Bank Wire Payment Services For Forex Brokerages
What Are Forex Wire Transfers And Why Should You Send Money This Way?
A wire transfer is in many cases a good solution when you have to send money quickly. Sending money by wire is nearly instant, secure and reliable. A wire transfer and cashier’s check might be the only two options available to you for instance when you want to purchase a house. The reason being that the money will be available to the beneficiary almost instantly.
So What Are Forex Wire Transfers?
In short, it is an electronic transfer of money. With a traditional wire transfer, the money is sent from one bank or credit union to another bank via a network like Fedwire or SWIFT.
Though, as the term “wire transfer” is also used to describe other kinds of transfers, it is important to ensure that the requirements are clearly explained when a person requests a wire transfer. Generally when a person requests a “bank wire”, he/she is looking for the standard bank-to-bank transfer. If this is not the case, a money transfer service or other electronic payments could be in order.
How Quick Is A Forex Wire Transfer?
Many people choose to use wire transfers since the money gets transferred quickly (in as little as 1-2 days). If you are located within the US, you have the possibility of a same-day transfer, but it depends on how early you send the money. Though, any international transfer will take an additional day or two.
As the money moves so fast, a recipient doesn’t first have to wait for the money to be cleared before he/she can claim the money and start spending it. Thus, usually no holds are placed on the amount that is received through wire transfers. Plus, when you are really in a hurry to start spending your money, it usually only takes a couple of calls to be able to track down a wire transfer.
Unfortunately checks can get returned by banks when there are insufficient funds to cover it. Therefore, if you are selling a service or merchandise, using a wire transfer can be more secure than a check.
How Do I Use Forex Wire Transfers?
If you want to send money via wire, all you have to do is submit the instructions to your bank. You will have to give the bank account particulars of the recipient. In many instances you will also have to use a specific form that your bank will give to you. Though, there are a few banks that allow you to do everything online, while other institutions call for a form that is signed.
If you want to receive money via a wire transfer, you will have to give the particulars of your bank account to the individual or company that will be sending you the money. To ensure that you use the right numbers, ask that your bank gives you the instructions for an incoming wire.
Usually the money will move in a single day. Though, it can take an additional day for the money to reflect in your bank account. To receive a wire transfer, the fee is about $10 (in some instances it can be free). To send a wire transfer, the fee is about $40.
It is much better to send a wire transfer directly from your account, because if you want to use your credit card to pay for a wire transfer, it will cost more. When using a credit card, you will have to pay cash advance fees, more interest and then on top of that the fee for the actual transfer too.
Is A Forex Wire Transfer Safe?
If you want to complete a wire transfer within the United States, both parties must have a bank account. In order to open an account, you must provide your residential address and verify your identity. Thus, it is hard to bank in the United States without being identified by name. This makes it more difficult for criminals to scam people via a bank wire transfer. You might be able to hide your identity from people and companies, but usually law enforcement officials will be able to track you down.
Though, fraudulent activity that involves wire transfers can still occur. To get the cash, a fraudster only needs to have access to another person’s bank account for a couple of days.
The biggest risk is when you send some money and the fraudster sends it via wire to another account before you find out. Also, it can be risky to wire a payment to offices that make cash payments, like Western Union, as it is more difficult to check who received the money as fake identity documents can be used.
While sending money via a wire transfer could pose a few risks, it is mostly safe to receive money via a wire transfer.
Other Kinds Of Electronic Forex Transfers
Money transfer services (such as MoneyGram and Western Union money transfers) and ACH transfers (automated clearing house) are two other kinds of electronic transfers that are also often called wire transfers. With money transfer services it is possible for the transfer to be almost instant if you pay for the transfer with cash and both you and the recipient visit a retail location. While with an ACH transfer, the transfer can take more than two days. Plus, ACH transfers cannot be used to transfer money internationally and only within the US. Generally these types of transfers are not as quick or as secure as wire transfers.
Then there are also P2P payment tools and apps that can be used to send money without directly using your bank or money transfer services. For example, PayPal and Square Cash can complete an electronic transfer for you, however these two are not regarded as “wires”. These services are effortless and do not cost a lot, though you want to contact your service provider regarding any risks that you might be taking if you for example pay a person whom you do not know.