Paypal supports transactions in 25 currencies, but it has not been popular with the trading community, primarily due to the costs.
Are Forex brokers offering PayPal transactions competitive? We have taken a deep dive and found the best PayPal Forex brokers.
- FXTM, Best all-around broker with high floating leverage and fast execution.
- FP Markets, ECN trading with leverage up to 1:500.
- Eightcap, Competitive pricing + excellent daily videos.
- BlackBull Markets, Best ECN trading environment, with scalping and hedging.
- AvaTrade, Highly regulated, choice of fixed or floating spreads.
Best PayPal Brokers Comparison
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Regulators | CMA, CySEC, FCA, FSC Mauritius, FSCA | ASIC, CMA, CySEC, FSCA | ASIC, CySEC, FCA, SCB | FMA, FSA | ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID |
Year Established | 2011 | 2005 | 2009 | 2014 | 2006 |
Execution Type(s) | ECN/STP, Market Maker | ECN/STP | ECN/STP, Market Maker | ECN/STP, No Dealing Desk | Market Maker |
Minimum Deposit | |||||
Average Trading Cost EUR/USD | 0.1 pips | 1.2 pips | 1.0 pips | 1.3 pips | 0.9 pips |
Average Trading Cost GBP/USD | 0.2 pips | 1.4 pips | 1.2 pips | 2.0 pips | 1.5 pips |
Average Trading Cost Gold | $0.18 | $0.16 | $0.12 | $0.90 | $0.29 |
Trading Platform(s) | MetaTrader 4, MetaTrader 5, Proprietary platform | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based | MetaTrader 4, MetaTrader 5, Trading View | MetaTrader 4, MetaTrader 5, cTrader, Trading View | Other, MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based+ |
Islamic Account | |||||
Negative Balance Protection | N/A | ||||
| Visit Website | Visit Website | Visit Website | Visit Website | Visit Website |
FXTM
In Summary Best all-around broker with high floating leverage and fast executionFXTM ranks among the best PayPal Forex brokers, offering ultra-low fees featuring raw spreads from 0.0 pips for a commission between $0.80 and $4.00 per 1.0 standard round lot for a $500 minimum deposit. Most Forex brokers demand $20,000+ for similar trading fees. FXTM also has cutting-edge price improvement technology, which lowers costs by an average of $3.00 per round lot, applicable to 97.18% of all trades.
Besides the MT4, upgraded with the Pivot Point Strategy plugin, and MT5, FXTM developed a user-friendly mobile trading app, FXTM Trader, which is ideal for copy traders using the in-house FXTM Invest service.
Pros & Cons
- Excellent commission-based Forex pricing environment and transparency
- Upgraded MT4/MT5 trading platforms plus proprietary mobile trading app
- Quality market research and educational content for beginner traders
- A highly regulated broker with a tier-1 license
- No cryptocurrencies and limited choice of commodities
FP Markets
In Summary ECN trading with leverage up to 1:500I rank FP Markets among the best PayPal Forex brokers as it offers instant PayPal funding for MT4/MT5 in AUD, CAD, CHF, EUR, GBP, HKD, JPY, NZD, SGD, and USD with zero processing fees. PayPal deposits and withdrawals are also available on the geographically restricted Iress platform, but they take one business day and incur a 2.00% transaction fee. FP Markets has a reasonable $100 minimum deposit requirement.
Traders get MT4/MT5 upgraded with 12 plugins, Trading Central, and Autochartist. Commission-based trading fees feature raw spreads from 0.0 pips for a commission of $6.00 per 1.0 standard round lot.
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 videosEightcap allows traders to deposit and withdraw via PayPal, available in 150 countries. Before traders decide on using PayPal, Eightcap asks clients to confirm with their account manager if PayPal is available in their country, as geographic restrictions apply. The minimum transaction amount is $100, or a currency equivalent, and the maximum is $4,000. Supported PayPal deposit currencies at Eightcap are the AUD, USD, GBP, EUR, NZD, CAD, and SGD, covering the core markets of Eightcap. Traders benefit from instant to near-instant processing times.
Traders also get a low-cost trading environment with cutting-edge tools like Capitalise AI and Crypto Crusher.
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
BlackBull Markets
In Summary Best ECN trading environment, with scalping and hedgingBlackBull Markets ranks highly on my best PayPal Forex brokers listing as it presents a cutting-edge ECN environment. The competitively priced, commission-based ECN accounts feature raw spread trading from 0.0 pips for commissions as low as $4.00 per 1.0 standard lot. BlackBull Markets ensures institutional-grade trading conditions via Equinix servers located in New York (NY4), London (LD5), and Tokyo (TY3).
Traders benefit from deep liquidity via data feeds of 66+ third-party providers and average order execution speed of less than 75 milliseconds. Traders can manage their funds via MT4/MT5, cTrader, BlackBull Markets CopyTrader, ZuluTrade, Myfxbook Autotrade, and TradingView.
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
AvaTrade
In Summary Highly regulated, choice of fixed or floating spreadsAvaTrade ranks among the best Forex brokers that accept PayPal. Traders can choose between six trading platforms, the core MT4/MT5, plus four proprietary alternatives. AvaTrade remains well-regulated, but traders get the most competitive trading environment from entities operating under the oversight of the ASIC, FSCA, BVIFSC and FSRA. New traders will benefit from one of the best educational programs, SharpTrader, which AvaTrade spun out. The minimum deposit of $100 makes AvaTrade accessible to all retail traders, with the maximum leverage between 1:30 and 1:500, dependent on the subsidiary. With an asset selection of 1,250+, it offers a competitive choice. The drawback remains the cost structure for Forex traders with a commission-free minimum spread of 0.9 pips or $9.00 per side or $18 per round lot.
