For the successful growth of your capital, it’s important to minimize any costs. This includes trading commission, spread size, and payment fees. When choosing a broker, traders mainly focus on the first two points, although the last one is as important. Let's talk about deposits and withdrawals in Forex.
Pay Attention to the Following
Choosing a broker is an extremely important process. You need to consider all aspects, including payment terms. As you study this matter, pay attention to the following points:
- Broker commission for payments. Most companies today don’t charge any fees for deposits and withdrawals. Bypass the brokers who plan to take your money for that.
- Payment system commission. Although brokers don’t charge fees for transactions, payment systems do. This is not surprising since these commissions are their main source of income. Always consider these fees when calculating your capital.
- Broker commission coverage. Some companies cover the fees charged by payment systems. That is, with a deposit of $100, you will receive the entire amount to your account. FXCL covers up to $500 for deposits and up to $100 withdrawal fees for each client on a monthly basis.
- Payment processing speed. Make sure your deposits are credited to your account as quickly as possible. This might protect your capital during Margin Calls. Please note that some payment systems also take time to process the payment. For example, a wire transfer might take up to several business days. This process is independent of the broker.
- Currency. Many clients find it more convenient to deposit in local currency. Fortunately, some brokers may offer several suitable methods at once.
Which Payment Method to Choose
It all depends on your preferences. The first step is to decide on the currency. If you are not comfortable with USD depositing, then choose from the available local methods. Then base your choice on the following parameters:
- Reliability of the payment system. Read online reviews if you haven't worked with this method before.
- Payment processing speed. It is worth giving preference to systems with instant transfers. This usually includes e-wallets.
- Commission. I think it makes no sense to explain that the lower the commission the better for you.
- Convenience. This depends solely on your preferences. Make sure that you are completely satisfied with the payment system before choosing it as your deposit method with a broker.
What Else to Remember
Brokers have to take responsibility for your funds. Therefore, most companies have established several rules to protect your money:
- Ban on third party transactions. Deposits and withdrawals can only be made from and to a payment account that belongs to the owner of the trading account.
- To make a withdrawal to the account of the payment system, the client must first confirm the identity. If your payment system account is not confirmed, the broker may refuse to proceed with your withdrawal. Take all the necessary steps in advance. Same applies to verification of your account with the broker.
- Some brokers require the deposit and withdrawal methods to be the same. Before choosing a payment system, make sure that you can withdraw funds to the same account.
That's all you should know. Before giving money to a broker, choose a payment method that suits you in all respects. This will protect you from further inconvenience and save you time and money in the future.