ACH, short for “Automated Clearing House”, are electronic payments between participating depository institutions in the United States. The ACH network is widely used in the US and handles large volumes of both credit and debit transactions. ACH payments facilitate the movement of funds from one bank account to another electronically with the help of a third party intermediary known as an Automated Clearing House. This payment system is widely used in America even though many consumers are not familiar with the term ACH. Many people simply call them “electronic bank transfers”, which essentially is what an ACH is. The ACH payment method is used in a variety of businesses. One of the most common use cases is the direct depositing of funds, whether it’s for payroll, tax and other refunds, recurring payments, funding of accounts, money transfers between people, and so on. Also, ACH transfer are a very popular payment method used by online trading brokerages. Many traders prefer to deposit funds to their trading account via this method because it is easy and well known to them already.show more
Though traders often have a number of deposit methods available to them, if ACH transfers are available, it will likely be the depositing option they choose. So, what benefits do ACH transfers present traders? See them below.
ACH deposits are processed immediately, allowing traders to begin trading as fast as possible.
ACH transfers are a tried and tested money transfer used by numerous businesses and government organizations. It is highly safe and secure as the money being transferred goes directly from one bank account to another.
ACH transfers are very convenient because traders do not need to sign up for any additional services or log into additional accounts other than their personal bank account. The ACH transfer is facilitated directly from one’s bank account, so it is easy and convenient.
When transferring large sums of money, there can be hefty fees with some deposit options, some methods will charge up to 5% for deposits. On large amounts of money that can equate to a lot of money. With ACH money transfers, there is often a fixed very low fee for sending any amount of money. Also, this fee is sometimes waved, depending on the circumstances.
Depositing funds via an ACH money transfer is very easy and straightforward. Below, we will outline the general steps needed for depositing funds via ACH.
• First, you must navigate to the deposits section in your online trading account. Then you must select the ACH option.
• Once selected, you will be asked which currency and amount you would like to deposit.
• Next, you will be required to log into the bank account linked with your online trading account. Enter in your username or bank card number and password to login.
• Once logged in, you must confirm the transaction amount and where it is being sent too. Once confirmed, the ACH money transfer will be completed within seconds.
• The trader will soon see money in their trading account and can begin trading.