What you need to know about a broker's regulations that govern non-trading operations

You already know that the main document regulating the relationship between a trader and a brokerage company is the client agreement .

However, this document includes only the basic provisions and a description of the rights and obligations of the parties, that is, what is not directly related to the implementation of transactions.

All important points are described in more detail in two documents: the regulations for non-trading operations and the regulations for trading operations.

Therefore, before opening your first trade on a real account, it is advisable to study these two important documents and only then begin trading.

Regulations for non-trading operations

Brokers classify non-trading operations as depositing funds into or withdrawing funds from a trader's account with a brokerage company to personal accounts outside of it.

It would seem that there is little to regulate here, but even here there are a ton of mandatory rules, failure to comply with which can lead to account blocking and, as a result, the loss of funds.

In most cases, the regulations for non-trading operations include such points as:

Funds transfer methods – options for depositing funds into a trader's account and withdrawing profits.

As well as the conditions necessary for making a transfer to a bank account, card or payment system.  

Payment Policy – ​​This section describes the fees for withdrawals and deposits depending on the payment option selected:

The important issue of funds transfer deadlines, or more precisely, the maximum time during which a transfer can be completed, is also regulated. Furthermore, the maximum and minimum order amounts and conversion conditions are also established.

Questionable non-trading transactions are the most insidious clause in the regulations; they outline the conditions that may result in an account being blocked.

That is, in what cases a non-trading transaction may be considered suspicious? These may be suspicions of money laundering or the unusual nature of the transaction itself:

If such transactions are recorded in an account, the company reserves the right to refuse to process them or even freeze funds in the personal account.

Trading Account Rules – the basic rules that govern how you work in your client's personal account .

In addition, this section describes the main points of working with requests for withdrawal of funds or replenishment of an account, where you can see the status of the request and the transaction history.

Dispute Resolution Procedure – Client Actions in the Event of a Request Not Being Completed or Not Being Completed on Time:

How to file a claim, how long does it take for brokerage managers to process it, and where to go if the broker refuses to process your claim.

It can be said that the regulations for non-trading operations mainly govern financial issues, such as the deposit and withdrawal of funds, as well as the rules for their implementation.

This is a rather important document, since ignorance of the rules prescribed in it can result in the loss of money, and you sign it automatically when registering with a broker .