Where and How to Buy Stocks with PayPal in 2024

By far the world’s most popular e-wallet, PayPal facilitates simple and secure online money transfers for over 325 million active users worldwide.

Though originally designed for use in the eCommerce space, its speed, safety and simplicity mean more traders are now looking to use it to fund their trading accounts.

As a result, there is an increasing number of brokers and stockbrokers that offer the possibility to sell and buy stocks with PayPal.

This article looks at the pros and cons of a PayPal trading account and offers reputable online brokers that use it.

A List of the Top 5 Brokers That You Can Buy and Sell Stocks With PayPal From for October 2024

The following list details brokers that offer the possibility to buy stocks with PayPal.

It in no way constitutes financial advice and should be viewed only as a starting point for your own due diligence.

Here are our top picks:

1. Plus500 – Award-winning CFD broker for trading with PayPal
2. Pepperstone – Broker with no minimum deposit and zero fees for funding with PayPal
3. AvaTrade
4. IG – Highly Regulated Broker to Invest with PayPal
5. XTB Trading – PayPal Broker with Low Forex Fees

Best PayPal Forex Brokers – Comparison Chart for October 2024:

Note: The information in this table is subject to change and may not be complete. It is important to research and compare brokers thoroughly before opening an account.

Best Places to Buy and Sell Stocks with PayPal – Reviewed (2024)

Minimum Deposit: $100
Regulations: FCA, ISA, CySEC, MAS, ASIC, FMA, MIFID-ESMA, Offshore

Plus500 is a CFD provider and offers only CFDs.

This award-winning broker offers trading accounts with the option to buy stocks with PayPal through the user-friendly WebTrader platform.

WebTrader is available in web-based and mobile versions, and users can access an unlimited free demo to test out the platform without risk.

It has a clean layout that makes trade execution simple and offers advanced functionality with a range of tools for research and analysis, as well as real-time market information.

Offering its services since 2008, Plus500 has a trusted reputation, and with highly competitive fees and tight spreads, it is a popular choice for traders of all styles and experience levels.

Copy trading is not available. But, if you are confident in your strategies, there is a range of instruments available, making Plus500 a good broker of choice.

Trading with CFDs is suitable only for short-term investments.

Pepperstone supports the use of PayPal for funding your trading account, making it convenient and secure for users to deposit and withdraw funds.

You can fund your Pepperstone account using PayPal without any deposit fees. This process is quick and straightforward, and once your PayPal account is linked and funded, you can transfer money directly to your trading account.

Withdrawals to PayPal are also supported, and funds can be transferred from your brokerage account back to your PayPal account. There are typically no fees for this service, though some conditions apply depending on your location and the specific terms set by PayPal.

Pepperstone offers stock trading in the form of Contracts for Difference (CFDs), which means you can speculate on the price movements of stocks without owning the underlying asset.

This includes major companies listed on exchanges like the NYSE, NASDAQ, LSE, and ASX.

AvaTrade allows traders to deposit funds into their trading accounts using PayPal. This process is typically straightforward and fast, providing a quick way to start trading.

One of the advantages of using PayPal is the speed of transactions. Deposits made through PayPal are usually processed instantly, which means traders can start buying stocks with PayPal without significant delays.

PayPal is a secure payment method that adds an extra layer of protection for your financial transactions. It allows you to fund your AvaTrade account without directly sharing your bank or card details with the broker.

The minimum deposit amount for AvaTrade accounts can vary, but it's typically around $100. It’s important to check if there are any specific requirements or limitations for PayPal transactions on AvaTrade’s platform.

In addition to funding, PayPal can also be used for withdrawing funds from your AvaTrade account. The process is generally simple, but it's important to be aware of any withdrawal limits, processing times, or fees that might apply.

Once your account is funded, you can trade stocks through CFDs (Contracts for Difference) on AvaTrade’s platform. This allows you to speculate on the price movements of stock shares without owning the underlying assets.

Minimum Deposit: $200
Regulations: MIFID-ESMA, FCA, CySEC, Offshore

XTB Trading was established in 2004 and has since built a solid reputation among the online trading community.

Retail accounts are available at both standard and pro level, with professional accounts offered for experienced traders that meet certain qualifying criteria.

The most beneficial aspect of a trading account with XTB allowing you to buy stocks with PayPal is its powerful proprietary platform, xStation 5.

This includes a range of features that allow for in-depth analysis and performance monitoring, helping users identify patterns in their trading style.

If you prefer the MetaTrader platform, MT4 is also available to XTB account holders.

