Deposit and Withdrawal Methods in Binary Options Trading

For quite some time already binary options trading has been becoming increasingly popular. But despite being a very famous trading industry, many people are still not hundred percent sure what it is.

Binary options trading provides people around the world with the tools to analyze and draw conclusions from the market trends. This knowledge, consequently, helps them place trades and earn high payouts throughout them.  With binary options, traders are able to calculate the risk before investing their time and money into it.

Among many things that might be confusing for beginner binary options traders, one is for sure deposit and withdrawal methods that each individual broker offer. As it differs from broker to broker, sometimes a trader needs to conduct some extra research on whether the broker of his choice supports a particular payment methods. And there are plenty of options out there: e-wallets, debit or credit cards, bank wire, etc. They all allows traders to deposit and withdraw their earned funds in various ways and have different benefits to them.

Binary Options Trading and Its Assets

If you are still not sure what “binary options” means, the exact definition would be “has two possible outcomes”. This signifies that a trader can predict whether the underlying asset will decrease or increase in price by choosing to buy “put” or “call”. There are only two possible options for your investment, and you need to choose one of them before proceeding with your trade.

Buying “call” option means that a trader believes that the price of this particular underlying asset will increase. Choosing “Put”, consequently means that their belief is that the price will decrease on the market.

Before investing, you should make sure to conduct the necessary analysis and understand the trend behind the price movement of each individual asset you are planning to trade on. Since you only have two options – put or call – the decision and, more importantly, understanding behind that decision play a crucial role in whether or not your trade will be successful.

Understanding how this system works is important, as well as what assets there are available for investment. There are several of them that are the most common:

  • Forex is definitely the most famous binary options trading online out there. It’s a combination of many world currencies such as EUR, USD, GBP, JPY, AUD;
  • Commodities is the asset that is connected with prices for Gold, Oil, Silver, Coffee and more goods;
  • Stocks is the one that lets you follow many international companies from very different industries such as banking, insurance, technology and many more.

Withdrawal Methods in Binary Options Trading

As we have discussed already, 21st-century trading market offers the abundance of payment methods. Since technology provided us with new ways to transfer our money to various destinations around the world, the number of these methods has just been growing. However, some of them are pretty common and offered by the majority of brokers.

So what are those methods?

  • Bank Wire. This is probably the oldest method that has its own benefits, such as its reliability. However, over the course of the past years, this method has been decreasing in popularity.  This is mostly because it takes longer than traders are prepared to wait for (1-3 days) and the banks normally take some fee for processing it.
  • Debit or credit card. This method has been the most common for online payment for many years. It’s universal and can be used anywhere in the world, it’s convenient and it’s cheaper. There are minor drawbacks to it, but it is still very likely to stay the most popular method.
  • E-Wallets. In the 21st century, e-wallets are quickly gaining popularity as well. This is an online payment system that lets each party to conduct secure payments online. Apart from binary options trading, it is also often used in e-commerce for online shopping around the world.

Online Service Providers of Binary Options Trading

Let’s talk about e-wallets a bit more. As you can imagine, there are many providers of this online service. We have separate articles about each of them as it is important to understand even small important to understand even small differences between them. But we’ll try to summarize the most important points here.

  • PayPal. The first and the most notable online payment service out there. Founded in 1988, it’s available in 190 countries in the world and supports 24 different currencies. It accepts nearly all existing debit and credit cards such as Visa Card, MasterCard, and Maestro. It’s especially popular in the US, India and Europe.
  • Skrill. This platform was previously known us Moneybookers and only in 2011 changed its name. It is very similar visually to PayPal. Skrill is available in 200 countries of the world and supports transfers in 40 different currencies. One of the things that set  Skrill is a special Skrill MasterCard for all their users.They are supported by many reputable binary options traders, 24option and IQ Option just to name a few.
  • Neteller. This platform might be a bit less famous than PayPal or Skrill but is definitely worth attention. It provides MasterCard to their customers for easier access to their income and is also supported by many binary options brokers.

Binary Options Trading Withdrawal and Deposit Methods in Different Countries

Is there any way to choose payment system based on your country? Well, not really, you should always base your decision on your individual preference. But we can look at some statistics that tells us what payment methods traders prefer in different countries.

  • The United Kingdom. In the UK, traders mostly prefer online payments to other payment methods. The most popular methods are credit or debit cards and PayPal. There are around 23 million PayPal accounts registered in the UK at the moment.
  • France. According to the statistic, 57% of people in France are using debit or credit cards (MasterCard, Visa Card, and Carte Bleue). Other traders opt for payment with Allopass and UCash.
  • Germany. Here, 58% of traders are using bank wire and only 35% credit cards. Even less opt for other more modern methods.
  • Spain. There is a more holistic picture in Spain: as many as 97% are opting for debit or credit cards to pay their bills or transfer money elsewhere.
  • Italy. Similar to Spain, as many as 73% would opt for credit cards. The rest will choose e-wallets with PayPal being the most popular option.
  • Russia. In this part of the world, QIWI is very popular, which is similar to PayPal in the way it works. Not so many as in other countries, but still some people would opt for debit or credit cards.
  • Denmark, Sweden and Finland. Finally, Scandinavian countries would normally also choose to pay with a credit card that people find reliable and safe.

If you are still choosing a payment method and not sure which to go with, this information can be very useful for you as you might want to choose the one that seems to be the most reliable in your region. But are there any other guideliness for choosing?

Which Payment Method is the Best for You?

No one can tell you for sure which method is better for you. This depends on your needs and deposit and withdrawal amounts. But here are some things to consider:

  • How often do you want to withdraw?
  • How much do you usually withdraw?
  • How long are you prepared to wait?
  • What aspect of security are important for you?

By answering these questions and reading our detailed articles about each payment method, you will be able to choose the one that is just right for you.

Start trading now by opening a FREE account on one of our recommended brokers.

Recommended Binary Option Brokers:

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Optionrobot
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iqoption
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References and Further Reading:

  1. ELECTRONIC RETAIL PAYMENT SYSTEMS: USER ACCEPTABILITY AND PAYMENT PROBLEMS IN NIGERIA. (Nwaolisa, Echekoba Felix; Kasie, Ezu Gideon)
  2. Designing effective cyber store user interface (Eyong B. Kim)
  3. Electronic wallets in danger (Jean-Michel SAHUT)
  4. The U.S. on Tilt: Why the Unlawful Internet Gambling Enforcement Act Is a Bad Bet
  5. System and method for checkout and customer data capture in commerce applications 

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