Withdrawal experience with IC Markets and Paypal

By | June 29, 2017

In summary, this article talks about the cheapest way to withdraw via IC Markets (basically free) and my withdrawal experience with IC Markets using this cheapest method (PayPal). If you want to skip the details, scroll right to the bottom for the 2 cheapest ways to withdraw via IC Markets.

Note: I have received messages from some clients that they don’t have an option to withdraw from Paypal in their IC Markets accounts – This is because you haven’t deposited funds into your account via Paypal before. Just deposit the minimum deposit of USD200 (or equivalent in your preferred currency) using paypal, and the option will become available. Then you can withdraw free using Paypal! 

I recently tried withdrawing from IC Markets using Paypal for the first time, since the other option of international bank wire was more costly AUD $20

withdrawal experience with IC markets

The idea was, Paypal does not charge any fees when withdrawing to your bank account over $200. Below $200, there is a $1 fee.

withdrawal experience with IC markets

This is true, but my PayPal balance is in USD and PayPal automatically converts this to my local currency (SGD), with no option to withdraw the PayPal balance in USD and Paypal’s exchange rates are more expensive. I would like my bank do the conversion instead. Rates: Paypal – 1USD to 1.342 SGD , my bank 1USD to 1.371 SGD, spot rate is 1.380

withdrawal experience with IC markets

Paypal’s exchange rate

withdrawal experience with IC markets

My Bank’s Exchange Rate

withdrawal experience with IC markets

Spot rate from XE.com

So at the end of the day, withdrawing from PayPal would cost about the same as doing a international wire from IC Markets to my local bank. Let’s break it down how this is so:

Let’s say I was withdrawing 1,500 USD.

International wire AUD20 + my bank charges SGD20, then convert $1,500USD to SGD at 1.371 (my bank’s rate) . The calculation is as follows: First converting USD to SGD: 1,500USD * 1.371 = 2056SGD. Then deducting bank wire fees: 2056SGD – (20AUD + 20SGD) = 2016SGD (Final amount)

PayPal would be 1,500USD * 1.342 = 2013 SGD

Therefore, both are about the same

However, PayPal is still useful. There are two hacks I want to talk about

One: Withdrawing via PayPal is still cheaper if you send them local currency. Because PayPal doesn’t charge any fees on local currency withdrawals above $200 (below $200 they charge $1). I just need to get IC Markets to convert USD to SGD for me (Rate is 1.361, better than PayPal), then withdraw the converted funds to PayPal. 

withdrawal experience with IC markets

Note the exchange rate is even better! (1.37) if you convert amounts greater than 1,500 USD (not shown here)

Example: I have IC Markets convert 1,500USD to 2041.5 SGD. I then withdraw 2041.5 SGD to PayPal. I withdraw the final sum of SGD 2041.5 from PayPal to my local bank account incurring no extra charges

Hack 2: Withdrawal is completely free if you have local currency (SGD) in IC Markets and withdraw it to PayPal

Example 2: Let’s say I have 1,500SGD in IC Markets and I withdraw it to PayPal. The withdrawal is free. I then withdraw the 1,500 SGD from PayPal to my bank account, incurring no charges because withdrawals from PayPal is free above $200.

Compare this with an international bank wire of $20 (sender’s bank) + $20 (receiving bank) fees

So to sum up: the cheapest way to withdraw from IC Markets are the following 2 methods

  1. Convert your USD to local currency within IC Markets (especially if you have a large sum), you get better rates, then withdraw via PayPal
  2. If you already have local currency in IC Markets, withdraw via PayPal

So what did I do with the USD 1,500 stuck in my PayPal and I am forced to convert it to SGD at a poor exchange rate given by PayPal?

I deposited the money back to IC Markets, (no fees) then I got IC Markets to convert the USD to SGD at a rate better than PayPal and similar to my local bank by doing an internal funds transfer between two live accounts (one in USD and one in SGD), then withdrew the sum to PayPal in local currency (SGD), incurring no charges.

There you go! Hope you learnt the cheapest way to withdraw via IC Markets!

If you are trading Forex and you want a commission discount on every trade whether you win or lose, sign up for our IC Markets commission discount here. There is a $1.50 per round turn lot direct commission discount (8% discount for cTrader accounts) on every of your trade. 

withdrawal experience with IC markets

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16 thoughts on “Withdrawal experience with IC Markets and Paypal

  1. Leonard Lim

    I maintain a SGD account with IC Markets.

    Does Paypal charge any fees (e.g. 3.5% cross-border fee) when you sent SGD via Paypal to IC Markets?

