Forex traders have a wide range of payment processors to choose from, but despite low-cost and fast online options and the emergence of cryptocurrencies, most brokers make bank wires their preferred method.
Bank wire brokers generally offer other payment processors, but almost all brokers require traders to withdraw profits exceeding the deposit amount made via other options via bank wires. Learn what to look for in bank wire brokers, why all profitable traders may have to use them, and the benefits of using them, plus all you need to know about bank wires.
- FP Markets, ECN trading with leverage up to 1:500.
- Eightcap, Competitive pricing + excellent daily videos.
- Octa, A commission-free broker with a proprietary copy trading service.
- XM, Exception range of assets + negative balance protection.
- BlackBull Markets, Best ECN trading environment, with scalping and hedging.
Best Bank Wire Transfer Brokers Comparison
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Regulators | ASIC, CMA, CySEC, FSCA | ASIC, CySEC, FCA, SCB | CySEC, FSCA, MWALI International Services Authority | ASIC, CySEC, DFSA, FSC Belize | FMA, FSA |
Year Established | 2005 | 2009 | 2011 | 2009 | 2014 |
Execution Type(s) | ECN/STP | ECN/STP, Market Maker | Market Maker | Market Maker | ECN/STP, No Dealing Desk |
Minimum Deposit | |||||
Average Trading Cost EUR/USD | 1.2 pips | 1.0 pips | 0.9 pips | 0.1 pips | 1.3 pips |
Average Trading Cost GBP/USD | 1.4 pips | 1.2 pips | 1.3 pips | 0.2 pips | 2.0 pips |
Average Trading Cost Gold | $0.16 | $0.12 | $0.30 | $0.19 | $0.90 |
Trading Platform(s) | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based | MetaTrader 4, MetaTrader 5, Trading View | MetaTrader 4, MetaTrader 5, Proprietary platform | MetaTrader 4, MetaTrader 5, Proprietary platform | MetaTrader 4, MetaTrader 5, cTrader, Trading View |
Islamic Account | |||||
Negative Balance Protection | N/A | ||||
| Visit Website | Visit Website | Visit Website | Visit Website | Visit Website |
FP Markets
In Summary ECN trading with leverage up to 1:500fpmarkets is an ASIC-regulated Australian brokerage which launched in 2005. For most traders, the unique selling point of this broker is in the extremely wide range of tradable assets offered, providing the opportunity to trade over ten thousand individual stocks and shares including publicly quoted Hong Kong and Australian companies. Ffpmarkets also offers 60 Forex pairs and crosses, 11 equity indices, the major commodities, and 5 cryptocurrencies including Bitcoin. fpmarkets offers an unusual hybrid ECN/STP execution model, meaning their clients can choose between ECN style of execution giving a very high level of speed, and a “straight through processing” execution style which allows for more “natural” spreads.
Pros & Cons
- Choice of trading platforms and auxiliary trading tools
- Very competitive cost structure and excellent asset selection
- Low minimum deposit requirement and leverage of up to 1:500
- Well-regulated and trustworthy
- Availability of Iress geographically restricted
Eightcap
In Summary Competitive pricing + excellent daily videosThe minimum deposit requirement is $100 or a currency equivalent, but unlike the other twelve payment processors available at Eightcap, it does not list a minimum amount. There is no minimum withdrawal threshold, making Eightcap one of the best bank wire brokers. Traders may use the AUD, USD, GBP, EUR, NZD, CAD, and SGD to conduct deposits and withdrawals, and the average processing time for bank wires is between one to three business days.
Eightcap is well-regulated and highly trusted in the Forex trading community, and it does not levy internal transaction fees except for potential currency conversion costs.
Pros & Cons
- Low minimum deposit and high leverage of up to 1:500
- Competitive cost structure
- Excellent technology infrastructure and seasoned management team
- Daily research and quality educational content
- Limited leverage in some areas
Octa
In Summary A commission-free broker with a proprietary copy trading serviceFounded in 2011, Octa is a “Straight Through Processing” (STP) broker, which means they do not have an internal dealing desk. They simply connect buyers and sellers directly. With this model, Octa aims to be more cost-effective than anyone else in the market. They offer low spreads and claim 97.5% of trades are executed without slippage.
Octa offers their clients a choice of three Forex trading platforms: the world’s most popular MetaTrader 4 (MT4) and MetaTrader 5 (MT5). All of these can be traded as a desktop application, and on Android and iOS devices.
Octa is an unregulated broker but continues to earn the trust of traders around the globe, with more than 1,500,000 accounts opened. One reason for the ongoing success of this market maker is appealing bonus campaigns. This broker paid out almost $3,000,000 in bonus funds. Octa offers traders the MT4 and MT5 platforms, and a proprietary mobile trading platform. Octa additionally grants their clients Autochartist, but traders require a Silver Level in the Status Program. Traders have a choice between fixed and floating spreads, and the overall cost structure remains competitive.
Asset selection remains the distinct weakness at Octa, making it most suitable for new retail traders. A series of short educational articles offers a basic Forex introduction, and this broker maintains an excellent arsenal of research and analytics tools.
Pros & Cons
- Quick withdrawals and deposits
- 0% commission and no overnight charges
- Space with personalised trading ideas
- Customer Support 24/7
- Mobile copy trading services available only for Android
XM
In Summary Exception range of assets + negative balance protectionI rank XM among the best Forex brokers for beginners as it provides exceptional education, with the live education room available Monday through Friday between 06:00 and 15:00 GMT at its core. Beginners also receive actionable trading recommendations, and the $5 minimum deposit ensures accessibility to all traders, boosted by deposit bonuses.
