Western Union is not considered to be a common or popular method of payment for funding a Forex trading account. Nevertheless, there are a handful of Western Union Forex brokers that allow their clients to deposit and withdraw trading funds using Western Union. Western Union is the oldest international payment processor that initiated its operations way back in the 19th century.

The company offered a way of sending payments through telegrams, which quickly caught on and led to the company being a giant powerhouse in international money transactions. However, with the invention of the computers, the internet, and online payment channels, the company has moved away from its roots by allowing their customers to transfer money to international destinations through their online payment portal.

The basic premise of a Western Union payment is that a sender approaches a Western Union outlet to send money to a different destination.

Western Union outlets can either be physical offices or affiliates such as banks and other financial organizations. Since , Western Union had been seen moving their entire service portfolio to an online medium, and as of today, users can send money to any location in the world by simply making the payment through the official Western Union website.

Regardless of an improved Western Union online payment processor, receivers are still required to collect their money physically from the representative offices. Therefore, the online aspect of money transfer loses its value.

Western Union also incurs a hefty transaction fee, which makes e-wallets such as Skrill and Paypal seem extremely viable. Western Union consistently receives a lot of negative feedback from several Governments and international organizations due to their relative lack of security while transferring money.

Western Union is used extensively by scammers and terrorist organizations for money laundering and other illegal activities. The nature of Western Union transfer helps the sender and receiver to remain anonymous, even if the company keeps a track record of the financial transaction by retaining the identifying documents of both parties of a transaction.

Forged documents and a lack of proper verification procedures do tend to inhibit the company from deterring financial malpractice. Once the money is sent through Western Union, there is no way that a sender can reverse the process, which essentially means that the receiver always gets his fund.

An Introduction To Ichimoku Charts In Forex Trading

The broker has the discretion of holding on to funds or adding it to a trading account minus all the fees incurred for the transaction. Since any major regulatory agencies do not support Western Union as a preferred mode of payment, it is also difficult for a trader to initiate any legal proceedings against a broker for any misuse of funds originating out of a Western Union transfer.

Western Union payment option is only available with a select few FX brokers, which narrows down the choice significantly.

Forex Trading Brokers with Western Union

Most regulated Forex brokers tend to stay away from Western Union as it becomes difficult for a broker to follow the strict anti-money laundering regulations enforced by their regulatory authority. Some regulated brokers do circumvent the regulations by setting up their brokerage in a tax haven that has a relatively lower number of restrictions when it comes to accepting payments from traders.

While some of these brokers have an excellent reputation in the industry, it would be advisable for traders to exercise caution before choosing Western Union as their desired mode of payment.

The following list of Forex brokers accepts Western Union as a payment option: There are a few precautions that can help you to stay away from non-regulated and potentially scam Forex brokers that accept Western Union payments:.

Some traders use Western Union specifically to ensure that they do not reveal the card or banking information to the broker. The anonymity aspect of Western Union is certainly an added advantage if you consider the amount of online scam that we witness on a daily basis.

You can denominate your preferred currency at the Western Union office and determine the currency exchange rates beforehand. This allows you to save money by avoiding the hassle of converting from your local currency to other currencies from the broker and incurring substantial exchange fees.

Western Union Forex Brokers - Pros and Cons

However, the cost of transaction for a Western Union payment is inherently high, which should deter traders from choosing this option. Risk Warning - Your capital is at risk. Trade with caution, these products might not be suitable for everyone so make sure you understand the risks involved! Other Forex Payment Systems bitcoin Bitcoin Brokers paypal Paypal Brokers skrill Skrill Brokers webmoney WebMoney Brokers neteller Neteller Brokers.