Wire transfer is one of the most used methods by online brokers (Forex, CFD, binary options, etc.) to manage funds of their clients trading accounts, either for the deposit of funds in the accounts or as a means for withdrawal the profits generated by the traders in their transactions.
When the customer transfers or receives money through wire transfer has the advantage of maintaining full control of your money. In fact, many people prefer using bank transfer because they do not like sharing the details of their credit card which is understandable. Moreover, they not rely on electronic payment systems like Paypal or Skrill, although these companies and their services have become much safer. fast and reliable.
However, the bank transfer has several disadvantages, among which we highlight the following:
- Usually the trader has to make an international bank transfer to the bank account indicated by the online broker, and of course this bank account will be in the country where the company has its base of operations. Therefore, the person has to bear the cost of the respective bank fees, unless their bank does not charge for performing this type of transactions, which in most cases does not occur.
- Another disadvantage is the time delay from when the customer requests a withdrawal until you actually receive the money or the time it takes from making the transfer until the broker receives the funds. Because international bank transfers may take between 2-6 business days, the trader need to have a little patience to have the money available in the account to trade or to receive their earnings. In this sense, the alternatives to avoid this delay is to use other payment options such as credit cards or electronic payment systems like Paypal, Skrill or Neteller, which allow almost immediate transfers.
Despite this, the bank transfer has the distinct advantage of its security level and total control of the money that gives the user. When funds are received, the money is immediately deposited into the bank account of the trader and can be used immediately. In the case of electronic payment systems, both the use and withdrawals of money are more complex, especially if the customer wishes to get that cash.
Keep in mind that some brokers, in order to meet the requirements of financial regulatory agencies generally have a policy authorizing withdrawals only through the payment options used to deposit funds. This means that if a trader deposited funds in the account by bank transfer, then he can only withdraw their money through bank transfer too, but this depends on the broker. Also, when using the bank transfer the trader must be the holder of the bank account and make sure it stays active for funding.
Today, many brokers accept bank transfer for the deposit and withdrawal of funds and even offer related facilities, including low commissions and bonuses for depositing funds (see offers from Forex brokers).
Online banks with trading platforms
An interesting alternative are the online banks that offer trading platforms to operate in different markets and financial instruments such as Forex and other. These online banks combine the advantages of traditional banking with an online broker.
An example of one of these companies is Swissquote, an online bank and Forex broker that offers regular savings accounts, investment funds and other services as any traditional bank. At the same time, it provides accounts and specialized platforms to invest and trade in different markets, specifically with Forex, stocks, ETF, fidex income, commodities, mutual funds and other. In this way, the customer can use the money from their savings accounts to trade the markets without performing complicated transfers.
As seen in this example, this type of online banks can be a good option for traders who do not want to use their credit card or the electronic payment systems to manage the money for trading or investment, and prefer a system that provide the security of banks and also allow fast funds transfers.