What to Expect When Trying to Cash Out Your Winnings From a Binary Options Broker
What to Expect When Trying to Cash Out Your Winnings From a Binary Options Broker
February 18, 2013When trading with a Cysec-licensed binary options broker, one has to factor in that it may not be good enough to execute winning trades, you also have to understand what the trading volume requirements are when you attempt to withdraw your well-earned winnings.
In my previous post about how the bonus mechanism works with the new platforms I explain what to do in order to meet the requisites, however I have collected some feedback from some of my colleagues who have tried to cash out prior to meeting the criteria and were officially labeled as abusers or fraudsters. So why does this happen and how can you avoid these sanctions?
Technically, you can’t – you either conform to the terms and conditions as stipulated in their websites, or you risk having your winnings annulled and don’t even think about having your original deposit returned to you. As long as its mentioned in the T&C you are officially bound to that agreement. Furthermore, I have even heard a friend of mine that complained on a blog about being threatened and sued for slander if he does not issue a retraction.
Well, that’s the worst of it. Now for the more tedious aspect of getting paid: Documentation! Let’s say you have done everything you were supposed to and played according to their rules or “compliance procedures”. Now, you have a balance of let’s say $15,000 and would like to have it wired to your bank.
First of all you have to prove your identity – which means you have to send an official photo ID properly scanned. Secondly, if you purchased using a credit card, they will require front and back photos of your card, along with a signed statement saying you authorized those transaction. Finally, you will also be asked to provide proof of residence in the form of a utility bill, and it has to correlate with your registered address.
If you are a US resident you may be asked to provide alternative means for getting the money sent to you. For regulatory issues banks in Cyprus may encounter problems transferring funds to the US bank accounts. At times a transfer can be made to your Paypal account but that depends on the amount, in other cases you may be asked to open a Liberty Reserve account.
Brokers also stipulate that they require a certain time frame after they receive all the documentation to conduct background checks and make sure all the documents are in order and verify that the volume requirements have been met. Once all of that is done, your money will be paid out.
It’s clear to see that these practices serve a dual purpose, the first is to make sure you are who claim to be in order to avoid false claims. But the second is less overt but more annoying and aims to get you to cancel your withdrawal request and continue trading with your balance. Indeed, I myself have been offered bonuses simply for reversing my pending payment. The only good news about all of this is that you only have to do it once. After all the documentation has been sent, the next time you would like to get a transfer you simply need to ask for it and that’s it.
To summarize, cashing out your winnings from a binary options brokers can be a tedious and unpleasant ordeal. However, if you stick to their guidelines and make sure that all trading volume requirements have been met, you should have no problems getting your money transferred.
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