    Likewise, when withdrawing SGD from IC Markets to Paypal, and then withdrawing SGD from Paypal to your SGD account, did Paypal charge you too?

    I have been trying to get confirmation from Paypal but those guys are not helpful at all and bit around the bush without answering my simple questions.

    Hope to hear from you. Thanks in advance.

    Reply
    1. Linton Post author

      Hi Leonard,

      Does Paypal charge any fees (e.g. 3.5% cross-border fee) when you sent SGD via Paypal to IC Markets?

      – No. But you cannot pay via credit card. You have to first transfer money into your paypal account. (How?: Login to Paypal, Click ‘top up’ on the left side of the screen (below your paypal balance).

      Scroll all the way down to Quick Tips and click ‘Learn how here’.

      Follow the instructions. You will need to send money to:

      Beneficiary name
      PayPal Pte. Ltd
      Bank
      Bank of America, N.A., Singapore
      Bank code
      7065
      Branch code
      212
      Account number
      56708048
      Remember to include your PayPal Consumer Reference Number (You can find this when you first click ‘Top up’)

      The money will take 4-6 days to arrive. Now using this balance in your paypal account, you can send money directly to your IC Markets account using Paypal with Zero fees.

      Likewise, when withdrawing, there is zero fees when sending money from IC Markets to paypal. When the money is in Paypal, just withdraw the money to your bank account, you will not be charged anything.

      Kind regards,
      Linton

      Reply
  2. RICHARD PARKER

    GREETINGS
    I WANTED TO KNOW IF PAYPAL WILL FREEZE MY FUNDS AS I HEARD THAT MANY PEOPLE EXPERIENCE THIS.MY DEPOSIT WAS $200 AND THE WITHDRAWAL MORE THAN 10 TIMES OF THAT .SO WILL PAYPAL ALLOW ME TO WITHDRAW MY MONEY TO MY BANK NONETHELESS?

    Reply
  3. Suriyono

    Hi there,
    Do we need to be using paypal business to do so?
    or just personal account would be able withdraw fund ICmarkets (SGD) to Paypal(SGD) to Bank (SGD) without incurring any fee

    Reply
  4. Ivan blaq

    I recently submitted a withdrawal to ic markets which was approved but PayPal declined my money saying security concerns .. I don’t understand what’s happenning I deposited 200$ to ICT markets but now PayPal won’t take my withdrawal

    Reply
  5. Linton

    Hi Ivan,

    I am sorry to hear that. Could you elaborate more on what was the security concerns message paypal sent you?

    Linton

    Reply
  6. udit

    sir i wanted to know if i withdraw from ic markets using paypal then ic market will not charge any fees but will paypal charge any fees from my side ?? if i withdraw 100$ then will get full amount in my paypal balance or some fees will be charged ? please reply

    Reply
  7. Linton

    Hi udit,

    Paypal will not charge any fees also.

    if you withdraw $100, you will get full amount of $100 in paypal

    Regards,
    Linton

    Reply
  8. Abdi

    Hi I wanna know the time it takes a withdrawal from my IC market account to my PayPal, is it instant as it mentioned in in their IC page or takes few days?, thanks.

    Reply
    1. Linton

      Hi Abdi, the transfer is instant, when they process the transfer at 11am Melbourne time daily.

      So daily, at 11am, they will process the withdrawal to your paypal account, and this transfer is instant.

      It may take up to 2 hours sometimes for your withdrawal request to be processed as they have a high volume of requests to process.

      Usually for me, by 12pm Melbourne time, I receive my funds in my PayPal account, (1 hour)

      Reply
  9. Fahim

    I am in ukraine and i need to withdraw my money but whenever i try,the banks do not work with forex trading.So i wanna know which bank works with forex so i can withdraw,or if there’s another option i can go for.

    Reply
    1. Linton Post author

      Hi Fahim,

      Does your broker allow you to withdraw via paypal or bank wire?

      1) If you can withdraw via paypal, then ask your broker to send your funds to your Paypal account. Then withdraw your funds to your Bank account from Paypal. Your bank should accept paypal withdrawals.

      2) If your broker allows bank wire transfer, then you can withdraw directly to your bank account. Your bank should allow this.

      My guess is that you are withdrawing via a credit card, through a credit card refund, and your bank is not allowing this.

      Regards,
      Linton

      Reply
  10. Michelle

    If you’re targeted by cryptocurrency, stocks, forex and binary option scammers or you’ve fallen victim to a scam of any form online, Report it to IVT Cysec, personal email dimitru@ivtcysec-recovery.tech, the IVT Cysec Agency.

    Doing so will help you with a close follow up on how to get your funds back and help other innocent victims stay safe and avoid fraud.

    Reply

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