- Binary Brokers with Cheque
- About Cheque Payments
- Transaction Times
- Pricing Review
- Pros Of Cheque Binary Options Brokers
- Updated Technology
- Multiple Currencies
- Ease Of Use
- Low Fees
- Cons Of Cheque Binary Options Brokers
- Less Accessible
- Lack Of Security
- How To Make Cheque Deposits To Binary Options Accounts
- Verdict On Cheque Binary Options Brokers
- Do Binary Options Brokers Accept Cheques?
- How Long Do Cheque Deposits Take To Clear In Binary Trading Accounts?
- How Much Do Deposits To Binary Options Brokers That Accept Cheques Cost?
- How Can I Use Cheque Imaging For Binary Options Trading?
- Are Cheques Good For Binary Options Trading?
Cheques are one of the oldest payment solutions, facilitating the transfer of money between one party to another. As such, they can be used to make deposits to binary option trading accounts. However, now that cheques are being phased out due to more convenient digital payment solutions, they may seem like a less viable option.
This tutorial explains how to make transfers to binary options brokers that accept cheque deposits, alongside payment limits, charges and clearing timelines. We also rank the top cheque binary options brokers available today.
Binary Brokers with Cheque
About Cheque Payments
A cheque is a document that instructs a bank to pay a specific sum from one account to another, with specifications of the recipient’s name and the sum total written by the issuer of the cheque as well as a date and their signature.
Once the cheque has been filled in, traders can mail the slip to the address provided by their binary options broker.
Cheques have existed in various forms since ancient times, with records showing cheques as early as the 9th century, though they gained popularity in the 20th century as a means of making payments without using cash.
The use of cheques has decreased since the 1990s with the rise of debit and credit cards which proved to be faster and more convenient, with numbers falling from 4 billion in 1990 to less than 185 million in 2020. Many countries today either have plans to phase out cheques entirely, or have already done so.
Regardless, cheques can still be used as a payment method for binary options trading, with some brokers still accepting them for deposits and withdrawals. There is also a rise in the use of electronic cheques, where cheques can be deposited to bank accounts by taking a photo of them, making them more convenient to use.
Cheques are one of the slowest ways to fund binary options trading accounts. Processing times between depositing a cheque and the money appearing in your trading account can take up to seven working days, with weekends and bank holidays causing further delays.
However, the processing time depends on where you are in the world and what bank you are with, with many international banks lowering cheque clearing times to one working day if you make the deposit by a specific time.
You will be able to see clearing times on your bank’s website or on the binary options broker’s website. For example, Nadex states that traders should allow five working days for cheques to fully clear.
If you are looking for fast transactions between your bank account and your binary options trading account, we recommend choosing an instant deposit method such as PayPal or bank cards like Visa and Mastercard.
Depositing money tends to be free unless there is an accessory charge by your bank, such as a fee for tracking or a bounced cheque.
Binary options brokers that accept cheque deposits also do not typically charge for payments. With that said, binary options brokers may not release profits via the old-school transfer method. Nadex for example offers fee-free account funding with cheques but only pays out profits through wire transfer ($25 charge), ACH transfer (free), or debit card (free).
Cheques are a relatively outdated payment method in terms of their security, and personal details can be exposed to parties other than the recipient and drawer fairly easily.
Furthermore, they leave room for human error in that the details on them can be incorrect, and the bank or binary options broker may not be able to reimburse the cost if this happens.
Cheques are also susceptible to fraudulent activity, with the FBI estimating that total losses from check fraud amount to more than $18.7 billion every year with hundreds of thousands of forged or ‘bad’ cheques processed every single day.
For these reasons we recommend taking some precautions when using cheques for binary options trading, such as keeping proof of every cheque you have written, maintaining serial numbers, and using secure mail services.
If the disclosed period of time passes and the funds have not cleared, get in touch with your binary options broker and your bank to find out what is holding up the processing period.
