Table of contents:
- 1 Deposits and withdrawals as quality criteria
- 1.1 Credit cards remain popular
- 1.2 Secure payment by bank transfer
- 1.3 Paypal, Skrill and Co.
- 1.4 ROinvesting: The account types with the broker
- 1.5 How the account is opened
- 1.6 Payment methods with ROinvesting
- 1.7 How the ROInvesting payout is processed
- 1.8 High inactivity fees for ROInvesting
- 1.9 No bonus offers with ROinvesting
- 1.10 Conclusion: Little transparency in payment methods at ROinvesting
The Forex and CFD broker ROinvesting was only founded in 2017, therefore it is not very well known among German traders until now. The provider, based in Nicosia, is regulated by the Cypriot Financial Supervisory Authority and offers a well-positioned trading offer with approximately 10,000 international stocks, including cryptocurrencies. Thanks to a comparatively low ROinvesting minimum deposit of 250 Euros or US Dollars, even beginners can find access to the markets with this broker, supported by a fairly good educational offer. Our ROinvesting Test determines how users can make deposits and withdrawals with ROinvesting and under which conditions.
Facts of the online Broker ROInvesting:
- Cypriot Regulated Market Maker
- A minimum deposit of 250 Euro / US Dollar
- Deposits by credit card, bank transfer, SafeCharge, Paysafe, Skrill, among others
- No fees for deposits and withdrawals
Deposits and withdrawals as quality criteria
Those interested in trading Forex and CFDs can access the markets through one of the many brokers who offer their services online. Setting up a trading account is only the first step. In order to actually trade, i.e. open positions, the live account must first be capitalized. And later on, the returns may have to be transferred back to the trader’s reference account. Which payment methods are offered here depends on the respective broker. There are countless options, some of which can only be used in a regional context, and the choice that a Forex and CFD broker offers his clients is usually based on their location and the assessment of the target group:
- Deposit methods and conditions depend on the provider
- Bank transfers and credit card payments are among the most common options
- The value date depends on the payment method
- Withdrawals must often be made according to the deposit method
- Many providers charge fees for withdrawals
- Deposits are usually free of charge but may be subject to charges by the financial service provider
Of course, the range of payment methods is not the decisive factor in choosing a provider. However, since the time periods for credits can vary greatly and in some cases with brokers such as ROinvesting deposit and payout are associated with costs, it is definitely worth taking a look at the payment channels offered. Because too high fees, especially for payouts, destroy the profits just achieved in trading. A minimum deposit in the four-digit range, on the other hand, ensures that small investors and beginners don’t get involved with a broker in the first place.
The different payment and payout methods at a glance are as follows:
|Credit cards:||Bank transfer:||Electronic payment solutions|
|Visa||SEPA||Skrill or Neteller|
|Mastercard||Various others||Trustly and IMMEDIATELY|
|eMerchant Pay Limited|
|Paysafe and Payvision|
|Safe batch / iSignthis|
|Local services (GiroPay etc.)|
Credit cards remain popular
A wide range of payment methods meets the wishes of the customers and helps the broker to acquire new customers. Therefore, more and more Forex and CFD brokers not only offer conventional options such as Visacard or SEPA transfer, but also integrate eWallets and payment service providers such as the Swedish company Klarna into their range of services. And some providers are even considering regional payment solutions.
Nevertheless, credit and debit cards remain the top payment methods, which almost every broker includes in his repertoire. If you pay by credit card, you can capitalize on your trading account almost immediately and start trading right away. Since good SSL encryption is standard for access and data transfer, users generally do not need to worry about the security of their card data. And even if the broker insists on uploading a scan of the card, in many cases some digits of the card number can be “erased” and thus made unreadable.
A further advantage of the credit card is that it has now lost its exclusivity. Whereas “plastic money” used to be available only at considerable fees, credit or debit cards at no charge are now standard in the current account offers of many banks. This means that traders do not incur any additional costs by using the card. So there are many advantages that speak for payment by credit card.
Secure payment by bank transfer
However, not every person owns a credit card, and therefore not all traders use this payment method to capitalize their live account. Bank transfers are used just as often as credit cards – especially since the introduction of the Single Euro Payment Area, or SEPA, has made the execution of transfers faster and less complicated. The participating banks execute a SEPA credit transfer within one working day. However, the final credit entry is always linked to the processing times incurred by the broker.
