What are the best e-payments for deposit and withdrawal in forex trading and why are they recommended? Find out the answer in this article.
Traders have various options for depositing and withdrawing funds. Different brokers offer different methods, each with its own processing times, procedures, and fees. Commonly available payment methods in forex brokers include credit cards and bank wires. However, the rise of online payment services in recent years has made e-payment or e-wallets increasingly popular.
Typically, traders are redirected to the e-wallet page to log in and complete deposit or withdrawal transactions, which are processed relatively quickly. But, which e-payment is the best?
So, here are the lists of 5 recommended e-payments for forex deposit and withdrawal:
- Skrill: offered cross-border transactions in at least 40 currencies
- Neteller: has advanced safety to prevent money laundering
- Paypal: a well-known company that have million clients
- WebMoney: has a purse system
- FasaPay: has tight deposits and withdrawals fees
Let's take a look at the advantages of each item on the list above.
Skrill is a digital payment provider established in 2001 which offers a range of online transactions and payment options for global traders. It was one of the first companies that obtained the license for a digital payment system. Skrill changed name from Moneybookers and rebranded itself in September 2011. In fact, the word "Skrill" is stands for "skrilla", a slang word that means money. Apart from its experience, the company's reliability is also really good because it has been registered with the FCA (UK).
As for its use among forex traders, Skrill has partnered with nearly all well-known forex brokers including IC Markets, Pepperstone, and many more. It is available in many types of brokers, from the newly established to the top tiers.
Currently, Skrill has served more than 2 million clients from 200 countries and offered cross-border transactions in at least 40 currencies, making it highly useful for traders around the world. Providing service with its "Simple, Secure, and Quick" tagline, the company offers an easy, safe, and fast service for its clients.
Deposit and withdrawal via Skrill are actually quite easy. There are several options that you can pick, including debit and credit cards. What you should pay attention to are the cost and policies of each broker offering deposit and withdrawal via Skrill. For example, InstaForex doesn't charge an additional fee for using Skrill, but for each withdrawal, traders must pay a 1% commission (max. $11,41) with a processing time of 1-7 working hours.
Neteller is one of the most well-known e-payment providers across the globe. The company was built in 1999 and initially headquartered in Canada before eventually moving to the Isle of Man in 2004. Over the decades, Neteller has served millions of clients from more than 200 countries and has processed more than $1 billion worth of transactions every year. The Neteller e-wallet service supports at least 19 currencies, 13 languages, as well as additional local deposit and withdrawal options.
The security aspect of this company is also guaranteed because Neteller is regulated by the FCA (UK) and provides many unique safety features such as IP checking, safety code verification, the use of PCI DSS, and real-time monitoring.
Not only that, Neteller even uses advanced safety measures to prevent money laundering. In addition, the company also uses a segregated account system so that the clients' funds will not be incorporated into the company's operational funds.
When it comes to the actual service, Neteller offers many methods for account funding, such as debit cards, credit cards, local banks, and international bank transfers.
The transactions will be processed in a relatively short time, usually within 24 hours. However, each broker that provides access to Neteller may have different policies. For example, FBS broker doesn't charge any commission for deposits, but charge a 2% commission for withdrawals.
Typically, Paypal is known as the payment method used for digital transactions across any platform. Despite its reputation, brokers that include Paypal in their service are still quite a few compared to the previous digital payment providers. It is due to the restrictions implemented by the company, as it follows the US policy that prohibits services in the US-sanctioned areas.
Each broker imposes different policies regarding the Paypal service. FxPro for example, would charge the clients a deposit fee of 2.7% and a processing time of at least 10 minutes, whereas for withdrawal, it is free of commission but takes at least 1 working day to process.
As for the safety aspect, Paypal has obtained licenses from the US, Australia, and European Union. The company's security system itself is designed to accommodate every side's interests in an online transaction.
As a result, the company always checks the safety of information, prevents scams in real-time, protects clients' accounts, provides service for rejected transactions, monitors the accounts to prevent frauds like email phishing, and many more.
See also: List of Brokers Accepting PayPal
Webmoney Transfer is a global e-wallet company established in 1998 and was based in Moscow, Russia, amidst the economic crisis that affected the country at that time. In their early years, the company only accepted Russian clients but later started expanding its business globally. Currently, Webmoney has grown to be one of the best global e-wallet companies with over 30 million clients from various countries.
Although their biggest market is still Russia, the company is popular across Europe and Asia and now about to expand to America. The company is known to provide reliable services that allow clients to make secure online transactions and efficiently manage their funds. One of the most notable features of WebMoney is its purse system. It is basically divided into 8 currency units, with the USD being the most favored one because most forex traders widely use it.
At the end of 2015, the company founded Webmoney Europe Ltd, with a head office in Cambridge, UK, and received an FCA license to operate in the European Economic Area as an e-wallet service.
When it comes to the security of the clients' data and funds, WebMoney has implemented a layered security system. The authentication process consists of passwords, secret keys, personal digital certificates, and E-Num (one-time passwords).
For this reason, WebMoney is considered to be one of the best e-payment options for forex traders. The average fee charged for WebMoney transfers in forex brokers is 0.8%.
The next top e-wallet company is Fasapay, which is still relatively new compared to the previous companies. The company was established in 2010 but has quickly grown to be one of the most accessible digital payments, especially in the Southeast Asia region. There is quite a wide range of brokers that include FasaPay in their services, such as Alpari, GOMarkets, etc.
If we talk about the actual service, FasaPay provides quite affordable deposits and withdrawals, as its average fees do not exceed more than 0.5% per transaction. In addition, the security system is also quite reliable. The users' accounts and transactions are under the protection of several types of safety protocols that include Master Code, PIN Setting, PIN on a transaction, and API Security.
However, bear in mind that so far, FasaPay only accepts USD and IDR (Indonesian Rupiah), so the currency options are still limited for traders who need to deposit in other types of currency.
See Also: List of Brokers Accepting FasaPay
To assist you in comparing, here is a comparison table for each of the above e-payment methods.
|🏢Number of brokers that accept it||216||203||52||68||84|
The Advantages of Using E-Payment
Since the popularity of e-payment methods become so massive, a large number of forex brokers now offer e-wallets as a payment method for deposit and withdrawal. Here are some of the advantages of using e-wallets:
- Quick processing time. Compared to other payment options, e-wallets are much faster and even guarantee instant payments in some cases.
- Less cost needed. Usually, forex brokers won't charge any additional commission fee for depositing via e-wallet. As for withdrawals, the fees are still relatively lower than other methods.
- Safer to use. Should you find your broker is trying to scam you, the e-wallet company can act as the third party in the dispute without costing you extra money.
Moreover, e-payment itself has many types to choose from. That is why traders need to know which e-payment suits them best and which broker provides it. It is crucial because many unnecessary problems can occur if you choose an unreliable method, such as transactions beinged or even rejected, slow processing time, etc.
In sum, e-payment or e-wallet methods have quickly expanded and become popular among forex traders. It is not surprising because digital payment has several advantages that deal with more effectiveness in transaction cost and processing time. The abovementioned e-payments can be a good reference for you.
Before funding your forex account, make sure to check the payment options provided by your broker along with the terms and conditions so you can choose the most ideal e-payment to use. Most forex brokers only allow deposit and withdrawal with one method, so you also need to make sure that your chosen e-payment is not only favorable for deposits but also withdrawals. As a reference, check out the four important things that you need to know about deposit and withdrawal.