Apart from planning how to generate money in forex trading, it's also important to plan how you withdraw those profits. Learn how to build a withdrawal strategy in this article.

forex withdraw

Although the withdrawal process is generally the same in most brokers, certain things are different from one broker to another, such as payment methods, fees, or limits.

This is why it's not exactly wise to withdraw randomly. Instead, there are withdrawal planning strategies that you might want to check out to get the best condition.

Those include:

  1. Only withdraw after you reach a certain percentage of points.
  2. You can withdraw once you reach the desired account size.
  3. Set the withdrawal period every month or week, depending on your target.

Why do these steps important to withdrawal, and how does it affect your withdrawal? This article will delve deep about this issue.


Check for Withdrawal Issues

First and foremost, you need to make sure that your Forex broker has no withdrawal issues. Many people made a fortune from forex trading, but not all could easily take and use the money they've earned due to withdrawal issues with the broker.

Unfortunately, in the forex market, it is not uncommon to find brokers that like to complicate withdrawal processes. Some of them even reject withdrawal requests for unknown reasons. It's worth noting that such behavior may not always indicate that the broker is a scam, but it shows that they are unreliable.

It's better to only trade with top-regulated brokers because if you encounter any withdrawal issue with the broker, you will be able to rely on the authority to take action against the company. Also, always check the specific fees, rules, and possibilities. If the broker asks to wait a week or more for withdrawal, it's a concern.


Make a Withdrawal Plan

When choosing the actual strategy, you need to remember that just like any other aspect in forex trading, there is no ultimate strategy that's perfect for any condition or suitable for anyone. Thus, you should arrange your strategy based on your preference and trading style. Here are some ideas to start with:


1. Withdraw after Reaching a Certain Percentage Or Profit

You can choose to withdraw once you reach a certain amount of profit, so you basically set a specific target that you must achieve before allowing yourself to withdraw.

Essentially, you can set the target whatever you want. However, it's important to pick a realistic number that you can achieve in a considerable time. If you set a target that's way too ambitious, you might take a very long time to achieve it and end up not withdrawing at all since you haven't reached the goal.

In contrast, if you set the goal too low, it would be too easy for you to achieve it. You'll end up withdrawing too often and multiply the withdrawal fees.

Typically, people define long-term sustainable forex trading if their returns are better than benchmark indices, especially in bearish markets. You can check how the market is going and how much indices gain on average. Setting your goal around this number may be a great idea.


2. Withdraw after Reaching a Certain Account Size

This strategy is generally the same as the previous one, but you focus on your account's balance instead of profit. So once it reaches a certain number, you can start the withdrawal process. The benefit is that this can prevent your account from growing too much. This also relates to your mental stability and how you can control your confidence while trading.


3. Withdraw Every Once in a While (Weekly/Monthly)

This is another option that's pretty popular among traders, especially those who use forex trading as their main income. The target is to make consistent profits so you have enough money to withdraw by the end of each week or month.

You can decide the period (weekly, monthly, and so on) depending on your needs and how much you usually gain. The drawback is that the withdrawal amount may not be the same in every period, so it can be higher or lower than the previous transaction, depending on how much you earn during that time.


Benefits of Planning Your Withdrawal

Once you're sure that the broker is legit and has no withdrawal issues, it's time to think about how and when you will withdraw. This is called a withdrawal plan; keeping your money management on the right track is necessary. But before we learn how to make one, let's see some of the benefits you can gain from it.


1. It Motivates You

Motivation is perhaps the most obvious reason why you need a withdrawal plan. If you plan your withdrawal beforehand, you know exactly when you will get the money and probably spend it in your day-to-day life. If you set a specific goal before allowing yourself to withdraw, you will be encouraged to stay focused and reach that goal.

Not only that but setting a goal will also help you from becoming overconfident with your trades. Often, traders get a winning streak and feel they've "beaten the market". After that, they would become overconfident and drastically increase their position size.

Instead of gaining bigger profits, such reckless behavior tends to result in devastating losses. Therefore, it's great to withdraw once in a while to let you enjoy the profit and help you stay focused.


2. It Helps You See the Bigger Picture

Having a withdrawal plan would help make your trade more organized. It basically provides a framework for your trading. You can see your trading journey from a bigger perspective and perhaps see the purpose of it. It would remind you of the goal that you've set, not just trading for the sake of trading.


3. It Helps You Put Losses into Proportion

Still related to the previous reason, a withdrawal plan helps you understand that losing trade is not the end of the world. Instead, losing trades is a part of your trading journey.

Forex trading isn't some game where you'd be able to dodge all of the pitfalls and come out with profit every single time once you master it. The truth is that every forex trader wins some and loses some, so getting losses here and there actually takes you closer to the bigger goal that you have in mind.


Final Notes

Some traders prefer to withdraw their profits regularly, while others prefer to build their trading account before withdrawing. Think of it as an income made from forex trading. In other cases, it's also possible to build your account and only withdraw a certain percentage of the profit because the rest will be used for bigger position trades in the future.

There's no right or wrong when choosing a withdrawal strategy. It depends on each trader's goal and how they decide to manage their money. The point is that it's essential to have a withdrawal plan. It will help you stay motivated and deal with trading losses better when they do happen.