MasterCard is one of the most popular credit card brands out there and it has become a top-tier banking solution for Forex traders all over the globe. Allowing for quick and convenient payments, MasterCard has become a staple in online transactions, supported by a wide range of platforms. As a Forex trader, MasterCard is one of the best services that you will have access to. Due to its popularity, this credit card type poses great interest to new users. Therefore, we will explore the major aspects of MasterCard and see how well it works with online Forex trading.
How to Fund Forex Account with MasterCard
Making a deposit to your Forex balance is not particularly difficult when using MasterCard. The whole process is simplified as much as possible, making it accessible and convenient at the same time. To make a MasterCard payment you will need the information printed on the card itself. This includes the 16-digit number on the front, the expiry date, your name, and the 3-digit CVV code on the back.
To make a deposit, you will have to find the Payments page on the broker’s website and under find MasterCard in the list of supported card types. After that, enter the card details we mentioned above and the sum you wish to deposit. When you confirm the payment, it will usually process instantly with the money appearing in your balance right away. It takes less than a minute and the broker may give you the option to store your card information to make further deposits even quicker.
How to Withdraw From Forex Account with MasterCard
When you are done trading or simply wish to take out part of your balance, you will have the option to withdraw your money with MasterCard. This procedure follows a similar logic as the one described above, so you should be familiar with how it works. Go to the Payments page and select the Withdrawal option. From there, find the MasterCard service and enter the amount you wish to take out of your balance.
The broker should have your credit card details, but if required, enter them again. When you confirm the transaction, the withdrawal request will then be reviewed by the website staff. This can take between 1 hour and 2 business days, depending on the platform. Only then will the payment be issued and you may have to wait between 1 and 5 business days for the transfer to clear. It is worth noting that you need to verify your identity before the broker will allow you to cash out.
Benefits of Using MasterCard for Forex Trading
Using MasterCard has become quite popular among Forex traders and with good reason. The service offers many advantages over other banking solutions and these will come in handy once you get into it.
By far, the most important advantage of choosing MasterCard is that this service enjoys almost universal support. As a result, you will be to use your MasterCard credit card at just about every Forex broker platform on the Internet. Regardless of which website you wish to trade at, you can rest assured knowing that your card will be accepted.
Additionally, you will also gain the benefit of instant deposits, allowing you to start making trades as soon as you confirm the payment. In comparison to more traditional transaction methods, such as bank transfers, this processing speed is a godsend. If efficiency and speed are your primary concerns, you will have no issue in using MasterCard.
Finally, credit cards are one of the most accessible payment methods in the world. Since every bank offers them in some capacity, you will be able to easily acquire one from your local branch. Additionally, you can shop around for the best deals by comparing offers from different banks.
Disadvantages of Using MasterCard for Forex Trading
Of course, it would not be right for us to sing the praises of this credit card type, without also making mention of the drawbacks inherent to it. As it happens, there are a few of them and you will no doubt be interested to know about them.
First and foremost, withdrawals via MasterCard are slow and can take some time to process. On average, a MasterCard withdrawal will take between 1 and 5 business days to clear and for the money to appear in your balance. In contrast, other payment services are able to process payments much faster, such as in the case with eWallets, where withdrawals are done within 1 hour once issued.
On the other hand, a payment with a credit card is not done with money your own. Rather, the bank gives you a loan, which you have to pay back eventually. In such scenarios, there is often interest involved and fees for overdrafts and late payments. If that sounds like too much trouble, you should consider debit cards or alternative services. As it happens, there are plenty of others at your disposal and you can read about them on our website.
Fees and Limits When Using MasterCard to Trade Forex
Of course, we also have to consider the cost of the service and how much you will be able to transact. However, since MasterCard is a service offered by multiple banks, offering precise numbers is quite difficult. Each bank has its own unique fee structure in place and likely, no two institutions charge the same amount. You should see the deals that the banks will provide you and look for the best possible offer. If you spend the time, you may end up saving quite a bit in the long run.
As for transaction limits, these are determined by both the banks and broker websites. Credit cards will only allow you to transact as much credit as the bank is willing to extend to you. This will depend on your own means and your relationship with the bank itself. As for the brokers’ end of things, transaction limits will vary between the different platforms and what standing you hold with each. The more you use a platform, the higher your standing and your limits will also likely be increased. Therefore, be sure to pick the right Forex broker from the get-go.
MasterCard Chargeback on Forex Account
If you ever become a victim of fraud while trading Forex, you have several ways to get your money back. Generally, the bank will not allow you to be scammed in any event. First, it is to be said that chargebacks should be used as a last measure, rather than the first option you go for. If you have the option to withdraw your funds via a normal way, you should take that rather than issue a chargeback request. If a withdrawal is not possible immediately, contact the support staff of the broker website to see what the situation is and only when this option has been exhausted should you attempt to chargeback.
Chargebacks are handled by the banks once you send the request. However, while you can issue a chargeback, the broker platform can dispute it. If it does, this can take some time to be resolved, in some cases weeks or months. Moreover, this will likely blacklist you from participating on that platform again. Therefore, we only recommend chargebacks in the direst circumstances.
Security When Trading Forex with MasterCard
The security of your funds and sensitive information should always be a top priority of yours. There is a lot of room for them to be misused on the Internet and you should also look to protect them. Luckily, there are ways to achieve this without much hassle.
For starters, all legitimate broker platforms employ some form of encryption to prevent outside individuals from gaining access to your information. This enciphers all data that you send to the broker, including your personal information and your credit card details. As a result, any potential wrongdoer will not be able to gain any benefit at all.
Additionally, you should also make use of MasterCard SecureCode if you have that feature at your disposal. When you confirm a payment with MasterCard, you will be asked to provide a one-time passcode or verify your fingerprint, depending on how you have set up the system. It is quite simple, but effective at protecting your money. Best of all, it requires little effort on your part.
All in all, MasterCard is a great banking method for new and experienced Forex traders. It is accepted at practically all platforms and allows for easy bankroll management. Moreover, you will be able to easily transact funds in either direction. The added security features also improve the service and we believe that you should seriously consider it.