XM rewards active traders with a four-tier loyalty program and supports algorithmic traders with VPS hosting. The well-balanced asset selection exceeds 1,000 assets, and the proprietary copy trading service pays signal providers up to 50% profit share. Swap-free trading and low trading fees ensure a competitive edge.
Pros & Cons
- Outstanding trading tools and loyalty program
- Low minimum deposit, high leverage*, and competitive trading cost
- Excellent research and education
- Trustworthy and transparent with generous bonuses and incentives
- Inactivity fee
BlackBull Markets
In Summary Best ECN trading environment, with scalping and hedgingBlackBull Markets was founded in 2014 in New Zealand. Like many antipodean Forex brokers, BlackBull Markets is an ECN broker, offering raw spreads and commissions. They are regulated in New Zealand by the Financial Services Providers Register (FSPR) and offer a maximum leverage on some Forex currency pairs as high as 500 to 1. In addition to their global headquarters in New Zealand, BlackBull Markets also has presences in the form of branch offices in New York and Malaysia. BlackBull Markets offers a relatively tight range of tradable assets: 27 Forex currency pairs and crosses, gold, silver, crude oil, natural gas, and 6 major equity indices. That should be sufficient for those traders with more focused strategies not requiring wide diversification.
Pros & Cons
- ECN/NDD execution model with deep liquidity
- Institution-grade pricing for retail traders via proprietary price aggregation
- ZuluTrade and Myfxbook for social trading
- Leverage of up to 1:500
- Limited deposit options
Introduction: What is a Wire Transfer?
A wire transfer refers to a transfer of capital from the bank account of traders to the bank account of brokers. Regulated brokers keep segregated bank accounts for clients, meaning they cannot access the funds for internal use. Bank wire brokers usually use the SWIFT system for international bank wires and localized methods for domestic wire transfers, like SEPA in the Eurozone, BACS in the UK, or ACH in the US.
The same applies to withdrawals, where brokers send funds from their segregated bank accounts to the bank accounts of their traders.
How Does a Bank Wire Transfer Work?
The trader must have a bank account and a Forex trading account with bank wire brokers. Since Forex brokers do not accept third-party transactions, the name on both must match. Additionally, regulated bank wire brokers only permit verified traders to conduct financial transactions.
The secure back office of bank wire brokers is where traders can initiate bank wire deposits or request withdrawals. Making financial transactions with bank wire brokers functions similarly to online banking. Some brokers provide their bank wire information, allowing traders to deposit from their bank, but the back office provides a more efficient method.
Dependent on the bank and geographic location of traders, an intermediary bank may assist with the financial transaction, which usually delays the process and incurs additional fees.
Why Use Wire Transfer as Your Deposit/Withdrawal Method?
Bank wires are the slowest and most expensive method of transferring funds between traders and brokers, but below are reasons why bank wires remain the preferred choice.
Reasons for using bank wires to deposit or withdraw include:
- No geographic restrictions (unlike credit/debit cards or e-wallets)
- Highest level of account security, including biometric data, making account ownership and financial transactions traceable and transparent
- Less exposure to risk of theft, as nobody can steal a bank account, unlike credit/debit cards, while hacked accounts, like in e-wallets, are less frequent and usually the fault of users.
- Banks implement strict AML/KYC protocols, complementing the same principles at regulated Forex brokers.
Benefits of Choosing a Broker that Accepts Wire Transfers
Forex traders should consider the benefits of using bank wire brokers, despite waiting between two and ten business days before a transaction settles, dependent on their bank and geographic location, and paying notably higher fees.
Here are the benefits of using bank wire brokers:
- No deposit or withdrawal limits
- Many banks offer multi-currency accounts, eliminating currency conversion fees.
- Geographic restrictions do not apply.
- The most secure method of transferring funds
- Most brokers request traders to use bank wires to withdraw profits exceeding the deposit amount via other payment processors.
How to Pick a Decent Broker Offering Wire Transfers
Despite handling bank wires daily, not all brokers offer an equally efficient process. The most notable differences are processing times, which can take between two to ten business days, supported account base currencies, and currency conversion fees.
Forex traders should look for the following:
- Fast internal processing times
- Reimbursement of wire fees after a specific transaction amount
- Free wire transfers
- Account base currencies identical to the deposit currency
Wire Transfer Chargeback on Broker Account
While a wire transfer chargeback is available, dependent on the regulatory environment, traders must prove a scam was perpetrated on them to obtain one. Therefore, a wire transfer chargeback on a broker account is practically non-existent as scams are rare and hard to prove. Another reason banks approach it cautiously is that up to 90% of retail traders lose money and attempt to cheat legit brokers by claiming fraud, often due to not reading the terms and conditions, especially when accepting bonuses and incentives.
Bottom Line
Bank wires are the most secure transaction method between traders and brokers but also the slowest and most expensive. There are no geographic restrictions or withdrawal limits. Brokers usually implement deposit minimums due to high transaction fees. The most competitive bank wire brokers offer fast internal processing times and waive transaction fees for transactions exceeding a set value or offer one free bank wire monthly. Bank wire brokers also typically request that traders withdraw profits via bank wires if they exceed the deposit amount made via other payment processors.
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