Credit cards have revolutionized the way money works. They have enabled people around the world to become independent of paper money and have made online payments much safer and faster. Credit cards are an amazing alternative to cash spending as they allow a much higher degree of freedom while taking care of your expenses too.
But there is also a not-much-talked-about benefit of credit cards too, that not many people know about. You can use your credit card to trade in the forex market as well. Yes! Several credit card forex brokers allow their traders to use credit cards for withdrawal and deposit procedures. Not only is it highly convenient, but also supremely secure. So, if you’ve been thinking about how to apply for a credit card, but have been putting off actually applying for it, now is the time to take the plunge and go for it!
Why use credit cards for forex trading?
As we’ve discussed before, credit cards have a global appeal, making it easier to incorporate credit card payment options into forex trading. Forex brokers can leverage this to their advantage. Today, a lot of forex brokers offer their traders an option to opt for credit card payments along with bank wire.
Another reason why credit card payments have taken the forex trading market by storm in recent years is that they are unbelievably fast. Even just a few years ago, making an international payment was a tedious and time-consuming task. Credit cards have single-handedly solved this problem by allowing instant deposits and quick withdrawals.
But how does it improve the forex trading experience?
Forex markets are highly volatile in nature – they can throw major surprises your way, requiring its traders to make additional deposits. For example, your forex trading broker might suddenly lower the leverage or in simple terms, raise the minimum margin requirements. Now, for you to be able to continue trading, uninterrupted, you will need to make those additional deposits and fast.
In such a scenario, having a great credit card such as the Bajaj Finserv RBL Bank SuperCard can come in super handy. Along with giving you the advantage of a multitude of credit card offers, the SuperCard also makes for an amazing funding option when linked to your forex trading account.
Here are five exceptional forex trading strategies for how to apply for a credit card to make your credit card payment experience even better:
- Link your credit card with your forex trading account:
To enjoy the various credit card offers afforded by the issuers when it comes to forex trading, you will first have to link your credit card to your forex trading account. This is a hassle-free and relatively simple process. Simply key in your credit card details on the payments page.
Once this is out of the way, you can use your cards to make deposit requests at your beck and call and it will literally take mere seconds to complete your payments.
- Enjoy quick withdrawals:
As easy as the deposit procedure is, the withdrawal procedure is not too different either. But that is procedurally speaking. The time required to fulfill the two requests varies slightly. While deposits can be instantaneous, withdrawal requests take some time to get reviewed and confirmed. In any case, it is still quicker than most other payment methods.
- Choose from a list of issuers:
Today, there are several credit card issuers that offer multiple credit card offers to cardholders. However, while choosing a credit card for your forex trading requirements, it is crucial that you take a few features into consideration. These include interest rates and other costs and fees charged by the issuer company to ensure a smooth and convenient forex trading experience.
- Prepaid vs traditional credit cards:
Prepaid credit cards, as the name suggests are preloaded with money. They don’t allow the customers to spend on credit. As a result, you can only spend what you have preloaded in your card and cannot break the upper limit in any case. While you can save on interest with prepaid credit cards, there are a few other fees and charges involved – mandating thorough research prior to opting for these cards.
- Use chargeback features to your advantage:
While online payments using credit cards are inherently safe and secure, if for some stroke of misfortune, you do get cheated, you can safeguard yourself with the help of chargeback features. Chargeback is one of the many credit card offers aimed at protecting customers. Once a chargeback request is submitted, the bank authorities will try to resolve and settle your matter – which is great but could take some time to happen.
Even with the fees and other charges, credit cards are some of the easiest methods to foray into forex trading. However, you must make sure that you don’t end up in a huge debt and use this payment option responsibly!