Most customers know PayPal now from everyday life. Who has not ever bought a favorite piece on eBay or a rare spare parts found? In most famous auction house in the world you can not get around the virtual payment service PayPal. This is no surprise, because it is offered to an eBay subsidiary. But early after launch the model established in other areas. Many traders can now her account forBinary Options recharge with PayPal. Traditional payment methods such as bank transfer or a payment processing by credit card have thus received a serious competition from new providers such as PayPal or Skrill as competitors.
1. What is PayPal?
The online payment system PayPal can warden used for the payment of money. PayPal’s 230 million member accounts a successful company and a leader in the payment processing on the market compared to other vendors. The company’s headquarters is San José , the European subsidiary is PayPal (Europe) S.à rl & Cie, SCA and has its headquarters in Luxembourg. So how exactly does PayPal? A PayPal account is a virtual account, whose identity is defined by the e-mail address of the members. Registration is easy and free: New PayPal members can register their personal data. Subsequently to be just waiting for the verification of the data given. These PayPal performs a test transfer to the specified account. Thereafter, the use can begin immediately. Also, the mobile trading will be trouble: PayPal can be used via web-enabled mobile phones. With «PayPal Here» also payments for smartphone users are facilitated. PayPal is a classic service: With PayPal money transfer is possible. Here PayPal is not responsible for the business, the company assumes no guarantee that the seller fulfills his obligation upon receipt of payment by the buyer. Easy and free: opening an account with PayPal.
The advantage of PayPal: The money is the payee after the transfer takes well-written without bank runtime. The information of the customers are securely protected with SSL.The payee can not see any information about the PayPal User. The credit card or bank account number remains hidden from him to prevent a possible misuse of the data. The disadvantage of PayPal: Still the offer in the field of PayPal charging the trading account is übreschaubar — not many brokers offer this service. This can be explained their reluctance with the relatively high cost that the service provider to recipients of payments in account. For so many vendors to trade in binary options, the costs are reason enough to preferring instead (formerly Moneybookers) to rely on other providers as just Skrill. If, however, for a Binary Option offered PayPal as transfer path, the traders pay themselves for the remittances to their brokerage accounts not charge any fees.
Conclusion: PayPal is an online payment system. About a virtual account money transfer is possible. The company is a leader in the payment processing. A new customer registration is simple, the use of the service is free and uncomplicated. The advantage of PayPal: refunds will be credited immediately. All customer data is protected via SSL. The disadvantage of PayPal is the high fees that have to pay for receiving payments.
2. What is Skrill?
Since Skrill provides worldwide service, the company offers a service in 40 differentcurrencies with over 100 number options. The currency puts the customer firmly at the opening of his account. Creating the account, as well as receiving money is free of charge .All other costs charges. Simple and free: account log into Skrill. Skrill is considered safe: For sellers a HTML-based HTTPS interface and API is available for private customers, there are several tools Banner. Skrill accepts responsibility for the correct execution of a business : The customer will receive a security token. Accounts with security token is activated, a refund of the credit guarantees, if there is an abuse.
Conclusion: Skrill is another source for online money transfer. The company offers a global service in 40 currencies. Opening an account and receiving money is free and any additional services they will charge. Skrill is regulated by the state and offers additional security guarantees for its customers through HTML-based HTTPS interface and API or several banners tools.
3. Payment Methods compared
To make choosing the right payment method, the general terms and conditions should be checked to see whether customers might be involved by the broker to the costs. Here the comparison of the two providers PayPal and Skrill will include: costs and fees
- Account Opening and Payment Shipping is free with PayPal and Skrill.
- With Skrill Fees on other activities in PayPal all further transactions are free.
- With a more than 12 months unused account subject to a commitment fee of EUR 1 per month for consumer accounts that have balances at Skrill.
- In a money transfer via Skrill to another customer the sender pays a fee of 1 percent, maximum 10,00 Euro.
- With Skrill charges incurred at a currency exchange, a payment to a bank account or a credit card or check writing.
- Customers with high transfer volume is a free premium membership offered at Skrill.
- A clear advantage of both pay services is the rapid execution of transactions.
High safety standards at Skrill Security and Service
- Both companies are state-controlled and regulated.
- With more several (hundred) million member accounts, which are conducted to the satisfaction of customers, both companies can be classified as an experienced and reputable service.
- Paypal offers good security via SSL encryption. No guarantee of performance, the company for the correct business transactions.
- Skrill has in security with additional opportunities for customers to protect the money, compared ahead: Skrill accepts responsibility for the correct execution of the transaction and offering mutual insurance for business customers.
Conclusion: With regard to costs and fees PayPal cuts compared from better, since fees are incurred at Skrill for some transactions other than opening an account and the receipt of fees.This small flaw is similar to the supplier but through bonus offers and a higher security guarantee than its competitor from. When lowered, the two companies are equal with different payment options and fast money transfer.
High Cost — The problem with online payment methods
The main issue confronting both trader and broker, is the question of cost. Although the previously treated Bezahlmethoden ever increasingly popular, these are connected to either the customer or the broker with some very high fees.
For the broker binary options deposit with PayPal is therefore a very expensive proposition, which is why only a broker for Binary options offer this payment method. And that is the broker XTB therefore is much more common, the above-mentioned payment method using Moneybookers, which is offered by almost all brokers for binary options. In addition, almost every broker offers the deposit by credit card.
High costs for bank transfers
Would make Trader payments by bank transfer, as often fall on very high fees. On average broker like require 25 to 30 €. So are bank transfers at the top of the list of fees Einzahlmöglichkeiten on trading accounts with brokers for binary options. Bank transfers mean namely a high administrative burden on brokers, which is this like leave pay dearly. The deposit via Skrill or credit transfer therefore still represents the best alternative to binary options deposit with PayPal.
Conclusion: Be the binary options deposit with PayPal, no matter how simple and very popular among traders — nearly every broker has deleted from its offer due to the high cost this payment method. Also bank transfers hit with high fees for customers to book, which is why the deposit by credit card or Skrill is the most favorable method for Trade.
4. Three tips for online money transfer
Tip 1: preliminary, the general terms and conditions are checked to see whether customers might be involved by the broker to the costs.
Tip 2: encryption and security standards of the provider check to be sure that the receiver, the data can not see.
Tip 3: Make sure that the binary options account is charged with the necessary capital in order to act smoothly and quickly.