Why use PayPal for binary options deposits?
There are many reasons why you should use a PayPal binary options broker. The most important one is that PayPal is a completely legitimate service. It also only collaborates with other legitimate companies. So, the fact that a binary broker can accept PayPal deposits means that it was determined by PayPal that the broker is a legitimate company.
PayPal regularly bans fraudulent sellers and service providers. Even just a few complaints would result in PayPal shutting down the account of a binary options broker. This again means that if a binary options broker accepts PayPal, then the broker is legitimate and safe.
Finpari is one of the few brokers that have been approved by PayPal.
Another reason to use PayPal for binary payments is because this way, it will not appear on your bank statement that you have made a payment to a binary options broker. This is because the money will be transferred to PayPal first and it will be PayPal that will relay the money to the broker.
Essentially, you bank statement will indicate that you made a payment to PayPal, and that’s it. Once the money is in your electronic account, the bank has no way of knowing how it is to be spent. This can be a good security measure if you would rather keep your trading activities out of your bank’s attention.
Some banks might look at your binary options trading as a form of betting or gambling. Hence, they might consider you a high-risk client, in which case your loan eligibility could take a dive just because your statement indicates you have been spending your money on binary options trading.
In fact, many banks have been known to deny mortgages for betting transactions, even when they are mostly credits. So, it makes sense that you would want to leave your binary options trading out of your bank statement in case you need such banking products down the road.
Speedy deposits and withdrawals
Other than the security, trust and safety that PayPal offers, especially to people paying for services, it is also one of the fastest payment processors around. As soon as you complete filling in the necessary details when making a PayPal deposit, the money is instantly uploaded to your binary options account. This also means you can commence trading immediately.
Many other payment processing models pale in comparison. For instance, bank transfers can take up to a week before the money shows up in the account. This can be a huge inconvenience if you were planning to make a quick deposit to take advantage of a temporary trading opportunity.
With PayPal, it is not just the deposits that can be processed at high speeds, but withdrawals as well. It might even come as a surprise to you that some brokers have been known to avoid having the PayPal payment option because of the instantaneous speeds at which it processes withdrawals.
You see, many brokers want your withdrawal to remain pending for a while so that you can reconsider your decision and possibly begin trading with the money once more. But any binary options broker worth its salt will not avoid using what is arguably the global choice when it comes to electronic payments just to keep your funds within its system. This is why a broker that allows both PayPal deposits and withdrawals bears the hallmark of a truly legitimate broker.
US binary brokers
Another important reason PayPal is so good if you want to trade binary options is that you can get access to US binary options brokers. The US has what is arguably the most restrictive regulatory environment for regulatory brokers. For obvious reason, many brokers frown at this inconvenience.
But a discerning trader knows that such an airtight regulatory environment makes sure that all the players in the market keep their affairs above board. And to be fair, with a sector that has built a reputation for fleecing its clients’ money among other shocking malpractices, being able to trade with a US broker is quite a welcome relief; and PayPal makes this much easier.
There is also one simple reason PayPal payment processing is such an enticing attribute in a binary options broker: PayPal is the king of electronic payments. PayPal is the most popular ‘electronic wallet’ in the world. The electronic payments by this company are available throughout the world.
With some competing electronic payment processors, there are a host of issues to deal with, including credibility issues and geographical restrictions. For instance, Skrill, the second-largest electronic payment processor, does not take US clients, while PayPal readily does.
PayPal’s fees are also much friendlier in comparison to some payment processing options. Again, bank wires are at a disadvantage in comparison to this electronic wallet for charging high fees, which can make small transactions quite expensive.
Best PayPal Binary Options Brokers
Not many brokers accept the use of PayPal during deposits or withdrawals. But for those that do, one salient feature emerges – they like to provide fast payments during withdrawals. But this is not the only reason the number of brokers offering PayPal payments remains decidedly low; other features of this payment method also play a role.
For instance, as the most secure form of online payments, PayPal security measures could prove to be a problem to many binary options brokers. PayPal has been known to react very swiftly to customer complaints, often suspending accounts and freezing the funds of those accused of such crimes. Therefore, brokers who foresee such challenges would be highly motivated to avoid having PayPal as a payment option for its clients.
At one time, there were actually a larger number of brokers who accepted PayPal. But with time, the number has gone down, clearly in response to PayPal’s uncompromising security policies.
Safe PayPal Binary Options Brokers
As far as brokers that accept PayPal payments go, Finpari is firmly in the lead. This highly rated broker accepts clients from all around the world, including the US. In addition to perks such as 100% deposit bonuses, the binary options broker is also able to offer perks that are exclusive to its use of PayPal.
In particular, it is possible to make withdrawals within an hour. As a matter of fact, Finpari promotes the swift withdrawal times as one of its benefits. Other services offered by the broker, including customer support and trading services, have helped Finpari become the most reputable binary options broker accepting PayPal payments.
A Final Note On binary options brokers that accept PayPal
Essentially, if you are intent on using PayPal to handle deposits and withdrawals during your binary options trading, your choice of brokers will be quite limited. But on the flip side, you can expect that the brokers you will be dealing with will ensure that their payment processing procedures are above board.
This is because they will try all they can to stay on PayPal’s good side and avoid violating the company’s strict policies, which try to protect PayPal users from shady service providers. So, other than the two binary options brokers mentioned above, there are few other options for you should you desire to use PayPal as you trade in binary options.