Why Documentation and Forms Are Needed in Order to Withdraw Your Money
Why Documentation and Forms Are Needed in Order to Withdraw Your MoneyNovember 20, 2013
I’m sure a lot of you have heard horror stories about binary options traders that have experienced the painful agony of trying to cash their money out and having it being declined due to missing or improperly filled out forms. Well, you can bet your bottom dollar there will be many more traders having to go through this tedious process in the future.
The Business Logic
CySec-licensed, or alternatively non-licensed binary options brokers don’t charge fees or commissions as would a traditional broker, they make their money based on the amount of money deposited less money withdrawn. For the better or for the worst, a Wall Street broker takes his commission whether they make money or not, but market forces push them to succeed for their clients in order to save the investment capital.
When it comes to the new brokers, the primary objectives is to get you to deposit and they will use any means at their disposal to get you to do just that. The primary tool they use is bonuses AKA educational allowance, and that is a method which is used by online casinos in order to entice players to keep coming back. A bonus would carry with it a trading requirement which would necessitate a certain volume of trades be executed in order to redeem the wins and/or the bonus – this varies from one broker to another. For example, Optimarkets requires you execute trades 30 times the deposit amount, while Traderush requires you trade 30 times the bonus amount.
Cashing Out – Fundamentals
Now, given all that has been mentioned above, if you understand how to use the bonus in order to leverage your bankroll, you can beat the brokers at their own game. But before you even try to do that, the first thing you need to do is make sure all your documentation has been sent and received by the right people. Usually this is what they ask for:
- Official Photo ID
- Front & Back photos of your credit card
- Utility Bill
- Fax form
- Telephone ID verification
Old Trader’s Tip: If you used an Ewallet like Moneybookers to deposit, you will only have to verify your ID, and that is a big advantage because it will save you time and money.