Even though many payment methods have come up of late, the credit card remains one of the most popular and trusted way of payment among most people. This is because of the easy and simple steps which facilitate credit card transactions as compared to the longer processes in some other methods. In binary options, too, this facility has now been adopted by most binary options brokers. Most of these brokers accept Visa and MasterCard. With these, you can have your funds readily available and can make your payments to your broker as per the requirements of the contract.
The facility of having a credit card deposition, makes funding your binary trading account very swift and easy. The main reason why you should use a credit card for the deposits is that it is easy. All you need to do is type in your credit card numbers and the amount which has to be deposited and the funds are made available to you on your trading account. As simple as that! You will not even need to sign up for a digital wallet and login to your online banking account every time you need to make a deposit. All you need is your credit card in your hand.
However, all good things come with a few disadvantages. In case of credit card transactions for binary options, this disadvantage is regarding withdrawal of your funds to your credit card. What most brokers do is allow you to deposit as much as you want, but withdraw only subject to your deposit amount as a limit. For instance, if you deposit $750 and make $1500 out of it, the broker will only allow you to withdraw $750 to your credit card. The rest of the money, that is, $750 will be transferred directly to your bank account. This, however, is risky in some cases when the banks do not accept such deposits and the brokers do not offer a refund after a rejected payment. Also, the brokers are very strict regarding their policies about deposits and withdrawals and do not bend their rules. So before entering into a transaction with a broker, you should find out about all the policies of the broker and compare them with that of your bank to make sure there are no conflicts and that you will receive your money.
Many brokerage firms offer pay-out percentages which could go up to 300 per cent, while some offer low pay-outs like 70-80 per cent. As usual, with binary option, the risk of losing all your money still exists whether you trade using a credit card or not. Using a form of payment does not determine your chances at gaining or losing money. It simply makes it easier for you to trade without the hassle of going through extra procedures to start trading and to fund your online trading account.
Caution is necessary with any form of payment and hence common precautionary measures apply to dealing in binary options using a credit card. These include, keeping personal details with yourself and having a virtual keyboard for typing in sensitive data
