A bank transfer, often called wire-transfer, is a method of electronic funds transfer from one person or organization to another. It is the method in which is linked directly to a bank account and requires strict identity verification and submissions of various documents before completed. This method of transfer is very common among online brokerages as it was once the most used and available option for funding accounts. As well, bank transfers are often the preferred method for transferring large sums of money between a trader’s personal bank account and their online brokerage account.show more
Depositing funds to a forex broker or binary broker via bank transfer may be one of the more complicated and difficult ways for moving funds, but it is also one of the most secure. In the following, we will outline the general steps needed for depositing funds via a bank transfer.
After processing, bank transfers usually take anywhere from 3-5 business days to be completed. Once the bank on the brokers end has received the money, the traders account will show the deposit amount. Often times with bank transfer deposits, there will be a minimum deposit amount of at least $50.
With all the deposit methods available to traders, why should one go through the hassle of depositing via bank transfer? There are various reasons depending on the trader, the most common ones are listed below.
Speed – Often times bank transfers are faster than other methods of deposit. For instance, credit/debit cards can take longer due to processing times, insufficient funds, credit limits, etc. Bank transfers can be completed in 1 or 2 days within country, and international bank transfers may only take 1 or 2 more days. They are faster because the money moves quickly and nobody has to wait for the funds to be cleared.
Safe & Secure – There is a lot of security involved with bank transfers, thus making it a safer method of transfer. Users of this method are required to provide identification verification and other documentation which ensures the process. As well, the money being transferred is directly from one bank account to another, which cuts out potential loss elsewhere.
Fees – 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 bank transfers, there is often a fixed fee for sending any amount of money.
If you are looking to deposit large sums of money in a fast, safe and secure way, depositing funds via bank transfer is right for you. However, if you only want to deposit smaller amounts of money, other options may suit your needs better. As well, some countries will not allow bank transfers to some online brokerages. In this case, traders will need to used other methods as well.