General Information About Withdrawals
We are living in a truly global world. Binary options brokers operating from one country have traders scattered across the globe. The deposit options available to the clients are just as varied. For instance, there are wire transfers, credit cards, and e-wallets such as Skrill (formerly known as MoneyBookers).
Although making deposits using any of these methods is practically pain-free, making withdrawals using the same methods proves to be more complex in most cases since customers have to provide certain documents in order to meet anti-money laundering regulations.
No broker can circumvent this part, since it is a legal requirement. So, there is no need to feel inconvenienced when your broker asks for particular documentation before allowing you to make withdrawals. As a matter of fact, this process ensures protection of your financial information, and by extension, your money.
You definitely don’t want your broker to send your money to anybody but you, and the only way the broker can do this is having the information to verify that the money going out of your brokerage account is actually getting to you and not some random identity thief.
Furthermore, it is not like you usually just walk into your bank and expect to get money from your account without identifying yourself in some way or another. So, why would it be any different with your binary options broker?
Therefore, rather than looking at the request to provide your identification documents as a bother or a cause to be concerned about your broker’s intentions, think of it as a cautionary measure to guarantee the security of your money.
Generally, you can make withdrawals through the same method used to make a deposit. Typically, profits are withdrawn using wire transfers. Nevertheless, some brokers allow customers to make withdrawals through other methods, but you should confirm this before making deposits.
There is also the issue of maximum allowable withdrawal. Some brokers allow their clients to make withdrawals of over $10,000 via wire transfer and also offer a decent maximum withdrawal for credit cards.
Other brokers may have a lower maximum for wire transfers and an even lower maximum for credit cards. However, if you are investing between $200 and $1000, you do not have much to worry about, but those investing more should learn more about their brokers before making deposits.
Regardless of the withdrawal limits, you should be able to request another withdrawal if you need to. Of course, your account should be able to handle the withdrawal demands.
Keep An Open Mind When Withdrawing Your Money
When making a purchase, the process is usually as smooth as can be. But if it turns out the product fails you in one way or another and you have to request a refund, complications set in and pesky regulations limiting your options start to kick in.
There are usually time restrictions on when you can request refunds, and you have to present some documents before you can get your money back.
Also consider the fact that, when making deposits with your bank, nobody will ask you to pay anything extra, but the moment you make a withdrawal, you have to pay some fees.
The point is, having to pay some fees and present some documents when getting your money back is not completely out of the ordinary, it is indeed a well-founded tradition, which is why you should not be alarmed when similar demands come up when dealing with binary options brokers.
With that out of the way, let us delve deeper into the issue of withdrawals.
In fact, put yourself in the shoes of the broker, bank, or any financial institution for that matter. Imagine that several clients decide to make withdrawals at once, what do you think would happen? Your books would be completely out of whack.
If you recall, Cyprus had a similar situation when everybody wanted to get his or her money at the same time, and it was chaotic. The broker just can’t give everyone his or her money back at a moment’s notice. It is one of the reasons why brokers and banks are reluctant to have their clients get their money out of their systems.
There is also the issue of withdrawals seemingly taking forever to reach your account. What’s that about? After all, everything should happen in an instant since all you have to do is click a button and voila! The money shows up in your account!
Yet, brokers take 3 to 5 business days to send the money. True, you have to send your identification documents for verification, which shouldn’t take more than 1 or 2 days. So, why would a withdrawal take a whole 2 or 3 days? What happens during this time?
Well, obsess over this no more: the period is meant to persuade you to leave the money in the account. You can even receive offers to partake in special promotions. They can even say they did not receive your documents so that you send them again, and, who knows, in the meantime, you can change your mind about the withdrawal.
All these measures are intentionally put in place to make withdrawals much harder than deposits for both brokers and banks, since they need the money to remain in their coffers. It is actually part of the reason why PayPal is not usually a withdrawal option (it’s too fast), or why there are oftentimes outrageous restrictions on withdrawals.
A quick, smooth withdrawal is not a broker’s utmost priority, but you should, nevertheless, try to keep your cool, it’s still your money after all. You are entitled to every penny. So, make sure your documents are in order and cultivate some patience as your withdrawal comes along.
What Documents Do You Need?
Binary options brokers usually require the following documents before allowing withdrawals.
– An official picture ID
– Proof of address in the form of a bank statement, utility bill, credit card statement, and so forth
– A front and back copy of credit card with only the last 4 digits shown (only in cases where a credit card is used to make deposits)
Many traders mistakenly think they are victims of scams when they get requests for these documents when they try to make withdrawals. Keep in mind that this is how the entire system works, and in future, all binary options brokers as they become regulated will have to demand an ID.
I am convinced that as more brokers become regulated, the process will be less tedious. Still, you will need to give them proof of your identity, for your protection as well as for compliance with various anti-money laundering laws.