As the year is nearing its end, the demand for Forex withdrawal is at its peak. If your broker is constantly delaying your withdrawals with excuses like withdrawal fees or taxes, you might be facing a scam. This blog is aimed to help you acknowledge Forex withdrawal problems to avoid being scammed by the pros.
What Is Forex Withdrawal and Why Do People Face Forex Withdrawal Problems?
Forex withdrawal means withdrawing money from a Forex account. Due to limited risk management systems in Forex trade, traders often hire Forex brokers to ensure they recover their funds from platforms like Bitcoin wallet and email servers. Broker services usually use free autopilot systems to transfer trader earnings directly to their accounts. However, in some cases, these automated systems can be manipulated, which causes Forex withdrawal issues.
Failure in withdrawal Forex can arise due to a large number of reasons and some of them are legitimate. Here are the reasons that might cause you difficulty to get your earnings to your bank account:
- Lack of Funds: If you do not have sufficient funds in your accounts to withdraw, obviously your withdrawal requests cannot be processed.
- Incomplete documents provided: If you fail to provide the required documents, your request might be declined as a part of a safety precaution meant for traders’ security.
- When you still have open positions: If you want to withdraw funds when having open positions, it can be harmful to the brokers.
- Caught up in a scam: Bad news, you might get trapped in a scam if your forex withdrawal is not being processed after multiple requests or taking more than 3-5 business days.
How Do Forex Withdrawal Scams Work?
Forex trading withdrawal scam is among the biggest reasons one is discouraged to trade Forex. A novice trader with little experience in the field is the biggest prey as a scammer can easily hold their account hostage and claim the following:
- State rules and regulations that clients have never heard of that prohibit them from withdrawing money.
- Cite never-heard-of clauses that prove they have complete autonomy over the funds.
- Charge a ridiculously high fee for withdrawals.
- Disappear after gaining control of the client’s funds.
- Ghost the client or stop communicating after the scam is done.
8 Signs Your Broker Is a Scammer
Not all Forex withdrawal problems are linked to scams, however, if your broker shows one of these 8 signs, you might need to take it into serious consideration.
He is not regulated by a major financial entity
Always check the regulatory background of your broker. Suppose he is not regulated by any major financial agency such as Financial Conduct Authority in the UK, ASIC in Australia, CySEC in Cyprus, BaFIN in Germany, etc.. In that case, he might not work in line with the highest trading standards.
He provides limited or confusing information about the trading services
It is another huge red flag if you find grammatical errors, wrong pages, false claims, confusing or incomplete information on your broker’s official website.
He offers poor customer care
A reliable broker is willing to support you whenever you face problems, be it with the verification process or withdrawal. If it takes your broker days or even weeks to reply to your email with a very superficial answer, stay away from them.
He asks for high initial deposits
A deposit might be inevitable, but if your broker asks for 70%+ of the amount as an advance deposit, don’t lay your hard-earned money on him.
He takes long process time for withdrawal requests
So, how long does Forex withdrawal take? Any withdrawal request should be done within a maximum of 48 hours (3-5 business days for international bank wire withdrawals), so if your request takes longer and a hefty withdrawal fee, your broker might be a scammer.
He operates offshore
You cannot sue him in case of bad practices if he does not operate in your own country or a well-known country that has solid regulations for financial services providers.
He uses sales techniques that put you under lots of pressure
If your broker uses sales pitches to act immediately, he might not want you to consider your options, read the fine print, or consult with others.
He does not respond to your questions
If he asks you questions instead of answering your questions, they might not want you to inquire about their schemes. Reliable brokers do encourage you to ask more.
How to Avoid Forex Withdrawal Scams?
Scammers are wherever money is made, so there is no wonder the Forex Exchange market attracts a huge number of scammers. To avoid being scammed, you should not trust a broker who promises unrealistic returns using advanced algorithms right away. Always check the broker service is legit and regulated by credible financial authorities and if possible, stick with popular and trusted regulatory bodies only. Here are some of them:
- FSA – Financial Service Agency
- ASIC – Australian Securities and Investments Commission
- FCA – Financial Conduct Authority (United Kingdom)
- CFTC – Commodities and Future Trading Commission (United States)
- MFSA – Malta Financial Services Authority
- IFSC – International Financial; Services Commission
- CySec – Cyprus Securities and Exchange Commission
- SEBI – Securities and Exchange Board of India
How to Avoid Forex Withdrawal Problems?
The best thing you can do to put your worries at rest is to seek help from a Forex professional services company that has a good reputation. These services have several techniques to get your money back. In addition to email recovery, they can even recover your Bitcoin wallet. This will allow you to withdraw your funds from a broker’s website without waiting for the broker.
If you are facing a Forex withdrawal problem, you are not alone. According to an agreed consensus in the Forex market, 70% to 80% of even the most skilled traders have experienced the same difficulty when their brokers refuse to process withdrawal requests. However, to secure your earnings, find yourself a trustworthy services company. And do not forget to equip yourself with more knowledge about the market with our courses at Forex Trading Course.