Withdraw and Cashout with Forex Brokers
Withdrawing from Forex brokers is very important because sooner or later you want to make use of your earnings and really profit from them. It makes no sense having thousands of dollars located in your trading account without being able to spend it because the broker won’t let you cashout or you have no idea where to transfer it. In this article we’ll examine possible withdraw issues and the best way to cashout. This depends on lots of different factors, for example there often occur problems when you try to cashout with credit cards – but this is one of the most popular withdrawal methods.
Problems with documents
Forex brokers are like small banks and they need a certain license to operate fully legally. This also means that a broker has to take care how the traders money is located and transfered. The broker must be able to ensure highest security for funds and guarantee that funds will be transfered to the person they belong to and nobody else. This is not a simple task and can be quite difficult.
Theoretically it’s sufficient to payout money to the source – where it came from. So if you deposit with a certain Mastercard it should be sufficient when the cashout is being credited to this exact Mastercard again. Most brokers still want to ensure that everything is correct. Imagine that somebody hacked your account and can withdraw funds anywhere he wants without any documents or something. That’s why a broker will require some documents but this can be a somewhat annoying task. It’s possible that a broker wants to get documents you don’t even have or doesn’t accept documents because of poor quality even though the quality is decent. Sometimes brokers want gas bills even though not everybody does receive them. Verification through a simple letter with a code sent to the accounts address would be very easy and large companies do that already. But there are only very few brokers with this approach and that’s why you should prepare yourself and have all documents ready they will ask for.
Problems with credit cards
Credit cards are great. But when it comes to transfering money to online brokers there’s something that can be quite frustrating and this is the fact that you can’t withdraw more money then you deposited at some brokers. When you deposit $100 at one broker using your credit card, a cashout of more than $100 won’t be accepted. When you want to cashout like $200, $100 will be credited to your credit card again and the other $100 will be sent through wire transfer or check. This depends on your credit card and broker but you should prepare yourself and better not use your credit card when you’re a big winner and have trouble receiving wire transfers.