WebMoney is an e-wallet that acts as an online purse for users to pay for goods and services at all online merchants that accept WebMoney payments. The entire process of transferring money between WebMoney accounts is known as WebMoney Transfer. WebMoney is not as popular as some of the other online payment processors such as PayPal, but it has its unique set of features and advantages that has made it a hit among a significant number of Forex traders from all over the world. WebMoney is a great alternative to other payment options such as credit cards and bank transfers, provided you can choose a Forex broker that accepts WebMoney payments.
The Popularity Of WebMoney & Its Inner Workings
WebMoney traces its history back to 1998; the same year that saw PayPal taking shape. The company was designed by a group of Russian developers and was primarily intended for a Ukrainian and Russian audience. However, as the popularity of online payment channels soared across the world, WebMoney cashed in on their experience to acquire more than 31 million users from over 90 different countries.
WebMoney follows a unique approach to holding money in their e-wallets, but the inherent concept of online payments remains the same. WebMoney is more often considered as an e-currency since every WebMoney account is categorized according to its WM-ID. Users are assigned a unique WM-ID when they open a WebMoney account, and every account holder should undergo a strict certification process to ensure that people do not end up opening a proxy account to indulge in fraudulent activities.
Using a WM-ID prevents account holders from revealing their personal information such as email addresses or names while making payments to third parties. Every WM-ID also allows the owner to create purses in different denominations that include the US Dollar, Euro, Russian Rubles, Gold, and even BitCoins.
Users are not required to update their bank details or credit card information to use their WebMoney account, which is why WebMoney scores heavily among online FX traders who do not wish to attach a credit card or their bank account to their trading account. Nevertheless, a WebMoney account can be funded using credit cards, bank wire transfers, online exchange houses, or using a WebMoney prepaid card.
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WebMoney has the lowest transaction costs among all mainstream e-wallets, with only outward transactions costing 0.8% of the transaction amount. All inbound transactions are free of charge, and users can make payments to any merchants or withdraw money to their bank or card with a small withdrawal fee that does not cost more than 1% of the transaction. Business and merchant accounts do have higher transaction costs, but comparatively, WebMoney is considered to be a more cost-effective solution.
Are WebMoney Forex Brokers Reliable?
It is natural for people to be apprehensive about Forex Brokers and online payment processors in general, but the reliability of WebMoney Forex brokers depend on a broad range of factors. Regardless of whether a broker accepts WebMoney as its payment option or not, other factors such as the regulatory status of the broker, its reputation in the industry, its customer relationship history, and even the broker’s financial stability play a significant role in determining the reliability of a broker.
WebMoney is regulated by the FCA to extend its financial operations in the EEA, which makes WebMoney a highly reliable and trusted online payment portal. WebMoney also uses advanced security measures to safeguard its users. However, the anonymity factor of WebMoney has put a question mark on its authenticity; however, the company has managed to stay ahead of its criticisms by adopting a stringent certification procedure that essentially guarantees that all WebMoney account holders have verified accounts before indulging in any online transactions.
There are over 100,000 online merchants that use WebMoney, but the number of mainstream FX brokers that accepts WebMoney is around 100. Here is a list of the most established WebMoney Forex Brokers, which should be able to provide you with a reference point to help you make an informed decision on your next Forex broker
WebMoney is not a common payment processor that one would expect to find in the Forex trading industry, but they do have more presence than PayPal. WebMoney is often used by traders who do not want to disclose their bank or credit card information, and some traders use WebMoney as they can fund their trading accounts with their WebMoney balance. WebMoney FX brokers also require only a minimal deposit amount, which further helps traders to open micro accounts to avoid risking too much in the Forex markets.
Is It Safe To Keep Money At WebMoney?
A large number of WebMoney users are worried about the future of the payment processor due to the demise of other similar platforms in the near past. In reality, WebMoney seems to have a strong financial background and a good business strategy to weather out any problems, but there does appear to be a genuine risk with all electronic payment processors. Unless it is necessary, it would be advisable for account holders to reduce the amount of money kept in a single WebMoney account; instead, it would be a very good idea to diversify it in multiple e-wallets offered by other companies. By keeping funds in segregated accounts, there is a less chance of losing the entire money if a company winds up its operations.
WebMoney is one of the first companies to offer a full-fledged online payment service to users since the early days of the influx of internet into our daily lives. WebMoney provides multiple services through its online portal for both personal and business users, which includes raising funds for a cause, getting a quick loan, managing a budget, project collaboration, and more. Therefore, it is safe to assume that WebMoney is as reliable as an online company can be.