Best Place to Trade Stocks with PayPal – Plus500Find Out More

81% 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.

Where and How to Buy Stocks with PayPal in 2024

Where and How to Buy Stocks with PayPal in 2024

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81% 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.

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 brokers and stockbrokers that offer the possibility to sell and buy stocks with PayPal.

This article looks at the pros and cons of a PayPal trading account and offers reputable online brokers that use it.

A List of the Top 5 Brokers That You Can Buy Stocks With PayPal From for January 2024

The following list details 5 brokers that offer the possibility to buy stocks with PayPal.

It in no way constitutes financial advice and should be viewed only as a starting point for your own due diligence.

Here are our top picks:

  1. Plus500 – Award-Winning Broker for Trading with PayPal
  2. AvaTrade
  3. IG – Highly Regulated Broker to Invest with PayPal
  4. eToro – One of the Top PayPal Brokers
  5. XTB Trading – PayPal Broker with Low Forex Fees

Best PayPal Forex Brokers – Comparison Chart for January 2024:

Broker

Alt text

Regulation

ASIC, FCA

Trading Platforms

Plus500 WebTrader

Minimum Deposit

$100

Plus500

Broker

Alt text

Regulation

CySec, FCA, ASIC, MAS, FSA, EFSA, DFSA, etc.

Trading Platforms

MetaTrader 4 (MT4) & MetaTrader 5 (MT5), AvaTradeGo, WebTrader

Minimum Deposit

$100

AvaTrade

Broker

Alt text

Regulation

FCA, ASIC, CFTC, NFA

Trading Platforms

Forex, CFDs, Stocks, Indices

Minimum Deposit

$250

IG

Broker

Alt text

Regulation

FCA, CySEC, ASIC

Trading Platforms

$50

Minimum Deposit

Proprietary 

eToro

Broker

Alt text

Regulation

FCA, CySEC

Trading Platforms

xStation, MT4

Minimum Deposit

$0

XTB Trading

eToro:

76% of retail investor accounts lose money when trading CFDs with eToro. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take two mins to learn more.

IG: Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of IG retail investor accounts lose money when trading spread bets and CFDs with IG. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Note: The information in this table is subject to change and may not be complete. It is important to research and compare brokers thoroughly before opening an account.

Best Places to Buy Stocks with PayPal – Reviewed (2024)

1. Plus500

Pros

  • No buy/sell commissions and tight spreads
  • Leverage of up to 1:30
  • FREE unlimited Demo
  • 2,800+ trading instruments
  • Real-time quotes and advanced analytical tools
  • Fast and reliable order execution

Cons

  • No API integrations
  • No social copy trading

Minimum Deposit: $100
Regulations: FCA, ISA, CySEC, MAS, ASIC, FMA, MIFID-ESMA, Offshore

Plus500 is a CFD provider and offers only CFDs.

This award-winning broker offers trading accounts with the option to buy stocks with PayPal through the user-friendly WebTrader platform.

WebTrader is available in 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.

Trading with CFDs is suitable only for short-term investments.

Visit Plus500

81% 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.

2. AvaTrade

AvaTrade allows traders to deposit funds into their trading accounts using PayPal. This process is typically straightforward and fast, providing a quick way to start trading.

One of the advantages of using PayPal is the speed of transactions. Deposits made through PayPal are usually processed instantly, which means traders can start buying stocks with PayPal without significant delays.

PayPal is a secure payment method that adds an extra layer of protection for your financial transactions. It allows you to fund your AvaTrade account without directly sharing your bank or card details with the broker.

The minimum deposit amount for AvaTrade accounts can vary, but it's typically around $100. It’s important to check if there are any specific requirements or limitations for PayPal transactions on AvaTrade’s platform.

In addition to funding, PayPal can also be used for withdrawing funds from your AvaTrade account. The process is generally simple, but it's important to be aware of any withdrawal limits, processing times, or fees that might apply.

Once your account is funded, you can trade stocks through CFDs (Contracts for Difference) on AvaTrade’s platform. This allows you to speculate on the price movements of stock shares without owning the underlying assets.

Visit AvaTrade

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

3. XTB Trading

Pros

  • Regulated by the FCA
  • Low forex fees
  • Fast withdrawal and deposit with no fee
  • Live chat customer service

Cons

  • No US clients
  • Limited product portfolio
  • High fees for stock CFDs

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 trading account with XTB allowing you to buy stocks with PayPal 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.

Visit XTB Trading

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

4. IG

Pros

  • Highly regulated
  • MetaTrader 4 (MT4)
  • Over 10,000 instruments
  • Available in the UK and US
  • 24/7 customer support

Cons

  • High fees
  • No deposit compensation scheme for US accounts
  • No copy trading
  • Inactivity fees

Minimum Deposit: $250 but may vary
Regulations: FCA, ASIC, BaFin, CFTC, NFA

IG is authorised and regulated by the FCA and provides traders access to over 18,000 markets. IG offers more 24-hour indices than any other provider, and extended hours on over 70 key US stocks 

For those who prefer to own the underlying asset, IG offers access to over 13,000 global shares and ETFs, or a wealth portfolio managed by one of their experts. 

