Not getting paid on time or not getting paid at all are unfortunately things that every forex trader has to experience once in a while. It is a very stressful issue especially if your withdrawal request is for several thousands of dollars. So here is the question - what can you do to protect yourself from withdrawal issues?
Not getting paid is unacceptable and instead of feeling completely powerless there are several things I would suggest doing in order to avoid the undesirable money-stress.
Withdrawal requests are reviewed and processed within 5 business days
First of all, in case your forex broker is well-known, trusted and respected, you are definitely not the only client. Chances are your withdrawal request gets into a big “to-be-paid” pile of the financial department. Depending on how organized your broker’s accounting division is, your withdrawal request will be handled accordingly.
Did you forget to request the payment?
Sometimes forex traders are the ones to blame. Every forex broker has its own withdrawal requirement and you have to follow each step in order to ensure the successful transaction. Make sure that your documents, faxed, emailed or filled online, include all the necessary information. This way your broker accountant in front of the “to-be-paid” pile will have no excuse to put your payment request in the “incomplete” basket, or folder or trashcan. In case your request ends up in the less unfortunate pile, it is almost certain that your payment will not be on time and you will most likely have to wait until next month. Of course, by then you will end up loosing millions of brain cells due to stress, lack of sleep and endless disappointment.
Does your Forex Broker have Fixed Payment Date?
Some forex brokers make payouts once or twice a month at a certain date. You might want to find out the tricky schedule in order to file for withdrawal regularity at the same time. Not only your forex broker gets to expect your request at a fixed time of the month but also it gives you a chance to be more organized, which is quite difficult while working from home!
You might also want to ask your broker which payment is the fastest. Wire Transfer can take weeks while the alternative payment method such as Paypal may process your transaction within minutes.
Since most forex brokers charge some kind of a fee for every payment transaction, you might think that not withdrawing for a while is a better deal. In my opinion, smaller amounts are less frightening than larger chunks. Meaning that, maybe it is not so wise to save up your profits until you become a millionaire. I say, submit withdrawal requests regularly. That should save you the trouble.
Look at the Forex Broker’s Withdrawal Policy
Before working with a broker, you should ask the following questions:
- How to get my money back from Forex trading?
- What are the stated procedures for withdrawals?
- Is there a clear path to withdrawing your money from this broker?
- Are there high withdrawal fees?
- Is there a waiting period or any special requirements for withdrawal
You should be able to withdraw your money from a broker easily. Look at any specific fees, delays, and rules for withdrawal very carefully. This doesn’t mean that all fees and guidelines are red flags, but they should be placed under scrutiny to make sure they make sense.
Communicate with your Broker to Fix Problems and Minimize Misunderstanding
Last but not least is communication. Getting all grumpy at your dog or complaining to your neighbor will not get you closer to the payout. Sometimes an official but strict email or even a phone call will do the trick. Yes, forex trading does not completely isolate you from the society and social skills. You have to talk to people making the payment in case there is some kind of misunderstanding or delay. Start with a friendly reminder and see how things go. In case friendliness isn’t working out, you can always threaten to publish a bad review all over the internet. That usually puts brokers on their toes.
In case your forex broker really has gone bad, spread the word in forums and forex portals such as this. Your posts will not only be noticed by the forex broker in question, but will also warn other traders about no-payment dangers.
If negotiation doesn’t produce results, then the next step is action. If the broker is regulated by CySEC (Cyprus Securities and Exchange Commission) or the FMRRC (Russia’s Financial Market Relations Regulation Center), then you need to contact these organizations. They were created especially for regulating company actions and resolving conflicts. To do this, you need to attach all the information you gathered in the first step. If you are unlucky enough to have entrusted your money with an uncertified company, then your chances of getting your money back are slim. Only the CySEC in EU and the FMRRC hold legal weight in Russia. Also, FCA should start regulation process in UK from 2018. All other organizations are imposters and exist only as a “smokescreen” for naive users, and give off the impression of a legally operating company.
If everything outlined above is of no use, you can submit an official complaint to the police as a last step. However, to tell you the truth, in that case, your chances of regaining your funds are next to nothing, as the fraudsters usually act through foreign firms, and all the funds are promptly withdrawn from their accounts. Therefore, every beginner should, first and foremost, put a lot of thought into what broker to work with.
Reasons Brokers can refuse payment
For a start, let’s begin with the cases that don’t have anything to do with fraud, but touch on issues with specific formalities, various technical problems or human factors. In the majority of cases, these problems can be resolved by contacting customer services. If, however, we are talking about issues involving fraud, then it is more complicated to resolve, however far from every situation ends badly, without the return of funds.
You did not verify your account with proper documentation
All brokerage companies work within the confines of legal regulation. Their actions are controlled by specific decisive bodies (excluding scams). The law dictates that they are unable to release funds to anonymous users. Hence, if you request the transfer of funds, especially if the sum is large, as a user, you may be required to go through a personal verification process.
You used the bonus and did not meet the withdrawal requirements
What replenishment bonuses are is a topic of its own, deserving of its own article entirely. However, common sense dictates that no one is going to simply give you money. Which is entirely true. Despite the fact that bonuses are credited to your account and merge seamlessly with the funds deposited, there is a clear difference. Bonuses can only be used for trading. You can only withdraw after you have used the entire bonus. For that, you need to finalize trades totaling specific amounts, usually 20-30 times higher than the amount accrued.
You have violated the terms and conditions
There are hundreds of point in the client partnership agreement. And, of course, nearly no one reads through it. Some more devious companies use this with success to their own advantage. If a user accidentally violates one of the terms or tried to manipulate the situation to receive some sort of advantage, then the company can freeze their funds. They will outline the specific point that has been violated either directly after refusing to release funds, or after the user contacts customer service. This is usually done in combination with blocking that user’s account.
Share your experience with other traders
if you are by the book trader and the broker is acting out, it is time to share your story with others. If the above steps don’t make the broker surrender, continue to intensify the second step by giving bad reviews and comments about the broker on reviewing sites. Tell other traders about your terrible experience and warn them not to trade with the broker.
Always remember to contact the broker while taking every step, because there’s nothing better than making an arrangement. If you offer them a win-win solution, there’s a high probability that the broker will shrink and accept your deal.
So if you have to cope with a scam broker, follow this guide to get your money back. Scam brokers are always afraid of negative comments and bad ratings from traders, so you can use this weakness to put pressure on them.