It may well take two days, in some cases even five days, before the money is on the trading account, so this method is not for those in a hurry. If you trade with an international broker, the execution of the transfers can be delayed even further. After all, within the eurozone, a transfer made from home banking is free of charge and not subject to any limits. Fees will only be charged by the bank for paper or telephone execution, and for international transfers, traders must expect costs due to currency conversion and interbank commissions.
Paypal, Skrill and Co.
The use of electronic payment solutions, the so-called eWallets, is becoming increasingly common. PayPal, in its early days the in-house payment system of the auction platform eBay, was a pioneer in this trend. PayPal has now become a standalone system and has found numerous imitators. These include payment service providers such as Skrill or Neteller, as well as methods that allow fast payment via current accounts, such as Trustly or IMMEDIATELY, and of course special methods that are only offered within certain countries, such as the German GiroPay.
Thanks to fast payment execution and often good conditions, eWallets are also becoming increasingly popular with traders and are therefore finding their way into the payment methods of online brokers. With many of them, even larger amounts can be transferred. However, electronic payment service providers usually charge fees, and the broker may also incur processing costs.
The Standard in payment transactions with the broker is that traders can only pay via a reference account that is held in their own name. Third parties cannot be involved in the capitalization of the trading account – a partner’s or parent’s credit card will therefore be declined. This is general, therefore not only ROinvesting but also depositing or withdrawing funds through third parties is prohibited. Private traders must also specify a private account as a reference account – corporate and business accounts are accepted only with some brokers and only with institutional clients.
- Payments only through private accounts
- No payments from third parties
- Payout via the deposit channel
- Deposit amount often determines the payout amount
Another thing that customers should be aware of is that the choice of deposit method is usually also the basis for later withdrawals. A change is possible, but it involves an administrative effort and requires re-verification in any case. Although most traders would welcome the freedom to choose and combine different options, the majority of brokers do not (yet) offer such flexibility. It is also not uncommon for the amount of the payout to be capped according to the deposit(s) previously made, i.e. after an initial deposit of, say, 5,000 USD, no more than 5,000 USD can be withdrawn in one transaction.
ROinvesting: The account types with the broker
The Cypriot market maker ROinvesting offers its services to professional traders as well as to private investors. Clients can choose from three account types, namely the Silver, Gold, and Platinum accounts. The accounts differ both in the amount of the spreads and the additional services. Those who opt for a platinum account can use a special information service and the broker’s free VPS.
In addition, from the gold account onwards, traders receive a personal customer advisor and swap discounts of 25% for the gold account and 50% for the platinum account. The ROinvesting minimum deposit is the same in all cases, and the leverage is subject to the ESMA’s now mandatory maximum 1:30 (for Forex majors). Professional traders, on the other hand, can trade with levers of up to 1:500 for ROinvesting.
How the account is opened
Opening an account with ROinvesting starts with a click on a clearly visible button on the website. The application form first requires personal information, contact details, and the entry of a password to open a real money account. In a further step, brokers ask for the client’s financial situation and also for his or her existing trading experience. The futures trader is also made aware of the risks associated with securities trading. These and the Broker’s General Terms and Conditions must be expressly noted.
A component of the account opening is the verification, i.e. the checking of the identity of the new customer by the Broker. Various procedures are used here: VideoIdent or PostIdent is possible, but in most cases, it is sufficient to upload a good scan of a valid identification document and proof of residence, such as a utility bill. After the broker has checked these documents, the trading account is usually activated immediately.
Now the new customer can deposit money at ROinvesting, at least 250 USD. The available deposit methods include credit and debit cards, bank transfers, Skrill, Paysafe, Decta, and other channels possible. In order to cash out the money later at ROinvesting, the same channel must be chosen.
