The Top 10 Stockbrokers That Accept PayPal
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ETORO - THE #1 STOCKBROKER
By far the world’s most popular e-wallet, PayPal facilitates simple and secure online money transfers for over 325 million active users worldwide.
Though originally designed for use in the eCommerce space, its speed, safety and simplicity mean more traders are now looking to use it to fund their trading accounts.
As a result, there is an increasing number of stockbrokers that accept PayPal for deposits and withdrawals.
This article looks at the pros and cons of a PayPal trading account and offers 10 reputable online brokers that use it.
Advantages of Using a PayPal Trading Account
Reliability and Security
One of the main benefits of a PayPal trading account is the high level of security it provides.
There is no need to input sensitive payment information into a third-party website – all you need are your account ID and password.
Deposits and Withdrawals Are Quick and Typically Free
So long as there are funds available in your account or through one of your registered payment methods, deposits made via PayPal are usually instantaneous.
Withdrawals need to be approved, so may take longer, but are still much quicker than other methods.
Bear in mind certain brokers may have associated charges, which you should be able to find out beforehand, but most provide service via PayPal for free.
You Can Link Multiple Credit or Debit Cards
If you have used PayPal for online shopping, you know how easy it is to use funds from your registered accounts, and the same goes for trading.
By linking multiple accounts, you will have easy and secure access to a range of funding sources.
There Are High Maximum Transfer Allowances
With a maximum transfer amount of $10,000 as standard, PayPal limits are more than sufficient for most beginner traders.
Once your PayPal account is verified, which simply involves linking an active bank account or credit/debit card, the maximum increases to $60,000.
PayPal Adopts Strong Anti-Money Laundering Policies
PayPal utilizes the latest technology in digital security and enforces strict regulation, so you have peace of mind your assets are protected.
Those that offer PayPal trading accounts must abide by these regulations, so you can also have increased confidence that you’re dealing with a reputable broker.
Disadvantages of Using a PayPal Trading Account
Charges on Trading Transactions
When using a PayPal trading account, you do need to factor in the charges applied to your trading transactions and how these affect your profit margin.
These are not too dissimilar to other e-wallets like Skrill and Neteller, but every broker will apply different charges, so be sure to do your research.
No Chargebacks on Financial Instruments
One of the main benefits of using PayPal for online transactions is the chargeback facility – essentially the ability to request a transaction reversal should you wish to dispute it.
However, this only applies to physical goods so is not available in a trading context.
High Transfer Fees
As well as charges on trading transactions applied by your broker, you also need to account for PayPal’s own fees.
This includes currency conversion fees (typically 2.5% above the current base rate) and fees for withdrawing to a credit/debit card.
Transfer fees are also a major consideration as these can be quite high, ranging between 4% and 12% of your transfer amount.
What to Look for in a PayPal Trading Account
When looking to invest using PayPal, there are multiple things to consider beyond whether this payment option is available.
Trading of any kind comes with associated risks and choosing the wrong broker can bring potentially devastating results.
With that in mind, it is imperative to conduct thorough research before opening a PayPal trading account.
Here are a few key things to look out for:
Is the PayPal Broker Regulated?
This is by far the most important consideration when choosing an online stockbroker, no matter the method you use to fund your account.
Regulation gives you peace of mind that the broker operates in a legitimate, professional manner and that its accounts are regularly audited to ensure legal compliance.
Regulation also affords a level of financial protection.
Client funds and company funds must always be kept separate, and should the broker go out of business, there are practices in place that cover the security of your assets.
Does It Have a Good Reputation?
The experience other users have had with a broker is a good indication of credibility.
Search for user feedback on trusted review sites and trading Q&A platforms to get a feel for the kind of service they provide.
Think beyond costs, payment options and trading platforms. You may want to consider what additional support they offer by way of educational resources, chatrooms and, of course, a good level of customer service.
For stockbrokers that accept PayPal, you will also want peace of mind that other users have not encountered serious issues funding their accounts through the e-wallet.
How User Friendly Is the Platform?
Depending on the type of trader you are and your level of experience, you will want a platform that is user-friendly, easy to navigate and offers a range of tools that allow you to make well-informed, profitable investments.
MetaTrader (both MT4 and MT5), ZuluTrade and cTrader are all common platforms offered by a variety of brokers, including those that accept PayPal as a funding method.
