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The world of Forex is full of different opportunities, payment methods are developing every day and with this, more and more people have the ability to start Forex trading. One of the payment methods that has been around for a very long time now is Swift, which stands for Society for Worldwide Interbank Financial Telecommunication.
Payments with Swift are mostly known for having much lower fees for money transactions between different countries. This payment method offers its services since 1973, for already 47 years it was able to offer something new and exciting to people all around the world.
With this guide, we want to make sure that you learn as much as possible about this payment method. Over the years, because of everything that it offers to clients, Swift has become a very popular payment method among Forex traders. There are many high-level online Forex brokers accepting Swift and this guide will help you to find the best one!
What to do to find the best Forex broker?
There are many things that you need to keep in mind before you start trading with brokers that accept Swift. Below, you can see some of the greatest brokers on the market that accept Swift!
Licences
FCA, CySEC, IFSC, ASIC, DFSA
Min. depo
$5
Leverage
1:888
Platform
MT4, MT5, WebTrader
XM
Licences
ASIC, FSA, FSCA, FFAJ, FSRA, FSC
Min. depo
100 USD
Leverage
400:1
Platform
MT4, MT5
AvaTrade
What are some of the advantages and disadvantages of using Swift?
There are many things that you can enjoy when it comes to Swift, but as with anything else, it also has some disadvantages. The greatest offerings of Swift include:
- While transferring money, you know that your funds can stay safe
- Compared to services like this, commissions are very competitive and low
- You can basically send money to any bank in the world
One of the biggest disadvantages of using Swift is probably the fact that you will have a really hard time getting your funds back if you make even a tiny mistake while depositing funds. The thing is that you might click a different button instead of the one you wanted to click, and this might result in your funds being transferred to a different account.
This can be a huge problem, you might even find the person who you sent the money to, but only they can decide if they want to give the money back or not and you simply can not do anything about that.
Another disadvantage is that the payment might take forever to be processed. Money transfers can take as much as seven days, because of so many banks involved, there might even be some problems with the payment.
How to deposit money on Swift supported Forex broker?
To make a Swift payment you will need a special Swift code which in most cases can be found on the website of the broker. Also, Swift has a special database where you will be able to find most of the companies that accept Swift payments and their codes. To make sure that you are using the right code, always double-check it so that there are no risks to your payments.
The payment might take some time, but it also depends on the broker. There are some brokers who need additional time to approve the payment.
Where can you start trading with Forex brokers accepting Swift?
There are many different countries where the services of the company are offered. Even though there are many different companies that offer similar services, Swift remains to be one of the most popular ones on the market. Below, there are some of the best brokers that we found while doing our research.
XM
Min. Depo
$5
Licences
FCA, CySEC, IFSC, ASIC, DFSA
Leverage
1:888
Platforms
MT4, MT5, WebTrader
AvaTrade
Min. Depo
100 USD
Licences
ASIC, FSA, FSCA, FFAJ, FSRA, FSC
Leverage
400:1
Platforms
MT4, MT5
Exness
Min. Depo
$10
Licences
CySEC, FCA, SFSA
Leverage
1:2000
Platforms
MT4, MT5
FundedBull
Min. Depo
49 USD
Licences
N/A
Leverage
N/A
Platforms
MT4, MT5, cTrader
Forex.com
Min. Depo
$100
Licences
NFA, CFTC, FCA, FSA, IIROC and CIMA
Leverage
1:50
Platforms
WebTrader, MT4, MT5
CMTrading
Min. Depo
250 USD`
Licences
FSCA
Leverage
1:200
Platforms
MT4, WebTrader, Copykat
Plus500
Min. Depo
$100
Licences
FCA, ASIC, CySEC, FSCA, FMA, MAS
Leverage
1:30
Platforms
WebTrader, Windows 10 Trader
Is Swift safe for Forex trading?
Swift is considered to be a safe system, however, there are some things that can be improved. There is a number of things that you need to provide to make a payment, and there is a good chance that either you or an employee of the bank can make some type of mistake. In case you provide a wrong Swift code, the whole transfer can go wrong. The worst part, however, is that in case a mistake is made, no one can notice it in many cases until the payment is done. At this stage, it might be very hard to get the funds back.
Even though there are so many problems, Swift payments still stand to be one of the safest on the market. Many people are trusting this company because of the history that it has and over the years it managed to have quite a reputation. Because of that, many Forex brokers offer top-up with Swift around the world and many people trust this method.
What are the fees charged for Swift payments?
When it comes to fees, there are some high numbers to pay for Swift payments. However, the exact number of fees that are being charged for transfer depends on several things. For example, if you are using this payment method to send money inside the same country, the fees can be quite low. If you use it to transfer money outside of your county of residence, it can cost you as much as 25 dollars.
Also, if you are using a credit or debit card, there might be some fees charged by the issuer of your card. So it is always a great idea to check the website of the issuer and lookup for the fees before you start Forex trading using Swift.
How does Swift work?
While using Swift to send funds from one country to another, your money travels between several countries, in this process, many different intermediary/correspondent banks are involved. The thing to remember is that this network does not necessarily transfer actual funds, but rather sends payment orders between institutions’ accounts using codes.
Because of its huge history and success, there are many things that are associated with Swift, for example, IBAN and BIC formats, it actually owns and administrates BIC and because of that, Swift can easily identify a bank and send payments securely.