If you want to tryout binary options trading and find some money in your Paypal account you might think that you can just select a broker, make your deposit and start trading. This, however, is complicated by the fact that there are not many binary options brokers who actually accept paypal payments. We at McBinary.com are doing our job and research brokers every day and, with the exeption of a small handful of smaller brokers, the choice for those who prefer to pay using the Paypal system is fairly limited.
Binary options and Paypal
Paypal has steered clear of many binary options brokers due to its stringent anti-fraud measurements which prevent individuals from certain countries depositing and strictly regulate the opening of new accounts. This has resulted in Paypal being unable to be a viable option for many binary options brokers, although there are several who use Paypal for both deposits and payments. These brokers include OptionXP and EmpireOption who accept Paypal trasnactions from countries where the use of Paypal is not restricted. This allows traders who do not want to deposit in to their account using a credit card to instead create a direct link between their bank account and Paypal account. One of the negatives of using Paypal, however, is that whilst it is an easy way to move money between accounts, they charge a small commission on withdrawals from the binary options broker into the account.
What is Paypal?
Paypal is one of the world’s leading payment processors with millions of active customers that use Paypal everyday – to shop online, to send money to friends, etc. Credit cards have been the most popular payment method – offline and online. But the features of Paypal are pretty nice and offer customers a time-advantage when using it. When you register at Paypal and connect your account with a credit card or bank account, you just have to sign up at online stores with Paypal and make your purchase. Your credit card or bank account will be charged later on.
This principle is called “eWallet payment” and Paypal is not alone in this area of course. There are other large eWallets like Skrill, Neteller, ClickandBuy, Click2Pay and a few more. Some of them only operate in certain countries and are not available for foreign users. The reason why Paypal is so much larger than the rest is that there are network externalities and this means that an eWallet is becoming increasingly popular the more people use it. Paypal did a great job and was also bought by Ebay a few years ago and integrated as payment option there. Everything worked out smoothly and Paypal is the market leader now without a competitor coming close to it.