The Forex market operates with billions of dollars every day and broker companies should have a well-regulated payment system that corresponds with the needs of their customers. Due the rapid growth of the Forex market, many excellent Forex brokerage companies developed attractive offers for customers in terms of depsoits and withdrawals.
A great number of Forex companies offer fast payouts, for example, the same day or in 24 hours. Top Forex companies will be accurate and punctual with withdrawals and will avoid delays in payment.
When you register with a Forex broker, you will see what currency pairs they offer and what currencies they accept. The most popular currency pairs generally include EUR/USD, USD/JPY, GBP/USD, and USD/CHF. This does not mean that you necessarily have to deposit in one of the given currencies but that they simply will convert your currency using the exchange rate.
Different Forex brokers employ different deposit rules. Some will ask for a minimum deposit of $50, while others may ask up to $500 or more. Choose a broker that corresponds to your needs and requirements. As a beginner, it is best to stick with brokers low deposit requirements.
Deposit Methods Explained
Experienced Forex brokerage companies offer a variety of payment methods to cover as many client preferences as possible.
This usually includes Bank Transfers, Debit or Credit Card payments (Visa, Visa Electron, MasterCard, Visa Delta, Maestro International, etc.), e-Wallets like Skrill, Paypal, Neteller, etc.
Writing a check is also possible, but not that popular due to time lost in the process (e.g. with checks it may take over a week to be processed). Many feel more comfortable with credit card online payments where the deposit is transferred within one work day and usually instantly.
Since it is a global market where anybody can become a client, Forex brokers offer other payment methods that are popular in other countries. For example, Webmoney is very popular with the Russians, Boleto with Brazilians, Netbanks with the Chinese, eProtections with the Japanese, etc.
This tells us that Forex brokers try to accommodate all types of clients.
The best Forex brokers will have an online forum where they answer all your questions regarding depositing and withdrawing, e.g. how to withdraw funds if your credit card has been cancelled, etc.
Before signing up with an account ask your Forex broker about fees and commissions they charge on deposits or withdrawals. Many Forex companies do not charge any commissions or fees, and they just charge the spread (the difference between the ask and bid price). Some of them employ a fee, however, and you should gather detailed information before making the next step.
Most of the time deposits don. It all depends on the broker company. Also, attention is to be paid to your bank; they might charge transaction fees independently from the broker company. Take that into account as well.
Deposits and Withdrawals: How to
Online credit card payment is one of the most popular payment options. Traders simply log into their account and click their way to making their first deposit. Things are equally simple with e-Wallets like Skrill or Neteller, where you can fund your account with a few simple clicks.
All Forex accounts have a withdrawal request option which you click to initiate the withdrawal process from your trading account. The processing of the request should be handled in one or two days, but it does not mean that the funds will be available to you within the same day. That depends on your payment method, usually taking 4-8 days until your funds reach your bank account or web wallet.
If you should not receive your money within ten days, notify your broker to investigate the cause of the delay.
Make sure to choose a Forex broker with simple and uncomplicated payment requirements, since some broker companies will not advertise that they drag out with the withdrawal process. In the end, it is your responsibility to make a thorough research about every single detail not to lose your money and to get your profit as agreed by both parties.
Some brokers offer bonuses with the first deposit and others loyal customer bonuses. At first, they might seem attractive but make sure to understand the conditions of the bonuses. Sometimes a bonus carries a lot of complications and conditions.
A margin account is when investors use the leverage offered by the broker. This means they borrow money from the company within their limits. A Forex margin account means that the investor is taking a loan from the broker. One percent of the deposit is provided by the investor and the remaining 99% by the broker.
No fees are charged on this loan if the investor respects the delivery date when he is supposed to close his positions. In contrary, an interest rate will be charged depending on the broker’s leverage regulation policy.
The 1% serves as a security yardstick for the broker. Namely, if the investor’s loss approaches the sum he deposited into the margin account, the broker usually advises the investor to deposit more money or to close the position. This reduces the risk for both parties.
Every Forex broker has its own rules and regulation policy. Therefore, take all of this information as general guidelines, and for specific information turn the broker you want to trade with.