What is Forex Deposit and How to Deposit?

If choosing a platform is the first step in starting trade, then conducting forex deposits is the final task before the trade. Forex deposits refers to the process of putting funds onto the market after opening a trading account. After the deposit, traders can trade in the forex market.

Although the qualifications of the traders have been carefully evaluated when choosing the platform, whether the forex deposit procedures are standardized or not will largely affect the safety of funds, and investors still need to be cautious. At present, major traders offer various deposit methods, but each method has its own advantages and disadvantages. This article will introduce five deposit methods for everyone.

Bank deposit

There are two types of bank deposits: bank wire transfer and bank transfer

Bank wires transfer

The safety factor is the highest, but it is quite troublesome. For those with large funds, it is recommended to using this. And if there are problems, they can be pursued and the whereabouts of the funds can be traced.

1. You need to bring your ID card and other valid documents to the counter window of a bank that can handle foreign exchange business in person;

2. The handling fee is relatively high, usually no less than 150 yuan, and the Bank of China handle it quickly and proficiently. ICBC, Bank of Communications, and China Construction Bank can all handle it, and the fees will be between 20 and 50 yuan lower than the fees charged by Bank of China. However, in foreign countries, there is a risk of intermediary transfer fees, which are generally between 10 and 30 US dollars. The reason for the cost of intermediary banking is due to the limited number of branches of domestic banks abroad.

3. Due to the strict control of China's national foreign exchange policies, there are often issuing that cannot be handled. If this situation occurs, you can try other banks and only go to a few more banks. Because each bank's implementation of national policies is not very consistent, and it also has a certain relationship with the handling personnel. One ID card can transfer up to 50000 US dollars per year.

4. Another issue that cannot be handled for foreign exchange remittance is that the bank you are handling conducts foreign exchange firms transaction business, and when you see that you are remitting to a foreign exchange company, you are not allowed to remit. This issue can be handled at a different time, and the salesperson can also handle it after changing shifts, or simply switch to another bank.

5. During the process of processing, the bank may inquire about the purpose of remitting the fee (which also needs to be filled out when filling out the form). For example, for overseas mail orders, it is generally accepted to fill out this form. Foreign exchange transactions, Securities transactions, etc. must not occur, as this is strictly controlled by the state. If it does, your remittance cannot be processed further.

Bank transfers

1. Time of receipt, on the same day.

2. This method of deposit is the most commonly used

2、 Postal remittance

Postal remittance, also known as silver postal remittance, requires you to first exchange US dollars in cash and go to the postal service counter to process the transaction. A minimum handling fee of 90 yuan and a transfer fee of 11 USD will be charged (depending on the bank where the deposit is made).

3、 Credit card remittance

Credit card remittance and withdrawal do not charge any fees, so credit card deposit is quite convenient, especially for traders with small funds. There is no handling fee for deposits and withdrawals within a month.

1. Free of handling fees, with a maximum limit of $5000 per remittance. VISA, Mastercard, and American Express cards are the most effective. The amount received is usually received immediately, and can be received within a maximum of one working day. Credit card remittances are settled in US dollars. Foreign exchange advances formed by holding dual currency credit cards can be repaid by purchasing foreign exchange in RMB. Relevant exchange rate can be consulted with the issuing institution.

2. However, there are also shortcomings. Credit cards are used for consumption and cannot be remitted. They can only be used for online shopping or consumption. If used frequently, it can have a significant impact on individuals.

4、 PayPal deposit

PayPal is the largest online payment platform in the world, and its security is recognized worldwide. However, compared to the above payment methods, its security will be the worst. It is not recommended to using a large amount of funds. PayPal deposit is even received, and the transfer fee is relatively low compared to other methods. Convenient and fast deposit and withdrawal, suitable for small and medium-sized investors.

5、 UnionPay deposit

Most platforms now offer UnionPay deposit, which usually takes 1-3 working days to arrive. If it's fast, it can take a few hours to arrive.

UnionPay deposit generally does not have a handling fee, but there will be conversion fees. Most only accept deposits in US dollars, and all other currencies will be converted from China UnionPay to US dollars based on the foreign exchange rate on that day.

The normal maximum transaction amount per transaction is $30000.00, and according to Bank of China's policy, Bank of China customers can deposit online through UnionPay, and each transaction cannot exceed RMB 50000.

other

With the widespread use of WeChat and payment, there have been many dealers in China who have added Alipay and WeChat deposit. 

Each dealer has their own regulations regarding handling fees and deposit limits.

How to choose a deposit method

If you wish to receive your deposit immediately, we suggest that you choose a credit card method for deposit,

If your deposit amount is relatively small and the transfer fee is almost negligible, it is recommended to choosing UnionPay for deposit;

If you have a large deposit amount and are not particularly anxious about receiving payment, it is recommended to choosing wire transfer as a more cost-effective method of deposit.

If there are any problems or investors have any questions during the forex deposit process, they can consult the dealer in a timely manner and choose the most convenient one for themselves based on the different deposit methods.