The painful beginning is over and you have finished reading all the basics of forex trading. You are sick and tired of the demo account, the nightmares where you speak only with forex terminology become more frequent and you are ready for the big jump – trading for real money. So how to trade with real money and how to make sure your funding is safe? More importantly, how do you receive the profit money you make?
Many forex beginners may be slightly confused about forex brokers withdrawal methods and brokerage deposit options. So let's review the process of withdrawal once and for all.
Most forex brokers generally accept deposits by credit card, wire transfer and, in some cases, checks. However many forex traders don’t feel safe using their credit card online and giving in to the possibility of endangering their saving account! What has become rather popular now is depositing and withdrawing money from your forex broker with alternative online payment methods such as Neteller, Skrill, Paypal, e-bullion and others.
Most forex traders trust these online payment systems and prefer using them instead of credit card. That’s because money can be sent immediately and securely to and from your forex broker. All of these payment options used by forex brokers may actually protect your money better than it would protect during any other similar online financial transaction.
Each forex broker has different policies, terms and conditions. Many brokers allow you to withdraw your profits via the same payment method you used to deposit, but sometimes you won’t be able to withdraw until a certain amount of money is reached and/or the bonus requirements are met. Also, while most forex brokers do not charge any extra fees, it is common for some brokers to charge transaction fees when it comes to withdrawal.
Here is an example taken from Forex.com Broker withdrawal requirements:
If you funded your account with US Dollars: there is no fee for withdrawal requests via check. Withdrawal requests via wire transfer will incur a $25 fee for wires within the United States, and $40 fee for international wires (including Canada).
If you funded your account with a non-USD deposit: FOREX.com will convert your US dollar account balance back to the currency you initially deposited and wire your funds back to the originating bank account. A fee of US$40 will be assessed.
Most withdrawal processes are easy and fast, which requires filling in the online form. Some forex brokers, however, request filling the withdrawal form, printing it out, sign and sending it by fax or email. The waiting period varies from 24 hours to several weeks, depending on forex broker policies, which must be reviewed and fully comprehended.
I strongly suggest reading terms and conditions of your selected broker before you make a deposit. If you can’t find the details about withdrawal in terms and conditions, try reading Frequently Asked Questions on the broker’s website. And if that doesn’t help, contact your forex broker via email, online chat or phone and make sure to find the answers to these questions:
1. What are the available payment methods?
2. Are there transaction fees? If so, what are they?
3. What is the withdrawal process?
4. How long does it take to receive the money?
5. What is the minimum amount required to make a withdrawal?
6. How does bonus affect the withdrawal policy?
And always remember that troubles arise from misunderstanding. Make sure that you have a clear vision of what lies ahead before you make a plunge!