Costs of Using PayPal
The costs of using PayPal are minimal. Opening an account is free, as well as depositing and withdrawing money from the account. Payments executed from your PayPal account to online brokers and other service providers are also free.
However, users should keep in mind that PayPal charges fees for currency conversion, depending on the currencies that are being exchanged. For example, changing from EUR to GBP or the other way around incurs a 3.75% fee. More details about PayPal’s cross border fees and commissions can be found here: https://www.paypal.com/uk/webapps/mpp/cross-border-and-conversion-fees
PayPal Availability Around the World
PayPal is available worldwide, including more than 200 countries and supporting 25 currencies. On the other hand, users from some developing countries might be restricted from using the service, a full list of available regions can be consulted here: https://www.paypal.com/ga/webapps/mpp/ua/residence-full
PayPal can be used with the following currencies: AUD, BRL, CAD, CNY, DKK, EUR, HKD, HUF, INR, ILS, JPY, MYR, MXN, TWD, NZD, NOK, PHP, PLN, GBP, RUB, SGD, SEK, CHF, THB, USD
Pros and Cons of Using PayPal for Online Trading
One of the advantages of using PayPal for depositing with forex brokers is that deposits and withdrawals performed via PayPal are processed instantly. However, some brokers may conduct additional verifications before processing the payment, especially in the case of withdrawals.
PayPal is also secure, offering 2-factor authentication and good fraud protection measures. Users can transfer money around the world, regardless of the country. In spite of this, not all currencies are supported, and users may experience conversion fees.
Ways to Fund your PayPal account
Users can make payments to online brokers and other merchants using PayPal by linking their credit or debit card directly to the account and benefit from PayPal’s protection at no cost. They can also top up their PayPal wallet and use their balance to make payments or transfers to other users.
There are several ways for customers to top up their PayPal wallet, including bank transfer, credit/debit card, receiving a payment from another PayPal user, or by purchasing PayPal gift cards.
Please keep in mind that bank transfer payments may take up to 5-7 days to clear.
Withdrawing from you PayPal account
You can withdraw funds from your PayPal account via bank transfer or to your debit card. Bank transfer withdrawals are processed within 5-7 days, while debit card withdrawals are processed within 30 minutes with supported cards.
Debit card withdrawals do not incur any charges. However, payments made to bank accounts may incur fees, depending on your location and the receiving bank. You are informed of any fees upon requesting the withdrawal.
When withdrawing funds from an online broker, unless you plan on using PayPal for other online purchases, we recommend comparing the fees deducted by PayPal for withdrawing the money to your bank account to the fees deducted by the trading platform itself. Depending on the platform you choose, you might find that it’s cheaper to have the withdrawal processed directly by the broker. For example, while debit card withdrawals from PayPal are free, some brokers may incur a commission for them.
Is PayPal Secure?
PayPal is secure, all user related information is encrypted using state of the art technology and stored on secured servers. No sensitive information is communicated to the recipient of the payments.
PayPal also offers 2-factor authentication, as well as purchase protection for all transactions made through the platform. This means that in case users are not happy with the service or goods purchased, it can be easy to get a refund.
To summarise, PayPal is a fast and secure payment solution and a good fit for traders looking to deposit funds to forex brokers. It offers multiple purchase protection measures, is available worldwide and supports many commonly used currencies. It’s easy to fund your PayPal account, however, you don’t have to – you can also link your credit or debit card to PayPal for direct payments.