It’s not possible to trade Forex when there’s no chance to fund your account. Of course you could trade with a demo account and virtual money instead but it’s not possible to make profits this way. So you have to make a deposit sooner or later and there are a few things to consider when you do that: Which broker should you choose? What payment method? And how can you withdraw your funds later? We can answer the first question right away: You need to choose a broker that is absolutely reliable like Plus500. There you can choose between several deposit methods and you’ll trade with one of the market leaders.
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Selecting a deposit method
When you made your decision regarding a broker you have to decide what deposit option you should choose. There are always four or five options available and you can already disregard those options you don’t want to use or don’t have. When you don’t have a Skrill/Moneybookers account you can disregard this option already. The most popular deposit options are credit cards, wire transfer, Paypal and Skrill/Moneybookers. The former two are well known and the other two are newer deposit options – so called eWallets.
Credit cards: Visa and Mastercard
When you own a Visa or Mastercard you won’t have any trouble finding the right Forex broker where you can deposit with one of these two options. When a broker doesn’t support these credit cards you should become suspicious and maybe look for another broker right away. These two cards are a must-have for every broker. They are very easy to use as well. You don’t have to worry when depositing with credit cards. The only thing you have to clarify before you make your deposit is whether it’s possible to withdraw amounts that exceed your deposit amount or not. If it’s not possible you will receive the exceeding amount to your bank account or via check. This is not a scam by any means, just a security step to avoid money laundering. You should contact customer support before you make a deposit using your credit card.
Wire transfer and Instant Bank Transfer
Everybody did a wire transfer in the past and everybody got used to it and knows that it works pretty easily. That’s also the case with Forex trading because a wire transfer is no problem, reliable and secure. The only big downside is that it’s taking very long and when you want to trade instantly you can’t choose a wire transfer as deposit method. You can securely move thousands of dollars but it takes at least two days until it reaches your account. It can even take a whole week.
But there’s an alternative called instant bank transfer where money moves instantly to your trading account. The only downside with instant transfers is that there’s a limit of $2.000 (a day) in most cases and that’s why this is not the most popular for professional traders. But still it’s a good alternative for all other traders that want to trade instantly and are unwilling to wait very long for their funds.
Paypal is the largest eWallet in the world and was able to conquer this market in a short period of time thanks to a very simple payment concept and a superior distribution structure. You can pay with Paypal at Ebay since a couple of years and the reason is that Ebay bought Paypal a while back and earns most of its profit with this payment processor nowadays! Paypal become also very popular at Forex brokers like eToro or Plus500 where you can easily make your deposit using Paypal. The amount will be credited in no-time and withdrawals are working very fast as well.
An eWallet that is not as large as Paypal but still very popular and widely spread is called Skrill (formerly known as Moneybookers). Skrill is an eWallet in the classical sense and you connect your account with a bank account or credit card. All deposits are credited instantly into your account. That’s also the case with withdrawals once they have been accepted. When it comes to simplicity and speed, Skrill is one of the best in this area and we can highly recommend to signup with them.
Withdrawals are as important as deposits because when you make money with Forex trading you want to make use of it sooner or later and that’s why a withdrawal is supposed to work smoothly. The money should reach your bank account, eWallet or credit card without difficulties. Be sure that you know the processes how a withdraw works with a certain broker, how long it takes, what documents you need or in case of a credit card cashout if you can receive the whole amount or only a part of it. When it comes to depositing, brokers make it very easy for you but when it comes to cashing out there are often some hurdles you have to overcome.