I was recently reminded of why Skrill is so good for binary options. If you are not aware of Skrill (MoneyBookers) you should become acquainted with it. Skrill is an online ePayment/eWallet. When used properly, it is a very handy tool for traders and perhaps the best way to fund your account and withdraw your profits.
Most binary options brokers have pretty strict and complex rules about how profits are delivered to you. When I say delivered to you I am not talking about trading, spreads or price manipulation. I am talking about how payments are made to you once you have actual realized profits in your trading account. The rules are due in part to international anti money laundering laws that bind all financial transactions. These laws are good, help to protect the public and ensure that international business can happen.
For the most part they simply mean that you must prove who you are and verify where your money is coming from. What the average broker won’t tell you is that these laws can also have a big impact on how your withdrawals will be delivered. For instance, you can’t deposit money from one credit card and then withdraw it to another, and that all credit card withdrawals are limited to the amount of the original deposit.
How Long For Binary Options Withdrawals
The length of time it takes to receive your money is also affected by the AML’s, and the individual brokers policies. Most brokers will process your request for withdrawal in a couple of days or less. For may purposes we will be generous and say 2 business days is average. This is of course assuming that you have already completed the required documentation. Then, depending on which method you are using, it may take another 3-7 business days for the money to clear to your account. This means it will usually take 2 full weeks or more to receive your money. Credit cards are what I would call a medium term solution. They take about a week to clear once the payment is sent. Wires are a longer term solution. They will probably take the full 2 weeks once payments are processed. Along the way, either method could provide you the opportunity to pay an additional fee above what the broker may have charged you.
Another thing that traders need to be aware of is that, when using credit and debit cards, any withdrawal will be limited to the amount of the initial deposit. Why you may ask? This is because in the eyes of the payment processors your withdrawal is really a refund of payments. You can’t get a refund of more than you initially paid. And also because a credit company does not function as a bank. This can be a serious pain in the ass for anyone who has used more than one credit or debit card to fund their account.
Say for instance you deposit $200 twice, using 2 cards. Then you make $300 in profit for a total account of $700 and want to withdraw $300. The first $200 will go on the first card and will probably be free. The remaining $100 will go on the second card and will probably incur a fee. Now, assuming you used only one credit card, deposited $200 and then traded your account up to $1,000. At that time you decide to withdraw $400. The first $200 will go back to the card then any remaining money will have to be sent by wire which means you will have to have a bank account AND go through the process of verification again.
Skrill For Binary Options
Skrill can help you avoid all of that. You can use Skrill as a focus point for all of your current bank, credit and trading accounts. Simply upload money into your account from whichever sources you have and then use the Skrill account to fund your binary options trading. If you need or want to add funds then use the same process. Add money to your Skrill account, then transfer it to your trading account. That way you will not be faced with any credit card withdrawal maximums and no extra fees. There is a fee when using Skrill but it is only 1% and is paid when funds leave your account. That means, for example, you could add money from 2 different cards and only pay the fee once as the funds were leaving Skrill to go to your binary account.
Now, depending on which broker you are using, there may be an additional hurdles. Skrill accounts can not link credit cards to gambling sites so you will need to take that into consideration. Most binary options brokers will not fall into that category but a few do. .
CySEC brokers are financial institutions and others like them are considered to be a type of bank or financial services company. Back to the point though.; to get around this problem you can use a Paysafe card account. Load your money onto the Paysafe account, then load it onto the Skrill account. It will cost you a little up front but will save you a lot in fees later on.
Withdrawing to your Skrill account is super easy. Go to the banking page of your broker, choose the Skrill method, and make the request. Once the request is processed and payments is made it is near instantaneous which means that your withdrawal could be as quick as 2-3 days. Then all you have to do is transfer the money to whichever account you choose. Transfers from Skrill to your bank account usually take about 2-3 days as well.