What to Do if Your Broker Closes Your Account or Withholds Funds
Hassle-free withdrawal and deposit are what every trader looks for while selecting a broker. However, despite numerous promises, some brokers still fail to provide traders with seamless transactions.
And some brokers even close the accounts of traders without any prior notice. With the rise of trading broker platforms, instances of traders not having control over their accounts or funds are increasing.
Market Investopedia assists traders throughout their journey. In our blog, we will discuss what to do if your broker closes your account or withholds funds.
5 Solutions If Your Broker Closes Your Account or Withholds Funds
If your broker is stopping you from withdrawing funds or has closed your accounts without any notice, here are the necessary actions you can take:
Examine Your Account:
Generally, reputable brokers may inform you in case of account closing or withdrawal restrictions. It may be possible that you have missed any notifications.
Open your trading account, visit the notifications section, and look for broker alerts. Also, traders receive brokers’ notifications through emails, SMS, or apps. So, check whether the broker has notified you or not.
Check for Reasons:
An account closure and stoppage for withholding funds can happen for different reasons. Sometimes the fault is not of your broker but yours.
If you have violated any broker’s policies, then your broker can limit withdrawals or close your account. Check whether you are indulging in suspicious trading activities or if your account has remained inactive for a considerable period. Also, find out whether you are having any AML or KYC issues.
Reach Your Broker:
You can simply connect with the broker to find out the reason behind the changes. The broker’s contact information is available on its website.
Call or email it on the official website. Generally, goods brokers have round-the-clock assistance. Most reputable brokers will assist you at this stage.
Follow the broker's Guidelines:
Your broker will tell you the reason for the account closing and the necessary solutions. If you are at fault, then follow what your broker says.
A broker may ask you to fulfill KYC requirements or stop any unethical activities. Every financial platform has some terms and conditions, and you need to follow them for seamless trading.
File a Complaint:
In some cases, the broker platform is at fault. Many trading platforms take advantage of innocent traders. If your broker has closed your account or restricted withdrawals without any valid reason, it’s time to take action.
Every genuine broker is registered under a reputed financial authority such as FCA, SEC, CYSEC, or FINMA. Visit the site of the financial jurisdiction and register your complaint against the broker. Here, you will get the necessary assistance from the regulatory authority.
A quick glance
A broker can close your account when you breach its terms and conditions for making big profits.
You can register a complaint with financial institutions such as FCA, SEC, CYSEC, or FINMA.
Reach out to the customer support. Your broker will tell you the reason and the necessary solutions for withholding your funds.
A broker may close accounts due to violations of terms, suspicious, or high-risk trading activities.
Tips to Avoid Account Closure or Withdrawal Restrictions
Precautions are always better than a cure. Markets such as forex and crypto are decentralized with less control of regulatory bodies.
Thus, getting your accounts or funds becomes difficult due to less stringent rules. So follow these tips and avoid such scenarios:
Trade with a Regulated broker:
When selecting a broker, ensure it is well-regulated by the world’s reputed institutions. If your broker is unregistered, then no financial authority can help you.
An unregulated broker is a big red flag. And generally, the account closure and withholding of funds happen with such platforms. Generally, registered brokers run following proper guidelines and provide the best services to save their reputations.
Start with Small Capital:
If you have opened an account with a new broker, start with small capital. Place the first few trades and check the withdrawal and deposit facility of the broker.
If you are satisfied with the withdrawal and deposit, customer support facility, and account status, then continue with the broker. And if not, then withdraw your funds and go for a different broker.
Reads Broker Analysis:
Many financial platforms write a detailed review for diverse platforms. You can go read your broker’s detailed analysis and find out what the broker is offering. Here you can learn about the features and conditions for the platform.
Examine Reviews:
Customer review is the best thing to analyze the broker. If the broker has a history of closing accounts or withholding funds, you can find it in the customer’s feedback.
So if clients are criticizing the broker’s withdrawal or deposits, or complaining about account closing, it’s a red flag. You need to avoid such a broker’s platform.
Conclusion
When a Broker closes your account or withholds funds, it becomes a serious situation. Many traders have significant money in their trading accounts. Thus, having full control over your funds is a must.
And for that, you need to be vigilant while selecting a broker. If you are having trouble identifying the right broker, Market Investopedia can help you. Being a leading educational platform, we assist traders in choosing the best broker. Reach out to get assistance.