Payment methods with ROinvesting
Payments are usually initiated by the trader logging into his personal customer area and making a deposit or withdrawal. ROinvesting offers its clients quite a number of payment methods, so the trader is free to choose a method that suits his needs. Although PayPal is not part of the ROinvesting offer, there are other payment methods such as credit card payment, which allows immediate capitalization of the trading account, and bank transfer as a proven and secure payment method. The offered electronic payment solutions include:
- eMerchant Pay Limited
- Safe batch
If a deposit is to be made by debit or credit card, it is necessary to upload a color copy of the credit card used to make the payment, both front, and back. Unlike many other brokers, ROinvesting requires all data to be clearly legible. If a bank transfer is to be made, a confirmation of the transfer order must then be scanned and uploaded, again with clearly legible details. Unfortunately, there is no clear information on the part of the broker about possible fees for deposits, which may also be charged by the payment service providers. Also, no processing times are mentioned, but for the ROinvesting payout.
How the ROInvesting payout is processed
In order to be able to initiate a withdrawal from the trading account with ROinvesting, the trader must have already passed the verification process when setting up the trading account. Furthermore, a payout request can only be successfully processed if sufficient funds remain afterward so that there are no gaps in coverage for open positions.
It is also relevant, especially for beginners, that the broker charges fees if the trading account is not used or only for an open position. In this case, a payout fee of 50 dollars is charged. Fees will also be charged for payout amounts that are less than 100 euros or US dollars. Furthermore, the Broker reserves the right to reject specific payment methods for payouts and to suggest an alternative. In any case, payouts are only made to the customer, not to third parties. In individual cases, further information or the submission of additional documents may be requested if the payment claim is to be checked.
If further payment and transfer fees are incurred, these will be charged to the trader and will be debited from the customer’s account by ROinvesting before payment is made. The processing of payout requests is done the same or the following business day, but not on weekends. When disbursed amounts are received on the reference account also depends on the processing time of the selected provider.
High inactivity fees for ROInvesting
If you do not use your trading account for a while and want to withdraw the funds later, you may face very high fees for inactivity with some brokers. This is the case with ROinvesting, already from the 61st day of inactivity, there are considerable fees. From the first month, they amount to 80 USD, then they continue to rise and after six months they reach a level of 500 USD per month!
Traders who do not want to use their account with this broker or at least temporarily do not want to use it anymore should close it immediately and have ROinvesting confirm this in writing. The remaining balance can then be paid out immediately. Only for amounts under 100 USD fees from the broker must be expected. With interest, a new opening is later than easily possible.
No bonus offers with ROinvesting
Bonuses, starting balances, welcome money were long a common method used by financial service providers to acquire new customers. Customers know this from direct banks in particular, but online brokers also used this advertising medium – until the comprehensive ban on advertising bonuses in December 2016. Therefore ROinvesting does not offer any bonus payments to persuade traders to sign up.
As an additional service, the broker’s demo account – albeit limited to 14 days – can be seen as an additional service, as well as the quite comprehensive educational area, which traders can use free of charge to prepare for trading and acquire basic knowledge in Forex and CFD trading.
Conclusion: Little transparency in payment methods at ROinvesting
The broker ROinvesting is still comparatively new to the market and little known in Germany, even though the Cypriot market maker wants to increase its reach by sponsoring the football club Borussia Dortmund. The Forex and CFD broker can score points with a comprehensive trading offer and partly low spreads. As the minimum deposit uniformly amounts to 250 USD, traders can profit from the advantages of a platinum account even with small amounts. Most of the information about accounts and trading offers can also be accessed in German on the clearly structured website. Further questions can be answered by the customer service, on weekdays very quickly via a live chat on the website.
The market maker incurs neither costs for the management of the securities account nor commissions. The spreads are not very high, but for the Silver account, they are well above the usual market average. Traders can choose from a variety of options for capitalizing the trading account, but there is no more detailed information on possible fees (including those of payment providers) and the processing of deposits by the broker or approximate value date. As the terms and conditions show, fees can be incurred in any case at the time of withdrawal – namely when the client has not been active or has been little active, or when less than 100 USD are withdrawn.
Exorbitant is the fees for inactivity, which amount to 500 USD per month after half a year of inactivity and thus quickly clear the remaining balance on the trading account. An account should therefore be closed immediately if interest in the account wanes. The still very new provider gives interested traders the opportunity to test all services and trading platforms with a free 14-day demo and only then to open a live account. The wide range of trading offers speaks for the broker, as do the training materials, but only as long as traders are aware of the conditions and fees associated with deposits and withdrawals.
Read our other articles about ROInvesting: