PayPal is one of the most popular methods of payment all around the world. No surprise then, PayPal is also very commonly used by brokers for customers to deposit money in their trading accounts.
There are many paypal forex brokers that use this payment system.
The advantages? It’s easy, fast, and secure. This is why it has become the preferred tool to deal with deposits and withdrawals.
If being able to use PayPal when dealing with your investing account is a priority, then making sure that your Forex broker offers it is a good idea.
But, there are also other aspects to consider when choosing a Forex broker.
How to choose a Forex broker?
There is a myriad of aspects to consider when choosing a Forex broker. The following are just the basic considerations all brokers need to keep in mind when making their decision.
Regulations
All Forex brokers must be regulated by the designated entities. Depending on the country, there are different regulatory bodies in charge of overseeing, regulating, and mediating the brokers’ activities in the market.
Traders should only invest through a registered broker since this guarantees their rights are protected, as well as their money.
Unregulated brokers, regardless of how tempting their deals may sound, are a risk and should be avoided.
A regulated broker is legit and is compliant with the ruling for the country the trader is resident in.
While the general conditions change from one country to another, being registered with the appropriate regulatory bodies means these brokers follow the best practices in the market and are in line with national requirements
Spreads
Spread is the name given to the cost of buying a certain currency with another currency. It’s usually presented in a particular unit called pip. A pip is 0.0001. Spreads are a vital part of Forex trading and all investors should be familiar with them.
Lower spreads are better for traders. In other words, it’s a smaller cost per transaction. Checking what spreads your broker offers is a must step when choosing a new one.
Leverage
Leverage is a particular amount of money that the broker lends to the trader to make deals at a higher volume, therefore increasing their chances to make a more significant return.
While leverage is very useful for Forex traders, it also has a risky side and requires a bit of learning before diving too deep. Trades should keep in mind that leverage also maximizes the risk of losses.
Online platform
Considering how user-friendly and detailed the platform your broker offers is important.
Most brokers offer a demo account for newer traders to have a feeling for the platform, which, after all, they will be constantly using to make their deals in the market.
But there is an added value in demo accounts. Traders, especially those giving their first steps in the world of Forex trading, should use this demo account to learn the basics of the market and the tools at their disposal.
This will eventually guarantee they are more successful traders and reach their investing goals.
Best Forex brokers 2021
FXTM. This broker accepts a variety of options to make deposits and withdrawals. They also have a good reputation as one of the most reliable Forex brokers out there.
FxPro. Another broker with good reviews and accepting a diversity of payment methods, including PayPal.
Moneta Markets. This broker offers many possibilities when it comes to payment, including PayPal and even bitcoin. While they are relatively new, they have established themselves and are creating a recognized name in the world of trading.
