Skrill Forex brokers: factors for and against

When it comes to payment systems that are providing their service to Forex trading brokers, you have certainly an impressive list to choose from. The decision of the broker to go with one or another depends fully on the conditions and policies provided by those payment systems. Moreover, it also depends on the reliability and reputation of such a company.

Choosing the payment system is important for all Forex brokers on the market, as it may affect lots of factors. Those might be the delays of the financial transactions, loss of funds, high fees that needed to be paid and even serious limitations of the operation based on the residence of the broker. Therefore, some of those brokers might prefer to work with systems like PayPal or the ones similar to that. Meanwhile, others decide to go with the ones like Skrill. That is why we have decided to take a look at Skrill Forex brokers and analyze the pros and cons of such. We will also give a brief overview of that payment system itself and find out what are the main features you need to pay your attention to.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Skrill’s background and overview of its policies

Skrill Forex trading accountSkrill payment system was established in 2001 in the United Kingdom under the different name – Moneybookers. The company took a nice start and in only two years, it attracted around 2 million loyal customers. The company is regulated by the local Financial Conduct Authority. Nowadays, it is a world-wide accepted payment system that managed transactional operations of more than 200 FX brokers that accept Skrill. Apart from offering payment handling on the Forex market, Skrill enables users to pay for a wide range of products and services like gambling, sports betting, and goods from leading e-commerce stores. The company is currently earned by one of the market giants – PaySafe, a huge conglomerate who gathers all of the online operating corporations on the territory of the United Kingdom. That, together with many other factors, speaks in favor of the company and justifies its huge success across the world.

Interestingly enough, due to the connection between the company and gaming/gambling industries, the company was banned in a number of countries back in the days.

The company’s motos are convenience, confidence, and instant transactions. Skrill navigates transactions in over 200 countries and offers those in around 40 different currencies. Just like PayPal, Skrill highly cares about the safety of customers‘ bank account information. Moreover, as the company is regulated by the governmental body, they are operating under strict policies and work for their reputation. All of that might ensure you that Forex brokers allowing paying with Skrill are the ones you can trust your funds with.

You can fund your Skrill account in many ways – through bank transfers, credit or debit cards and so on. Thus, the company itself justifies its promise to provide the highest level of convenience for its users. However, there is one thing you need to know first. There are certain fees charged for transferring funds from one Skrill account to another, or to your banking account. The fees vary from country to country and you shall check up on that with the service provider itself. But, on the bright side, you do not have to pay anything for charging your Forex account with money from Skrill account.

Benefits offered by Forex brokers accepting Skrill payments

The main reason the Forex broker would go with one payment system or another would be the benefits the one is providing. It might rather be low commissions, high-security level or maybe the speed of transactions. Therefore, we have decided to explain what might be advantages of trading with one of the brokers from the Skrill Forex brokers list.

Double protection of traders‘ funds

Skrill Forex brokersWhen you are signing up with the broker that is working in cooperation with the payment system like Skrill, you are ensuring the guarantee of your funds‘ safety. Because the Forex brokers that are offering the services of such a high-ranked e-wallet company can definitely boast of their reliability and trustworthiness. Overwise, Skrill would simply refuse to work with them, as it cares about its reputation too much. Therefore, as a result, you are protected by both the broker and the Skrill payment system.

High level of transactions‘ transparency with the Skrill Forex trading account

The main target of the company is to provide its users with the highest level of operations‘ transparency possible. That means that you will be offered to get the weekly and monthly reports about all of your transactions. Thus, you can easily trace the profitability of your Forex trading and understand if you are losing more than you are gaining.

Quick withdrawal and deposit of funds

When it comes to Forex brokers allowing Skrill withdrawal,  you can expect withdrawal, as well as a deposit of your funds to your trading account to be managed much faster than it would be with a simple bank account. The deposit of funds happens almost immediately. While the withdrawal might take up to several hours, 24 hours max.

The affordability of Skrill payment services

When trading with CFD brokers accepting Skrill, you are actually saving your money. The thing is that you do not actually need to pay for your transaction on the Forex trading account that is managed by Skrill. No matter what is the number of those per month or per year. You only need to pay the service fee that is not that high anyway. Moreover, with any banking account, you need to do the same. And if there will be any fees charged for the transactions, it will only be 1%, which is much less than other payment systems charge.

Certain privileges offered by Skrill FX trading brokers

If you are signing up with one of those brokers, you are guaranteed to be provided with the bonuses other traders won’t be able to obtain. When the broker is signing the contract with the companies like Skrill, it automatically established certain bonus offers it then delegated to its traders. Meaning that this, in fact, is beneficial for both payment system and broker, as more and more traders seeking for bonuses start to operate with those. Thus, spend money and overly promoting that broker. Therefore, that is a win-win situation for everyone. For instance, traders that are using Skrill services, are often provided with a $1,000-bonus. That is quite a bargain, isn’t it?

Disadvantages of trading with Skrill Forex trading accounts

Even though Skrill is truly one of the leaders on the market, it still has some shortcomings that need to be mentioned.

Shady industries covered by the company

Skrill is operating not only in banking and Forex industries. As we have already mentioned, the company does also provide the payment services in gambling and gaming sectors. Therefore, traders can be easily restricted to trade with that payment system by local authorities if they will notice that investments were made in shady industries like gambling. Moreover, sometime you may find out that Skrill is working with the non-regulated Forex brokers as well. Which itself might not be a bad thing, but there were often cases when those brokerages turned out to be scams.

Documents needed to use Skrill services

Once you have decided to go with one of the Forex brokers with Skrill, you will be asked to provide the company with several documents. That is done in order to make sure that you are a real trader who has no bad intentions rather than trade on Forex market fairly. Those documents are:

  • ID card/Passport/EU Driving licenses
  • Utility bill/statement from bank/tax assessment that would show your full name and address of occupation
  • Filled KYC form
Forex brokers allowing paying with Skrill

Bottom line: why Forex brokers choose Skrill?

Even though there are several payment systems available on the market, 300 large Forex brokers are now working with Skrill. And there is a list of understandable reasons for that. Firstly, it provides a sense of security for brokers as it is licensed by FCA regulations. The company has developed in various industries like gaming, gambling, and investments. That makes it qualified and professional enough to offer superior services to traders and brokers around the globe.

Moreover, when it comes to requirements and policies, Skrill allows brokers to sign up with them quite quickly and easily. As unlike other payment systems like PayPal, it does not put forward crazy hard requirement to face for the brokers.

Regardless of certain shortcomings of the company’s activities, it can still be regarded as one of the best options out there. And that might be justified by the high speed of transactions, as well as affordable fees for the transfers and services, regulation from the high-standing authoritative institution and bonuses offered to traders and brokers.