Important Things You Need To Know Before You Deposit
Skrill or Paypal seems to be the best but not all brokers support it. Other considerations include withdrawal limits, fees and bonuses, which can all have an affect on your withdrawals and may influence your decisions.
The Inside Scoop On Binary Options Deposits
Making your first deposit, or any deposit for that matter, is a big step in your trading career. This is the time when you commit to a broker and when you begin to build your account. It's an exiting time for any trader whether its your first time or not because you are taking a step towards controlling your own destiny.
There is more than one method of depositing so it is important to learn all you can about each; they all have own attractions, as well as drawbacks. This is a list of the things I have learned about funding your binary options account and what I think you need to know before you commit your hard earned dollars.
Five Things You Should About Your Binary Options Deposit
Skrill/eWallet is the best way to deposit: eWallets are the best way to deposit for many reasons. First and foremost is the ease and quickness of withdrawals; eWallets provide the fastest binary options withdrawals. The problem is that not all brokers support eWallets and the ones that do don't all support withdrawals. Be sure to check what methods are available and which ones can be used for withdrawals.
Credit Cards are the next easiest: Credit cards are the next easiest and just as fast as an eWallet in terms of depositing. The problem here comes in when you want to withdraw; withdrawals are often limited to the initial amount of deposit and any other monies, ie your profits, will have to be withdrawn in another way. This is because in the eyes of the credit card processors you are receiving a refund, and not a withdrawal.
Wire Transfers take the longest – Wire transfers take the longest to deposit and to withdraw, up to ten business days each way. This is often a deterrent for traders but actually has some advantages.
First, if you are using a credit card you will have to provide details for wire transfer as well, so you can withdraw your profits. This means a bank with a swift code. If you use an eWallet to deposit and the broker does not support withdrawal with this method you will also need to have wire set up.
Be Wary Of Fees – Brokers have different fees for withdrawals which can vary by method. You may be tempted to use a credit card simply because there are “no fees for the first withdrawal each month”. This is an attractive offer but don't let that be the only thing that moves your decision because you may only get one withdrawal by CC anyway.
Fees for wire transfers are going to be $25 or $30 on each end of the transaction regardless of what the broker may say as this fee is charged by the banks. This isn't a big deal for high rollers but smaller traders could easily see their winnings eaten up by wire transfer fees if they are making multiple withdrawals per month.
Skrill remains the best method of depositing because there are usually no fees for withdrawing, only the small fee you pay the eWallet for handling your transaction.
Bonuses, Risk Free Trading and Trade Insurance – Bonuses are the riskiest part of your deposit because they can have the biggest impact on your ability to withdraw, regardless of deposit method. Bonuses are great because they can up your capital and lower your risk profile but they always come with trading volume minimums that must be met before you withdraw.
Some brokers add a first-time-deposit bonus automatically so be sure to check when signing up. Other offers such as risk free trading and trade insurance are great too but be aware that they are replacing your money with bonus money and tying you to the bonus requirements.