Silvergate Bank Transfer

Silvergate Bank offers digital payments infrastructure to some of the biggest cryptocurrency trading platforms. The company also takes a robust approach to regulatory compliance and user security. This review is an introduction to Silvergate payments and will focus on its use in online trading. We cover how to open an account, investor relations, the latest financials, customer support, the mobile app and more.

Brokers in United States with Silvergate Bank Transfer

•   Forex
•   Stocks
•   Crypto
•   CFD
•   Options
•   Futures
•   Binary Options
•   MetaTrader 4
•   MetaTrader 5
•   cTrader
•   Copy Trading

FTX

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Instruments:

Crypto, Options, Futures

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Demo Accounts: 

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MetaTrader 4: 

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MetaTrader 5: 

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cTrader: 

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STP Account: 

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ECN Account: 

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DMA Account: 

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Margin Trading: 

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Social Trading: 

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Copy Trading: 

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Islamic Account: 

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Gemini

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Instruments:

Cryptos

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Demo Accounts: 

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MetaTrader 4: 

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MetaTrader 5: 

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cTrader: 

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STP Account: 

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ECN Account: 

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DMA Account: 

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Margin Trading: 

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Social Trading: 

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Copy Trading: 

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Islamic Account: 

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Kraken

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Instruments:

Cryptos

More Info

Demo Accounts: 

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MetaTrader 4: 

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MetaTrader 5: 

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cTrader: 

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STP Account: 

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ECN Account: 

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DMA Account: 

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Margin Trading: 

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Social Trading: 

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Copy Trading: 

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Islamic Account: 

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How Silvergate Payments Work

History

Silvergate Bank was founded in 1988 as an industrial loans company. Today, it offers high-tech financial solutions to DeFi firms. The concept was initially launched in 2013 and by 2021, its services were integrated by more than 1,300 fintech merchants. Importantly, the company aims to build strong relationships with those sectors turned away by traditional banking support.

Merchant locations include Indonesia, Hong Kong, Singapore, Dubai and the United Kingdom. The company is also a member of the Federal Reserve with headquarters located in the city of La Jolla, San Diego, United States. The company continues to grow, with over 200 employees.

Silvergate Bank stock is traded on the New York Stock Exchange (NYSE) following a successful IPO in 2019. The company trades under the ticker code, SI. The bank has a total asset size of more than $2 billion. Other hefty financials have also been reported, with a current market cap hovering at $3.5 billion.

What Is It?

The Silvergate payment solution essentially offers a network platform to bridge transactions between merchants and customers. This is done through two primary methods:

Silvergate Exchange Network

The main solution is called the Silvergate Exchange Network (SEN), which acts as an intermediary between crypto firms and investors. Merchants can implement the network directly to their user interface via an API. Well-known cryptocurrency exchanges already using the solution includes Coinbase and Kraken.

Traders can use the network to send fiat currency between a Silvergate personal banking account and a registered Silvergate merchant, such as a trading broker. At the end of Q3 2021, the company reported that SEN utilisation had reached more than $240 billion.

SEN Leverage

The Silvergate Exchange Network leverage programme provides secure access to capital through US Dollar loans, collateralised by Bitcoin. By using leverage, you can take advantage of more trading opportunities and augment positions.

SEN facilitates loan disbursements and repayments in real-time, as well as providing custody and collateral management for traders. Minimum loan amounts and interest rates apply. Remember, trading with leverage can be risky – losses can be amplified.

Transaction Times

Payments to a swing trading account are generally fast. The Silvergate Exchange Network supports instant fund transfers 24/7, 365 days a year. This means traders can be assured of zero delays during public holidays and weekends. The Gemini Exchange, for example, joined the SEN network in 2019 and offers traders instant account deposits. Fiat currency is still reliant on ‘banking hours’ processing times.

Note, an active banking relationship is required with Silvergate to benefit from the fastest transaction speeds.

Price Review

Fees vary depending on the originating country and transfer method. Typically, brokers absorb the majority of charges, however it is always worth checking this before you open a live trading account. Exchange rate charges may also be incurred if you are trying to fund an account outside of an accepted base currency. The Silvergate network only processes USD and EUR currencies.

Kraken offers FedWire deposits via Silvergate for trading account funding. Worldwide deposits using this method incur a $10 flat fee with a $100 minimum deposit. Pro account traders can utilise the SEN interface for account funding with no fees or minimum limits. A transparent fee schedule is available for all customers with a personal banking profile.