You can deposit funds with a credit card, debit card, PayPal account or via a bank transfer.

Visit IG

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of IG retail investor accounts lose money when trading spread bets and CFDs with IG. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

5. eToro

Pros

  • Regulated by FCA, ASIC
  • No withdrawal fee for US clients
  • 0% commission on stocks
  • Social and copy trading

Cons

  • Not available in every US state
  • More expensive than most of its competitors
  • No MetaTrader platforms

eToro is considered the best social trading platform and is the world-leading copy trading brokerage.

eToro can be an excellent choice for beginners who are looking to venture into the world of crypto trading. The platform's features and offerings make it well-suited for those who are new to the cryptocurrency market and trading in general.

One of the standout advantages of eToro for beginners is its user-friendly interface. The platform is designed with simplicity in mind, making it easy for newcomers to navigate, understand, and execute trades. This is particularly important for beginners who might not be familiar with trading concepts or advanced technical tools.

eToro's social trading feature is another aspect that makes it appealing to beginners. The ability to follow and even automatically copy the trades of successful crypto traders can be incredibly valuable for those who are just starting. This feature not only allows beginners to learn from experienced traders but also provides them with the opportunity to participate in the market without extensive knowledge.

For individuals who are new to trading in general, eToro offers a wide range of educational resources. These include webinars, tutorials, and market analysis. These resources can help beginners understand the basics of crypto trading, technical analysis, and market trends. This educational support can empower beginners to make more informed decisions.

eToro's variety of cryptocurrencies is another advantage for beginners. Beyond Bitcoin, the platform offers access to a diverse selection of digital assets. This can be appealing to those who are interested in exploring different cryptocurrencies beyond the most well-known ones.

However, there are some considerations to keep in mind.

eToro operates on a CFD (Contracts for Difference) model for cryptocurrencies, which means traders do not own the actual underlying assets.

This might not align with the preferences of those who want to own and manage their own crypto wallets.

Additionally, eToro does charge spreads and other fees, which can impact the profitability of trades.

To find out more, read our eToro review.

Visit eToro

76% of retail investor accounts lose money when trading CFDs with eToro. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take two mins to learn more.

Best brokers that offer the option to buy stocks with PayPal (2024)
Best brokers that offer the option to buy stocks with PayPal (2024)

Advantages and Disadvantages of Buying Stocks with PayPal

Pros

  • Reliability and security
  • Deposits and withdrawals are quick and typically free
  • You can link multiple credit or debit cards
  • There are high maximum transfer allowances
  • PayPal adopts strong anti-money laundering policies

Cons

  • Charges on trading transactions
  • No chargebacks on financial instruments
  • High transfer fees

PayPal Trading Advantages

Reliability and Security

One of the main benefits of buying stocks with PayPal 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.

If you have used PayPal for online shopping, you know how easy it is to use funds from your registered accounts, and the same applies if you want to buy stocks with PayPal.

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 trading accounts with the ability to buy stocks with PayPal must abide by these regulations, so you can also have increased confidence that you’re dealing with a reputable broker.

Disadvantages of Buying Stocks with PayPal

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.

How to Choose PayPal Brokers in 2024

When looking to buy stocks with 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 allow you to buy stocks with PayPal.

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 trading account to buy stocks with PayPal 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.

How to Fund a Trading Account and Buy Stocks With PayPal

Funding your trading account using PayPal is as simple as using other payment methods, and usually follows a similar protocol as outlined below:

Step 1. Choose the Right Broker

Not all brokers offer the option to buy stocks with PayPal, and some will only accept it as a payment method in certain countries, so be sure to check that it is valid in your area.

Step 2. Set up an Account

You don’t usually need to have a special type of account to buy stocks with PayPal, and you will have to provide all the usual documentation including things like proof of identity.

Step 3. Select PayPal as Your Funding Method

Most brokers will ask you to do this straight away, and you will need to meet any minimum funding levels that are required for the account before you can start buying stocks with PayPal.

Step 4. Log in to Your PayPal Account

This might come as a pop-up or you might be completely redirected to the PayPal site.

Step 5. Authorise the Transaction

This is just another security step to make sure that you are happy for the transaction to occur.

You might also want to check where the funds will be coming from; if there isn’t enough in your PayPal balance to complete the transaction, you can nominate a linked card or bank account as a backup here.

Step 6. Begin Trading

Once your account is funded, you are free to start buying and selling stocks.

What Are the Fees for Buying Stocks with PayPal?

