A Comprehensive List Of PayPal Forex Brokers
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PayPal is one of the most popular and widely adopted online payment processors in the world, and it is no secret that a huge majority of websites and e-commerce portals use PayPal as their preferred mode of payment. Forex brokers are also increasingly turning to online payment processors due to the ease of payment, the speed of money transfer, and the general security aspects of e-wallets. However, when it comes to PayPal, Forex brokers find it difficult to follow the severe restrictions and payment guidelines that are to be observed to adhere to the international Anti-Money Laundering laws. Therefore, as a general rule of thumb, it is safe to assume that FX brokers accepting PayPal as a valid form of payment are more trusted and reliable than other brokers that accept payments from other lesser-known electronic payment processors.
Give Me Some Basic Information About PayPal
PayPal has been around for a long time, and was founded in 1998 in the US, right when the internet started gaining prominence. In 2002, eBay acquired the company and had two subsequent IPOs to net a tremendous market value of more than $50 billion in 2015. Being an online payment processor, PayPal does not have a central regulatory status; instead, the company acquires the necessary licenses and authorizations to operate in local markets by being regulated by the respective region’s financial authority. PayPal keeps it client funds in interest-bearing commercial bank checking accounts, but account holders don’t get the benefit of the interest accrued on any funds deposited with PayPal. In 2007, PayPal received a banking license from Luxembourg and had ever since shifted its entire EU operations from the UK to Luxembourg.
What Are The Advantages & Disadvantages Of PayPal For Forex Transactions?
PayPal Forex broker payments are naturally considered to have more advantages than disadvantages, but let us take a close look at some of the more significant pros and cons to offer you a better idea about the payment option in general:
Advantages
- Fast, Easy, and Secure payment options for deposit and withdrawal of funds.
- PayPal account balances can be used to pay for products and services at all PayPal merchants.
- PayPal accounts can be funded through credit cards and bank transfers for making payments via PayPal at a later date.
- PayPal funds can be withdrawn to a credit card or a bank account within the shortest amount of time.
- Trading accounts can be funded using a small amount of capital that can be as low as $5.
- PayPal has a significant presence in more than 100 countries around the world.
Best PayPal Forex Brokers
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Disadvantages
- PayPal has fees and commission per transfer, which can cost at least 3% of the transacted amount along with other charges. The prices are high when compared to other e-payment processors.
- Only physical goods qualify for chargebacks, and all other intangible products such as services and Forex broker payments don’t allow chargebacks.
- PayPal has numerous rules and restrictions regarding payments, and the number of PayPal Forex brokers is heavily outnumbered by other popular e-wallets such as Skrill and Neteller.
How To Find A Reliable PayPal Forex Broker
Most FX brokers that accept PayPal will offer the option through their payment gateway, and will usually advertise the PayPal logo on their home page and their subsequent payment pages. We have compiled a list of the most trusted and reliable PayPal Forex brokers to help you choose a broker according to your preferences.
Some Forex brokers don’t usually advertise the PayPal logo, even if they do accept PayPal as a valid payment option. In some cases, brokers don’t advertise their payment options at all, and this case, you should contact the customer support to learn more about the payment options and PayPal in particular. The initial deposit amounts also vary according to the payment method, and some brokers might stipulate a higher or lower limit for all PayPal transactions.
How Can I Deposit & Withdraw Funds Through PayPal?
PayPal is an e-wallet that holds your funds through secure online accounts, which essentially allows you to pay for products or services through dedicated payment gateways. These payment gateways are usually installed by the merchants on their online payment pages or through their POS outlets. PayPal accounts are similar to conventional bank accounts, and the only significant difference being that PayPal is an entirely online platform.
PayPal users can connect their credit cards and bank accounts to their PayPal accounts, which can help in making payments in case the PayPal account is running low on balance. PayPal can also be used to receive funds from third parties, and the modes of payments differ according to the type of account. Personal PayPal account holders can only receive funds from other PayPal users, while Merchant account holders can accept credit card payments for selling products or services. If you are using PayPal to fund your Forex trading account, always get in touch with the PayPal representatives to ensure that your account can be used to make payments to Forex brokers, as the return fees are quite hefty, and brokers will not hold responsibility for any failed transactions.
Some brokers reserve PayPal as the only payment option for their company, in which case, you can make payments using your credit card without actually opening a PayPal account. Withdrawals are also paid back to the credit cards used to make the payment, and it is important to understand that due to the modern Anti-Money Laundering rules, traders can only withdraw money to the original payment method that was used to fund the account.
Are There Any Other Considerations While Choosing PayPal?
PayPal has been the subject of numerous litigations and controversies, and the most important aspect for a trader is to understand the local restrictions that PayPal enforces on several countries. PayPal has restricted freedom for performing financial activities in Japan, Turkey, India, and Crimea, and the company has on-going disputes with several other nations regarding the legality of online payment processors. Therefore, traders should always ensure that PayPal is legal in their country before signing up for an account and using it for online Forex payments.
Other Forex Payment Systems
- western-union
Western Union Brokers - bitcoin
Bitcoin Brokers - skrill
Skrill Brokers - webmoney
WebMoney Brokers - neteller
Neteller Brokers