Choosing the right forex broker is not an easy task for traders. Traders always give priority to brokers that offer superior payment methods. PayPal is one of the most popular financial service platforms that the majority of brokers use to attract customers. PayPal is the largest online financial services platform that offers low fees and faster transaction speed.
Whether you trade from America or Asia, PayPal is a low cost, efficient and swift process to put or withdraw funds in the trading account.
In this guide, we have reviewed the top three PayPal forex brokers for 2020 and have found that eToro is by far the top-rated platform due to its friendly interface, number of forex currency pairs and regulation. Read on to find out the advantages of trading forex with Paypal as well as the top platforms for 2020!
Our Recommended Forex Broker 2020
- Social and Copy Trading Offered
- Trade Forex, CFDs, Stocks, Crypto and More!
- $200 Minimum Deposit
- Accepts Paypal Deposits
What makes trading forex with PayPal safer?
There are many advantages to using a Paypal forex broker over a traditional one. Below, we list some of them:
- It is a secure payment method for both the deposit and withdrawal of funds.
- When a platform offers PayPal as a payment method, depositing funds will be very easy will only take a few seconds.
- If you have a PayPal account, there is no need for you to share your bank details on a broker or any other third party.
- You can save multiple credit and debit cards on your PayPal account, which means that you can be sure that your payment will be successful on your first try.
- As long as you are connected to the legit PayPal site, the information you share will be hidden from other parties.
- After the transaction is verified by your bank, your payment will be processed instantly.
- PayPal has a KYC procedure, also known as “know your customer procedure”. It is a way for certain bank and payment services providers to prevent customers from being victims of money laundering.
- PayPal has a chargeback feature! This means that if someone stole your identity or you’ve paid for a service you did not receive, you can get your money back.
- PayPal has a Purchase Protection Policy, meaning that if you pay for a service that was not as described, you will get a refund.
- Generally, if the PayPal option is available among the payment methods of an exchange, it is usually a good sign.
Top Paypal Forex Brokers
eToro - Best PayPal Forex Broker for US and non-US residents
eToro is one of the best brokers that use PayPal as a payment method. It is a multi-asset brokerage company and social trading platform with registered offices in several countries such as Israel, Cyprus, and the United Kingdom. Traders all over the world like to use eToro amid its easy-to-use trading platform. The broker offers multiple innovative features like social trading which lets traders copy others along with lower trading fees. Have a look through our eToro forex platform review to find out everything you know about the platform.
Almost 6 million users are registered on eToro platform, giving it the status as an industry leader. It is also among the best PayPal forex brokers. The trading platform permits traders to make a free deposit from PayPal account. However, this PayPal broker charges a small fee on withdrawals.
Its trading platform is easy to use and available in several languages such as English, Spanish, German, Italian, Russian, French, Polish, Chinese, Greek and Arabic. This forex broker allows traders to trade through the web, mobile and eToro App.
Out of all the forex brokers we tested, the account creation process, as well as verification was by far the quickest on eToro. The deposit and withdrawal process was also extremely seamless and quick.
Supported Countries: eToro currently has over 10 million users worldwide. You will certainly be able to trade on it unless you are from one of the following countries: Iran, Myanmar, North Korea, Sudan, Cuba and the US. You will not be able to trade on eToro in the US because of local regulations that do not allow the broker to accept US citizens or residents as customers.
Fees: PayPal usually charges a fee of 3% when you transfer or receive funds. For instance, if you decide to deposit $250 in your account, PayPal will charge an additional $7.5. On top of that there are some forex fees to be aware of as well as non-trading fees. For popular currency pairs spreads are small. For instance, the spread on USD/CAD is of 3 pip, but the spread can reach up to 50 pip for more unstable currency pairs. In general though, spreads don't go above 20 pip, with most being under 10. The non-trading fees include a small inactivity fee and a withdrawal fee but no deposit fees are charged.
