The commonly used deposit and withdrawal methods in the foreign exchange market include wire transfer deposits and withdrawals, virtual currency deposits and withdrawals, and UnionPay deposits and withdrawals. Do you know which method is the safest and most convenient? You can read this article to understand
1. Deposit and withdrawal by wire transfer
A wire transfer is an electronic way to transfer money. It is also known as bank transfer.
This is relatively the most traditional method. First, you need to use RMB to buy USD foreign exchange, and then transfer the foreign exchange to the public account of the platform bank through bank wire transfer. The platform then transfers the user’s funds to the segregated account. In theory, this is the safest way to deposit and withdraw funds, but it is rarely used in the industry now.
1. The speed of wire transfer is slow. Regardless of deposit or withdrawal, it takes at least 1 to 3 days. For most traders, this speed is unbearable.
2. There is a quota limit for wire transfers. As mentioned above, there is only a USD 50,000 quota per person per year for foreign exchange purchases.
3. The wire transfer fee is more expensive. Regardless of the deposit or withdrawal, in addition to the exchange rate difference, each wire transfer also needs a handling fee of 10-40 knives, and the cost is relatively high
2. Deposit and withdrawal of virtual currency
Virtual currency deposit is a deposit method that has only emerged in recent years, such as depositing through USDT virtual currency. USDT is a virtual currency linked to the U.S. dollar. It generally maintains a 1:1 exchange ratio with the U.S. dollar, which is equivalent to the U.S. dollar in the virtual currency.
The advantage of virtual currency is that it can transfer funds point-to-point from personal wallets directly to platform wallets without going through a bank. It is very convenient and fast, and a remittance can be completed in a few minutes. When the platform receives the virtual currency, it will be exchanged for US dollars through overseas cooperative acceptors, and finally transferred to the fund isolation account to complete the deposit process. The same is true for withdrawing money, just reverse the operation.
owever, virtual currency deposits and withdrawals also have some disadvantages, and not many people use them. also mentioned before that some black platforms will use virtual currency to defraud, and there are certain risks in depositing and withdrawing funds in this way. Investors are advised to pay attention to screening!
1. Virtual currency is a new concept. Many people can’t understand it. The threshold for understanding is relatively high. Most novices tend to be confused and error-prone.
2. To use virtual currency to deposit and withdraw funds, you must first register a virtual currency wallet, then go to the virtual currency exchange to buy virtual currency, and then transfer the currency to the platform. The whole process is relatively cumbersome, that is, the threshold for participation is relatively high.
Therefore, if you have never touched virtual currency and do not have a virtual currency wallet, this method is not recommended.
3. UnionPay deposit and withdrawal
UnionPay deposit and withdrawal is currently the most mainstream deposit and withdrawal method that uses the most land. UnionPay deposits are not directly transferred to the platform like wire transfers, but are first transferred to third-party personal service providers through online banking, WeChat or Alipay, and then indirectly transferred to the platform through them.
You may be worried, I have transferred the money to a third party, is my fund safe? Did you reach the platform to isolate the account in the end? In fact, everyone can rest assured. For the platform, they care more about the safety of funds than we do. If there is a problem, the platform will compensate the customer for the loss. Therefore, they will strictly screen long-term and stable third-party service providers.
How did the third-party service provider finally transfer our funds to the segregated account of the platform? Now the mainstream way is to use virtual currency such as USDT. We purchase corresponding USDT from third-party service providers (platform acceptors) through UnionPay according to a certain exchange rate, and the third party directly transfers USDT to the platform virtual currency wallet. Then it is exchanged into US dollars through overseas acceptance, and finally transferred to the platform fund segregated account.
Why does UnionPay deposit and withdrawal become the mainstream?
1. The deposit and withdrawal speed of UnionPay is relatively fast, and it can basically be credited to the account immediately. The withdrawal takes 1-3 working days, which is also the industry’s normal level.
2. The operation is convenient. Online banking, Alipay, and WeChat are tools that everyone uses and knows how to use. There is no obstacle.
3. There is no handling fee for deposits and withdrawals on most formal platforms, and only the instant exchange difference is counted, with low cost.
In short, the above are the three common deposit and withdrawal methods in the industry. Among them, UnionPay is the most used. Which one is more suitable depends on your own situation.