Funding your binary options account
Funding your binary options account is one of the most important things you do when embarking on a career as a trader. The method you choose will influence your account, more specifically your withdrawals, so making a good choice is very important. There really is no one right answer as each of the available methods comes with both good and bad consequences. The point is to be aware of what you are doing so that you are not met with surprises down the road, like when you are ready to withdraw some of your profits.
No matter what method you choose you will have to provide proof of ID. This is a blanket requirement across the industry and shouldn't come as a surprise. Binary options are international and on the internet so businesses must meet anti-money laundering mandates. Documentation usually includes a government issued photo I.D., a utility bill with your name and address clearly printed and a photo copy of the credit card you use, if that is the method you choose.
There Are Two Basic Methods
All brokers allow the basic methods of deposit; credit cards and wire transfers. Some brokers allow the use of eWallets like Skrill but it is not yet a standard feature. Credit cards allow for the quickest deposit of the two standard methods and the fastest access to trading, usually within minutes of opening the account. Typically you do not have to provide proof of ID until you want to withdraw when you make a credit card deposit. Wire transfers take the longest to show in your account, up to 10 days, and require account verification before you deposit. The obvious choice is to use a credit card as it is the quickest and easiest method and you may be right. The problem is there are catches that may make you change your mind.
The trouble comes when you want to withdraw. Assuming of course that you have provided the proper account verification ID there are significant differences between credit cards and wires. First, a withdrawal to a credit card is actually a refund of you original deposit. This is why when you read the terms and conditions it says that CC withdrawals are limited to the original amount. This isn't really a problem though unless you want to withdraw more than that amount. At that point you will have to set up for wire transfers so you may as well have started off with that method to begin with.
So, what is the best method for depositing?
I think that if your chosen broker is limited to credit card and wire transfers you should set up for both. It only makes sense. You have to provide the same documentation for withdrawal with the addition of a bank account and SWIFT code (international banking code available from your bank) and since you will have to eventually use a wire anyway you may as well get started at the beginning. My suggestion; Use the credit card to get started, enjoy some trading but go the extra step and set up the wire transfer at the same time you verify your ID.