A storm has been blowing through the previously staid world of online option trading in the last number of years with the arrival of binary options. Previously available only to the super-rich as so-called "exotic instruments", they're now within everyone's reach as an investment option. The result has been a massive jump in the number of sites offering binary option trading online.
One of the main things traders are looking at when they open a new account with one of these sites is the deposit and withdrawal options on offer. Everyone has their own natural preference here of course but an increasingly large number of savvy traders are insisting on having binary options that accept Paypal available as one of the account funding types.
In this article we'll look deeper into exactly why that's the case and cover some pointers for getting started with binary options trading generally. Let's start by examining the advantages Paypal brings to the mix.
Advantages of Paypal For Binary Options
Since bursting on to the scene back in 1998, Paypal has steadily grown year on year to its current position as the biggest online payments processor on the planet. You've almost certainly seen several of its founding fathers making news of late as well. Away from the headlines, there are a few characteristics of Paypal that make it uniquely suited for use with binary options.
The first of these is security. You may be choosing to expose yourself to a certain amount of deliberate risk by trading in binary options but there's no need to introduce it to your payment setup!
With Paypal as the payments solution for your binary options account, you're effectively putting a large secure wall between your own financial setup and that of the trading platform. Your personal financial details will never be exposed to third parties and you benefit from an essential extra layer of security.
Paypal are pros at this. They routinely process billions of online transactions per year. When you look at their record in handling that volume, along with the experience gained from repelling all manner of attacks on their system over the years, it's not hard to see why they're universally acknowledged as one of the world leaders in online financial security.
The second massive plus point in Paypal's favour is the convenience factor. Transactions are fast, straightforward and the associated costs are minimal - a stark contrast to the average online banking or credit card setup.
Paypal also supports over 17 different currencies and is recognised across the globe so it's potentially a viable option regardless of where you're situated. If you're outside Australia and most European territories however, you'll need to doublecheck with the trading platform in question (and Paypal themselves) whether it's valid for your situation.
For American traders, this is even more so the case. The question of whether binary options is classified as online gambling or not is a grey area at best so make sure you are operating within the laws of your jurisdiction before proceeding further if you're based in the States.
A further potential benefit is that in some jurisdictions - the UK for example - transactions involving Paypal simply show up as "Paypal" on your bank or credit card statement. This can be a useful additional privacy measure in some circumstances.
The final point to mention is the general flexibility Paypal will give you online. Along with being able to manage the funding of any number of trading platforms from one centralised location, you are also free to use it as your all-purpose online wallet for other purchases.
Binary Options That Accept Paypal: General Account Level Considerations
The good news when it comes to getting started with a binary options account that accepts Paypal is that there aren't any particularly onerous extra account level considerations to consider.
As befits the binary theme, it's simply a yes/no scenario; they either accept Paypal as a funding mechanism or they don't. There are, however, a number of commonsense items you should bear in mind when choosing a provider.
Firstly, select an institution that has a positive track record and has been in business for a provable period of time. There is no point in going with a fly-by-night operation that makes promises it can't keep, no matter how alluring they may be.
Ideally, you also want to see a verifiable postal address and comprehensive user support options in place. Though you're likely to be trading via Paypal, any reputable institution should also be able to offer a full range of additional funding options.
Obvious negative signs to steer clear of include a consistently poor online reputation, a shoddily put together website and a host of expensive and poorly explained "transaction fees".
As you search for the right account, keep an eye out for the various sign-up bonuses on offer. Trading platforms will often offer deposit or no deposit bonuses to entice new customers through the door.
This can be a handy way of increasing your initial bankroll but don't make it the overarching factor when it comes to selecting between providers. You're in this for the long haul after all. Instead, consider it a way to test different platforms' offerings without significantly putting your own money at risk while doing so.
Binary Options That Accept Paypal: Specific Binary Options Pointers
We've covered some general trading account pointers above but the binary options world is nothing if not highly specific. In fact, it's easy to get lost in the jargon sometimes! Here are some more tightly targeted points dealing exclusively with binary options accounts.
The first thing you want to watch out for is the range of available assets being traded on the platform. Each trader will have their specialities. You want to narrow your search to the ones with comprehensive options for the particular assets you have an interest in.
Following on from that, it's generally a good idea to have multiple accounts with different brokers - within reason of course. This way you're free to pick and choose the best provider per asset class while avoiding having all your eggs in one basket.
In any one of those accounts, investment conditions are an area you will want to pay particular attention to. Minimum and maximum trade amounts vary from broker to broker and your needs are also likely to vary as you become more familiar with binary options as an investment strategy.
The quality of the user interface is going to be a further key consideration. Depending on your strategy, trading binary options can be a fast-paced pursuit. A slow or clunky interface is simply a nightmare to deal with when the chips are down. You'll also be looking for an excellent, configurable alerts system within that interface to stay on top of market moves and breaking news.
One final point to mention for beginners is that most platforms offer the ability to run virtual trades as well as real money calls. This is a great way to get your feet wet when you're just starting off, without risking actual cash. Take advantage of it!
Practicalities Of Using Binary Options That Accept Paypal
On the off chance that you don't already have a Paypal account set up, we should mention that getting started is simplicity itself. All you require is an email address and either a valid credit card or bank account to get started.
Check out the useful video below for an overview of how easy the whole process is.
Adding and withdrawing funds to your account is usually equally straightforward. Paypal should be available as a funding option in the user interface of your binary options account. Select it and enter your details.
Paypal may then attempt to make a small test deposit to verify the connection but once that has happened you are set up. Adding or withdrawing funds thereafter should be virtually instantaneous.
Some Background On Binary Options
Binary options have really only been available to the casual investor since 2008 so it's new territory for many people. Before we finish up, let's quickly recap some of their main characteristics for investors who may be new to the game and need a refresher.
The basic idea behind binary options couldn't be simpler. You're taking a position on an outcome in which there can only be two results - hence the "binary" part of the name. You're basically either going high or low on a specific target. If it's high, you are placing a "call". If it's low, you are placing a "put".
The beauty of it, compared to more traditional options trading, is that you know your risk/reward scenario from the outset. You will either gain or lose a fixed, known amount of cash rather than face the wilder sorts of unlimited upsides and downsides associated with other types of options trading. Perfect for investors on a budget.
As you explore this new world, you'll also come across more sophisticated variants such as one-touch binary option trading and range binary trading or auto binary signals but we suggest sticking to the basics while you're getting started. If you're looking for a more in-depth refresher on the basics, have a look at the informative video below:
Other Payment Options For Binary Options
Paypal is far from the only funding option available for binary options of course and as a matter of best practice we recommend always having at least two funding options attached to each account for reasons of flexibility and redundancy. Here are three of the more standard options you can explore:
- Mastercard and Visa: It's no accident that Mastercard and Visafind themselves the most popular credit card providers in the world. They both provide industry-leading levels of security, flexibility and ease of use and are perfect for funding binary options accounts.
- Skrill: Binary traders in Europe may well be tempted by Skrill, a recent entrant to the payments landscape that is making rapid strides across the European market.
- Bitcoin: Traders at the geekier end of the spectrum who also have a risk tolerance for currency fluctuation may well plump for Bitcoin. It's an increasingly popular option on binary options sites.
That concludes our guide to getting started with binary options that accept Paypal. It's an exciting time to be starting to explore this type of trading and choosing Paypal as your funding source is the perfect way of maximising your return on what is already an excellent investment opportunity for your retirement savings. We wish you success on your investment path!
Check Out Offers From Binary Options Platforms That Accept Paypal