- Exceptional forex copy trading network
- CySEC, FCA & ASIC regulations
- Low spreads and high leverage
- No customization
- No MT4 Platform
Plus500 - Trade Forex with Leverage Instantly
Plus500 is among the most popular brokers offering PayPal that enable investors to trade a number of financial markets with comparatively low spreads. Established in 2008, This PayPal broker has been offering a wide range of instruments such as CFDs on forex, stocks, commodities, options and indices. The platform is registered in the United Kingdom.
Its safe and reliable payment options enhances traders confidence. Along with other payment methods, this forex broker supports deposits and withdrawals through PayPal. In addition, Plus500 does not charge any commissions on all trades; the costs are contained within the spread.
It is also a publicly traded company on the London Stock Exchange with a market capitalization of $2.25 billion.
Plus500's trading platform is accessible from web and mobile. Its easy-to-use interface permits traders to create their watchlists, monitor trades and analyze charts. The company offers several types of technical charts that can be expanded to full screen. Its mobile applications also comprise all of the functionality that is available on the web application. You can have a look through our Plus500 broker review to find out the details about it.
Supported Countries: The countries where you can trade on Plus500 include Cyprus, the UK, Australia, Singapore and Bulgaria.
Fees: We found that PayPal usually charges a fee of 3% when you transfer or receive funds. For instance, if you decide to deposit $250 in your account, PayPal will charge an additional $7.5. There are also some forex fees to pay attention to. When it comes to spreads on currency pairs, they are much lower for popular and stable pairs. For instance the EUR/USD pair has a dynamic spread of 0.00006 but less common pairs have higher spreads. Plus500 also charges a small inactivity fee but no fees for withdrawals and deposits.
- Advanced trading platform
- Low spreads on forex
- Leverage: 1:30
- Limited educational resources
- While customers can trade more than 2,000 instruments, there are few tools to use to analyze those instruments
Markets.com: Best MT5 Paypal Forex Site
Markets.com is an award-winning platform to trade CFD’s and forex that supports Paypal deposits and withdrawals. It is recognized as the Best Customer Service broker at the London Investor Show in 2012. In addition, this broker complies with all regulatory requirements including liquidity and transparency to satisfy the contractual obligations. Along with regulation from CySEC, the Investors Compensation Fund Scheme offers a cover to traders.
Its user-friendly interface along with advanced charting package helps in maximizing trading opportunities. This platform is integrated with a number of technical charts and indicators. Markets.com also offers the MT4 and MT5 platforms, used by some of the best forex brokers on the market to support their trades.
Traders can easily download its mobile App from Google play store. Their mobile app works similar to their web platform and traders can use all the features on App that are available on the web. Markets.com currently offers 5 asset classes including forex, stocks, indices, commodities, and cryptocurrencies. On the whole, traders can trade more than 2000 financial instruments through the Markets.com platform.
Supported Countries: Markets.com is available in most countries, including the UK and South Africa. It is not available to the US, Japan, Canada and Australia.
Fees: We did not find information on the fees charged by PayPal on Markets.com, but the broker usually charges a fee of 3% when you transfer or receive funds. A positive note about Markets.com compared to other forex brokers is that it does not charge an inactivity fee. You should also be aware of small overnight and conversion fees.
- MT4 and MT5 fx trading
- Low minimum deposit requirement ($100)
- Choose from hundreds of currency pairs
- Not available to US customers
- A low leverage ratio for the UK and European traders
How to trade forex with PayPal on eToro
Step 1: Create an account on eToro
Create an account on eToro by clicking here. You will have to type in your full name, username, email address, phone number and create a password. You will then have to accept the terms and conditions and click on “CREATE ACCOUNT”.
Step 2: KYC & Verification
You will then have to verify your identity to be allowed to start trading. This includes providing a copy of your passport and proof of address once you’ve filled in all the personal details required. It will take a couple of days for your identity to be verified.
Step 3: Select Paypal as a deposit option
You will now have to click on “deposit” to access the payment page. All you have to do is choose the amount you want to deposit and select your preferred currency and then select PayPal as a payment method. You will be redirected to the PayPal portal to complete the payment.
Step 4: Trade Forex
You are ready to start trading forex. To do that, you simply have to access the trading space and either view the asset list to choose the asset you want to buy or you can look for a specific asset in the search engine of the platform. To purchase an asset you just have to select it and click on “buy”.
