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Forex Brokers Accepting WebMoney Deposits

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A critical component of the financial trading process is depositing your trading capital and withdrawing any profits you may have made. Additionally, you must have your funds deposited and credited to your trading account speedily, just as your broker must settle withdrawal requests quickly for your funds to arrive in your hands in good time. In the early days of forex trading, the bank wire was the only option available to many, meaning that it was impossible to achieve some of these desirables due to the inherent weaknesses in that method.

One of the methods of depositing and withdrawing funds that evolved to cater to the rapidly changing needs of 21st-century traders is the Webmoney system. This article will show why Webmoney is an excellent system for deposits and withdrawals and who the forex brokers accepting Webmoney deposits are.

Introduction: Deposits, Withdrawals and WebMoney

In forex/CFD trading, you need money to make money. You need to open a trading account with a forex broker and fund that account to purchase forex or CFD contracts that aim to profit from rising prices (long orders) or falling prices (short orders). So having the ability to transfer funds to your broker, who then funds your brokerage account, is an integral part of the trade process.

In the early days, you could only use a credit/debit card if you lived in the UK, Australia, Japan, the US and parts of Europe. If you lived elsewhere, chances are that the forex brokers would not accept your bank cards at that time. The situation has mostly stayed the same since then. So many traders had to depend on the bank wire transfer system to send or receive funds from their brokers. The process was slow, involved a lot of paperwork, and in some cases, highly restrictive as traders had to work around the various forex access restrictions imposed by central banks and financial regulators. This meant that you had to wait for at least two days (and sometimes up to seven days) for transactions to come through. Needless to say that this system is gradually getting obsolete in today's fast-paced world.

Today's traders are fast-paced traders who want to be able to fund accounts on Sunday evening, trade on Monday to Friday, pull out any profits and have their funds in time to possibly groove over the weekend or do something else with their money. They also want to refrain from queuing in banking halls and filling out forms requesting all kinds of intrusive information. Then, there is also the issue of restricted access to foreign currencies that limits how much you can send or receive at a time without being flagged by tax or financial regulatory authorities.

This is why digital wallets became a mainstream method of trading account funding, with WebMoney playing a critical role in this process.

So what is WebMoney?

WebMoney is a digital wallet and an electronic means of funds transfer which has its origins in Russia. It was developed by WM Transfer Ltd in 1998, primarily to help the Russian and Eastern European economies just coming out of communist rule, participate in international money transfer processes as part of the catch-up process with the Western world. WebMoney has since evolved into a digital wallet/money transfer method of choice for funding forex accounts and withdrawing from the same.

Any profits cashed out from a forex broker accepting WebMoney are convertible to other forms of fiat or digital currencies within the WebMoney system. Also, WebMoney issues a debit MasterCard to cash out WMZ units in fiat currencies.

How to Use Webmoney as Your Deposit/Withdrawal Method

WebMoney provides different types of wallets/purses to provide property rights for different valuables. These wallets are:

A) The E-purse (WME): equivalent to the transfer of property rights in Euros (i.e. deposits denominated in Euros).

B) B-purse: WMB – equivalent to the transfer of property rights in the electronic form of the Belarusian Ruble.

C) G-purse: WMG - equivalent to the transfer of property rights in gold (i.e. deposits in gold value equivalent).

D) Z-purse: WMZ, an equivalent of the US Dollar and the purse recognized by forex brokers accepting WebMoney deposits.

Other purses such as the K-purse (WMK), X-purse (WMX), H-Purse (WMH), L-Purse (WML), F-purse (WMF) and T-purse (WMT) are equivalent to transfers for storage property rights on various distributed ledger networks (cryptocurrencies). Each of these purses are listed below:

  • WMX -Bitcoin
  • WMH - BitcoinCash
  • WML - Litecoin
  • WMF - Ethereum
  • WMT - Tether stablecoin

Not all of these purses will be useful to forex traders who want to operate with forex brokers accepting WebMoney deposits. You must select the correct purse type to deposit a specific type of fiat or digital currency.

WebMoney operates on the principles of a universal settlement system and offers two service levels: personal and business. As an individual trader, you must use the Personal level of service for your forex transactions. Out of the five kinds of transactions that can be performed on WebMoney, you can perform the following transactions with your forex brokers accepting WebMoney deposits:

  • A) Top-up (used for deposits)
  • B) Withdrawals

Top-ups can be made using the fiat money methods (WMZ, WME and WMB) or the crypto methods (WMX, WMH, WML and WMT).

Let us use the most popular of these purses, the WMZ, to demonstrate how WebMoney deposits are made.

WMZ enables you to push funds to your forex brokers accepting WebMoney deposits via five methods: using a bank card, electronic money, a bank account, cryptocurrency or cash. Here's how each method works.

A) Bank card: you can use your bank card to deposit funds for a 3-5% fee online using your MasterCard or VISA cards.

B) Electronic money: This works for users with M-Pesa and QIWI wallets. You can deposit funds using WebMoney from your M-Pesa portal for a 2% fee, and it takes one day to receive the funds into your trading account. Depositing from a QIWI wallet is free and results in an instant credit of trading funds into your account.

C) If you use your bank account (compliant countries only), you can do this via internet banking.

D) Cryptocurrency: You can only do WMZ - cryptocurrency deposits using the INDX exchange or via Exchanger Money. Other crypto methods must follow the appropriate purses. So what if you want to deposit funds into your trading account using cryptos? WebMoney has appropriate purses to do this. For instance, you can use the WMT purse to deposit Tether (USDT) into your account with a forex broker accepting WebMoney deposits. 1 WMT = 1 USDT for this transaction. You can also buy USDT with WMZ, with 0.89 WMZ currently exchanging for 1 USDT. The crypto-based transactions typically take 1 hour to complete. To top-up with Bitcoin, you can use WMX to purchase BTC at the rate of 1 BTC = 1000 WMX (subject to change). You can also purchase BTC with WMZ, with 23850 WMZ currently being able to purchase 1000 mBTC (subject to change).

E) Cash deposits are only possible if you live in Russia, in which case you have to visit the WebMoney office or deposit cash directly to their banks in Russia.

Benefits of Choosing a Forex Broker Accepting Webmoney

Choosing a forex broker accepting WebMoney deposits will give you advantages over some existing funding methods available today. WebMoney functions not just as a standalone wallet. It also functions as a payment processing system that allows users of other payment systems to transact with their forex brokers. So here are some benefits of choosing a forex broker accepting WebMoney deposits.

  1. Speed of transactions ensures that transactions are settled in as little as 1 hour and with a 1-day maximum transaction limit time.
  2. WebMoney provides a secure environment for transactions. The platform provides several user authentication methods to ensure unauthorized transactions do not occur on a forex trading account.
  3. You can use a wide range of funding and withdrawal methods on WebMoney. From cards to bank wires to digital currency, a funding method works for you wherever you find yourself.
  4. Since WebMoney is a multi-currency platform, users are not required to switch their currencies to the US Dollar before they can use WebMoney.
  5. WebMoney has full cryptocurrency integration, ensuring you can use Bitcoin, Litecoin, Bitcoin Cash and Tether to fund your accounts.
  6. Transaction costs on the WebMoney platform are low, and withdrawals are also free.

Conclusion

When you use a forex broker accepting WebMoney deposits, you are assured of a broad-based and secure transaction portal. You need to have a WebMoney account to use these brokers. When you do, depositing and withdrawing funds become seamless due to the full integration of the WebMoney payment system on the members' area of these brokers. Feel free to look through the curated list of forex brokers accepting WebMoney deposits to make your choice.