What are the guarantees that the stock broker will pay the money?

Currently, Forex trading is not possible without the participation of an intermediary, which is a brokerage company.

It is the broker who transmits your transactions to the exchange and pays you the profit received on successful transactions.

At the same time, most traders have a reasonable question - what are the guarantees that the broker will pay out the money earned?

It is clear that if we are talking about amounts of a couple of hundred dollars, then no one will spoil their reputation because of such an insignificant amount.

 

But if the profit amounts to several thousand or even tens of thousands of dollars, will the intermediary refuse to fulfill its obligations to the client?

Why are there practically no problems with withdrawing profits from a broker now?

The thing is that almost all modern brokerage companies are intermediaries and do not themselves act as the second party in transactions with clients.

They simply take your money and transfer it to the market, where the second party to the transaction is a trader just like you.

If you make a profit, then another trader suffers losses, and the broker, in any case, remains a winner and receives a commission (spread) for bringing your transaction to the market.

Therefore, it makes no sense for a brokerage company to refuse to withdraw your profits; the only exception may be a situation where the broker is the kitchen staff and himself acts as the other party to the transaction.

Therefore, for large-scale trading, it is advisable to choose brokers with ECN accounts - https://time-forex.com/vsebrokery/ecn-brokery

Which broker actually pays?

If we talk about our experience of withdrawing large sums, they were not truly impressive and were limited to a couple of tens of thousands of dollars.

Over ten years of Forex trading, I withdrew money from the following brokers:

InstaForex – the maximum order from this broker was 19,000 US dollars, withdrawals were made within 24 hours, there were no additional checks:

In fact, this was the largest withdrawal of funds in my trading history, I had to be nervous, but after about 20 hours the money fell into my account. InstaForex company website - instaforex.com

Alpari – at one time withdrew an amount of 9,000 US dollars, before making the transfer there was a call from the company manager to check and clarify the reason for the withdrawal:

I applied for withdrawal before 9 am, and as a result I received the money after lunch on the same day. The timing of your application is also important, as many brokers only withdraw money during business hours. Alpari website - www.alpari.com

RoboForex – here my achievements are more modest, the maximum withdrawal amount was 5500 US dollars:

There were no additional checks, the money arrived on the card literally within an hour, I was especially pleased with the fact that there was no commission for withdrawal. We managed to save about $55. RoboForex website - www.roboforex.org

For more than ten years of stock trading, I only once encountered the problem of withdrawing funds; the reason for this was the bankruptcy of the MMCIS group company caused by political events.

After this, I no longer trust companies whose names have so many letters MM and I try not to keep money with one broker.

In conclusion, it should also be noted that today clients of almost any broker are insured against bankruptcy for amounts ranging from $20,000 to $100,000, depending on the brokerage company.