports it.