Question: Why online Forex brokers sometimes reject withdrawal requests against traders?
Not all brokerage firms reject or delay withdrawal requests of its clients.
In fact, majority of FX brokers process withdrawal requests smoothly without a trouble.
The reason why some FX brokers reject withdrawal requests from traders, is because the brokers are acting against their clients.
This type of broker is called as “Market Maker” as the broker provides liquidity to its clients and counter order(hedge) clients’ orders in order to let clients’ trades executed.
In this case, there will be “conflict of interest” between traders and the broker, and the broker may take some actions to make sure that the broker can continue profiting from their clients” funds.
As a result, some brokers reject withdrawal requests or cancel profits on clients’ accounts.
It is an illegal activity unless the broker specifies that condition in the terms and conditions signed by the client.
Thus, it is very important for anyone to read through the terms and conditions before agreeing to it.
You are also recommended to ask your broker, if there are any cases that the broker may cancel profits or reject withdrawal requests.
For the list of MT4 and MT5 brokers, please visit the page below.
