Skrill (formerly known as Moneybookers) is a British electronic payment, storage, and money transfer system that is operated by PaySafe Group. The number of brokers accepting Skrill for transactions is increasing because of its speed and security. Other advantages for brokers that accept it as a mode of payment are that it accepts all major currencies and its ability to handle large deposits.
Using Skrill to transact also benefits forex traders thanks, to its ease of use and lower fees when trading large amounts of currency.
Here, we’re going to look in more detail at trading platforms and brokers that accept Skrill, as well as the pros and cons of using it.
In September 2011, Moneybookers changed its brand name to Skrill, completing the transition process by 2013. In 2015, Skrill Group was bought from CVC Capital Partners by Optimal Payments Plc, the owners of the Neteller payment system. It is now part of the Paysafe Group which also owns its former rival Neteller.
It is becoming a serious competitor to Paypal, having over 40 million users worldwide.
It can be accessed over the desktop and as a mobile app. Traditionally it has been used by online casino players for depositing funds and withdrawing winnings (when depositing funds, users are asked if they want to use the deposit for gambling).
However, depositing and withdrawing with Skrill in brokers is becoming more prominent due to its numerous offers, promotions, and VIP benefits. Although not as useful or ubiquitous as Paypal for everyday transactions, the number of brokers accepting it makes it worth serious consideration when using online brokerages.
Advantages of Skrill
Trading with Skrill has plenty of advantages:-
- Easy to use and free to register
- Actively encourages use for forex trading
- Offers lots of promotions from brokerages – including major names
- Free to receive money
- Quick transactions (unless involving bank transfer)
- Link up to ten debit/credit cards to Skrill account
- Skrill Money Transfer allows forex transfers at zero mark-up – including to non-customers
- Strong security (card or bank details are not revealed, data is encrypted)
- Increasingly common payment method for brokers
- The more money you transact, the lower the fees
- For forex traders, it supports 38 currencies (including GBP, Euros, US Dollar, and Yen)
As a potential digital wallet for traders, Skrill does have its drawbacks:
- Fees to withdraw funds
- High currency conversion fees, plus handling fee
- Fees for unused account
- Website unclear on specific deposit and withdrawal limits
- Verification needed to increase deposit and withdrawal limits
Speed of Payments
Transactions generally happen very quickly. Funds uploaded into your account with debit or credit cards are instant; for bank transfers, you should allow up to five working days. All cards and accounts used for deposits and withdrawals with Skrill have to be in your name.
Skrill takes plenty of security measures to ensure that its users are protected. All sensitive transaction information is secured with 128-bit encryption and protected to the highest standard according to the Payment Card Industry Data Security Standards.
Their mobile app also has a two-tier login. This means that as well as entering their email address and password, users have to enter a code sent to their mobile device.
Deposits and Withdrawals
All Skrill customers can deposit and withdraw funds from their accounts. When it comes to depositing and withdrawing money, Skrill is the opposite of Paypal in that it never charges to receive money, but charges a fee to withdraw money to your bank account or credit card.
The only way for traders to avoid this fee is to transact enough money with Skrill is to qualify as a Silver, Gold or Diamond VIP member, at which point withdrawals are free.
For all users, regardless of status, there is a 1% fee to upload funds into your Skrill account, whichever payment method you use (up to €20,000 – see below).
Fees or Costs
Skrill accounts are free and easy to set up but it’s mandatory for one to verify an account, which can be done via confirming the credit card, the bank account, or the physical address. All three methods can be used together to increase the transfer limits that are active for all customers.
Beyond that, as noted above, transacting with Skrill can potentially become costly. The main sting is the withdrawal fee which currently works out at £4.76 per transaction (€5.50), or 7.5% if you withdraw from your account to a credit card. As traders who transact €15,000 or more per quarter don’t have to pay these fees, it mostly affects traders who want to make a number of smaller withdrawals.
Skrill offers a service called Skrill Money Transfer which offers traders the ability to send money to anyone (including themselves), converting it into any of its supported currencies in the process, at “zero mark-ups” and using the Reuters exchange rate.
If your account is inactive for a period of 12 months, Skrill begins applying a monthly charge of €5 (or equivalent) per month. The good news is that closing your account is free and easy; alternatively, simply login in to your Skrill account counts as activity.
Is Skrill a good choice for Traders?
Yeah! It is a common payment method for traders; whether it’s right for you depends on how much money you trade with your account. If you’re trading in large amounts at a time, then it’s a strong contender to be your digital wallet for forex trading.
There are four VIP levels that you can attain for each quarter if you hit a certain threshold within the preceding quarter. They are:
- Bronze: Transact over €6000 per quarter
- Silver: Transact over €15000 per quarter
- Gold: Transact over €45000 per quarter
- Diamond: Transact over €90000 per quarter
Once you’re a Silver VIP member or above, trading with Skrill becomes beneficial in terms of removing or reducing fees. You can also begin opening other accounts in different currencies, helping you to avoid forex fees.
The one remaining problem with using Skrill for transacting is the 1% upload fee. This fee only disappears on individual upload transactions of €20,000 or above (or equivalent). It’s worth pointing out that this is the net amount after any forex fees have been applied to the upload.
Are there any Skrill bonuses?
They encourage their clients to use their services as forex brokers do. Their website reveals a raft of exclusive forex promotions from big-name forex and binary brokers, offering traders cashback, free demo accounts, and zero commissions.
Skrill also offers potential financial rewards for recommending friends.
Can one Withdrawal to M-pesa from Skrill?
Yeah! As of 2016, they started offering M-pesa services. Once can withdraw up to $700 under mobile money. They were the first company globally to accept Mpesa transactions.
What countries can use Skrill?
It is available in the majority of countries around the world, including the United Kingdom, EU member states, and the United States. The only notable exception where Skrill is not available in Japan (although it does support Yen transactions).
Any GEO-specific information?
The only GEO-specific restrictions with Skrill are in the United States or related to US dollars: You cannot deposit in US dollars; these are automatically converted to Euros and the 3.99% conversion rate is applied. You cannot withdraw US dollars from your bank account. Skrill Money Transfer transactions cannot be funded with US-issued debit or credit cards
Brokers that accept Skrill
Here is the shortlist of the Forex brokers that accept Skrill:
To open an account with Skrill, please visit https://www.skrill.com.
Editorial Staff at Benstride is a team of Forex traders led by Vincent Nyagaka. We have been creating Forex tutorials since 2013, and Benstride is one the largest free Forex resource site in the industry.