Unlike the old days of financial trading when the only means of depositing and withdrawing funds from a trading account was via the use of bank wire transfers, there are now many options for traders in performing transactions with their binary options brokers. Although still not universally accepted, PayPal is an important means of transaction for brokers and traders alike where this medium is used.
Started by Elon Musk and a few other entrepreneurs in the early 90s before being eventually sold to eBay, PayPal can be considered to be a pioneer in the e-payments business. Many brokers would have employed PayPal for transactions, but the stringent fraud-protection measures put in place by the company which includes locking out nationals of certain countries from using the platform have severely limited its use in the binary options market. If you live in a PayPal-compliant country and want to know if there is a possibility of using this method for transacting in the binary options market, there are still a few PayPal-friendly binary options brokers you can use and we shall be listing them out here.
Another reason why PayPal does not have universal usage in the binary options market as a means of transaction is that many brokers in the market are located in Cyprus, and there have been known issues between PayPal and the operations of brokers in Cyprus. It is hoped that by the time CySEC is done with the full implementation of the registration of binary options brokers, we will see more PayPal-friendly binary options brokers.
PayPal has an unapologetic bias for transacting with North Americans, so it is not a surprise that the North American Derivatives Exchange (NADEX) has made it to the top of this list. Owned and operated by the IG Group brokerage firm, NADEX allows traders to be direct dealers on the exchange. Nadex has limited access to its platform to just US citizens and US residents, and this makes it a PayPal-friendly binary options broker. With as low as $100, you can deposit funds with your PayPal account into your Nadex trading account. There are no transaction fees.
These are the Paypal-friendly binary options brokers that are available in the market today. Perhaps in 2013, we will see more brokers joining this exclusive club.