The broker provides a library of educational materials, including live webinars and video tutorials. Its Trading Academy is also a valuable resource for those new to the markets, with lessons split into basic, intermediate, expert and premium.

Spreads and fees vary depending on account type, so be sure to check these before registration.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Minimum Deposit: $250 but may vary
Regulations: FCA, ASIC, BaFin, CFTC, NFA

IG is authorised and regulated by the FCA and provides traders access to over 18,000 markets. IG offers more 24-hour indices than any other provider, and extended hours on over 70 key US stocks 

For those who prefer to own the underlying asset, IG offers access to over 13,000 global shares and ETFs, or a wealth portfolio managed by one of their experts. 

You can deposit funds with a credit card, debit card, PayPal account or via a bank transfer.

Advantages and Disadvantages of Buying Stocks with PayPal

PayPal Trading Advantages

Reliability and Security

One of the main benefits of buying stocks with PayPal is the high level of security it provides.

There is no need to input sensitive payment information into a third-party website – all you need are your account ID and password.

Deposits and Withdrawals Are Quick and Typically Free

So long as there are funds available in your account or through one of your registered payment methods, deposits made via PayPal are usually instantaneous.

Withdrawals need to be approved, so may take longer, but are still much quicker than other methods.

Bear in mind certain brokers may have associated charges, which you should be able to find out beforehand, but most provide service via PayPal for free.

You Can Link Multiple Credit or Debit Cards

If you have used PayPal for online shopping, you know how easy it is to use funds from your registered accounts, and the same applies if you want to buy stocks with PayPal.

By linking multiple accounts, you will have easy and secure access to a range of funding sources.

There Are High Maximum Transfer Allowances

With a maximum transfer amount of $10,000 as standard, PayPal limits are more than sufficient for most beginner traders.

Once your PayPal account is verified, which simply involves linking an active bank account or credit/debit card, the maximum increases to $60,000.

PayPal Adopts Strong Anti-Money Laundering Policies

PayPal utilizes the latest technology in digital security and enforces strict regulation, so you have peace of mind your assets are protected.

Those that offer trading accounts with the ability to buy stocks with PayPal must abide by these regulations, so you can also have increased confidence that you’re dealing with a reputable broker.

Disadvantages of Buying Stocks with PayPal

Charges on Trading Transactions

When using a PayPal trading account, you do need to factor in the charges applied to your trading transactions and how these affect your profit margin.

These are not too dissimilar to other e-wallets like Skrill and Neteller, but every broker will apply different charges, so be sure to do your research.

No Chargebacks on Financial Instruments

One of the main benefits of using PayPal for online transactions is the chargeback facility – essentially the ability to request a transaction reversal should you wish to dispute it.

However, this only applies to physical goods so is not available in a trading context.

High Transfer Fees

As well as charges on trading transactions applied by your broker, you also need to account for PayPal’s own fees.

This includes currency conversion fees (typically 2.5% above the current base rate) and fees for withdrawing to a credit/debit card.

Transfer fees are also a major consideration as these can be quite high, ranging between 4% and 12% of your transfer amount.

How to Choose PayPal Brokers in 2024

When looking to buy stocks with PayPal, there are multiple things to consider beyond whether this payment option is available.

Trading of any kind comes with associated risks and choosing the wrong broker can bring potentially devastating results.

With that in mind, it is imperative to conduct thorough research before opening a PayPal trading account.

Here are a few key things to look out for:

Is the PayPal Broker Regulated?

This is by far the most important consideration when choosing an online stockbroker, no matter the method you use to fund your account.

Regulation gives you peace of mind that the broker operates in a legitimate, professional manner and that its accounts are regularly audited to ensure legal compliance.

Regulation also affords a level of financial protection.

Client funds and company funds must always be kept separate, and should the broker go out of business, there are practices in place that cover the security of your assets.

Does It Have a Good Reputation?

The experience other users have had with a broker is a good indication of credibility.

Search for user feedback on trusted review sites and trading Q&A platforms to get a feel for the kind of service they provide.

Think beyond costs, payment options and trading platforms. You may want to consider what additional support they offer by way of educational resources, chatrooms and, of course, a good level of customer service.

For stockbrokers that accept PayPal, you will also want peace of mind that other users have not encountered serious issues funding their accounts through the e-wallet.

How User Friendly Is the Platform?

Depending on the type of trader you are and your level of experience, you will want a platform that is user-friendly, easy to navigate and offers a range of tools that allow you to make well-informed, profitable investments.

MetaTrader (both MT4 and MT5), ZuluTrade and cTrader are all common platforms offered by a variety of brokers, including those that allow you to buy stocks with PayPal.

