What Is Neteller?
Neteller is an online payment service that was launched in 1999. It is currently operated by Paysafe Group Plc (formerly known as Optimal Payments Plc), a company located in Douglas, Isle of Man. It is regulated by the Financial Conduct Authority of the United Kingdom (registered under reference number 900015). Neteller is a convenient way to electronically transfer funds between persons, and between customers and businesses.
To transfer funds between Neteller accounts, a customer has to make a deposit to the digital wallet connected to Neteller account. There is a number of ways to do it:
In addition to being able to send the funds within the Neteller system, the customer can also withdraw funds using one of the following methods:
- Bank Draft
- Bank Transfer
- Member Wire
Net+ Prepaid MasterCard
Neteller's Financial Standing
According to its latest financial report (for the year of 2016), Paysafe Group Plc, the company behind Neteller, has demonstrated an extraordinary growth from $613 million to just over $1 billion yearly revenue. Its after tax profit of about $142 million shows that the company is doing well and can handle the large number of customers'. It is very important that the company operating a payment processor is well funded and capitalized because many unforeseen events may require it to cover some of the lost account balances.
It has also acquired some businesses during the year of 2014, including Meritus (TK Global Partners LP aka Meritus Payment Solutions based in California, US) and GMA (Global Merchant Advisors, Inc. based in the United States). Additionally, in March 2015, the company has acquired Skrill (Skrill Ltd. based in London, United Kingdom), securing its position as the leader of e-wallet business in the Old World.
Recently, the company also acquired such firms as Income Access and MeritCard.
Such an expansion means an ever increasing variety of deposit/withdrawal methods, as well as the Forex brokers that are potentially going to accept Neteller as a payment method. Of course, it also increases the number of ways a profitable currency trader may spend his or her earnings via Neteller.
In 2014, Neteller obtained the Principal Membership with Visa Europe and MasterCard Europe. This poses an opportunity for the company to introduce even more convenient ways of withdrawal via credit cards and other payment card solutions for an average Neteller user.
The objective reasons for a Forex trader to use Neteller can be condensed to the following list:
- More than a hundred Forex brokers are already accepting Neteller. You will always have a choice without the need to transfer funds to another payment processor.
- You will be able to share your earnings with the residents of 200+ countries and territories. Unlike many of its competitors Neteller is not a regional service, it is a global e-wallet system.
- There is no fee when transferring funds inside Neteller (to broker or from broker). It is merchants who compensate such fees, not customers.
- Two-step authentication method is available but is not mandatory at Neteller. You can choose either high level of security or an easier and faster login procedure.
- VIP membership with such features as loyalty program, cash-back, fee rebates, multi-currency accounts, lower exchange fees, higher limits, etc.
- No need to go through full verification process until you decide to make your first withdrawal. Even then, the whole process involves only a scan copy of one document (usually, passport).
Although Neteller did offer a Net+ Pre-paid MasterCard, which was a comfortable way of withdrawal and spending, the program has been discontinued and no replacement has been provided yet. If revived it could be nice perk as such cards normally are accepted world-wide as any other MasterCard debit card.
Unfortunately, there are some notable disadvantages of using Neteller:
- Some deposit and withdrawal methods bear a very high level of commission. It can be lowered by acquiring VIP membership, but it will remain a significant drawback if you are planning to use mostly high-cost deposit/withdrawal options.
- Some of the withdrawal methods have rather low monthly limits. If you plan to withdraw a lot of profit monthly, you would probably have to consider applying for VIP membership.
- Neteller's service remains very limited in the United States and Canada.
- Lack of interest rate on the remaining account balance. Although the interest rates are currently very low even in banks, it would be fairer for Neteller to pay us something for parking our money with it.
- Buyer's protection is not as huge as it is at PayPal for example. It would also be nearly impossible to get a refund if you were somehow tricked to transfer funds to a fraudulent Neteller account.
- Neteller is currently completely restricting its use in the following countries: Afghanistan, American Samoa, Åland Islands, Bhutan, Bouvet Island, China, Cocos Islands, Congo (Both), Cook Islands, East Timor, Eritrea, Guam, Guinea, Heard Island and McDonald Islands, Iran, Iraq, Ivory Coast (Côte d'Ivoire), Kazahkstan, North Korea, Kyrgyzstan, Liberia, Libya, Marshall Islands, Micronesia, Mongolia, Myanmar (Burma), Nauru, Northern Mariana Islands, Pakistan, Palau, Puerto Rico, Saint Barthélemy, South Georgia and the South Sandwich Islands, Sudan, Syria, Tajikistan, Turkmenistan, Uganda, US Minor Outlying Islands, Uzbekistan, US Virgin Islands, Yemen, Zimbabwe.
- Financial regulation and online gambling laws restrict the way Neteller can be used in some other countries: Albania, Cambodia, Canada, Hong Kong, Israel, Laos, Lebanon, Macao, Singapore, Turkey.
You can compare Neteller to its direct rivals. If you are not sure that Neteller will be a good choice for your FX trading related transactions, feel free to choose one of these:
The list of used sources:
If you want to get news of the most recent updates to our guides or anything else related to Forex trading, you can subscribe to our monthly newsletter.