Pros Of Cheque Binary Options Brokers
Cheques are old-school forms of payment largely, but due to the updated technology that many banks are now using, cheques can often be processed via mobile banking which takes less time. This gives binary options traders a better chance of seeing money in their trading account faster.
One of the benefits of using cheques is that they support most major global currencies, so traders worldwide can use them for binary options trading. This can often be done without additional fees, which are incurred for currency exchange on many digital platforms.
Ease Of Use
Using cheques is simple and the process is widely understood given how long they have been in use. This works well if you are looking to avoid complex mobile banking in depositing money with binary options brokers that accept cheque deposits.
Depositing payments using cheques tends to be free, as opposed to many electronic methods such as wire transfers which often come with fees either from the binary options broker or the bank.
Of course, it is not always free and depends on the bank you’re with and the binary options broker you use, so be sure to check beforehand.
Cons Of Cheque Binary Options Brokers
Cheques are one of the slowest payment methods for binary options trading, as they can take up to seven days to process. Although most modern banks have reduced this time, it is never going to be as fast as electronic methods like PayPal, Skrill or Neteller.
Many countries and companies across the world are in the process of phasing cheques out entirely, so it may not always be an option to use them for binary options trading.
In the future traders should expect to see fewer and fewer binary options brokers accepting cheques as a deposit method, so it’s wise to have a backup in mind.
Lack Of Security
Cheques are one of the least secure methods of payment and are highly vulnerable to fraud. Binary options trading already poses a risk to your funds as with any kind of online trading, so it is recommended that you take extra measures to ensure that nothing else endangers your money. This includes using secure mail services.
How To Make Cheque Deposits To Binary Options Accounts
Not all binary options brokers accept cheque deposits, so this should be the first thing you check. On Nadex’s website, this can be found under their ‘funding’ section which lists cheques amongst their other supported deposit solutions.
Once you have found a binary options broker that facilitates cheque payments, check what the minimum requirements are for deposits as well as any payment limits that the broker might have set. This is usually visible on the payments page of their website.
Next, fill in the details of the deposit directly onto the cheque and then send it to the address provided by the binary options broker.
If you have any questions, you can reach out to a binary options broker’s customer service department.
Verdict On Cheque Binary Options Brokers
There is a limited list of binary options brokers that accept cheque deposits, and this number is expected to decrease going into the future. So in the long term, this is not going to be a viable solution for many binary options traders.
However, for the time being, they are a cost-effective and familiar payment method for many, so long as the trader does not object to waiting for the funds to clear before trading can happen. To start trading, head to our list of the top cheque binary options brokers.
Do Binary Options Brokers Accept Cheques?
There are some binary options brokers that accept cheque deposits, but because the payment method is being replaced by modern, digital solutions in many countries, fewer trading platforms are now accepting cheques.
Among the best binary options brokers that still accepts cheque deposits is Nadex.
How Long Do Cheque Deposits Take To Clear In Binary Trading Accounts?
Cheques can take up to seven days to show in your binary options trading account, although most brokers advertise this time to be less. Nadex, for example, warns that funds will take five working days to clear.
How Much Do Deposits To Binary Options Brokers That Accept Cheques Cost?
Depositing money to a binary options account using a cheque is typically free, though there might be bank charges depending on the financial institution. It’s also worth noting that the binary options platform may not pay out profits through cheques, so you could need to turn to wire transfers, for example, which can come with a charge.
How Can I Use Cheque Imaging For Binary Options Trading?
The e-cheque payment system is done through a mobile banking app, and it allows you to make a deposit to your binary options account via a photograph rather than sending a physical cheque. This can result in faster processing times.
Are Cheques Good For Binary Options Trading?
Cheques can be used for binary options trading when the trader makes out a cheque to a supporting broker. But after sending the cheque, the money can take up to seven days to show in your trading account, making it relatively slow and inefficient vs payment methods like PayPal and debit/credit cards. It’s also worth noting that there are not many cheque binary options brokers in 2023.