Most also offer their own proprietary platform.

Before opening your PayPal trading account, see if there is a free demo period available.

If you are not comfortable with a stockbroker’s platform, it is unlikely you will turn a profit trading through them.

What Additional Features Are on Offer?

Alongside the platforms available, another thing to look for when choosing a trading account to buy stocks with PayPal is additional features like trading tools and educational resources.

Charting software, trading signals and analysis tools all help to inform better trading strategies, and things like economic calendars and financial news help you stay abreast of market influencing factors.

Training programs are also of huge benefit, particularly if you are new to the world of trading.

Most brokers offer some level of education to account holders, so keep an eye out for this.

Does the PayPal Broker Fit with Your Trading Style?

The type of trader you are largely dictates what you need from a broker. Look at things like minimum deposit requirements and maximum withdrawal limits to make sure they are within your ideal range.

You also need to consider spreads, swap rates and leverage, as well as trade-associated fees like rollover charges, interest rates and withdrawal costs.

All these things influence your profit margin and vary widely from broker to broker.

The right PayPal trading account for you will be with a broker that offers the most competitive rates for the type of trades you wish to execute.

Funding your trading account using PayPal is as simple as using other payment methods, and usually follows a similar protocol as outlined below:

What Are the Fees for Buying Stocks with PayPal?

Transaction fees for using PayPal as a funding source with a stock trading broker can vary.

PayPal themselves do not charge transaction fees for domestic retail purchases or other commercial transactions unless there is a currency conversion.

This does not include professional services or PayPal being used by a business, however, which means that professional traders might find themselves dealing with PayPal fees that can range from 1.5% to much higher.

The broker may levy a charge for using certain payment methods, and PayPal might be one of them – so it is worth ensuring that you know what the fee structure is for your preferred broker before you buy stocks with PayPal.

Any fees tend to be a percentage of the total transaction, which makes them bearable for smaller trades, but if you are trading at high volume or high cost, it might be worth looking into other funding methods that do not incur fees such as ACH or SEPA.

This is also true if you are converting currency to make trades as the PayPal margins can be as much as 10% more than the cost of the currency.

Alternatives to Trading Using PayPal

If buying stocks with PayPal isn’t your thing, or it isn’t offered by your broker, then there are so many other ways that you can fund your trading account.

The easiest and most straightforward is by using a debit card.

This allows you to treat the funding of your account just like any other everyday process, and in many cases will not leave you in debt because there is no credit being used.

Most platforms and brokers do not charge for deposits made by debit cards.

Credit cards are similarly simple, but it is worth bearing in mind any interest charges on the card itself as these are essentially an added cost of trading.

Finding by transferring directly from your bank account is another option; this works well in most cases because it is instantaneous and secure, but not all bank accounts will allow this sort of transaction to happen and they may even add their charges to it.

If eWallets are your preferred method, but you don’t have PayPal, then there are other options.

Both Skrill and Neteller are available throughout Europe, and if you are in Asia you can use FasaPay or WeChat instead.

There is a growing number of brokers who are allowing clients to fund their accounts using cryptocurrency, which is an exciting option for those who are following the decentralised financial markets – but it is still quite niche and mostly unregulated, so approach it with caution.

Best PayPal Forex Brokers in 2024

With the rise of forex brokers that offer the option to buy stocks with PayPal, here is some more information on the best forex brokers.

When it comes to selecting the best PayPal Forex brokers, traders seek reliability, convenience, and security. Several reputable brokers offer PayPal as a funding and withdrawal option, making it easy for traders to manage their finances.

Some top choices for best forex brokers PayPal are:

• Plus500
• XTB
• IG
• City Index

These brokers not only allow you to buy stocks with PayPal but also provide a range of currency pairs, user-friendly trading platforms, and regulatory compliance for peace of mind. PayPal adds an extra layer of security to financial transactions, making it a preferred choice for many traders.

However, it's essential to consider other factors such as trading conditions, spreads, and regulatory oversight before choosing the best PayPal Forex broker for your needs.

Frequently Asked Questions

Final Thoughts

Opting to use PayPal online brokers has many benefits, most notably the speed and security it offers. That said, high transfer fees and transaction costs do need to be kept in mind.

If you predict these will impact your profit margin too much, there are probably other funding options better suited to your trading style. However, for most beginner traders, these costs are far outweighed by the financial protection on offer.

Though the list of stockbrokers that give you the option to buy stocks with PayPal deposits and withdrawals is still limited, it is growing as brokers look to stay relevant and attract new clients with this sought-after option.

WikiJob does not provide tax, investment, or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal capital.