Trustly

Trustly can be used to make deposits at leading brokers, including eToro. The online payment system is safe and secure, with fast withdrawal times. But is Trustly legit? In this review, we examine how suitable the payment gateway is for swing traders by looking at the fees, sign up process, supported brokers and competitors.

How Trustly Works

Trustly is an online payment system that utilises open banking technology. In the trading world, it is used by brokers for direct money transfers, avoiding the major card networks. This allows traders to make rapid payments without needing to re-enter their details.

The firm has over 6,000 supported banks and works with large merchants and brands, including eBay, PayPal, and TransferWise. Notable e-wallets that use Trustly include Skrill and Neteller, which are accepted by many top brokers. The company’s leading rivals include Klarna, Giropay, and Plaid.

Since its inception in Sweden in 2008, the company has grown rapidly, with annual revenues of $230 million and an IPO valuation of over $2 billion. And whilst not publicly traded and thus having no share price, the company has healthy financials, with investors including Blackrock and Nordic Capital.

The firm has 650+ employees based in offices in London, Stockholm, Malta, and Vitoria in Brazil, amongst others. The founders and lead developers are Carl Wilson, Lukas Gratte, and Joel Jakobsson.

Trustly is popular with online trading platforms, with supported brokers including Plus500, Skilling, eToro and Capital.com. Crypto traders can also use the solution on exchanges like Kraken to transfer cash to and from accounts. In addition, businesses can use the firm’s direct debit service to manage recurring payments.

The company’s business model involves charging merchants, such as IKEA, to use its payment services. The percentage cut taken by the firm is usually lower than traditional card transactions, allowing it to compete with big players like Visa and Mastercard.

Transaction Times

Deposits and withdrawals made using Trustly are quick, with instant bank transfers possible. This offers a distinct advantage for swing traders often inconvenienced by lengthy waits for transfers.

Processing times are kept low through the open banking system that connects your bank account or e-wallet directly to your preferred swing trading platform. With that said, it may take up to two working days to process large payments that exceed the instant deposit limit. This amount is set by the broker, so check the details with customer support before you start investing. Some trading platforms may also have other internal procedures that delay payment times.

Pricing

Trustly does not charge funding transaction fees, hidden or otherwise. However, some brokers may have their own fees for withdrawals, and in some cases, deposits. Most leading brands refrain from taking a commission in this way, though, and you can avoid paying transaction fees by checking our broker reviews first.

Some e-wallets that use Trustly also impose fees on certain transaction types. For instance, the Skrill e-wallet charges up to 1.25% for Trustly deposits, whereas Neteller has a fee of 2.5%. PayPal, as a ‘strategic partner’ of Trustly, does not charge transaction fees unless the transfer is international, in which case a fee of 2% may apply.

Security

The solution is a secure and reliable way for swing trading clients to transfer capital in and out of their brokerage accounts. The firm uses two-factor authentication technology to protect client data. The company also works closely with supporting banks to protect against fraud.

When trading with Trustly, brokers are not given access to personal details and the system itself does not store information that could be used to hack into your bank account.

The payment solution is also fully regulated by the Swedish Financial Services Authority (FSA). In addition, Trustly is authorised in the UK by the Financial Conduct Authority (FCA) and holds the appropriate licenses in the US.

Pros of Trustly for Traders

Advantages of trading with Trustly include:

• Speed: The payment gateway seamlessly links your trading account directly to your bank or e-wallet. As a result, the deposit and withdrawal method allows you to make lightning-fast payments to online brokers. Traditional ways of moving money, like bank wire transfers, are much slower.
• Affordability: Unlike some competitors, the firm does not charge customer payment fees, meaning that traders can withdraw money from their brokerage account free of charge. This helps ensure you keep all of your hard-earned swing trading profits.
• Safety: Trustly uses two-step authentication, in line with most major financial services companies. The firm also doesn’t store any personal information.
• Flexibility: The payment gateway supports over 6,000 major banks on its network, with coverage mainly focused on the UK, Northern Europe (Sweden, Norway, Finland, Germany), and the US, as well as the Asia-Pacific region. The solution can also be used to make deposits from your PayPal account, in addition to Skrill and Neteller e-wallets.

Cons of Trustly for Traders

Disadvantages of trading with Trustly Group AB include:

• Some e-wallets charge a small fee for using Trustly
• Not all brokers accept the payment option
• No trading refunds
• No test account

How to Make Trustly Deposits & Withdrawals

When transferring money to and from your personal account, select Trustly from the list of options provided. Next, authenticate the payment using your preferred method. Then follow any on-screen instructions to complete the transaction. Every payment is given a unique order ID number which is used to link the transfer to the correct merchant.

Speak to your broker’s customer support team if you encounter any issues. An FAQ page, plus payment terms and conditions, can also be found on the Trustly website.

Verdict

Trustly is a secure open banking payment system that lets you deposit and withdraw capital. The network is also fast, allowing swing trading clients to make instant bank transfers. Other advantages of Trustly include its flexibility, ease of use, and low fees for traders. See our supported brokers above to get started.

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