Paypal forex broker reviews
The following brokers accept Paypal deposits and withdrawals and are licensed by several regulatory bodies, providing a safe and secure trading experience. Click on the links below to read their reviews
- Exchange
- Properties
- Trade FX
- Slick forex trading platform
- Copy successful forex investors
- FCA & CySEC regulated
66% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Conclusion
In conclusion, it is true that the online forex space is facilitated by the fact that there are many brokers available. However, being able to find out which ones are reliable and which ones are not can be difficult.
The ones we talked about in this review are some of the best brokers for forex trading that offer PayPal as a payment method. We generally consider the availability of PayPal a good sign when trying to find out whether a broker is trustworthy or not.
We can assure you that the ones listed above are some of the best forex brokers on the market, especially eToro, thanks to its copy trading option, low commission, user-friendly trading platform and much more.
Our Recommended Forex Broker 2020
- Social and Copy Trading Offered
- Trade Forex, CFDs, Stocks, Crypto and More!
- $200 Minimum Deposit
- Accepts Paypal Deposits
FAQs
What is forex trading?
Why traders like using PayPal as a payment method?
With over 200 million active accounts in the world, PayPal is one of the most popular online payment services company that offer services to clients from more than 70 countries. It is so popular because it is a safe, reliable and fast platform to use when you want to withdraw and deposit funds. Due to its reputation, brokers across the web have also started to adopt PayPal as a payment option.
Why are brokers turning to PayPal?
Brokers all over the world are starting to support PayPal as a payment method because millions of users across the globe currently use it for online payments. Most importantly though, it is because it offers traders a payment option that makes them feel safe and protected from risks of frauds and money laundering. When a broker offers PayPal as an available payment method it is usually a good sign concerning the reliability of a trading platform.
Why use PayPal as your deposit/withdrawal method?
PayPal is one of the best methods for traders who wish to make same-day withdrawals and instant transactions to deposit funds into their trading accounts. The payment options allows to to that quickly and safely, with no need to insert sensitive personal information such as bank details.
PayPal Chargeback on broker accounts?
PayPal offers chargebacks on doubtful transactions. The PayPal chargeback process works swiftly on disputed transactions that are not authorized by the trader.
A-Z of Trading Pages
I get that the best way to trade forex is with PayPal forex brokers, but what actually is forex trading?
Hello Rasmus. Thank you for your question. Forex trading constitutes a big part of the online trading industry. It is also known as foreign exchange or FX trading and it refers to the trading of currencies. It basically consists of investing in the currency based on the direction in which you think its value is headed. Forex trading involves investments in currency pairs and not individual currencies because the point is investing in the value of a currency compared to another, such as USD/EUR, NZD/CAD, GBP/JPY and so on. I hope that answers your question.
Does PayPal have some sort of refund policy? Is that why you recommend trading with PayPal forex brokers?
Hello Myriam. Thank you for getting in touch with us. Yes, PayPal does offer some features aimed at protecting customers, such as the “know your customer” procedure and the chargeback feature. The first one prevents customers from being money laundering victims, while with the second one, you can get refunded if someone steals your identity or if you got charged for a service you did not receive. There is also a Purchase Protection Policy, which guarantees a refund if you receive a service that was not as described. To answer your second question, yes, that is definitely part of the reason why we recommend it.
Thank you for this review. I never realised how useful having PayPal as a payment option could be. What are the advantages of signing up for forex brokers that offer PayPal as a payment method?
Hello Aleksander. Thank you for your question. The main advantage of having PayPal as a payment option is safety. The thing about PayPal is that whenever you make a payment with it, you are redirected to the PayPal portal and to be able to make the payment you simply have to provide your login details but not your bank details. This means that your bank details are not shared with third parties and are therefore not exposed. PayPal also offers particular features that can protect you to an extent, such as the chargeback feature. I hope this helps.
Why are so many forex brokers starting to support PayPal?
Hello Peter. Thanks for your question. The primary reason is probably reputation. PayPal is a payment system that has developed a great reputation within the international community and brokers are perhaps hoping to increase people’s trust in the broker by providing a safe and well-reputed payment option to deposit their funds. Other than this, some of these brokers are also attempting to improve the levels of safety of their platforms and PayPal is certainly a good addition in that sense. I hope that helps.
