Easy to Deposit, Harder to Withdraw. Why?

Last updated on August 8, 2017

Binary Options Withdrawal – The Need to Understand

Haveyou 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. Read more about withdrawal and other issues in our Binary Options Articles center.

Basic Withdrawal Information – Don’t Let Withdrawal 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) 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It is usually possible to withdraw your initial deposit via the same method you used for deposits; profits are usually withdrawn via wire transfers unless eWallets are supported.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.

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.

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.

What do you Need?

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- which can be 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 but 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.

And Remember! “Even The Best Brokers Suck Sometimes!”

posted in Binary Options Articles • 13 Comments

13 Responses to “Easy to Deposit, Harder to Withdraw. Why?”

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Bill
02/10/2019 11:14

I think that aside from all
I think that aside from all things noted in the article, which reflects the real world, additional thing to take into consideration is local regulation followed with some regulations that payments systems, i.e. credit card issuers might have. Brokers will usually not discuss them with traders
Jenn
08/08/2017 06:59

Hey there
Hey there, I have concerns regarding my withdrawal, I wasn’t able to withdraw myself because every time I was requesting for withdrawal everyone it says no oge found so my account manager did withdrawal request for me ,as soon she did it was done and then I received email asking for my bank account, routing number and swift code etc . But tgen when I log in again I can’t see my account section and also the history now I m worried, y I can’t see my pending withdraw in the history, am I suppose to send the bank details on the same email I received. Any advices will be appreciated. Thank you all
Logan
07/28/2016 00:11

I sent to a options broker
I sent to a options broker my driver’s licence with the serial number blocked out, they rejected it because it was blocked out. Do they need the serial number?
Ronnie
04/17/2016 16:08

Bank the binary: They adwertise that
Bank the binary: They adwertise that they use a Google BO computer with 70% win ratio. Try to find out my paygrade. Told mr Goldman that i needed to wait to end of the month to deposit, but then I would lose my Google spot.. If I just gave him my credit info he would reserve the spot. So i did *stupid but Master Card secure 3D saved me from the bank taking money out of my account at the next paycheck. STAY AWAY!
Bruce
02/03/2016 22:57

That's why there's a big DEPOSIT
That’s why there’s a big “DEPOSIT” always highly visible at each broker but almost impossible to find the “Withdraw” link sometimes.
john Hortten
03/23/2015 21:08

Don't do it
Don’t do it! I have been taken by SpotFm for 750$ I earn and want pay me. Guys they even drop my email account. Also I kelp trying because I want to make some money to retire early. So I invested into Citrade 5000$ and the dam broker want talk to me or return my calls. I am a emergency medical worker saving lives the best I can everyday who can save me? They are white collar crooks on a level lower than a crack head. I think I have to write the attorney general or my Congressman m. Someone have to blow the whistle on theses white collar crooks. Can someone help me.Many others will get taken. These are crooks people!
Vincent Castellano
12/05/2014 20:44

Ever hear of a regulated
Ever hear of a regulated, transparent, stock market, Nadex perhaps?
Icktae P
11/12/2014 17:09

I have requested to withdraw (close
I have requested to withdraw (close my binary trading account) funds from this particular B.O. broker and it has been 5 business days past and they still have not processed my withdrawal. So I called the broker and spoke to my account manager and he tried to convince me to not close my account. To make long story short, I told him I want to close my account. One day past after our conversation, still have not processed.
If the broker is not cooperating with my withdrawal who can I turn to so that I can get my money back from my account?
By the way, my account is verified.
- Bill
  11/14/2014 20:36
  
  Ickae P - similar situation for
  Ickae P – similar situation for me with this broker. Sent request form on Monday. Contacted them on Wednesday and spoke with account manager who said they have the request but tried to convince me to add money and challenged me on my reasoning for the withdrawal. Today is Friday and still nothing has changed. If nothing by end of next week, I will be contacting my credit card company and disputing the charge.
Emmanuel
09/13/2012 08:03

I do love the way you
I do love the way you have framed this scpiifec challenge plus it does indeed supply me some fodder for consideration. On the other hand, coming from what precisely I have witnessed, I only trust as the actual remarks pack on that folks remain on point and in no way start upon a soap box of the news of the day. Yet, thank you for this outstanding point and even though I can not necessarily go along with the idea in totality, I respect the point of view.
CLIFF
09/06/2012 14:52

Something definitely seems fishy at Banc
Something definitely seems fishy at Banc De binary. I tried to open an account with them and deposited 500.00 US dollars but the same day a “manager” calls me asking me to deposit 5000.00 so I could take advantage of a “free” training. Also they would not give me the demo account unless I deposited the 5000.00. Of course I did a chargeback on my credit card used to fund this scam and did not want to bother with them. I think binary option may be a big ponzi scheme, and eventually they are all going to fall apart, just like all ponzi schemes do.
Jeff Roseberry
08/27/2012 15:03

What is a reasonable time frame
What is a “reasonable” time frame to expect for receiving proceeds for a requested withdrawal? VIPBinary.com says 14 business days!! I have not set up an account yet and when I do, I’m certain that it won’t be with these guys, but is this typical? Ability to trade quickly and high liquidity kind of go hand-in-hand . . .
- Marc
  09/02/2012 08:08
  
  I have - unfortunately - an
  I have – unfortunately – an account at Banc de Binary. I sent them all required documents needed to withdraw a part of my capital. That was 6 weeks ago…and I am still waiting. They do not reply to Emails, which proves that they hold back the money intentionally. Here in Switzerland we call that a scam, but maybe this is common in that industry. In my opinion it’s the MOST important criteria if a broker is rated, how reliable and trustworth he is when it comes to withdraw your money.