Pros & Cons
- High quality educational offering via AvaAcademy
- Excellent choice of trading platforms catering to various trading needs
- Broad asset selection and cross-asset diversification opportunities
- Well-regulated and trusted broker with oversight from a central bank
- Trading costs competitive but nothing special
What is PayPal?
PayPal is an online payment processor based in the US. Founded in 1998 as Confinity, it merged with x.com in 2000, changed its name to PayPal, and went public in 2001 on the NASDAQ stock market. Forbes ranks it on its Fortune 500 list of largest US corporations by revenue. Since 2008, it acquires 22 companies and expanded its global footprint. PayPal operates in 202 markets and, as of 2020, has 305 million active, registered accounts. One of the most significant announcements PayPal made was the support for cryptocurrencies across its network, enabling purchases at 26 million merchants, in theory.
Why Use PayPal as Your Deposit/Withdrawal Method?
PayPal offers instant transactions from the PayPal wallet to the merchant. Therefore, traders can fund their brokerage account or request withdrawals from it without waiting for funds to arrive. PayPal also maintains a card processing service, allowing traders to use third-party cards to fund accounts. Traders must consider the costs with each transaction, which remain higher than at many well-established competitors. Currency conversion costs and transfer fees will make a significant difference, especially for traders who seek frequent transactions. It remains one of the primary reasons only a few brokers partner with PayPal.
Advantages & Disadvantages to Trading with a Broker Who Accepts PayPal
PayPal Forex brokers serve a specific type of trader, especially in the North American market, where it enjoys the most popularity. International traders have a broad range of superior choices. Before traders decide to use PayPal, I recommend that they weigh the advantages and disadvantages. Then they can make an informed decision if it represents a suitable remittance tool.
Advantages to Trading with a Broker Who Accepts PayPal
PayPal usually works with trustworthy partners and implements strict anti-money laundering protocols. Therefore, Forex brokers that accept PayPal are less likely to scam, defraud, or otherwise maliciously interact with clients.
The processing speed from the PayPal wallet to brokers is instant.
PayPal operates in 202 markets and accepts a broad range of currencies, making it accessible to many traders.
Using PayPal, either from a desktop or via the mobile app, is user-friendly, and accounts are free of charge without inactivity fees.
Traders can link multiple debit/credit cards or bank accounts to one PayPal account.
Disadvantages to Trading with a Broker Who Accepts PayPal
Forex brokers using PayPal remain rare and often less competitive than others. They generally have higher spreads, not linked to offering PayPal in any way, but still a trait they share.
Traders will pay a transaction fee each time they use the PayPal network. PayPal implements a fixed cost, dependent on the currency plus a percentage-based levy between 2.9% and 5.4%. A $100 transaction averages a charge of roughly $5.00 from the PayPal wallet to the merchant. Traders must also consider costs from the wallet to their bank or credit/debit card.
Currency conversion fees remain excessive at an average rate of 4.0%. Since most Forex brokers with PayPal only offer US dollar or euro accounts, international traders may pay almost $10 on a $100 transaction, or 10%.
PayPal has acted maliciously and paid millions in fines to settle.
Customer support at PayPal is terrible, and traders cannot ignore complaints concerning PayPal policies.
How to Pick a Decent Broker with PayPal
PayPal may operate in 202 markets, but many remain send-only, meaning users can send money without receive funds. Regulated brokers comply with AML stipulations and require that withdrawals use the same methods as received deposits. Therefore, traders located in countries determined send-only cannot use PayPal for trading. Several countries remain blacklisted, and the send-only limitations explain why PayPal fails to cater to traders. Some brokers offer it, but they usually serve North American traders or have a subsidiary operating in the US or Canada.
Traders who have unrestricted access to PayPal services may consider Forex brokers that accept PayPal. The characteristics remain the same as with any other broker. A regulated entity with a competitive trading platform, followed by a trader-friendly cost structure, broad asset selection and quality trading tools, remains paramount.
PayPal Chargeback on Broker Account
While PayPal offers a chargeback on disputed transactions, they only apply to tangible or physical goods. Since most brokers offer CFDs, which are derivatives, this service is not available for traders. Before traders blindly believe the protection provided by PayPal, they must read and understand the terms and conditions, together with the exceptions.
Speed of PayPal Payments
The speed of PayPal payments is instant or nearly so, provided funds are available. Traders who use Forex brokers with PayPal will have swift access, but the service comes at a high cost.
Deposits and Withdrawals with PayPal
PayPal allows users to link bank accounts and credit/debit cards to their PayPal wallets and top up their balance. From there, they can send it across the PayPal infrastructure consisting of over 26 million merchants globally and 305 total registered users. Withdrawals follow the same procedure, but traders must check if their country is eligible to receive funds. Many countries are send-only, making Forex brokers using PayPal not a suitable choice for traders with restricted access, as AML rules require brokers to send withdrawals back the same way as deposits. Therefore, most traders do not use PayPal outside a few markets.
Conclusion
PayPal Forex brokers usually operate in the US and Canada, where PayPal offers unrestricted access. Some UK brokers also have it as an option, but most traders shy away from the high costs associated with using it. Another discouraging trait among Forex brokers that accept PayPal is an uncompetitive pricing environment and sub-standard trading platforms. Traders who have unrestricted access to PayPal and enjoy the service it provides can trade Forex with one of our brokers identified as ranking among the best Forex brokers using PayPal.
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