What To Do If The Broker Does Not Withdraw Money
If the broker does not withdraw money, contact the Support Service and clarify the reasons. Save screenshots of correspondence, confirmations of all transactions, including deals. If the appeal does not help, write a statement to the regulator, contact the police.
Trading on financial markets always involves risk. However, even if you follow all the rules and make no mistakes, there is always a chance that your broker will not withdraw your money. This can happen for a variety of reasons, such as financial difficulties of the company, fraud, or simply incompetence of employees.
Why can a broker block withdrawals
How to find out if a broker has problems with withdrawing money:
Delay in withdrawal of funds. If you are unable to withdraw your money within a few days or weeks, this may be a sign that the broker is having problems.
Unclear answers from support. If the broker's support cannot provide you with clear answers about the reasons for the delay in withdrawal of funds, this may be a sign that the broker is trying to hide something.
Changes to terms of service. If the broker suddenly makes changes to the terms of service, such as increasing the minimum deposit amount or introducing a withdrawal fee, this may be a sign that the broker is preparing to exit the market.
Lack of information about the company. If you cannot find information about the brokerage company, such as its address, phone number, or license, this may be a sign that the company is fraudulent.
If you notice one or more of these signs, you should be careful and take steps to protect your money.
Here are the main reasons why a broker may block withdrawal of funds:
Broker's financial difficulties. If a broker is experiencing financial difficulties, it may not be able to pay its clients' money. This can happen if the broker has lost a large portion of its funds due to unsuccessful trades, or if it has been involved in fraudulent activity.
Fraud. Some brokers specifically create their companies with the intention of defrauding clients. They may promise high returns, but at the same time not withdraw clients' money.
Non-compliance with broker's rules. A broker may block withdrawal of funds if a client has violated the rules set out in the contract with the broker. For example, this may happen if the client has not passed KYC verification, or if they have used the broker's funds for illegal purposes.
Technical problems. In rare cases, withdrawal of funds may be blocked due to technical problems. For example, this may happen if the broker is experiencing problems with the operation of its system.
If you are faced with a situation where a broker blocks withdrawal of your money, it is important to find out the reason for the block. If the reason is due to the broker's financial difficulties or fraud, then it will be difficult for you to get your money back. However, if the reason for the block is due to your violation of the broker's rules, then you can try to resolve the issue by contacting the broker's support.
The broker does not withdraw money. What to do?
If you are faced with such a situation, it is important not to panic and act according to a plan. Here are a few tips on what to do if your broker does not withdraw money:
Make sure the problem really exists
First, you need to make sure that the problem really exists. Perhaps you just did not wait for the withdrawal of funds due to weekends or holidays. It may also be that the broker temporarily blocked the withdrawal of funds due to technical reasons.
To check if the broker is really not withdrawing money, try to withdraw a small amount, for example, $100. If the withdrawal is not made in this case either, then the problem really exists.
Contact the broker's support
First of all, you need to contact the broker's support. Explain the situation and ask to understand the reasons for the delay in withdrawing funds.
The broker's support may give you the following answers:
The funds will be withdrawn in the near future.
The broker is experiencing financial difficulties and cannot withdraw money in full.
The broker is fraudulent and does not intend to withdraw money at all.
If the broker's support does not give you clear answers or refuses to help, then you need to move on to the next step.
Contact the regulator
If the broker is registered in a country, then it must be under the control of a financial regulator. In this case, you can contact the regulator and complain about the actions of the broker.
The regulator can investigate and take action against the broker. For example, force him to pay you money or revoke his license.
File a complaint with the police
If you are sure that the broker is fraudulent, you can file a complaint with the police. The police can initiate a criminal case and begin an investigation.
If the case is brought to court and the broker is found guilty, he may be sentenced to imprisonment or a fine.
Use the services of a lawyer
If you are not sure how to proceed in this situation, you should contact a lawyer. The lawyer will help you to draw up a statement to the regulator or to the police, and will also represent your interests in court.
Do not despair
If you are faced with a situation where the broker does not withdraw money, it is important not to despair. In most cases, you will be able to return your money. The main thing is to act according to a plan and not to waste time.
Best Forex brokers
Tips for beginner traders
Here are a few additional tips that will help you to get your money back if the broker does not withdraw it:
Save all documents related to trading on the financial market. This may be a contract with a broker, checks, payment orders and other documents.
Collect evidence that the broker does not withdraw money. This may be correspondence with the broker's support, screenshots from the broker's website and other documents.
Share your story with other traders. Maybe someone of them has already faced such a situation and can help you.
Choose a broker with a good reputation. Before you start trading with a broker, read reviews from other traders.
Carefully review the broker's terms of service. Be sure to read the withdrawal terms so you know what to expect.
Only use reliable payment methods. If you use a credit card or debit card, you will be able to get your money back if the broker does not withdraw it.
If you do encounter a situation where a broker does not withdraw your money, do not despair. In most cases, you will be able to get your money back if you take action according to a plan.
Conclusion
Trading on financial markets is a risky activity. However, if you follow all the rules and make no mistakes, you can minimize the risks. If you are faced with a situation where the broker does not withdraw money, it is important to act according to a plan and not to waste time.
FAQs
How long does it take to withdraw money from brokers?
The time it takes to withdraw money from a broker can vary depending on the broker and the method used to withdraw the funds. Some brokers may allow you to withdraw funds immediately, while others may require a waiting period of several days or even weeks. It is important to check with your broker for their specific withdrawal policy.
Is keeping money in a brokerage account safe?
Generally, keeping money in a reputable brokerage account is safe. Reputable brokers use encryption and security measures to protect client funds. However, risks exist, so choosing a reliable broker is crucial.
How do you know if the broker is not a scammer?
Research the broker's reputation, read reviews, and check if it is regulated by financial authorities. Legitimate brokers are transparent about their operations, fees, and security measures.
Why can't I withdraw my brokerage holdings?
There are a few reasons why you might not be able to withdraw your brokerage holdings:
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Your account may be on margin. If you have borrowed money from your broker to invest, you may not be able to withdraw your funds until you have repaid the loan.
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Your broker may be experiencing financial difficulties. If your broker is having trouble meeting its obligations to its clients, it may temporarily suspend withdrawals.
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There may be a problem with your account. If your broker suspects that your account has been compromised, it may freeze your account to protect your funds.
If you are unable to withdraw your brokerage holdings, contact your broker immediately to find out the reason for the delay.
Team that worked on the article
Alex Smith is a professional day trader for a proprietary trading firm within the foreign exchange (forex) and crypto markets. His area of expertise is day trading and swing trading within the 15min-4hr time frames for both the London and NY open.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).