Binary Options and PayPal – Looking for Solution
Binary options don’t suck. Pay pal doesn’t suck. How come binary options and PayPal suck together. The answer may not be what you think. Read more to find out why.
According to my sources more and more brokers will soon be offering PayPal. This is due in part to the growing regulation of the industry and in part to growing demand from binary options traders. This should be a good thing. PayPal is easy to use, trustworthy and openly available. The problem is that many brokers provide hurdles that in the end may make PayPal suck to much to be an advantage. Here at ThatSucks.com (former BinaryOptionsThatSuck.com) we think binary options are good. We also think using PayPal as your online wallet is good too. How come binary options and PayPal suck together? To answer that question we will have to look at which brokers are currently using PayPal and what the hurdles are. I started with a Google search, wasn’t satisfied with what I found and had to dig a little deeper. After a little more effort I came up with a short list of well known brokers accepting the use of PayPal.
What’s The Problem here?
The first thing you will find when looking for a PayPal broker is that there are not many brokers using PayPal at this time. In fact, some of the websites I found listing brokers using PayPal had been edited with the words “No Longer Accepting PayPal”. Of the ones I could find that were still accepting PayPal for deposit there were some problems. For example lets take TraderXP. They are listed on several blogs as accepting PayPal. First of all, they didn’t make it easy to find out if they did or did not accept the popular online wallet. On the TraderXP website the PayPal logo is clearly shown at the bottom of the page. However, there is no mention of PayPal on the banking page and the withdrawal limitations should keep anyone from wanting to use this broker. Second, they have some of the most ridiculous withdrawal policies I have ever seen. To withdraw money you must wait 30 days after your last deposit, wait 5-10 business days for processing, withdraw no more than $5,000 per month and pay $35 for every withdrawal after the first.
To be fair PayPal can be a problem to the brokers too. They are in business to make money and using PayPal may limit their profits. One reason brokers like to hold on to your cash is to help offset their risk. The more cash they have on hand and in their accounts at any one time the better. PayPal offers traders the chance to step into the market, trade an option and be out again in minutes.
The Solution: Regulation!
The solution is simple; regulation. As the industry becomes better regulated brokers will have to be better about returning your money to you. I understand its risky for them to offer binary options. I also know they need to make money. The thing is, if they make it too hard or too much of a pain in the ass for us to use them we won’t. It would suck if we couldn’t recommend a broker because of PayPal. The best thing to do now is check our list of approved brokers for those accepting PayPal. Then you need to read the terms and conditions and make sure you really want to use them. It may be that a trading minimum similar to what is required for a bonus or long processing times will make PayPal more of a hassle than a benefit.