I’ve heard great things about IQ Option and I’ve been considering signing up on it but I am not sure whether or not it is a good idea. Is it really such a profitable PayPal forex broker?
Hello Christine. Thank you for your question. During our test of the platform we did make profits but you should also keep in mind that everyone has different experiences. Something that you can rest assured of is that IQ Option is a CySEC-regulated and reliable broker so you can trust that your money will not be wasted in a scam. We consider eToro to be a better platform but if your reason for signing up on IQ Option are lower minimum deposits then go ahead. Just be aware that IQ Option is unavailable for US residents. Also, if you are worried about the broker’s profitability, I recommend trading in demo mode first. That will allow you to see how the platform actually works before you place real funds in it. This way you can see if you would make profits if you real money was involved.
I have been searching online for a reliable paypal broker and I was quite convinced by the reviews I found on 24 Option. I am considering creating an account on it. Would you recommend it over all the others?
Hello noc7ie. Thank you for your question. We’ve found 24Option to be a very good forex broker. Other than the basic characteristics that make up for a good broker, such as ease of use and reliability, we’ve also found it to be offering an excellent customer service, it offers over 150 assets to choose from. It has a built in trading platform to support trades and it very much resembles the most well-reputed platforms used by other trusted brokers. Overall, it definitely has potential to help you make significant profits, but if you are located in the US, you will not be allowed to access it.
What do I do in case my account on one of these forex brokers gets hacked and I lose all my funds in it? Is PayPal going to help me avoid it?
Hello fie38. Thanks for getting in touch with us. It first of all depends on what platform you have an account on. While some brokers have refund policies, others do not, so if you are still on the fence as to what broker to choose, we recommend looking into that too. A good way to find out if a broker has a refund policy in case of a hacking attack in particular is by going on the official website and having a look through their legal section or their terms and conditions to see if you can find anything. Alternatively, you can always contact a member of staff to ask if they have a refund policy. To answer your second question, yes PayPal will help you because it stops you from having to share details with third parties, so your bank details are only shared with the PayPal portal and hackers won’t have access to it by hacking into the forex broker’s system. I hope that helps. Best of luck.
What exactly does forex trading mean and why should I do it with paypal brokers?
Hello re8pi. Thank you for your question. Forex is also known as FX and it stands for foreign exchange. It refers to the trading and investment in currencies based on predictions of the value that a certain currency will have in the near future. While forex trading, you are basically investing in currency pairs like USD/GBP because you are making predictions on the value of one currency as opposed to the other one. One of the best ways to trade forex is through forex brokers like eToro and all the others we mentioned in this review. You can have a look at our forex trading page to find out more about it. Trading forex with paypal brokers will help you in terms of safety during payments because you do not have to share your bank details with third parties.
Hello. I’ve never had a PayPal account because I never really understood in what way it makes payments easier. Why do you recommend trading forex with PayPal? Should I create a PayPal account before I sign up on one of these brokers?
Hello alp4fb. Thank you for getting in touch. There are quite a few things that make PayPal payments safer. One of the most important ones is that when paying through the PayPal portal, you are not sharing your card details with any third parties, i.e the broker. That is definitely an addition to the security of your payment. Other than this, it is fast, easy and you can register as many cards as you want. PayPal also has a KYC procedure and a chargeback feature. I certainly recommend creating an account on it before you sign up on one of these forex brokers.
Why do you think eToro is such a great PayPal forex broker?
Hello jc3uk. Thank you for your question. If you want a detailed answer, it is probably easier for you to have a look at our eToro review. In general, eToro is a CySEC-regulated platform, trusted and well-reputed. It currently has over 10 million users across the world. Some of the best features of the platform are its safety and ease of use. The sign up process is also very fast and it only takes a couple of days for staff to go through your proof of identity documentation. The most important feature offered by eToro though, is the copy trading option. You can copy the trades placed by the top investors using the platform. It is a very convenient option for inexperienced traders.