Western Union

Western Union brokers offer a fast, reliable and secure way to transfer funds to trading accounts. This review covers deposit and withdrawal fees, transaction times, customer support and more. We also cover how to send money along with any fees and charges. Find out whether you should consider trading with Western Union.

Top brokers that accept Western Union deposits include Plus500 and FXTM.

How Western Union Works

The firm facilitates transactions in over 200 countries. While some payment methods are limited to transfers between major regions like from the USA to the UK, the company excels in its range of supported jurisdictions and currencies.

The brand offers a modern payments service, with a well-equipped app and multiple transaction methods, including bank transfer, credit card and debit cards, Klarna, plus cash. Indeed, one of the biggest selling points is the ability to make cash transactions. This means traders can use cash to top up brokerage balances without having to go through an intermediary like a bank.

Company History

The history of the payments firm is extensive. Western Union was established in the USA in 1851 as a telegraphy service. It was a prominent force in the communications sector for much of the 19th and 20th centuries. From the company head office in Denver, Colorado, the brand also developed transaction services like wire money transfers.

After many of their services became obsolete in the late 20th century, the firm began to transition away from communications and became fully committed to financial transfers, allowing clients around the world to send and receive money securely.

Transaction Times

The speed at which transactions take place varies based on your location and payment method. When making Western Union deposits to a bank or trading account in the US, payments take one business day. Traders based in Europe and the UK are quoted transfer times of 0-1 business days. Withdrawals can also take longer due to the identification checks that many brokers have to complete.

The lack of an advantage in processing speed over traditional bank transfers may put some traders off the service. There are a number of alternatives offering near-instant money exchanges, including PayPal and Skrill.

Payment Services

Western Union provides several options for sending money to brokers and exchanges. Traders can choose to make transactions through the mobile app, the online payment gateway, or at one of the 42,000 branch locations around the world.

For trading deposits made through the mobile application or online, credit and debit cards, bank wire transfer, plus faster payments can be used. Traders in selected jurisdictions can also use the pay later service, Klarna.

Cash payments are restricted in some regions with money laundering regulations preventing cash-to-bank transfers. Fortunately many jurisdictions, including the USA, are unaffected by these restrictions. So if you have a Western Union location nearby, you can often deposit or receive your funds in cash.

Pricing Review

Money Transfer Fees

Keeping transfer charges low is a priority for most traders. Transaction fees vary significantly based on many factors such as your home country, whether you’re making a local or international transfer, plus your chosen payment source. Western Union charges no fees for UK local transfers, but rates can exceed an eye-watering 15% in some countries, including the USA.

One way to reduce the cost of transfer charges is to use a discount code. Several promo codes can be found online for both UK and International clients, with some even eliminating fees entirely for new customers. Alternatively, traders can earn fee refunds through voucher codes by referring friends.

Exchange Rates

Deposits and withdrawals may also be subject to currency exchange rates. This is because when transferring to a bank overseas, you will need to transfer your home currency into the one local to the bank. For example, you may be based in Switzerland and use the Swiss Franc (CHF), however, your broker may operate its trading accounts in the US Dollar (USD).

Unfortunately, Western Union exchange rates aren’t always competitive and can lose traders money when making large or frequent transactions. To preview the exchange rate offered between currencies, the company provides a currency converter tool online.

Security & Support

Is Western Union Safe?

The security of any payment method is important to ensure that sensitive banking information doesn’t fall into the wrong hands. To this end, using an intermediary means that banking details aren’t stored by a broker and you don’t have to rely on the encryption of a trading platform. In addition, paying with cash at a Western Union branch eliminates this risk.

On the flip side, Western Union transactions cannot usually be refunded. This means that mistaken or fraudulent transactions can be difficult to track down and even harder to reverse.

Customer Support

The firm’s website is equipped with a comprehensive FAQ portal with guides and answers. To contact a member of their help team, clients can use the live chat feature. Alternatively, the firm provides both a UK and USA contact helpline number. Several reviews highlight the knowledgeable nature of the customer service team both in the UK and internationally.

Note, help desk opening times operate 24/7.

Pros for Traders

Benefits of trading forex and CFDs with Western Union include:

• Reputable Company – WU is an internationally proven money transfer business. Traders can have peace of mind that the service is legitimate.
• Cash Friendly – Arguably the greatest strength is the ability to pay with cash. For those without a bank account or who may be paid cash-in-hand, this makes the firm a strong option.
• Currency Support – Western Union supports clients in over 200 countries, providing traders in major trading jurisdictions with a safe and reliable payment option.

Cons for Traders

Downsides of making trading deposits and withdrawals with Western Union include:

• Transaction Speeds – Unfortunately, transfers often take one working day or even longer depending on your payment method.
• High Fees – In some jurisdictions, such as the USA, transfers can be subject to a significant 15% charge.
• Broker Support – WU is only available at a select number of online brokers and platforms.

How to Make Western Union Transactions

Deposits

Before making a deposit, the first step is to ensure that your broker accepts Western Union payments. This will often be signified by the firm’s logo on the website or listed in the cashier section of the trading platform.

Once you’ve found a broker that accepts the transfer solution, the next step is to locate the broker’s BIC and IBAN. These are usually found under the wire transfer deposit option if there is no dedicated WU area.

Next, choose how you would like to make your transaction. Traders generally have three options:

1. Mobile app, available as a free download on both Android and iOS
2. WU website
3. Physical branch locations

If you wish to pay in cash, you will need to go in-person to a store. It’s a good idea to find out the opening times of your chosen branch beforehand. If you’re paying online, it could be worth creating a Western Union account so you can easily keep track of your transactions and save your bank details for quicker transfers.

Once you’ve completed the transfer, you will receive a Money Transfer Control Number from Western Union along with payment confirmation. Global brokers may require this number to identify and authorise the payment.

Withdrawals

Withdrawals are fairly straightforward. After sending a withdrawal request to your broker, you will receive a Money Transfer Control Number. You can then use this code either online or in-store to receive your funds.

Verdict

For traders without a bank account or primarily using cash, Western Union offers fast and secure transfers. However, using the payment service for online transactions may leave traders with higher charges and slower delivery times compared to other solutions. Also, vs competitors such as MoneyGram and TransferWise, Western Union is not as well supported by trading brokers. This said, it is secure and reliable, so the company remains a popular option with some swing traders.

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