Not so long ago in the past the only way that a trader could purchase shares was to call a brokerage via the telephone and to wire them the funds in order to acquire the shares. However, in the modern day it is now possible to accelerate this process to almost instantaneous with your laptop or mobile phone through PayPal.
When depositing through PayPal, it is cheap and instantaneous. In this guide we will go over how you can send funds to a brokerage via PayPal, as well as many other helpful details that you may be able to make use of when using PayPal to buy shares.
In This Article:
How to Buy Shares with PayPal
Step 1: Open a PayPal account and get it verified
To deposit funds to a stock trader through your PayPal account, first you obviously need to make sure you have a PayPal account set up, as well as having it verified.
PayPal will have you go through a number of steps in order to verify your account before you can deposit funds to a broker, these steps should include the following:
- Providing your personal information such as information like your full name, place of birth, age, where you live and more.
- Confirming your phone’s number by entering a PIN that PayPal will provide you with via SMS messaging on your phone.
- Verifying the email address that you used to set up your PayPal by clicking the link that is emailed to you by PayPal when you open your account.
- Add your checking account by confirming the specific amount of money that PayPal transfers to your bank to confirm its legitimacy.
- Verify the debit card you use on your PayPal by confirming the amounts that were taken from the card by PayPal.
To complete all of the above listed it can take you up to a day or two as it can take a while for the deposits from PayPal to appear in your bank.
Step 2: Find a Broker That Accepts Payment Through PayPal
Once you have managed to get your Paypal account set up and fully verified you should be all ready to go and search for a broker that best suits you. The first step when trying to find out if a broker is best for you is to find out if the broker you have chosen supports Paypal as payment. Then, if they do, all the other usual factors to consider such as customer support, commission amounts and whatever else the brokerage gives you access to by using them is also important.
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Step 3: Open an Account and Verify Your Identity
Once you have found your broker who accepts Paypal payment and ticks all the boxes for you in terms of what they offer in comparison to other brokerages, now you can get properly started by setting up your account with them. They may require some information, usually this information follows some of the listed below:
- Your Full Name
- Your age and date of birth
- Home Address
- How much you earn per year
- Name and Address of Employer
- Contact Details
To verify your account once you have opened it all you’ll have to do is provide proof of your identity by uploading a picture of your government issued ID and a legitimate proof of address.
Step 4: Depositing Funds with Paypal
When depositing funds, you should select the Paypal option followed by entering the amount that you wish to deposit into your account.
Once Paypal has gotten round to processing the amount you have deposited, the box will close, and you will be granted access to the broker’s site. The majority of the time your funds will be instantly readily available, this means you can now use them to purchase shares.
Step 5: Buying Shares with Paypal
You’ll have access to several stock markets once you have gotten into the market.
Below we have a step by step guide on what you should do next once you have found a company that you are interested in investing in.
- You will need to decide whether or not you want to long or short.
- You will need to enter the number of shares you wish to trade.
- You will need to decide on whether or not you want to take the next available price on the stock of your choice.
How do Withdrawals To PayPal Work?
Most brokers will only ask you to enter the amount that you want to cash out and then the request will swiftly go through to their verification team. Upon the broker verifying your withdrawal amount, the funds will then be sent to your linked Paypal. This will usually happen within a couple of minutes.
Although the number of online brokers accepting PayPal is still minimal in comparison to debit or credit cards and bank wires transfers, those that do will typically give you access to a wide range of international markets including:
- New York Stock Exchange
- London Stock Stock
- Tokyo Stock Exchange
- Stock Exchange of Hong Kong
- Singapore Exchange Limited (SGX)
- Frankfurt Stock Exchange
- Plus Many More
How to Choose a Broker to Buy Shares with Paypal?
There are a number of factors to consider more in-depth when choosing a platform to conduct your trading on, as mentioned below:
The most important part of choosing your broker is that you need to ensure that the broker as a platform is being regulated. This regulation should be by a tier-one licensing body. If there is a lack of a license for the broker, do not choose it.
Brokers are obviously wanting to make money themselves, so they require you to pay fees whenever you buy and sell shares. The higher the spread, the more you will be required to invest to break even.
- Trading Commission
As well as spreads, brokers also charge commissions. This is more often than not a fixed fee.
- Tradable Companies
Ensuring that the broker has access to several nations, to grant you access to thousands of businesses, this will you give you the highest possibility of ensuring your portfolio is diverse.
- Customer Support
The best form of customer support on a brokerage usually includes the offering of 24/7 customer support through live chats, phone calls and contact via email.
Short-Selling Shares with Paypal
If you have dabbled into the interest of short selling your shares, which means that you are perceptive of the concept that a company’s value of shares dropping. You have to use a CFD trading website that accepts Paypal as a result. The process for this works the same as previously mentioned for the large majority but in reverse.
In conclusion, there is still not many brokerages that are accepting Paypal at the minute if you were to compare that to brokers that are accepting the more traditional forms of payment methods such as debit and credit card or wire transfer.
However, as previously mentioned, do ensure that you consider the outside metrics that are of importance also alongside ensuring that they support the use of Paypal. Do all this and you are certainly going to be able to best find a broker that suits your optimal needs.
How soon can I purchase shares with Paypal?
As long as you have managed to ensure that your broker supports Paypal, alongside your account being set up and verified, then you should be able to instantly deposit and withdraw funds as you wish.
Is buying shares with Paypal safe?
Buying shares through Paypal is one of the safer ways of purchasing shares, especially in comparison to the more traditional payment methods.
Am I able to withdraw my funds through my broker to my Paypal account?
If you have your account verified and properly set up in accordance to our guide then yes, you should be able to withdraw funds into your Paypal account.
How do I go about funding my Paypal account?
To fund your Paypal account you will need to link your debit or credit card to your Paypal account and fund the Paypal account. Once it is linked that is the final time you will ever need to enter your payment details ever again.
What is the lowest possible amount that brokerages allow for deposits?
This is usually something that is not consistent throughout different brokerages. Some brokers may allow a minimum deposit of $10 whereas other brokers may only allow deposits of at least $300, it all depends on the broker you choose.