Brokers by Type
What are PayPal brokers and how to work with them — essential guide for beginners
PayPal is the most popular electronic payment system in the world. It:
- is used in 202 countries;
- supports several dozen currencies.
To start using PayPal, all you need to do is link your Visa or Mastercard.
The payment system has been around for over 20 years. Millions of people use it to pay for goods and services, and even to fund their forex trading accounts.
With PayPal, a trader’s bank card is linked. This means that money transfers are almost the same as making card payments. Even strict financial regulators allow this.
At first glance, everything seems fine. However, there are only about 20 PayPal brokers that can be genuinely trusted. Moreover, a significant portion of them are not brokers but dealers. They don’t execute trader transactions on the real market.
Advantages and disadvantages of PayPal brokers
The main advantage is fast money transfers. You can fund trading accounts with brokers in different countries around the world. This is easier than using cards. Withdrawing profits from a forex broker to PayPal also takes very little time.
Now, onto the disadvantages. The most notable is the absence of chargebacks. Traders should know that this mechanism only works with bank cards. PayPal wallets are not covered.
If a trader sends funds to a fake broker’s PayPal account, there’s no way to get the money back. In the best case, you might obtain information about the recipient. Note: this requires involvement from law enforcement authorities.
Top PayPal brokers — Are they necessary for Russian traders?
Starting from early 2022, there’s no point in working with a broker solely because they accept payments through PayPal. The payment system stopped accepting money from Russians. All their wallets were frozen.
No matter how beneficial or reliable a broker might be, they cannot accept PayPal payments from Russians. The same situation applies to forex dealers operating in Russia.
Using PayPal wasn’t very advantageous for Russians even before it left the Russian market. This electronic payment system doesn’t support ruble wallets. People had to open dollar wallets, and if they were funded in rubles, they would automatically be converted to USD, incurring a significant fee ranging from 2.4% to 5%.
Russian traders would need a PayPal broker for Forex only if they are abroad, have an account in a foreign bank that supports this payment system, or are travelers. Travelers can fund their trading accounts with brokers from 202 countries around the globe, and the money will arrive quickly.
Honest rating of PayPal brokers
Back in the middle of the last decade, dozens of intermediaries in the Forex market worked with PayPal. In 2022, there are only a couple of dozen reliable ones. The rest are scams.
PayPal can hardly be called a competitive advantage for a Forex broker. It’s simply a payment system. Its support doesn’t affect the quality of trading and services.
That’s why our rating of brokers with PayPal is based on legality. The top brokers are those with licenses from strict financial regulators in jurisdictions where the law keeps intermediaries in check, preventing them from misappropriating trader funds through loopholes and vague interpretations.
Choosing a trusted PayPal broker can be guided by the range of assets they offer, tailored to the needs of an average trader. Fake instruments like binary options or crypto pairs should be avoided; they are signs of a “kitchen” broker.
The third most important parameter is trading conditions:
- leverage not exceeding 1:100;
- minimum position size starting from 0.1 lot;
- margin call starting from 300%;
- stop-out at 100%;
- tight spreads;
- reasonable swaps without excessive fees for leverage.
The norm for commissions with zero spreads is $7–10 for a full round turn.
It’s important to look at deposit and withdrawal conditions. Supported payment systems matter, including PayPal. Traders should understand:
- what commissions they will have to pay;
- how quickly the intermediary promises to return funds.
Regardless of the method used to fund a broker’s account, it’s always recommended to start with a modest sum. Don’t deposit more until you’re sure the broker returns profits and doesn’t manipulate quotes.