The withdrawal of funds from your trading account at a broker is not something that usually comes to mind when you start investing. It is only after profits / losses are made, that an investors begins the withdrawal process.
Most brokers are pretty good at processing an investors withdrawal request, but occasionally there are problems.
In recent years, brokers have changed their “on-boarding” process, to ensure, that before you deposit money, they have all the relevant information needed to process your withdrawal.
KYC (Know Your Customer) laws made it, that all regulated brokers must verify your identity before accepting your deposit. This has caused many new investors to think twice before opening a trading account, because the process it more difficult.
Brokers that do not verify your information before you deposit, will require you to verify your info, when you want to make a withdrawal.
Withdrawal Time Frames
According to a circular released by CySEC in 2016, the broker must process your withdrawal request the same day you make the request.
In case of a positive cash balance in the retail client’s trading account, CIFs must process the client’s request to withdraw funds on the same day that the request to withdraw funds was made, or the next working day if the client’s request is received outside of normal trading hours.CySEC Circular C168
Withdrawals are always processed as a “refund”. If the investor made a deposit via a credit card, then the withdrawal will go back to the same credit card.
If the money was deposited via Swift / Wire Transfer, the money should be returned to the same bank account. Depending on the country you live in, it can take between 1 – 4 business days for the transfer to happen.
There are many reasons why your are having problems withdrawing your money from a broker.
If your broker is licensed and regulated, here are some common problems that may prevent your withdrawal request from being processed.
- Missing information on your account profile
- Wrong bank information details (international routing number)
- Outdated personal identification documents
If your broker is offshore and not regulated, then there is a high chance you are dealing with a scam, and your hopes of withdrawing your money is very low.
Offshore brokers do not follow the law, and use many tricks to scam people out of there money. They make false promises of high returns, and use many excuses when you try to withdraw your money.