Credit Card Brokers

credit cardsCredit card FX brokers are forex brokers that have provided their traders the ability to deposit funds and also withdraw funds using their bank-issued credit cards.

Usage of credit cards on forex platforms provides a quick and seamless way to transact on the account. Once the trader has a card issued from his bank from an approved provider, it is easy to apply the credit card in funding and withdrawing profits from the trading account. Credit cards commonly used are those issued by MasterCard, VISA, American Express, Diner’s Club and Maestro.

FX brokers do not provide this facility for everyone as there are geographical restrictions in place. In a world where terrorism, organized crime, human and drug trafficking and money laundering exists, there is a need to sanitize the trading marketplace to ensure that the relative anonymity conferred by the use of a credit card does not provide an avenue for such dirty money to distort the markets. As such, brokers will maintain an international blacklist whereby nationals of certain countries are barred from transacting on their platforms with credit cards. While this may sound discriminatory, brokers have decided to err on the side of caution by maintaining this stand in terms of credit card deposits and withdrawals.

For those who are allowed to use credit cards by their brokers, certain parameters are put in place to prevent fraud, which is a lot easier to perpetrate using credit cards than if a method such as wire transfers was used. Some of these are:

a)    Cardholder’s name and forex trading account name must be similar and belong to the same person.

b)    No third party card transactions are allowed.

c)     Cardholder’s details must be verified by sending a scanned copy of front and back of card (with sections of card number blocked off), containing the expiry date, cardholder’s name and security code.

Which FX Brokers provide Credit Card Deposits and Withdrawals?

So now that we know what it takes to run an account with a credit card FX broker, who are these brokers and where can a trader who wants to use a credit card on a forex platform go to? The following brokers allow traders to use credit cards on their platform:

Swissquote FX Bank

Also known as AC-Markets, this broker requires a minimum deposit of $1000, and then multiples of $100 thereafter when deposits are made with MasterCard, VISA or American Express. All credit card transactions (deposits and withdrawals) made with Swissquote FX Bank are processed on the PayPal payment network.

Instaforex

Instaforex works as a credit card FX broker in two ways:

a)    Traders can use the Instaforex MasterCard to deposit and withdraw funds. This service is free and does not attract any fees. Withdrawals are processed within 9 business hours.

b)    They can also use their regular bank cards (credit or debit cards) to transact on the Instaforex platform. The fees paid by the trader are those charged by the individual card providers. Withdrawals may take one to six working days.

All deposits are processed within 24 hours.

FxPro

Traders can fund their accounts with a minimum of $200 using credit cards on the FxPro platform. There is a general rule to the use of credit cards on FxPro: cardholders must verify the cards used by sending a scanned copy of the front and back of the card(s) showing the cardholder’s name, expiry date, but with some of the card numbers obscured. Withdrawals must be made with the same card used in making the deposit.

HY Markets

This UK-based forex broker is one of the credit card FX brokers we have in the marketplace. Cards issued by MasterCard and VISA are the only branded cards that can be used on the HY Markets platform. Account deposit occurs within 5 minutes of completing the transaction. Traders can also use PRC branded cards to deposit and withdraw funds from the account, but this card is a debit card tied to the trader’s bank account.

Dukascopy

Dukascopy functions as a credit card FX broker because it has a card funding and withdrawal service that its clients can use for credit card transactions. Dukascopy however has very strict rules for credit card usage on its platform. Only a select group of approved clients of Dukascopy Europe IBS AS can use credit cards, which must be of the MasterCard and VISA variety. Traders cannot exceed 5000 USD / 4000 EUR / 3500 GBP / 5000 CHF / 5000 AUD / 5000 CAD / 17000 PLN on card transactions on the Dukascopy platform. Transactions are concluded in one business day.

Adam

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Adam is an experienced financial trader who writes about Forex trading, binary options, technical analysis and more.

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