Western Union is a financial service company that is well-known all over the world. It is based in the USA and it the best money-exchange company in America. For years, Western Union has
remain one of the leaders for payment solutions and it is used in more than 200 countries around the world.
The company itself has a couple of divisions such as money orders, person to person money transfer, commercial services and business payments. Via their official site, users can receive and send money to others, purchase gift cards or even pay bills. If you are a Forex trader, you will also have the chance to use Western Union for your payments.
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How to Fund a Forex Account with Western Union
The service of Western Union can be described as a mediator between a sender and receiver, both of whom can be in different parts of the world. While, back in the days, the only way to send money via Western Union was to visit a cash register of the company, nowadays, there are more services that will allow you to transfer money online.
In the case of a Forex broker, you will be able to send your money directly to the bank account of the particular broker. There is also the option to use the online service of Western Union and transfer money without having to visit a physical agent location of the company.
Before you can top up your Forex account, you will first need to get the banking details of the broker so that you can send your money via Western Union. This can be done by contacting the support team of the online broker.
The following step is to visit the Western Union agent that is closest to you and fill in a form with the details of the receiver. Depending on your country of residence and the Forex broker, your money may be transferred either in a few minutes or within 2 to 3 business days. After you have sent your money, you will receive a tracking number (MTCN). You will need to contact the support agents of the online broker and provide the MTCN so that they can receive your funds. In addition to that, this number will allow you to check when your money will be transferred to the broker’s account.
How to Withdraw from a Forex Account to Western Union
Some Forex brokers may also allow you to cash out your money via Western Union. The process, however, will be a tad different, compared to the deposits you make via this payment service.
Whenever you are ready to withdraw your money via Western Union, you can simply head to the payments section of your Forex account and pick the withdrawal option. Enter the amount you would like to cash out and choose Western Union from the available payment options.
Once you have requested the withdrawal via Western Union, you will receive an MTCN, which you will need to receive your money. Go to a nearby Western Union agent and provide the tracking number you were given. Keep in mind that it may take 2 or even more business days to receive your money 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 anticipate various advantages that will allow you to enjoy hassle-free trading. One of the main reasons why the service is so popular is due to the security it provides. Western Union has been a leading payment solution for people across the world and for decades it has been providing secure transfers of money from one part of the world to another one.
Since you receive a tracking number whenever you send money via Western Union, you will be able to see when the money will reach the receiver. This transparency of payments makes the service of Western Union very reliable which is why it is preferred by many.
While it depends on the country you reside in, you will also have the option to choose for your funds to be transferred within a few minutes. This feature will allow you to quickly top up your Forex account and begin trading whenever you feel like it.
In addition to the standard Western Union service which requires traders to visit a nearby agent, there are also a few newer services that will allow you easier ways to transfer money. You might have the chance to open a Western Union account online and utilize it to easily send money, using your credit/debit card, bank account or prepaid card.
Disadvantage 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 comes with certain disadvantages which many may dislike. Although this is a popular payment service that has been around for many years, nowadays, there are plenty of other methods that are more convenient to use. This is why Western Union is not that commonly accepted by Forex brokers and you might have a difficult time finding a broker that will allow you to use Western Union for your deposits and withdrawals.
Another disadvantage of the service is the fact that you will need to look for the closest Western Union Agent location in order to make a deposit with a Forex broker or receive your money. This obviously is very inconvenient, especially compared to the numerous other services that offer instant payments that can be done in the comfort of your own home.
Western Union often fails to deal with money laundering which is yet another reason for many Forex brokers to avoid payments via the service. This is also partly the reason why you cannot request a chargeback when you are paying via Western Union. Unfortunately, those who come across racket brokers will have no way of retrieving their money back, which is definitely a disadvantage you should keep in mind.
Although Western Union is available in numerous countries, not all of them have access to all the services of the company. For instance, residents of certain countries will only have the opportunity to receive money via Western Union but they will not be able to send money via the same service.
Even though you will be able to choose the Money in Minutes service for faster transfers, keep in mind that its fee may be quite high, depending on the country where you are sending the funds. In addition to that, the other surcharges that come along with the use of Western Union transfers may also be quite costly.
Fees and Limits When Using Western Union to Trade Forex
If you decide to use Western Union for funding your Forex account, you should be aware of the fees you might be charged during the payment process. It cannot be said with certainty the exact amount you will be charged as the fees that Western Union imposes differ in accordance with the country of residence of both the sender and the recipient.
Whenever you are making the payment in a currency different than the one used in your jurisdiction, you will be charged a conversion fee. The maximum amount that the 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 type of surcharge will not apply to your Western Union payments.
As it was said earlier, there is also the option to go for Money in Minutes transfers via Western Union. Of course, as this is a service that allows faster transactions, it will also levy higher fees. This type of service will require a different size of fee which will depend on the country where you reside. If you live in Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Sri Lanka and the Philippines, you may also make transfers that take only 12 hours to be processed. Of course, as this is still faster than the usual processing time of a couple of days, it also imposes higher fees.
Western Union Chargeback on a Forex Account
When you are choosing a Forex broker where you can trade, it is very important to pick one that is properly regulated. Always check which authority is responsible for regulating the operator as this will be very important if you happen to have some issues with your money.
If you notice that the 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.
In order to be able to request a chargeback, you will need to send the regulator of the broker a transaction history which will allow you to clarify any type of misunderstanding. Once you have done that, all is left in the hands of the regulator.
Unfortunately, one of the downsides of Western Union is that the way the payments are processed will not allow you any chargebacks. Once you have sent money via Western Union to your preferred Forex broker, there is no chance to retrieve them back which is why you should be careful when choosing a broker for your Forex trading.
Security When Trading Forex with Western Union
If you think about it, there is a reason why Western Union has been a preferred payment method by many for so many years and this is the security it provides. Transferring money via Western Union is as easy as it gets and you can be sure that your money will always reach the recipient in a safe manner.
In addition to its standard service that requires you to visit a physical agent location, Western Union also allows some of its customers to make payments online and on the go. If you make use of any of the services of the company, you can be sure that any piece of information, as well as your money, that you share during payments, will be protected with SSL encryption technology. This is a measure that is used to prevent any third party from accessing your personal information and taking advantage of it.
Western Union is one of the oldest payment solutions known to people from different parts of the world. It allows a simple and secure way to transfer money from point A to point B and you can also use the service for the payments to and from your Forex account. Although Western Union is a secure payment solution, it is not that commonly accepted at Forex brokers and often you might find other options that are more convenient to use. Nevertheless, if you do not have access to other methods, Western Union can be a good solution for your Forex trading.