Modern and Electronic Payment Methods
Eleventh session of Forex Training
Welcome back to Forex professional training in financial markets. In this session modern and Electronic payment methods will be explained.
we will look at money and bank wire transfers, as well as electronic money.
There are more than 50 different types of electronic money from all around the world, however, the number of the reliable ones is extremely low.
There are many examples, some of which have had their assets confiscated by the law enforcements, like the E-GOLD Company and Liberty Reserved, which had the biggest money-laundering lawsuit in history against them of up to $6 billion dollars.
As a result, you must be very careful, and choose a reliable and trustworthy system.
Here we will introduce to you some of the most recognizable types of electronic money transfer.
Reliable and secure ones
Probably the most recognizable one is PayPal, which can also be shown as PP.
Skrill is one of the biggest, it symbol is shown as MB, this is because they used to be known as Money Bookers.
Another two big companies are Neteller and Web Money.
So PayPal, the biggest and most recognizable electronic money company in the world. It is based in America and has been licensed by the NFA.
You can easily enter their website and apply for an account with your personal email and information such as name and address; you will also need a debit or credit card or both.
At first, your account must be verified and for that to happen an amount of roughly $1.5 will be withdrawn and re-deposited into your account, and your account will be verified by a 4-digit code.
If there are any unsafe trades or threats detected on your account, PayPal will ask for more detailed personal information such as your papers or identification such as your passport or an ID card.
Skrill (Money Bookers)
Next is Skrill, (previously known as Money Bookers) which is based in England and is regulated by the FCA.
To open an account with them you must go to their website with your email address and personal information and apply for one.
There are different methods to verify your account, the first one is by sending a code to your post coded address, once you have received this code, go back into the website and enter it to complete the verification.
The second one is using a master card or credit card.
You will receive a 4-digit code similar to the PayPal system, however they too may ask for more detailed information such as Passport or an ID card.
They will ask you to withdraw from your account into your bank account and re-deposit, from your bank account to your Skrill account as another form of verification.
This is the website for PayPal. Based on your country of origin the site is different.
They also show your country flag and you should know that the banking method with PayPal is different for each country.
The next website is Skrill. If you look at the bottom of the page you should be able to see licenses and regulators for these websites.
Next is Neteller, which is similar to Skrill as it is based in England.
It is licensed by the FCA and FSC. Like Skrill and PayPal you can open an account at any time using your email address and personal information.
Web Money is another famous online payment system and is based in Russia.
To open an account, you must follow the same procedure as PayPal and Skrill, however due to its high security it would be a little harder to work with this account.
To verify your account, unlike the previous companies, you must physically attend one of their branches with your passport or ID card with other required documentation.
Another way that parties can transfer money is via an internal transfer between trading accounts of a given brokerage.
This system allows you to transfer your money between other traders within that brokerage. However, it is not possible for brokerages licensed by the FCA or NFA.
Transferring or wiring money is done in two ways between parties with a common brokerage.
Advantages of electronic cash
Now we will look at some of the advantages of electronic money over traditional methods.
We must, of course, start with the obvious, its superior speed. You no longer have to waste time as you usually do with MasterCard and wire transfers.
Any amount of money is easily transferred, and it is more economical for smaller amounts, as there is no transfer fee like if you were to wire it.
It is easy to trade based on the currency you have chosen, for instance you could be anywhere in the world and the system would still allow you to select any other currency such as GBP or USD.
This is incredibly useful as before you would have to pay a fee to change your local currency into a major currency before you made any trades.
Two very important factors are high account security and high payment security.
With electronic money, the aim is to be as secure as possible in order to prevent any outside tampering or hacking.
The commission is very low and it is based on the amount that you transfer each time.
Because when you first registered, that company took a record of all your card numbers and details there is no need to enter it every time you want to make a trade, making it easier and quicker for you.
They are also very easy to follow and if you face a problem at any time it is very easy to follow or locate a past trade or a transfer.
Another big advantage and the last one we will touch on today is that these accounts are very easy to wire money from into your bank account.
It is also easy to transfer your money and assets.
All of this is great news for people and merchants who would like to do their businesses online, and with electronic money they face great opportunities.
That concludes this session, until next time and another session take care.