Binary options are a popular online financial trading format that permits rapid micro-trades based on the rise or fall of asset values within a defined time period. There are a number of large and emerging binary options brokers worldwide, each with its own deposit and withdrawal structure. Despite being the world’s most successful e-commerce money transfer facility, PayPal is not accepted by all binary options brokers.
Here’s our guide to finding the most reputable places to use PayPal to buy and withdraw binary options profits.
Why Don’t All Binary Options Brokers Accept PayPal?
There are two main reasons that some binary options brokers may cite to explain why PayPal may not be an accepted deposit or withdrawal method. The first is the Buyer Protection feature, which allows all buyers (including those making a deposit) to make a claim on their purchase.
For digital transactions, such as account deposits, it is difficult for PayPal to judge whether goods or services have been received, especially when there is no shipping number or tracking code to log. Another reason is the relatively high fees levied to the seller, from 3.4% + 30 cents per transaction for business sellers. When receiving bank transfers, brokers do not have to pay any fees.
Major binary options trading providers, including Banc De Binary and Cedar Finance, do not currently support PayPal deposits or withdrawals.
Benefits of PayPal
PayPal is the largest and most well-established online payment facility in the world. Founded in California in 1998 and acquired by auction giant eBay in 2002, PayPal now processes around 9 million separate payments each day, providing an interface between consumers, casual sellers and major corporations.
One of the most popular features of PayPal is its secure system, allowing payments to be made without sharing bank account or credit card details with the seller. The infamous PayPal buyer protection also helps consumers enforce their rights and protect themselves from fraudulent sellers within 45 days of purchase.
Binary Options Brokers That Accept PayPal
Here is an updated list, for 2014, of the top binary options trading platforms currently accepting PayPal as a deposit method.
PayPal Instructions: You can fund or withdraw using Paypal directly on your trading platform. eToro deposit using Paypal starts from $50 and maximum to $5,000. Learn more about eToro binary options platform here.
PayPal Instructions: Direct paypal payments need to be made to email@example.com, and a further email must be sent to firstname.lastname@example.org to confirm payment. Payments will take at least 1 working day to process.
Fees: 0% on deposits, 3.4%+0.5SGD on withdrawals.
PayPal Instructions: The site does not accept direct PayPal payments, but PayPal can be used, for a fee, with one of their approved payment agents. See the website for further details.
Site: Ikko Trader (http://www.okboptions.com/)
PayPal Instructions: Login into your Ikko Trader account and follow the onscreen instructions to make a PayPal deposit.
Minimum Deposit Amount: $200
Site: 24Option (https://www.24option.com)
PayPal Instructions: Use the integrated PayPal deposit method on the 24Option website.
Minimum Deposit Amount: $250
Withdrawing Profits into PayPal
Withdrawing profits from binary options trading accounts is usually a more complicated process than that experienced when depositing funds. Most trading platforms will require proof of identity documentation, such as a valid passport, driver’s licence and/or proof of address before a withdrawal can be processed.
Fees will usually apply to all withdrawal methods, including PayPal, credit card and direct bank transfer. PayPal fees tend to be slightly higher than other withdrawal options, but many still prefer to use this method where possible. Your PayPal account must be verified (i.e. your address and details confirmed) in order to withdraw sizable funds to any bank account. PayPal will also require you to provide them with your bank account details and a valid credit/debit card to confirm the account.