These payment methods set the standard of withdrawal processes in forex brokers. Many traders choose them because of their reliability in processing global money transfers.
Forex trading is arguably the most popular form of online trading with the largest market in the world. It holds an immense amount of opportunities for people to make a profit along with a corresponding level of risk. For people to become forex traders, they need to register with a forex broker as this will provide them with the platform needed to conduct forex transactions including depositing and withdrawing funds.
Once a trader opens an account with a forex broker, they can deposit funds needed for trading and when a substantial profit is made, the trader can make a withdrawal.
While there are various forex brokers with multiple options for withdrawal, some methods are more common and popular among brokers. This can be determined by the ease of withdrawal and the frequency of using such methods or options. In most cases, forex brokers require their clients to make their withdrawals via the same method used for deposits. There are two reasons why this is done:
- To guard against money laundering.
- To ensure there is no kind of theft or any illegal purpose for making a withdrawal, especially if an account has been compromised.
Three major popular withdrawal options are available across most regulated forex brokers around the world and they are:
Bank transfer remains the most common option as it is available across virtually all forex brokers which probably makes it the most popular. Traders only have to provide details of the bank account to which the money is to be sent. The process takes time depending on the broker. Usually, it should not take more than 3-5 business days, but depending on the broker and the location of the trader, it may take more than that. It should be pointed out that withdrawals generally do not incur charges with most brokers; any fees that traders have to pay usually comes from their banks or if there is an intermediary bank involved due to differing currencies.
Debit or Credit Card
Debit or credit card is another popular option, in which Mastercard and Visa are universally accepted among many brokers. Just like the bank transfer option, traders need to provide the necessary information about the card they will be using for withdrawal. The name on the card is expected to match that on the trading account, so if there is a discrepancy, the card will be flagged and the trader may not be able to use that card for withdrawal. Depending on the broker, the withdrawal process should not take more than 1-3 business days; some brokers ensure that within 1 day, their clients get access to the withdrawn funds.
Electronic wallets, commonly known as e-wallets, serve as another popular option although not all forex brokers offer them. Moreover, there are multiple forms of electronic wallets available which means some may be offered by a certain broker but might be unavailable with another broker. One of the most popular electronic wallets is PayPal which can be found among most brokers that offer e-wallets as a payment option.
Other forms of electronic wallets include Skrill and Neteller. Withdrawals via this option tend to be the fastest as it does not take as long as bank transfers or debit/credit cards. Nevertheless, it sometimes comes with significant charges.
Overall, the three withdrawal options discussed above have their benefits and drawbacks but it does not change the fact that they are the most popular options among traders. It is said that humans tend to take the path of least resistance and these three options do not pose a lot of challenges to traders when they are used.
As long as a forex broker offers any of these options, traders are likely to pick any of them and use them to withdraw their funds. Some brokers have minimum withdrawal requirements which means traders must have a certain amount of profit before they can make a withdrawal. Hence, traders should understand the terms and conditions of the forex broker they are dealing with before signing up with them so that they do not encounter problems during withdrawals.
Richard Arifin Sentausa
Nov 27 2022