We outline the key charges below:

Wire Transfers

• Incoming – no charge
• Domestic Outgoing – $10 per transaction
• International Outgoing – $30 per transaction

Other

• Stop Payments – $10
• Cashier Cheques – $5
• Telephone Transfers – $5 per transfer
• International Service Assessment Fee – 1% of transaction amount
• ATM Debit Card Transactions – unlimited surcharge fee reimbursement

Security

Silvergate Bank is secure, meaning customers can deposit and withdraw from trading accounts with confidence. The payment solution follows regulatory compliance from the Federal Bank. Payments are also protected by multiple security protocols, including general data protection laws and anti-money laundering schemes.

Earnings call information and revenue reports are published in line with the requirements of the US Securities and Exchange Commission. The company is also a member of the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC).

In addition, personal information is protected with 256-bit SSL encryption. Silvergate Bank also provides detailed guidance on fraud prevention. This includes how to take ownership of personal banking security, phishing sites and implementing the correct login authentication. It is also worth checking that your broker or digital currency exchange provides additional verification protocols such as two-factor authentication or one-time passwords (OTPs).

Pros of Silvergate Bank for Traders

Benefits of trading with Silvergate Bank include:

• Mobile App – All customers can make use of a convenient mobile application, available for free download to iOS and Android devices. Check balances, make transfers, deposit to a trading account, or find local bank branches from the mobile platform
• Customer Support – Silvergate Bank offers several customer contact options available Monday to Friday during working hours. This includes a headquarters phone number, email and postal address. Emergency debit card support is also available outside of corporate office opening hours
• Transactions Available 24/7 – The Silvergate Exchange Network is a real-time payment platform meaning traders can complete fund transfers at any time of the day or week. This is an advantage vs traditional US banking methods such as wire transfers, which are limited to standard business hour processing times. Importantly, crypto can be traded at all times so having a payment method to support this is helpful
• Various Solutions – The company offers several payment support services. All schemes ensure a secure and stable trading environment. The leverage programme can also help traders grow the total of their digital currency portfolios. SEN supports real-time fund transfers, 365 days a year. Additionally, Silvergate Bank acts as a custodial wallet for institutions to store traders’ digital assets.

Cons of Silvergate Bank for Traders

Disadvantages of investing with Silvergate Bank include:

• FDIC Cease and Desist Order – In 2006, the company was issued a warning following unsafe banking practices and regulatory violations
• Deposit Outflows – Silvergate Bank has seen deposit outflows to its main competitors, such as TransferWise, which offer greater yields on deposits. The brand is almost exclusively non-interest-bearing
• Digital Currency Trading Only – The payment solution is only available in the digital currency industry. The company serves 1300+ crypto exchanges, investors and fintech developers. It is not available at standard forex and stockbrokers

How to Make Silvergate Bank Deposits & Withdrawals

Traders have to register with Silvergate Bank before they can make payments. Fortunately, opening an account is quick and easy, requiring a straightforward application form. Once set up, look out for the brand’s logo in your broker’s account funding section. This can usually be found within the bank wire transfer or card payment sections.

Once located on the webpage, enter the deposit amount. Remember, brokers may have their own minimum or maximum payment limits. Redirection to the funding interface should be automatic. You will be required to enter relevant payment account details such as ACH/ABA/FedWire routing numbers or BIC/SWIFT codes. Some exchanges, including Gemini, also require traders to complete KYC verification before they can request withdrawals.

Full instructions on how to make a deposit to a merchant can also be found on social media sites such as Facebook and Twitter.

Accepted Countries

Access to Silvergate products and services will no longer be supported in certain countries and jurisdictions. These include the UAE, Vietnam, India, Seychelles, Hong Kong, Nigeria, Thailand, Ecuador, Pakistan, Kenya and Malaysia. The company recommends contacting a representative before trying to open a personal baking account in these regions.

Verdict

Silvergate Bank offers a secure payment infrastructure for aspiring cryptocurrency traders. The network bridges the gap between traditional banking methods and the ‘always on’ nature of the digital currency space. Although it is a relatively niche payment solution, our review was pleased with the integration at leading crypto brokers. Just remember, a personal banking account is required before you can utilise the service at trading platforms and exchanges.

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