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When it comes to choosing a binary options broker there are many things to bear in mind, however one of the major factors you might want to consider is the type of withdrawal and deposit methods available to you as a trader. Paypal is one of the most popular ways of placing funds into an account and taking out any profits since it is convenient, quick and fee-free, however not all brokers offer this option.
What Is A PayPal Broker?
The only thing that sets PayPal binary options brokers apart from the others is their ability to accept PayPal deposits and withdrawals. All of the broker's other features such as the trading platform and promotional bonuses remain the same. However, traders who opt to use PayPal as their preferred banking method may qualify for special bonuses or promotions.
What Is PayPal?
PayPal is an online payment system which has been in existence for some considerable time. It has a good repuation and many customers are satisfied with the way the system works. Originally, PayPal was exclusively used for shopping, but then it branched out into other types of e-payments. Now, users can send money to anyone via the system and also receive money into their account, with PayPal being used for all kinds of transactions including trading, with around 45% of binary options brokers today offering PayPal as a banking option on their platforms.
Why Choose A PayPal Broker?
There are several benefits to choosing a broker that offers PayPal as a withdrawal and deposit method. These include:
Perhaps the greatest advantage of choosing PayPal as your preferred banking method is the speed with which money is available in your account. PayPal payments are usually processed instantly and this is especially convenient when compared to MoneyGrams or bank wire transfers which can take a few days before they clear.
Another benefit is the lack of fees attached to PayPal transfers. Whether you are moving funds into your trading account from PayPal or withdrawing your profits into your PayPal account, there are very rarely any fees attached. This is a bonus when you consider that a bank wire transfer often costs between $10 and $50 depending on the trader's bank and the value of the deposit. Some other e-wallet services also charge a fee.
There is, however, a downside to opting for PayPal. In some cases, PayPal will impose a limit on the amount that can be deposited or withdrawn and therefore, if you trade in large volumes or very frequently, this could be a problem.