Best Wire Transfer Forex Brokers 2018
To start trading you will be required to deposit funds into your broker account. Different payment methods come with different benefits. In this article we explore the best forex brokers that accept bank wire transfers.
Introduction: What is a Wire Transfer?
In forex, the bank wire transfer system is a means of transaction in which trading capital is sent from a local bank account to the forex broker’s segregated bank account to fund the trader’s trading account. It is also the way in which any profits or capital withdrawn is channeled from the broker’s segregated account to the trader’s bank account.
How Does a Bank Wire Transfer Work?
The trader must own a local bank account supported by the broker, or a domiciliary account if resident is in a country that does not use the broker’s trading currency.
- For deposits: After converting to the currency in which the brokerage runs the trading platform, the trader is expected to send the instructions either physically at the bank by filling a form, or via online banking, mandating the bank to send the funds to the broker’s bank account. In some countries, the use of a correspondent (intermediary) bank is mandatory. Where this is the case, the intermediary bank receives the funds and transmits same to the destination account.
- For Withdrawals: In case of a withdrawal from the brokerage account, the broker will transfer the value of the withdrawal request from the segregated brokerage account to the trader’s bank account. Again in some cases, an intermediary bank may be required for this transaction.
Bank wire transfers usually attract charges for the service.
Why Use Wire Transfer as Your Deposit/Withdrawal Method?
There are countries which are still restricted from using certain aspects of the international payment system. These countries are therefore barred from transacting with credit/debit cards or e-wallets on forex brokerage platforms. For traders resident in these countries, the bank wire transfer is the only way to conduct forex transactions.
Bank wire transfers are also a safe method of transaction, as money only passes from a bank account to another bank account. A credit card can be physically stolen, but a bank account cannot. Banks usually have a robust Know Your Customer (KYC) protocol and collect the physical and biometric details of their customers. It is therefore easy to track who owns an account and where such an individual is located. This gives forex brokers the confidence to allow the bank wire transfer as a globally accepted means of transaction in forex.
Benefits of Choosing a Broker that Accepts Wire Transfers
What benefits accrue to the trader from choosing a broker that accepts wire transfers?
- Security is a major benefit. It is a lot harder to steal bank account details than credit card or e-wallet details, especially during the transaction process.
- Funds sent to the broker through a bank wire transfer are not subjected to maximum deposit limits.
How to Pick a Decent Broker With Wire transfer
Every forex broker offers the wire transfer as a transaction method. The greatest issue with wire transfer is the processing time. Wire transfers typically take 2-7 business days. So you need to find a broker that offers a short processing time. Here is how to speed up the process.
- Consider the time zones. Process your wire transfer request a little before the broker’s business day starts. Use the world clock to know what time this translates to in your own time zone.
- Pick a broker that will initiate the process as soon as you make the withdrawal request.
- Find out if there are charges that can be paid to make your wire transfer faster.
Wire transfer Chargeback on Broker Account
There are usually no chargebacks on broker accounts using the wire transfer method.
To help you find the best brokers that accept bank wire transfer for both funding and withdrawing from your trading account check out the list that we have compiled. It is built on knowledge we’ve gleaned from our ongoing research into the best brokers and also from the user reviews we receive from traders that have used these brokers.
- New Zealand
- South Africa
- South Korea
- Hong Kong
- United Arab Emirates
- Russian Federation
List of Brokers
|BROKER||USER RATING||REGULATED BY||HEADQUARTERS||MIN. DEPOSIT||OFFICIAL SITE|
|ASIC, CySEC, FCA||Israel||$100||Open Account|
|ASIC, BVI, FSA(JP), FSB, MiFID||Ireland||$100||Open Account|
|ASIC, CySEC, FCA||Cyprus||$200||Open Account|
|CySEC, FSB||Cyprus||$100||Open Account|
|BaFin, FCA||United Kingdom||$300||Open Account|