Binary Options Withdrawals: Why Your Broker May Seem Slow
So, you’ve finally opened a new account with your binary options broker and are receiving your live 5 and 15-minute binary signals.
You carefully make your first few trades and find your account balance is higher than where it started.
Congratulations! You’re off to a positive start as a winning binary options trader.
Feeling good about your initial success, you now invest your valuable time in learning how to consistently make money in binary options trading.
Several months later, your hard work and discipline has paid off and you’re ready to withdrawal your well-deserved profits from your binary options broker.
But you suddenly discover that withdrawing money out of your account is not as fast as you expected it to be.
Does this sound familiar?
If so, continue reading to discover how the binary options withdrawal process works and why it may sometimes seem slow.
Editor’s note: This article originally appeared here.
Binary Options Withdrawals – The Need To Understand
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.
Basic Withdrawal Information – Don’t Let Withdrawals Be A Hurdle
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) and wire 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.
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 a scenario…
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 reason 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. Other funds will have to processed through the bank transfer.
Relax, It’s Normal
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.
Okay, 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.
What You Need For Smooth Broker Withdrawals
The following identifications and forms are usually required by all binary options brokers in order to perform a withdrawal (read more about brokers’ terms and conditions here):
- Official ID (with picture)
- Proof of Address – utility bill, bank statement, credit card statement, etc
- If credit card used to deposit funds: Front and back copies only shows last 4 digits
Lots of traders are wasting a lot of time thinking that they are victims of scams when they receive these requests.
Remember, this is how it works and will continue to work in the future; for all binary options brokers it’s a Must to require ID and this is being enforced by regulators.
I am sure that once we see more and more regulated brokers, the process will be a lot smoother.
However, you will still need to provide them with proof of who you are, both for your protection and to comply with the Anti Money Laundering policy.