Transaction fees for using PayPal as a funding source with a stock trading broker can vary.

PayPal themselves do not charge transaction fees for domestic retail purchases or other commercial transactions unless there is a currency conversion.

This does not include professional services or PayPal being used by a business, however, which means that professional traders might find themselves dealing with PayPal fees that can range from 1.5% to much higher.

The broker may levy a charge for using certain payment methods, and PayPal might be one of them – so it is worth ensuring that you know what the fee structure is for your preferred broker before you buy stocks with PayPal.

Any fees tend to be a percentage of the total transaction, which makes them bearable for smaller trades, but if you are trading at high volume or high cost, it might be worth looking into other funding methods that do not incur fees such as ACH or SEPA.

This is also true if you are converting currency to make trades as the PayPal margins can be as much as 10% more than the cost of the currency.

Alternatives to Trading Using PayPal

If buying stocks with PayPal isn’t your thing, or it isn’t offered by your broker, then there are so many other ways that you can fund your trading account.

The easiest and most straightforward is by using a debit card.

This allows you to treat the funding of your account just like any other everyday process, and in many cases will not leave you in debt because there is no credit being used.

Most platforms and brokers do not charge for deposits made by debit cards.

Credit cards are similarly simple, but it is worth bearing in mind any interest charges on the card itself as these are essentially an added cost of trading.

Finding by transferring directly from your bank account is another option; this works well in most cases because it is instantaneous and secure, but not all bank accounts will allow this sort of transaction to happen and they may even add their charges to it.

If eWallets are your preferred method, but you don’t have PayPal, then there are other options.

Both Skrill and Neteller are available throughout Europe, and if you are in Asia you can use FasaPay or WeChat instead.

There is a growing number of brokers who are allowing clients to fund their accounts using cryptocurrency, which is an exciting option for those who are following the decentralised financial markets – but it is still quite niche and mostly unregulated, so approach it with caution.

Best PayPal Forex Brokers in 2024

With the rise of forex brokers that offer the option to buy stocks with PayPal, here is some more information on the best forex brokers.

When it comes to selecting the best PayPal Forex brokers, traders seek reliability, convenience, and security. Several reputable brokers offer PayPal as a funding and withdrawal option, making it easy for traders to manage their finances.

Some top choices for best forex brokers PayPal are:

  • Plus500
  • XTB
  • IG
  • City Index
  • eToro

These brokers not only allow you to buy stocks with PayPal but also provide a range of currency pairs, user-friendly trading platforms, and regulatory compliance for peace of mind. PayPal adds an extra layer of security to financial transactions, making it a preferred choice for many traders.

However, it's essential to consider other factors such as trading conditions, spreads, and regulatory oversight before choosing the best PayPal Forex broker for your needs.

Frequently Asked Questions

If you prefer to use PayPal to fund your trades, there are several options to choose from. One of the most popular options include Plus500.

Yes, you can buy stocks with PayPal. There are several stockbrokers and trading platforms that will allow you to use PayPal to fund your stock purchases and trades.

If you're wondering how to buy stocks with paypal, the process is actually quite simple. By choosing a stockbroker, which accepts PayPal, you will be able to make deposits and withdrawals using your PayPal account.

In the same way that you would transfer funds from your bank account to your chosen trading platform, you will be able to perform these actions with your PayPal account.

PayPal is part of the NASDAQ and is referred to as NASDAQ:PYPL.

There are many platforms that are available to use in Canada which allow users to invest in stocks, ETFs and equities.

Some of these will also allow users to make deposits, transfers and withdrawals by linking their PayPal accounts to their trading accounts.

Yes, you can invest with PayPal. Investing in stocks with PayPal is the same process as funding it from a bank account or other source. Your chosen platform or stockbroking firm will be linked to your PayPal account and you will then be able to transfer funds to and from your PayPal and trading account.

Unfortunately not. At the moment, PayPal accounts can’t be linked to Robinhood, but you can usually make transfers using your bank account.

The availability of PayPal as a payment option can change over time, so it's essential to check with specific trading platforms and apps for their current payment options and policies.

Traditional stock brokerage accounts typically don't offer PayPal as a primary payment method for purchasing shares. Instead, they commonly accept bank transfers, credit/debit card payments, and other standard payment methods.

However, it's essential to understand that PayPal itself is a secure and reputable payment platform known for its buyer protection policies and robust security measures. When you use PayPal to make online transactions, your financial information is generally kept secure.

You can link your bank account or credit/debit card to your PayPal account. PayPal will verify your bank account, and you can transfer funds electronically from your bank account to PayPal when needed. This is not a direct way to add cash but allows you to transfer money between your bank account and PayPal.

The best PayPal Forex brokers are AvaTrade, XTB, eToro, and more.

Final Thoughts

Opting to use PayPal online brokers 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 give you the option to buy stocks with 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.

81% 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.


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