How to withdraw money from your forex broker – A quick overview

Withdrawal using LMFX as an example.
Withdrawal using LMFX as an example.

Whether you’re a forex day-trader, a scalper, or a long-term trader, a time comes when you will need to withdraw your profits from your accounts.

The exact procedure for this may differ from broker to broker, but the dynamics are the same. It would involve moving your funds from the broker’s platform to your bank account through specific steps.

Brokers may require that you verify your profile before you access your funds. You may have to first move the funds to your wallet from a trading account on some platforms before you can withdraw them. All these would depend on your broker.

Most brokers offer a wallet in addition to a trading account. The wallet is where you would store your funds while not in use.

What is a wallet account?

A wallet account is where your funds are stored in your forex account. When you sign up with a broker, a trading account that comes with a wallet is created for you. When you fund your account, the money is deposited in your wallet. The funds are then taken from your wallet when you place trades. When you earn a profit, the money goes into the wallet

Most platforms have a fund manager tab on top of their dashboard. This is where you get to see your money, make deposits, and withdraw funds to an external source.

Steps to withdraw money from your forex account.

Withdrawing from a Forex broker is easier than you think!
Withdrawing from a Forex broker is easier than you think!

Most platforms would have your balance displayed in the top corner of your main menu, either left or right. 

Follow these steps to withdraw if this is the case:

1. Click on the tab where your balance appears. A drop-down menu appears once you do this.

2. Select WITHDRAW. This brings up a form for you to complete.

3. Fill out the form and click on SUBMIT.

If you are withdrawing from a trading account and have multiple accounts, they would be visible on the dashboard.

What is a trading account?

All your trading activities would take place in your trading account. Once you buy or sell any currency pair, your trading account is debited to run that transaction. Once you close a trade and take profit, the funds move to your wallet. 

Brokers offer different trading accounts, such as a standard account, mini, or ECN account

Forex traders can operate multiple accounts with their broker if they choose. 

Follow these steps for withdrawals from a trading account:

1. Click on the trading account from which you wish to withdraw. 

2. Select WITHDRAW

3. The different payment methods that your broker offers should pop up. Select your choice of payment option and click on next.

4. Fill out your details on the form and enter your account pin. Then click on OK or REQUEST.

5. Confirm your request, and a notification will be sent to your email once the request has been processed.  

The withdrawal processing time will depend on the broker and the payment method. But it will typically take a few hours to a few days for the money to get to you.

On some platforms, they have a FUNDS MANAGER tab that houses all things ‘funds.

Steps to withdraw:

1. Click on the fund’s manager tab on your dashboard.

2. Select the account or wallet from which you wish to withdraw. 

3. Pick a withdrawal option. Depending on the broker, this may include Netteller, Skrill, Mastercard, Visa, or Unionpay.

4. Fill out the withdrawal form and enter your pin.

5. Confirm your request and wait for an email or SMS notification that your money has been credited. 

5. Confirm your request and wait for an email or SMS notification that your money has been credited.

Remember that most brokers will require verification of your profile before your withdrawals can be processed.

With most brokers, setting up an account to trade forex is very easy and takes minutes. Your broker may only require your name and email address to set you up in the initial stage of your forex trading.

However, the issue of incomplete registration and verification always comes up once it is time for you to withdraw your funds.

How can I verify my profile?

profile verification using BDSwiss as an example
Profile verification using BDSwiss as an example

The process of verification is as simple as the registration, as long as you have the necessary documents. 

These requirements will depend on your broker and the financial regulatory policies in your region.

Brokers in most regions will request the following:

1. A scanned copy of a government-issued identification card

2. A proof of residence. Your proof of residence can be a receipt of any utility bills or house rent. 

3. Proof of age. That is, a birth certificate or an affidavit declaring your age.

All of this may not be the requirement for all countries. Your broker will advise you accordingly.

Other withdrawal options.

In some countries in the US and the Americas, forex traders can set up an ACH with their broker.

Automated Clearing House (ACH) is a payment system set up for the easy transfer of funds between individuals and businesses. 

