Most brokers accept payments through debit and credit cards, plus bank transfer for large deposits and withdrawals. But if you’re not based in the UK and you’re trading with a UK broker the process of getting funds to and from your account can be annoyingly slow for international transfers.
Of course, you have to take the rough with the smooth. London is the global hub for financial trading because of it’s time zone and banking infrastructure is a bonus, but that does mean that if you are making international payments to and from a broker the process can take longer than it should with traditional methods.
However, these payments can be sped up by using PayPal, Skrill or Neteller. We’ve put together payment services comparison table so you can see what brokers accepts what.
The advantages of using these third party payment providers are that they can speed up deposits and of course mean you don’t have to have your card and bank details to hand.
The disadvantage of Skrill, Neteller and PayPal is that you are increasing your counter-party risk. So if you’ve got a large transaction you are relying on the stability of three partners (your broker, payment provider and your bank).
This means that whilst some of your money in accounts at your bank and broker are covered by the FSCS, your funds are not covered when they are with Skrill, PayPal or Neteller. Something to be mindful if you are moving very large amounts of money to and from your broker.
Although to be fair, PayPay, Skrill and Neteller are probably bigger than your broker…
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Richard started the Good Broker Guide in 2015 and has been a broker for 20 years most recently at Investors Intelligence and previously a multi-asset derivatives broker at MF Global (Man Financial). Richard started his career working as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson) after interning on the NYMEX oil trading floor in New York and London IPE in 2001 & 2000.