I deposited several thousands (just under 10) at a broker , trade, then request for withdrawal. At this point a representative from that broker contact me asking all sorts of questions about how I generate wealth, even ask for copies of documents to prove my claims. I believe it is not their business to meddle so I reject the request, he then said that my withdrawal is on hold until I “cooperate” and “provide all necessary documents”.
My question here: is it legal for a broker to do so? Is there any law based on any regulatory bodies that allow them to do so? Or they just make up their own rules and enforce it at the point where client cannnot refuse?
Any experience sharing/advice is appreciated. Thanks
No, its not normal. Brokers usually only ask for identification documents and a adress document. Its better to always test a broker with small deposit and then try to withdraw. I get really suspicious if i open an account with a broker and they call me, most times they are just triyng to trick you into depositing money to your account.
They can ask you that if you are trying to withdraw to a different account than the one you used to deposit. Could come under money laundering checks. If not, then it sounds like they’re trying to be difficult. Always check the broker is regulated and with small deposits. Not sure why you deposited and now want to withdraw?! Sounds like a lack of knowledge on your part. Next time just post a topic of you’re about to do before you do it. Chalk it up to experience, provide the documents and get your money back.
They did not ask for documents when he deposited the funds. Now that he wants to take his profits, they asks questions. That sounds like a broker who wants to make withdrawal difficult because they don’t want to pay. I have done several withdrawals with Forexchief and none of such document issues came up. Next time choose your broker wisely, read their terms as well. It could also be that you are withdrawing money to a different payment system to the one you used when making the deposit.
In a well regulated jurisdiction, the broker has to ask all their probing questions when you apply for an account. Withdrawal or account closure is then just a formality.
If they didn’t ask the questions at the start, they’re not in a well regulated jurisdiction, so they don’t need to be asking them now. It does sound like they just want to hold onto the money. My guess is they delay as long as possible and then offer a re-fund if you pay a penalty: expect this to be up to 50%.
Don’t have any further correspondence with them. Contact their regulator or your lawyer now.
To clarify, I did follow standard account verification procedure on account opening (ID and such). The extra documents on wealth request come later when I ask to withdraw
Oh you’ve gotten yourself one of those offshore brokers. Just to let you know it maybe under Cysec but you’ll have VERY LIMITED OPTIONS if anything goes wrong and you’re withdrawal issues may increase further.