Can Brokers Use Logins from Dynamic IP Addresses as Excuse to Not Process Withdrawal?

Beginner Questions
1

Hello,

I’m new to forex and am planning to go live after some due diligence (I’m on demo now).

In the meantime, I was going through the possible scenarios that “some” brokers use to create problems for traders and I came across a curious case where a fellow’s profits were stopped from being withdrawn because he was using multiple IP addresses.

I find this a little ridiculous because I have a wireless connection which – [I]by default[/I] – gives me a dynamic range of IP addresses.

I don’t have a fixed-line internet in my area (only satellite internet) and so, having a static IP address is out of the question.

So does this mean that, if I trade using a [B]wireless connection[/B] (which assigns you a unique IP address each time you log in) and legitimately make profits, [B]I won’t be able to withdraw because the broker feels that I’m using different IP addresses?[/B]

This rather puts a spanner in the works because it gives a chance for brokers to act dubiously.

Any clarity from others who trade using a wireless internet with dynamic IP addresses, would be helpful.

Thank you :19:

2

Irongate,

Don’t worry mate. Because I am also using mobile internet connection which generate dynamic IP addresses. I never had any issue regarding withdrawals.

There could be several reasons brokers not allow you to withdraw the profits. I would like to list few scenarios.

  • Broker is a scammmer - Check Reviews and test broker withdrawal process
  • You have opened several accounts from different names under the same IP address
  • You are manually changing IP addresses to login ( Via various IP modification software )
  • Your IP address blacklisted and several other reasons

If I missed anything here request others to add their inputs

3

Perry, hi.
"* You have opened several accounts from different names under the same IP address"
Is this an issue with all brokers because, what if your spouse or child is also a trader…?

4

Thanks for the reply, perryfx. I appreciate it.

@konan

I’ve heard issues like that with payment processors like Paypal who limit people’s accounts if they feel that multiple people with the same/similar physical addresses and IP addresses were logging into their system.

I have a business Paypal account and so do two other family members. All of us use different ISPs just to be on the safe side.

Not sure if fx brokers have some unwritten rule about static vs dynamic IP addresses on their platforms but whenever I check the ‘Journal’ tab on my MT4 platform, I see the different IP addresses of my wireless connection being logged.

5

I searched some more on Google and found that a LOT of brokers who offer “Bonuses” and “Contests” to trap newbies actually disqualify a person from withdrawing if they use some form of dynamic IP address (the exact definition of “dynamic” is open to broker interpretation and/or convenience and, to some, may even seem to be a “little” vaguely worded).

Here are two representative samples. I wonder how much of this applies to a self-funded live account as well (without any bonuses):



6

I have never had an issue with that, but my general advice would be to stay away from a broker who would act in such a manner. I use a dynamic IP address and never had an issue with withdrawals from the brokers I use.