We have already discussed that depositing money with broker is an easy task because who does not want to take money. This steps, first ones are usually easy ones since you give them the money, the “problem” comes when you want to withdrwa your profits or the money that is left in the account. There comes to complications because they want to check that everything is fine and that the right person which also deposited, gets his money, so there can restrictions on brokers end or there is some human factor involved.
Have you ever had major issues depositing money with a binary options broker? I bet you haven’t. And the reason is simple: depositing money into any binary options broker is easy because almost no one will deny taking your money. Just like it works in most businesses, the first step, depositing your money, is always smooth and efficient. The problems only arise when you want to withdraw your profits or get your money back, or at least what’s left of it. There are a few reasons why withdrawal is always more complicated then depositing, some are related to global economic restrictions, some related to the broker itself and still others are related to the human factor. This article will provide you with some explanations and instructions related to withdrawals, and how your deposits can affect your withdrawals.
As we may know, brokers operate globally since traders are from all around the world but they are phisically located in one place. The same method that you have used to deposit money can also be used to withdraw it. To withdraw it you have to fill and submit few forms so there is no money laundering involved basicly and this step is required by law. This is not they are holding your funds, it is for your own protection. Another issue which can happen is the maximum you can withdraw, so you need to check that with your broker to know it before when it comes to it.
Basic information regarding withdrawal
In today’s global economy, binary options brokers can be located in one country while the traders who use it are based all over the world. Customers also have many deposit options including credit cards, e-wallets (moneybookers, etc) andwire transfer. In most cases the same methods are used for withdrawals but can be limited because of anti-money laundering laws, or aml. It’s not something that a broker can skip, since it’s required by law,so don’t be so frustrated when the binary options broker wants you to provide identifications. After all, it is for your protection. What would you say if someone stole your credit card and asked for a withdrawal from your broker? Would you be happy if the broker sent all your money without making sure the one asking is really you? I don’t think so.
It is usually possible to withdraw your initial deposit via the same method you used for deposits; profits are usually withdrawn via wire transfers unless ewallets are supported. Some binary options brokers allow electronic billing methods but you should check before even depositing. Some brokers who take ewallet deposits don’t give ewallet withdrawals.
Another issue related to withdrawals is the maximum amount. Some brokers allow a high maximum amount (over $10k) via wire transfer and reasonably high maximum withdrawals via c.c, while others limit the traders to a lower max for wires and even lower limit for c.c. Withdrawal. Traders who invest between 200-1000$ shouldn’t be too worried, those who invest more 2000-3000$ should be aware and check their broker before depositing. No matter the limits, you can always ask for another withdrawal if you need more money… and of course, if your account can handle it.
Put your things together even before deposit!
These are the forms and type of identifications you will need to give to your broker when you decide to withdraw the profits:
- Your id scan(picture must be visible)
- Proof of your address(you can do that by giving them bank statement or utility bill for example)
- Scan of your credit card if you have used it to deposit money
This is not scam traders out of their money, it is just a standard procedure by law which must be done in order so they can send you money.
Here are a few things to think about
I want you to think about something : once you deposit money into any bank nobody will pay you anything but they make money when you withdraw, you have to pay fees. What i am trying to say is that paying a fee, and providing the other party with ids when money is involved, is not something out of the ordinary. It’s a well known practice so don’t get alarmed when that happens,the thing is to remember that some issues are because of the law, and some issues are because of the brokers.
Let’s go a bit deeper and imagine this: what do you think it would happen to a financial institution (whether it’s a bank, forex broker or binary options broker) if all account holders try to withdraw their money at the same time,? Their balance book would be totally upside down, it would be a complete mess (remember the cyprus situation when everybody wanted to withdraw at the same time?). This is one reasons why no broker or bank wants you to take your money out of the system. There may not be enough cash for everyone at the same time. This is a major concern of regulation and why regulated brokers are required to have segregated accounts for your money.
Why are credit card withdrawals so limited? Think about this; when you use your credit card to deposit with a broker you are really buying credit. If you deposit $500 you get $500 in credits, plus bonuses if you take one and profits if you earn them. When you go to make a withdrawal it’s not like moving cash from one bank to another, it’s really a refund of your initial purchase and any other funds will have to processed through the bank transfer.
The process of cash out the withdrawal
In order to start with withdrawal process, login to your binary options broker and navigate to the right section. When you are there you need to enter the amount you want to withdraw. You have to meet some minimum, which means if you want to withdraw the money you have to meet these kind of profits. After you have choosen how much you want to withdraw you choose the payment processor and confirm the process. After that, the representative of binary options broker will contact you for further details and will walk you through that everything is done smoothly. When eveything is done you should receive your money in 7 days’ time.
Keep calm and withdraw your money
When you buy something, the process around the world is always quick and easy .if you are not satisfied with the product and want a refund, things start to get complicated and restrictions apply: you have to ask for the refund within a specific time period, some documents may be required and time will pass until you get your money back. These tactics are all intended for the business to keep your money as long as possible, and maybe forever. This is also true of binary options brokers so keep calm when requesting money, they make it hard on purpose.
You might wonder why a withdrawal takes so long; after all, everything is done with the click of a button so it could be processed within seconds but most brokers need 3 to 5 business days. Ok, you have to send your ids and they have to verify them but that cannot take more than 1 or 2 days max. What about the extra 2-3 days? What are those for? Well, that extra time is used to convince you to leave the money in the account.
Maybe you will receive some phone calls with offers of “special promotions, just for you, only today”, maybe they want to tie you into another bonus, maybe they wait for you to trade and tie up the money, maybe they will say they didn’t receive the documents so you have to send them again or maybe they will just let you cool off hoping you will change your mind about withdrawing. Everything the broker does is designed to make a withdrawal harder than a deposit because brokers (and most financial institutions) want your money in their accounts.
This is also one of the reasons why you can’t withdraw with paypal (which is very fast) or sometimes ridiculous restrictions apply – quick, smooth withdrawals are not top on a broker’s list but all you have to do is to keep calm and determined. It’s your money and you are entitled to it so get your documents organized and have a little patience.
Withdraw money any time
Actually you can do that any moment you want to request your payment if you have meet the minimum. If they do not allow you that then i would double-check if broker is really legitimate. Definitely check if your withdrawal is not possible because of the bonus since that is reasonable and broker will tell you when it is going to be available.