Most also offer their own proprietary platform.
Before opening your PayPal trading account, see if there is a free demo period available.
If you are not comfortable with a stockbroker’s platform, it is unlikely you will turn a profit trading through them.
What Additional Features Are on Offer?
Alongside the platforms available, another thing to look for when choosing a PayPal trading account is additional features like trading tools and educational resources.
Charting software, trading signals and analysis tools all help to inform better trading strategies, and things like economic calendars and financial news help you stay abreast of market influencing factors.
Training programs are also of huge benefit, particularly if you are new to the world of trading.
Most brokers offer some level of education to account holders, so keep an eye out for this.
Does the PayPal Broker Fit with Your Trading Style?
The type of trader you are largely dictates what you need from a broker. Look at things like minimum deposit requirements and maximum withdrawal limits to make sure they are within your ideal range.
You also need to consider spreads, swap rates and leverage, as well as trade-associated fees like rollover charges, interest rates and withdrawal costs.
All these things influence your profit margin and vary widely from broker to broker.
The right PayPal trading account for you will be with a broker that offers the most competitive rates for the type of trades you wish to execute.
Top 10 Stockbrokers That Accept PayPal Deposits and Withdrawals
The following list details 10 stockbrokers that accept PayPal as a funding option.
It in no way constitutes financial advice and should be viewed only as a starting point for your own due diligence.
Minimum Deposit: $200
Regulations: CFTC, CySEC, FCA, ASIC, MIFID-ESMA
With its own proprietary platform known as CopyTrader, eToro is heavily focused on social trading strategies, great for beginners looking to leverage the knowledge of more experienced traders.
Its Popular Investor program is relatively unique, allowing those who share their trades and recruit copier traders to earn additional financial rewards.
The downside is that eToro’s spreads are not as competitive as those offered by other brokers, so if you are a day trader looking to capitalize on small profit margins from several trades per day, it may not be the best broker for you.
That said, it is an excellent option for anyone looking to develop their knowledge and expertise through its copy trading functionality.
*67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.*
Recommended for: Social copy trading
Founded in 2010, Pepperstone has been quick to adapt to the social copy trading trend, providing plenty of tools for traders to share and mimic trading styles. Traders can opt for payments via PayPal, which will be processed instantly.
With over 60 currency pairs, it offers two account types:
- Standard – The Standard account comes with market average spreads and zero commission
- Razor – This account operates on a commission basis but with exceptionally low spreads
Pepperstone does not have its own platform but offers the complete MT4, MT5 and cTrader solutions, as well as supporting ZuluTrade, Myfxbook and MetaTrader Signals for copy trading.
There is no minimum deposit required but Pepperstone recommends a minimum of £500.
Minimum Deposit: $100
Regulations: FCA, ISA, CySEC, MAS, ASIC, FMA, MIFID-ESMA, Offshore
This award-winning broker offers PayPal trading accounts through the user-friendly WebTrader platform.
WebTrader is available in desktop, web-based and mobile versions, and users can access an unlimited free demo to test out the platform without risk.
It has a clean layout that makes trade execution simple and offers advanced functionality with a range of tools for research and analysis, as well as real-time market information.
Offering its services since 2008, Plus500 has a trusted reputation, and with highly competitive fees and tight spreads, it is a popular choice for traders of all styles and experience levels.
Copy trading is not available. But, if you are confident in your strategies, there is a range of instruments available, making Plus500 a good broker of choice for both long term and short-term traders alike.
Availability subject to regulations
76.4% of retail CFD accounts lose money
4. City Index
Best for: Spread betting
Minimum deposit: £100
Withdrawal fees: £0
Tradable assets: Shares, FX, Commodities & Options
Available trading platforms: MT4, AT Pro
City Index has built its reputation on spread betting. This is where you can trade on rising and falling price movements rather than purchasing stock.
This is a popular choice for those looking for tax-free investments as you are investing in movements rather than assets.
As spread betting is about movements, this is ideal for those looking to maximize short-term profits rather than investing in long-term opportunities.
City Index has an interactive dashboard that allows you to view different markets at a glance. With multiple charts and 65 technical indicators, this is more suited to experienced investors who know what they are doing.
5. XTB Trading
Minimum Deposit: $200
Regulations: MIFID-ESMA, FCA, CySEC, Offshore
XTB Trading was established in 2004 and has since built a solid reputation among the online trading community.
