The subject of deposit and withdrawal methods in binary options is an important one, and while we do live and work in a highly modern age, not all traders know all the important detail connected with this.
Considering just how popular binary options trading is in South Africa, being well-informed on crucial matters such as this one is not something that should be neglected.
The purpose of this guide is precisely that, to explain and emphasise important aspects connected to deposit and withdrawal methods in binary options.
We will discuss this subject in general terms but will also focus our attention to the ones in South Africa.
Usual Deposit and Withdrawal Methods
In the general sense, there are several usual deposit and withdrawal methods available in both South Africa and around the world.
Bank wire transfer is the one which has been around the most with credit and debit cards following and lastly, nowadays, e-wallet providers have also become quite popular.
While these payment methods are suitable for the various financial transaction, in most cases people use credit/debit cards and bank wire.
But, as we mentioned e-wallets are starting to be used more and more and this payment method is especially popular in binary options trading.
Bank Wire Transfer – Binary Options
Bank wire transfer is a way to execute deposits and withdrawals in binary options trading and South African traders as well as those around the world use this method.
The bank wire transfer is conducted either between a bank and a company of between two banks.
This manner of payment also demands that South African traders provide information such as their account number, bank address and SWIFT number.
One of the shortcomings of bank wire transfer is the fact it takes longer to conduct deposit and withdrawals this way.
In most cases, it takes up to several days before funds are delivered to the traders’ account.
Additionally, with bank wire transfer traders may also expect an additional fee, usually around $25 – $30 that has to be paid but this does vary from one binary broker to the next.
Credit/Debit Card Payment
Still the most popular payment method in the world as well as in South Africa, card payment has held this position for a long period of time.
There are two types of cards – credit and debit cards. The notable difference being that debit cards take the funds directly from the bank account.
On the other hand, credit cards function in a way that the funds will be taken from the bank account on a specific, pre-arranged day of the month to cover the cost.
Maestro Card is the most popular debit card while Visa, American Express and MasterCard are the three most popular credit cards.
Naturally, these cards are the most popular one on the global level. However, there are various cards available according to the country of residence.
Considering the advanced technology available in the 21st century, South African traders as well as those worldwide, now have a new online payment method on disposal.
Soon after they appeared, e-wallets became one of popular deposit and withdrawal methods in binary options. E-wallets provide safe, fast and easy payment method.
The fact that there are a fine variety of e-wallets makes this payment method even more appealing for binary traders.
To be able to execute payments via e-wallet, trades just have to log into their e-wallet account and then put in the amount for withdrawal or deposit.
There are indications supported by financial specialists, which point that e-wallets will become the prevalent payment method in the future.
This trend is notable in South Africa too, as an increase of 66% was noted concerning e-wallet payments. Mobile phone payment is also gaining popularity in South Africa.
As expected, some e-wallet providers charge a fee, typically around $10 while others do not. With popular e-wallet providers, South African traders can also get a card which may be used on ATMs or to do money transactions.
Skrill E-wallet in Binary Options
One such e-wallet provider is Skrill Moneybookers.
This e-wallet, which has been available since 2001 under the name Moneybookers, Skrill was rebranded in 2011 and is now available in 200 countries around the world and with an option to use 40 different currencies.
Opening a Skrill account is simple, straightforward and free. Interested South African traders have to provide an email address and then create their password, and provide personal info and the account will be created. For a retailer that accepts Skrill, no fee will be charged.
According to the information available on their site, the same goes for receiving money on the Skrill account while uploading funds onto the Skrill account is usually free or there might be some small charge. Sending money with Skrill wallet is charged with 1.9% of the sent amount and the charge will never exceed €20.
It is also possible to obtain Skrill Prepaid MasterCard which does not require any document and is available in four different currencies – GBP, EUR, USD and PLN.
Skrill has become very popular payment method in binary options industry due to its simplicity as well as safety. Plenty of popular and well-established brokers support this payment method for both deposits and withdrawals.
Brokers such as 24option, IQ Option, AnyOption, Daweda Exchange and StockPair provide South African traders the use of Skrill for deposits and withdrawals in binary options.
PayPal E-wallet in Binary Options
Together with Skrill, PayPal is among best-known e-wallets and it is frequently used by binary options traders, both in South Africa and globally.
It was founded in 1998 and since then they have grown into one of the largest Internet payment companies.
According to the latest information, PayPal is servicing 202 markets and their customers may hold, receive and send funds in 25 currencies.
They also provide a mobile app which is suitable for Android and iOS.
All the above payment methods are suitable for both deposits and withdrawals in binary options South Africa it is most common that brokers will charge fees for bank wire withdrawals though is also becoming more frequent that brokers offer first withdrawal in a month free of charge.
Additional Payment Methods – South Africa
Aside from the above-mentioned credit/debit cards and e-wallets, there are some other payment methods which are becoming popular in South Africa.
PaySafe Card is one of them, as they provide swift and safe financial transaction in South Africa and there are several binary brokers who also offer this payment method for their deposit and withdrawal process.
First National Bank or FNB is the oldest bank in South Africa and it provides a varied set of services and depots and withdrawal methods. It also provides South African traders to use e-wallets like Skrill, PayPal, Ukash and Neteller as well as their own FNB e-wallet.
What we discovered for this binary guide is the fact South African traders are able to make payments via a popular processing service called Payfast.
PayFast is a payment service which is available for all traders in South Africa to use it and have more simple and secure way of money transfer. It is connected to all four major banks in South Africa.
Let’s not forget how PayFast offers traders option to use Bitcoin for their money transfer.
There are also some local e-wallets South African traders might use and which include:
Cell Pay Point – e-wallet provider which is not limited to credit cards and those South Africans who have an account with FNB can use their mobile phones to carry out payments
FlickPay – e-wallet which utilises wiGroup technology specialised for mobile transactions and which first became available in 2014
Zapper – a South African smartphone app available since 2014 and which is becoming more and more popular for financial transactions
We advise all South Africans looking to trade binary options to contact the customer support service and check with them if any of the alternative payment methods in South Africa may be used with a broker of their choice.