Forex brokers provide various withdrawal and deposit methods; one of them is PayPal. PayPal started operation in 1999 and its name was Confinity when it started. The system allowed people from across the world to send and receive payments in different currencies. The company now changed its name to PayPal in 2002. It was later bought by eBay and this further pushed the popularity of the company. As of 2012, some 13 years after its establishment, the company had recorded over 117 million accounts. The use of PayPal has so many benefits and this is why many prefer it to other methods of payment. However, the use of PayPal also has some disadvantages and we will consider these in the course of this write-up.
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Some advantages of PayPal use
PayPal accounts are connected directly to the bank account of the client. As a result, those who use PayPal can make payment for products and services can pay directly for those products even if they do not have credit cards. This also means that you can use PayPal to deposit or withdraw money from your online trading accounts without even having credit cards; all you will ever need is the PayPal email address. What is more, you can use PayPal to pay in any currency of your liking. If you deposit US dollars in your PayPal account, for example, you can deposit money using that money denominated in US dollars in any other currency of your liking, like Euro or even in Yen; PayPal does the conversion automatically. This feature makes PayPal one of the best payment methods for international transactions.
One other advantage of using PayPal for deposit and withdrawal is that it improves financial security for the end-user because the recipient does not receive credit card numbers or bank account; the recipient will only get your PayPal email address and that cannot be hacked or used against you in any way. Furthermore, PayPal is free to use you will never have to pay a dime to register a PayPal account. The charges you pay on any transaction is equally low. The charges are far lower than what you will pay when you use many other payment processors. These features make the payment method one of the most preferable to online traders and online trading brokers.
Deposit and withdrawal via PayPal are always processed very fast. The protection policy is also wonderful and protects the interest of both the buyer and the seller. The protection policy helps to cover losses for any product that may get damaged or lost.
Some disadvantages of PayPal
PayPal has so many benefits quite alright, but it also has some disadvantages that you need to know as an end-user. PayPal may place a limit on the amount of money you can send via your PayPal account. The company may even freeze your account if they have any reason to believe that you are violating their terms of service. PayPal does not allow its service to be used for purchasing firearms or for selling prescription drugs. Those who have a high amount of customer complaints and chargeback can also get hammered by PayPal. PayPal will limit such accounts without delay. Your account may also be frozen or limited if your PayPal email is flagged for general “suspicious activities”.
PayPal may offer a very fast transaction process, but the recipient may not be able to get access to the fund in the fund for 21 days after the fund has been sent; this is usually the case if there is any problem with that transaction. This delay prevents many from benefiting from the fast payment service offered by PayPal.