Binary options trading takes place online and all of the interactions with your broker will take place via the internet. This includes any financial dealings as well. You will be required to deposit funds into your account and withdraw them online.
While some brokers offer up an abundance of information regarding this process, many do not expand on the policies and processes involved. This can lead to a great deal of confusion not to mention an overall feeling of mistrust regarding the financial aspect of binary options trading. To avoid this, here is the lowdown on withdrawing and depositing funds:
Minimum and Maximum Amounts
Not all brokers require you to deposit a minimum amount of money into your account. However, most of them necessitate a set sum. This, however, tends to be common knowledge and most brokers mention this amount upfront. This can be anywhere upwards of $10, depending on the broker.
There is also an upper limit for the amount of money that you can place into your account. This number, nonetheless, is much, much higher. Now this, too, is dependent on the broker. The sum that is quoted is typically for more experienced traders or high rollers.
What many traders don’t realize is that there is also a minimum and maximum amount that you can withdraw from your account. This means that if the funds in your account are lower than the minimum that has been stated, you cannot make a withdrawal. Conversely, you cannot take more than a certain amount out of the account. This withdrawal restriction also states that you have to make sure that a specific amount of money is left in your account after the withdrawal has taken place.
Means of Depositing and Withdrawing
Each broker will offer you different ways to both deposit and withdraw your money. The choices that are available will depend on your broker. The most common options, however, are paying via credit card, bank or wire transfers, or using eWallets.
It is not always possible to withdraw money in the same manner that you deposited funds. On occasion, the withdrawal options may be limited due to certain regulations or other issues. It is important to carefully look at the options that are presented to you by a broker. Make sure that it is relevant to your region or country as well.
The Fees Involved
It is quite unusual for a binary option broker to charge you money to deposit money from your account. In most instances, this service is free. With withdrawals, however, things may be a little different. It is normal for a broker to provide you with a set number of free withdrawals each month. If you want to make more withdrawals, you will be charged.
Mostly, the fees that you need to watch out for are the ones that will be charged by the banks or other third parties that you may be employing. Subject to the method that you are using, you may be charged for depositing, withdrawing, or both.
The time that it takes for money to be deposited in your account is according to the method that you choose. In most cases, however, this happens quite fast. For instance, if you are using a credit card, it could be instantaneous.
With withdrawals, you are often going to require more time. Typically you can expect the process to take anywhere from one to ten days. This, too, is determined by the payment option that you are relying on. The processing time for withdrawals may be less if you are a premier client, however.
So, this is the lowdown on withdrawing and depositing funds. The methodology, amounts, and time taken differ from broker to broker. Therefore, you should always read the policies that are involved and keep an eye open for the fine print.