A debit card is the payment method of choice for a large majority of traders. This is so, as debit cards are manageable, easy to acquire and convenient. They also enable immediate transfers of funds and entail small fees.
A main benefit to depositing money to your trading account via debit card is that it is easy to manage your money this way and not to fall into debt. The reason for this is that unlike a credit card which can often have a significantly higher limit than your monthly checking account balance, a debit card limit is whatever the balance is in your checking account. This a big help for people who aren’t particularly careful with their spending habits and have a tendency to go into debt. Credit card balances can often grow out of control; a debit card, on the other hand, prevents that from happening. While credit cards can be dangerous, debit cards can instill financial discipline. If you are a big spender, although you may still end up spending more than you can afford, at least you won’t need to keep paying off the interest and debts months after you made the payment. Not all platforms allow you to pay with a debit card. Make sure you choose the right broker.
Easy to Acquire
It is incredibly easy to acquire a debit card. While you must apply for a credit card in order to obtain one, a debit card simply requires a checking account. Alost any checking account enables you to be automatically eligible for a debit card. With credit cards, most credit card companies conduct a credit check, an investigation into your credit card history, before issuing you a card. With a debit card, however, this is not necessary.
People often find debit cards convenient for funding their trading accounts. That is so, because all they need to do is put in their debit card information on their broker’s website, or to tell their account manager the details. They don’t need to physically go to a bank; traders can fund their trading account right from the comfort of their home.
When a trader chooses to use a debit card to fund his trading account, the money will instantly enter his account and he can begin trading and earning profits right away. This is the best way for a hungry trader who wishes to take advantage of investing opportunities as soon as they come.
One of the major advantages of using a debit card rather than a credit card is the fact that there are usually only nominal fees involved. When using a debit card to trade in the forex market, you don’t need to worry about finance charges, interest rates or monthly bills. Interest is accrued on unpaid credit card balances, whereas debit cards draw on your actual funds.