Credit Cards refusing transactions to FX brokers | Forex Factory

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Credit Cards refusing transactions to FX brokers

  • #1
  • First Post: Aug 30, 2016 3:37pm Aug 30, 2016 3:37pm
*Disclaimer - before someone tells me using credit to trade is stupid, it was more convenient than a wire transfer for a small amount and I was going to pay it back right away.

Has anyone else had their card declined for a deposit to a FX brokers ? Mine was declined and when I called they told me all transactions are blocked because its considered gambling. I was trying to deposit to dukascopy EU. I'm kinda sketched out now about depositing at all.
  • #2
  • Aug 30, 2016 4:12pm Aug 30, 2016 4:12pm
Quoting Commander
*Disclaimer - before someone tells me using credit to trade is stupid, it was more convenient than a wire transfer for a small amount and I was going to pay it back right away. Has anyone else had their card declined for a deposit to a FX brokers ? Mine was declined and when I called they told me all transactions are blocked because its considered gambling. I was trying to deposit to dukascopy EU. I'm kinda sketched out now about depositing at all.
Hi Commander,

As you have noted, traders should only use risk capital to deposit into a trading account, but you prefer credit card funding for its convenience. I notice your forum profile mentions you live in Canada. You may be interested to know you can trade on FXCM's platforms by setting up an account with Friedberg Direct.

They are regulated by the Investment Industry Regulatory Organization of Canada (IIROC) and a member of the Canadian Investor Protection Fund (CIPF) which means your funds are insured for up to $1 million. In addition, with Friedberg you can deposit via credit or debit card.
  • #3
  • Aug 31, 2016 11:02am Aug 31, 2016 11:02am
Quoting Shiki1886
I have used credit cards on several occasions and haven't experienced getting blocked before. When you said they told you all transactions are blocked because it's considered gambling, are you referring to 1) the broker saying something about your card being blocked due to it being flagged as gambling, or 2) the credit card company saying that depositing to a broker company as being considered gambling?
The credit card company said that they won't authorize gambling transactions on their credit cards and that the transaction to dukascopy was flagged as gambling. I don't think they singled out dukascopy in particular but rather they deny all transactions to brokers. In particular he mentioned the fact that dukascopy offer binary options and that clients (the banks credit card clients) ended up losing money. I think probably they're just trying to protect themselves from customers depositing money, losing it all and then phoning up demanding for the transaction to be reversed because they feel they were "scammed". He couldn't be reasoned with at all, in his mind it was gambling and there was no way they were letting it go through.

At any rate I'll just have to bite the bullet and do a wire transfer. I would have been more confident at the swiss branch which I have deposited to before and withdrew from. I'm using the euro branch this time so I can trade a bit smaller for the moment. It was just sketchy the way the credit card company got defensive and refused it. They made it sound like a bucket-shop scam job.

I've emailed the regulator that is supposed to be regulating the dukascopy euro subsidiary just to see if they will actually respond to confirm that dukas europe is regulated and im protected for 90% of my balance up to 20,000CHF as stated by dukascopy europe. If I hear back I'll post an update just in case anyone is curious.
  • #4
  • Sep 2, 2016 3:18pm Sep 2, 2016 3:18pm
Quoting Shiki1886
{quote} Yes, that is a good idea, I would be interested to hear your feedback. There was one case where I emailed the regulator one simple question to ask about a particular broker, never got a reply. Two weeks later I wrote a followup email and didn't get a reply then either. Considering such a case, I didn't end up using the broker since if the regulator doesn't bother answering a simple email, it is hard to imagine them dealing with claims with professionalism. The regulator in question was the Financial Services Board in South Africa.
Up to this point I haven't received a reply from the regulator. I did deposit a small amount; it arrived the next morning and my trading account is live. I paid $45 to wire the money and someone still took $20 as it went through the system. Dukas claims it wasn't them that took the $20
  • #5
  • Sep 6, 2016 5:39pm Sep 6, 2016 5:39pm
Quoting Shiki1886
As a followup, I tried to open a new account a few days ago and deposit via credit card, and was also informed (via the payment processing company) that credit card deposits will be considered gambling from the end of Sept 2016 and therefore restricted. My guess is that a combination of the account holder's country's regulation and the broker country's regulation can now restrict certain payment options.
Thanks for letting me know. Cost me $65 total to wire the money. $45 to the sending bank and the intermediary bank skimmed $20. CC would be much cheaper.
  • #6
  • Oct 24, 2016 4:00pm Oct 24, 2016 4:00pm
I have 2 credit cards. One is being accepted but the other one is declined.
BEAR
  • #7
  • Oct 24, 2016 9:41pm Oct 24, 2016 9:41pm
It's the credit card company that makes the call to block 'gambling related transactions', not the broker.
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  • #8
  • Last Post: Oct 25, 2016 3:43am Oct 25, 2016 3:43am
i had the same behaviour recently here in japan when opening my first fx account. My japanese card does not accept it, the german one does.
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