Retail accounts are available at both standard and pro level, with professional accounts offered for experienced traders that meet certain qualifying criteria.
The most beneficial aspect of a PayPal trading account with XTB is its powerful proprietary platform, xStation 5.
This includes a range of features that allow for in-depth analysis and performance monitoring, helping users identify patterns in their trading style.
If you prefer the MetaTrader platform, MT4 is also available to XTB account holders.
The broker provides a library of educational materials, including live webinars and video tutorials. Its Trading Academy is also a valuable resource for those new to the markets, with lessons split into basic, intermediate, expert and premium.
Spreads and fees vary depending on account type, so be sure to check these before registration.
Minimum Deposit: $200
Those that choose to open a PayPal trading account with IG have the option of several platforms, each catering to different experience levels and trading styles.
For beginner traders, IG’s own platform is most suitable, offering a user-friendly interface and many additional features and functionality.
For more experienced traders, ProRealTime, MT4 and L2 Dealer are all available. There is also IG’s own Progressive Web App that can be used on any type of device.
Charges, fees and spreads are relatively on par with other popular brokers; however, users should be aware that an inactivity charge is applied to dormant accounts.
IG’s educational library is particularly comprehensive, with webinars, podcasts and seminars, analysis tools, advice on strategy and planning, news and trade ideas.
7. FX Pro
Minimum Deposit: $100
Regulations: FSCA, MIFID-ESMA, FCA, CySEC, Offshore
Another of the award-winning stockbrokers that accept PayPal deposits and withdrawals is FX Pro, offering competitive spreads and transparent pricing.
It operates across a range of markets giving account holders a variety of trading options. It also provides online courses free of charge, covering beginner and advanced topics in areas like fundamental and technical analysis and trading psychology.
8. IC Markets
Minimum Deposit: $200
Regulations: CySEC, ASIC, Offshore
With low fees and high leverage available, IC Markets is a well-established broker catering to traders dealing in various instruments and is a highly popular choice for forex traders in particular.
Users have access to a choice of three trading platforms in MT4, MT5 and cTrader. The broker also works with Myfxbook and ZuluTrade to facilitate copy trading strategies.
Although they vary between account type and platform used, IC Markets’ spreads are highly competitive. Its Raw Spread account offers some of the best available and with relatively low commissions, making it an ideal choice for day traders.
Account holders have access to many video tutorials and webinars, and the IC Markets Trading Knowledge center provides information on everything from market conditions to fundamental and technical analysis.
Minimum Deposit: $100
Regulations: ASIC, CySEC
Primarily classed as a forex broker, but with other instruments available including shares and cryptocurrencies, fpmarkets has been around since 2005 and has several industry awards under its belt.
Traders can choose from a standard account or a raw account, both compatible with MT4 and MT5.
The raw account offers tighter spreads but with additional commission charges, whereas the standard account is zero commission but with less competitive spreads.
Unlike some of the brokers that facilitate PayPal trading accounts, fpmarkets does also offer automated and copy trading through Myfxbook Autotrade.
Account holders will find a range of educational resources by way of eBooks and video tutorials, as well as having access to fpmarkets’ Traders Hub, complete with an economic calendar, forex calculator, technical and fundamental analysis, and knowledge center.
Minimum Deposit: $0
Regulations: FSA, CySEC
Fondex gives traders access to all the popular markets through a single account type that allows for manual, automated and copy trading.
It utilizes one platform only: cTrader.
This is an intuitive, reliable platform used by many around the world, but it may put some off that it is the only one available on Fondex.
The broker does offer an education and news hub, though compared to some of the other brokers in this list, it falls behind somewhat when it comes to trading education.
Where Fondex does rate highly is in its low costs, and with no minimum deposit required, it is a good choice for beginner traders looking to test the waters.
Opting to use a PayPal trading account has many benefits, most notably the speed and security it offers. That said, high transfer fees and transaction costs do need to be kept in mind.
If you predict these will impact your profit margin too much, there are probably other funding options better suited to your trading style. However, for most beginner traders, these costs are far outweighed by the financial protection on offer.
Though the list of stockbrokers that accept PayPal deposits and withdrawals is still limited, it is growing as brokers look to stay relevant and attract new clients with this sought-after option.
WikiJob does not provide tax, investment, or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal capital.