I live in Thailand since 2016. I trade using the accounts of several Forex Brokers. I try to provide simple information based on my actual experience. For others, see [Profile].
General

Deposit and withdraw with Credit / Debit Card | Basic mechanism

With forex brokers, it is very common to use a credit or debit card to deposit or withdraw money from your account.

All forex brokers support 100% credit and debit card deposits and withdrawals.

However, I think that some of you may be worried about using a credit card or debit card to deposit to your forex account.

Isn’t it suspicious? Not scam? Safety?

In this article, I will carefully explain the basic mechanism of credit card / debit card deposit / withdrawal in forex brokers, advantages / disadvantages, precautions when using it, etc.

In addition, a list of card brands supported by each forex broker is also shown.
Please make use of it.

What is Deposit and Withdrawal by Credit Card and Debit Card?

First, I will explain the basic mechanism of what it means to deposit and withdraw using a credit card or debit card.

About Deposit

Depositing with a credit or debit card uses as same as “shopping”.

It’s easy to misunderstand, but it’s not a “Cash Advance”.
Therefore, there is no interest on borrowing.

Since it is shopping, it is the same as paying for a product with a card and purchasing it within the range of use of the shopping limit.

There is a difference in withdrawal depending on the credit card and debit card.

Credit cards are billed on a fixed withdrawal date the following month or the month after next after totaling the usage amount for a certain period.

The debit card will be deducted from the bank account to which the card is linked each time it is used. It is an immediate payment.

Although there are such differences, what they have in common is that they are treated in the same way as “shopping.”

It may seem a little strange to use shopping when you don’t actually have the “goods” you can get, but keep in mind that it is not caching.

About Withdrawal

Then, withdrawal is treated as cancellation of the purchased product.

This is why the maximum withdrawal amount is up to the deposit amount in all forex brokers.

For example, if you deposit $1,000 with a credit card or debit card, you can only withdraw up to $1,000.

This is because if you apply for a $1,000 withdrawal, the $1,000 “shopping use” that was previously deposited will be canceled.

If the withdrawal is only $300, only $300 of the $1,000 shopping usage will be cancelled.

The amount canceled is handled slightly differently with a credit card and a debit card.

In the case of a credit card, it will be offset from the balance.

It is okay if the closing process has already been completed and it will be after the month following the month of deposit.

It will be deducted from other usage at that time, or if the withdrawal amount is larger than the usage amount, the non-offset amount will be credited to the bank account.

With a debit card, the withdrawal amount will be credited to your bank account immediately, although it is still a cancellation of shopping.

Unlike a credit card, it is immediately deducted from your bank account when you deposit, so when you withdraw, it will be immediately deposited in the form of a refund.

Is it safe? Not scam??

Somehow, when it comes to sending money to a forex broker with a credit card, there is a slightly suspicious atmosphere.

Furthermore, is the card information stolen, or is the card information diverted to suit fraud?

However, the fact that the card can be used in a forex broker means that it has been certified as a member store by VISA, JCB and so on, and since it has been properly examined, it can be said that the minimum reliability has been cleared first.

Whether the card information is stolen or diverted, but the possibility is not zero, so as explained in the separate article “How to choose forex brokers“, you have to choose a reliable supplier as much as possible.

By the way, there is the way to determine that broker is a scammer in one shot.

It is a broker whose deposit and withdrawal method is only cryptocurrency.

This is absolutely suspicious.
Do not user it.
Remittances such as Bitcoin will never identify the criminal.

Credit card deposits and withdrawals are very common

I live in Thailand, and I asked the traders around me, and traders who are connected via Twitter.

They say;

  • Credit card deposit is just one way
  • If I can deposit cheaply and quickly, it’s alright
  • I know there are restrictions on withdrawals, but I don’t care because I intend to make money from the beginning. Withdrawals over the deposit amount will be bank remittance anyway
  • If you make a deposit but don’t receive it, you can sue VISA

For those who are already trading using forex brokers, there seems to be no particular resistance to it.

Advantages and disadvantages of using credit card and debit card

As you can see from the explanation so far, it can be organized as follows.

  • Deposit instantly
  • In most cases, there are no fees
  • The maximum withdrawal amount is up to the deposit amount
  • There are cases cannot be withdrawn if too much time has passed since deposit

The second disadvantage is that it depends on the credit card company.

Withdrawals of credit cards and debit cards take the form of cancellation (cancellation) of product purchases, but if the period is too long, for example, half a year or one year, it may not be possible to cancel due to the rules of the card company.

It is up to the credit card company to decide how long it will take to withdraw money, and it will be decided each time, so even if you inquire, it will not tell you.

Precautions when using credit and debit cards with forex broker

  • Only cards in the name of the person can be used
  • The name of the card must match the name of the forex account
  • The maximum withdrawal amount is the deposit amount
  • Withdrawal is only by the same card as when depositing
  • Withdrawal (refund) may take some time for credit cards
  • Withdrawal of credit card does not increase cash on your hand

Only cards in the name of the person can be used

You cannot make deposits using the cards of your family or others.
Be sure to use the card in your name.

The name of the card must match the name of the forex account

I think it’s okay if the card is in the name of you, but the name of the card must match the name of the forex account name.

Withdrawal is only by the same card as when depositing

Withdrawal is only for the same card as when depositing.

Be careful especially if you deposit multiple times using different cards.

If you deposit $ 300 with VISA the first time and $ 500 with Mastercard the second time, the first withdrawal up to $ 300 should be by VISA and the next withdrawal of $ 500 should be by Mastercard.
You cannot withdraw $ 800 in bulk with VISA or Mastercard.

Withdrawal (refund) may take some time for credit cards

Credit cards have a deadline for creating invoices.

Refund dates vary depending on when you apply for withdrawal.

Withdrawal of credit card does not increase cash on your hand

In the case of a credit card, it will be deducted from other balances at the time of withdrawal processing, so cash on hand will not increase.

If you need cash, you need to use a bank transfer or other methods from the beginning.

In the case of a debit card, withdrawal will be immediately refunded to the withdrawal bank account, so cash will increase.

Card brands available for each forex broker

The following are the acceptable card brands of major forex brokers.

Please note that the brands brokers handle may change.
Also, even if it is the same broker, the acceptable brands may differ depending on the country you live in.

Please check the official website of each forex broker for the latest information.

Forex BrokerVISAMasterJCBAMEXDinersDiscover
XM
FXGT
FBS
GEMFOREX
HotForex
TitanFX
LAND-FX
Axiory
Tradeview
iFOREX
TMGM

Deposit and withdrawal methods and recommended deposit methods for each forex broker are summarized in a separate article for each trader.

Please look at them all together.

Summary

How was it.

In forex brokers, credit cards and debit cards are the main deposit and withdrawal methods, with considering that it is the fastest way to start trading after opening an account, it is a deposit method with sufficient utility value. I believe you’ve already understood.

Finally, never do forex trading with borrowing money.

If you use a credit card, you can make a deposit even if you do not have cash on hand, but I strongly recommend that you trade with your own surplus funds.

ABOUT ME
KandA
KandA
I live in Thailand since 2016. I trade using the accounts of several Forex Brokers. I try to provide simple information based on my actual experience. For others, see [Profile].