The binary options markets market place has expanded rapidly since its first introduction. Traders now have access to the widest range of contract types and assets that they have ever had, as brokers continue to try to meet the ever more demanding needs of their trading clients.
Part of this progression has also been to open up the range of available funding options that traders can use to credit and debit funds from their accounts. Offering a wide range of payment options not only opens up brokers potential for appealing to more customers, it also helps to make account management easier for traders.
Below I take a closer look at the current range of trading options on offer within the brokerage industry. You will find that increasingly, most binary options brokers are offering all of these options to their clients.
You can check the full current status of funding methods offered by each broker by checking the listings under each of our detailed binary options broker reviews .
Credit/ Debit Cards
By far the most common account funding methods for binary options is Credit (Debit) card. Most people these days will have a bank account, credit facility or a prepaid card which they can use as the principal funding source for their account.
Although these days, payment processors frequently use external Secure verification systems to verify transactions, it is common for brokers to require you to provide additional forms of verification to help prevent fraudulent transactions. Don’t’ be surprised if you have to provide a photocopy of your card details (such as the signature) before you can use can it to transact on your account.
Once you have your card set up, this is one of the fastest ways in which to deal on your account. Processing times will generally take no more than twenty four hours and tend to attract the lowest fees of the available funding methods.
Bank Wire Transfers
The bank wire transfer provides a popular method for traders wishing to manage the flow of funds both in and out of their accounts.
The main benefit of this method is that it provides an accepted way to make deposits and withdrawals when other options are not available. Traders living in certain regions may come under financial black lists for example, so the option to use card or electronic deposits may not be open to them.
The downside to using wire transfers to fund your binary options account is that come in the form of higher fees and slower processing times. Brokers often quote 5-7 working days for processing and requests via this method often attract $25-30 fees.
This heading covers a large range of different processors. The two most commonly used and supported by brokers are PayPal and Liberty Reserve. These provide a quick and safe way in which to deposit funds into your account and a secure destination for your withdraws.
Provision for transaction with electronic payment processors is becoming increasingly common as more and more people run their finances on line by this means. The only downside is the geographic usage restrictions imposed by PayPal. This prohibits residents of certain geographical locations from making use of its services.
Similar to Electronic payments, E-Wallets offer an online payment method which is supported by increasing number of binary options companies. Perhaps the most well known of these is Skrill (previously Moneybookers). Skrill makes it easy to fund your binary options account by facilitating across country money transfers for a low transaction fee.
As well as allowing you to deposit funds held in your E-Wallet into your binary options trading account, many E-Wallets also the support the processing and handling of Credit and Debit card transactions. CashU is another example of an E-Wallet that is increasingly supported by brokers.
Local Payment Processing
This category covers a range of different local payment processing platforms that tend to be country specific. Included under this header are e-payment solutions such as iDEAL, Nordea Netbank, Giropay and UKash.
As you might expect, these funding methods are less widely supported. However if you have a requirement for using one of these methods then be sure to check if your binary options broker supports these funding methods in their 2014 payment line-up.