With this, forex traders in those regions can directly move funds back and forth between their forex accounts and bank.

Steps to withdraw through ACH transfers.

1. Notify your forex broker.

Find out if your broker offers ACH services first. If they do, you need to create an official ACH relationship with them. 

It’ll make it fast and easy to fund your forex account and withdraw your profits from the broker’s platform. 

2. Enter your account information and bank in the ACH form.

You will be required to fill out and submit a form that contains your bank and account information. 

3. Withdraw funds directly to your bank account. 

Note:

The ACH form is web-based. To initiate a withdrawal from your broker, fill out the form indicating that it is a withdrawal. Enter the amount and other necessary information and submit. Then wait for your bank account to be credited.

Withdrawal fees and limits.

Nowadays, a lot of brokers do not charge forex traders for withdrawing funds from their accounts. This does not mean that the money you withdraw will be credited in full to your account

The payment channels are middlemen who help move your money from your broker to your desired destination, such as your bank, debit card, or any other applicable wallets.

There will be a charge for this, though minimal. The fees will depend on the payment methods. Banks are preferred when it comes to withdrawing from your forex accounts. This is because they charge the lowest for these transfers.

Depending on the payment method used, your account activities, and your jurisdiction, there will be a specified limit to the number of funds you can withdraw. 

Most brokers offer dedicated account managers to their clients who ensure you have all the information you need in your trading.

3-reasons your withdrawal may not go through. 

After trading and making a profit, you are filled with excitement to spend your money, only to find out that the funds are inaccessible. 

There are 3-reasons why this problem may occur:

1. Incomplete profile.

As we explained, your registration and verification must be complete before you can take out funds from your forex account. The process of verification is straightforward with most brokers. All you would need to do is upload scanned copies of the required documents to the broker’s website. They would advise you properly on this. The documents usually required are a national ID, proof of address, and maybe a birth certificate. Once your broker receives these, your profile will be verified and updated, and you should be able to withdraw. 

2. Using a different debit or credit card.

To prevent fraud, your broker may require the same debit or credit card that was used the first time while funding your accounts. If you use a different card than this, the withdrawal may not go through. Before depositing money in your account the first time, ensure you use the card or method you plan to continue with. You may face problems if you attempt to change your payment method.

3. Your broker might be a fraudster.

Sadly, there are bad people in the foreign exchange market too. And you may have fallen into their hands if you experience difficulty withdrawing your funds. They can use various methods to withhold people’s cash. For example, they could say you can not withdraw funds unless you make a specified ridiculous amount of profit.

Bottom line.

Part of your criteria for choosing a broker should be easy withdrawal and payment methods. Ensure that your desired broker offers various well-known options for payment and transfer from the traders’ forex accounts. Ask questions about fees, withdrawal limits, and minimum balance allowed in your wallet and or trading account. A good broker would be flexible and provide straightforward methods for traders to access their funds. Also, remember to complete your profile soon enough. It will make it easier for you, and you’ll enjoy your trading experience. 

FAQ – The most asked questions about How to withdraw money from your forex broker:

Is there the same procedure for every Forex Broker to withdraw money?

If you are wondering how to withdraw money from a forex trader, note that every broker has a different procedure. However, the dynamics remain the same. It involves the movement of the funds from the platform of the broker to the bank account using specific steps. In such cases, the Forex brokers would ask you to verify the profile before you can be allowed to have access to the funds.

There are some Forex brokers who offer the option of a wallet along with a trading account. Here, you can easily store the funds which are not in use.

How does a wallet on the forex trading account work during withdrawals?

A wallet is a place where the movement of funds occurs. When the account is funded, the money gets deposited into the wallet. Later the funds get taken from the wallet when the trades are placed, and when profits are earned, the money is reversed back to the wallet.

What is the time frame for forex withdrawals?

Although Forex brokers normally process orders immediately, the recipient bank’s processing time can reach 48 working hours.

Last Updated on January 27, 2023 by Arkady Müller