Withdrawing your binary options profits is very important. It is why you are trading, isn’t it? To make profits and then use them to do what ever, live life, buy a car, pay for kids school etc etc. The reality of the situation is that it can be difficult to withdraw money from a binary options broker. There are several reasons for this, not all are scams I assure you. Some are affected by method of deposit, others by your geographic location or even by regulation. This is a quick guide into what you can expect and how to make the best withdrawal.
Regulation Makes A Difference
Regulation makes a big difference in your withdrawals. CySEC and the newer Japanese FSA regulations make withdrawals much safer. In order to meet compliance regulations these brokers must hold your money in third party clearing accounts which means your money is always available. Your deposits, at least with CySEC brokers, are protected in the EU under the Investors Compensation Fund. When you make a withdrawal you will find the terms much easier to deal with, the time until you receive your money much shorter and your bonus monies available much sooner.
This does not mean that an unregulated broker is bad. You may not have access to a CySEC or FSA broker, or you may simply to choose to use another broker located outside one of those jurisdictions. That is OK. There are still good brokers with decent withdrawal terms, just be sure to check into them before you make you deposit.
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Banking At A Binary Option Broker
The brokers always make it easy to make a deposit, or fund your account as they like to say. The quickest way for them, and perhaps the worst way for you, to give access is through a credit card. This isn’t necessarily a problem but it could be, especially if you only make the minimum deposit or a very low deposit. When you withdraw back to that card you will be faced with a limit on the amount you can withdraw, regardless of the individual brokers terms. This limit is the original amount of the deposit you made. When they pay a withdrawal they are actually giving you a refund to your card, they cannot refund more than you gave them. After that amount is met you will have to receive the rest through a wire transfer or check.
Withdraw By Check, Are You Kidding?
Withdrawing by check may be the worst method. This is only because of the amount of time it will take to receive the check and a couple of other concerns that I have. Depending on where the broker is located it could take a very long time for the mail to deliver the envelop even if it is priority. Along the way there is no telling what could happen to it. It could get lost, damaged or stolen. Once you get the check you will have to deposit it in your own bank account, there could be problems there. I’m not saying these things happen all the time but we’re talking about money so I think it pays to be cautious.
Wire Transfers Are Much Better
Wire transfers are a much better way to handle your withdrawals. Of course, you will have to have a bank account or other that you can make the transfers to. This is not a problem as nearly any local bank will do. Most brokers will have a short processing time which will affect the amount of time to receive your money regardless of withdrawal method. A short time, from my experience, is 3-5 business days. Some are shorter. The longest processing times can run up to a month. On average it will take up to 2 weeks, 10 business days, to receive money by wire.
The Best Way To Withdraw Profits
The best way to withdraw your profits comes down to how you deposit your capital to begin with. I suggest using Skrill or some other on line wallet. Skrill is a place where you can set up an account from which you then fund your binary options trading account. You can link your Skrill account to your banks, your credit cards, your debits cards and other forms of payment. You can then transfer money back and forth from your accounts and your Skrill account at will.
The best thing about it is that these transfers are nearly instant in most cases. There are many other benefits to using this method as well. For one, you can use the Skrill account as a collection point for capital. Then, using it to make a deposit is very easy. Most binary options brokers accept Skrill or MoneyBookers or some other on line wallet. There is no limit to deposit and none for withdrawals in most cases. Aside from processing times Skrill withdrawals are instant.
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Read This Before You Withdraw
Before you can make any withdrawal you will have to meet identification requirements. This is standard for the industry and required to help prevent money laundering. If you do not fulfill the requirements you will not be allowed to withdraw. This can cause unnecessary delays for you. You will need to provide a picture ID, bank account numbers and in some cases utility bills or other material. I suggest getting everything ready before you even make your deposit. Make photo copies or scan everything into your account and begin the verification process at the very start.
Bonuses will definitely make withdrawal a difficulty. Bonuses, or free money, always come with a trading minimum and often other conditions that can affect your withdrawal. Trading minimum is the minimum value of trades you must make in order to “earn” the bonus. If you try to withdraw any principal or profits before reaching the minimum will negate the bonus and all profits tied to it. Some brokers will even prevent you from withdrawing at all before reaching the minimum but avoid those. CySEC regulated brokers have better bonus terms. They allow you to begin withdrawing capital and profits based on bonuses after reaching a certain threshold of trades.