What exactly is Forex trading?
Forex trading is the exchange of currencies by spot trading on forex trading platforms or futures contracts. If you’re into spot trading on brokerage platforms, In foreign exchange trading, the currencies are traded in pairs, and you have to buy one currency and sell the other simultaneously. The forex market allows traders to compound capital easily by taking advantage of the highly volatile trading environment. Unlike stocks, spot forex trading is done over the counter, without the need for a physical exchange.
How do you earn money from trading in Forex?
To earn money from forex, you have to determine the right time to buy or sell a currency. For example, if you have reasons to believe that the euro would strengthen against the dollar, then you can buy the EUR/USD currency pair. This means you’re buying the euro and selling the dollar simultaneously. To determine when to buy or sell, you should analyze the price charts and carry out a fundamental analysis of micro and macroeconomic factors.
Once you’ve decided to buy or sell, you can execute the trade on a forex trading platform and manage it according to your trading plan.
How to Withdraw Money from Forex Trading
Log in to your trading account
Before withdrawing your funds, you need to. Log in to your forex trading account. While logging in, you have to input your details, and you may also be required to answer a security question.
Click on ‘Accounts.’
After logging in, you have to select the account section and ensure you’re dealing with the right account. Most brokers allow traders to open live and demo accounts and manage them simultaneously. Since you can’t withdraw from a demo account, make sure you have selected your live trading account.
Select the ‘Withdrawal’ Option
Once you have chosen the right account, click on the ‘withdrawal’ prompt. Since brokerage websites can use different wordings, this might appear as ‘get paid’ or ‘withdraw funds’ on your trading platform.
Fill in the Withdrawal Form if Needed
After choosing to withdraw, you may be presented with a withdrawal form. This form contains the details of your withdrawal, including the date, amount, and method of getting paid. Fill this in meticulously, as any error could delay your withdrawal.
Select the Withdrawal Method
There are a lot of withdrawal methods available, and you have to choose the best one depending on;
- Your location
- The withdrawal amount
- The speed of processing
- Fees charged
Choose the Withdrawal Amount
Usually, most platforms allow you to withdraw some of your profits or capital if you wish to. This means you have to specify how much you want to withdraw in your withdrawal form. The amount being withdrawn could influence the fees charged and the method of getting paid.
Submit Your Withdrawal Request
After you have provided the necessary information, you can submit the withdrawal request, and your payment will be processed by the trading platform.
5 Different Withdrawal Options for Forex Traders
Paypal
Source – Unsplash
PayPal is an online payment platform that makes online transactions safe and secure. When you link your bank account, credit card, or debit card to your PayPal account, you can use PayPal to fund your forex trading accounts and withdraw your funds from your forex broker.
Wire Transfer
Wire transfers involve sending and receiving funds via a network that is administered and monitored by banks and financial institutions around the world.
To withdraw funds via wire transfer, you have to provide a bank account that can receive funds in the currency provided by your forex broker. These transactions could take a couple of minutes to days to be processed.
Transfer to Local Bank
Some forex brokers now allow traders to withdraw directly to their local banks in their local currencies. These transactions may incur conversion fees if the currency in the trading account is different from the local currency.
Skrill
Skrill is an international money transfer service that offers a range of online payment and transaction services. You can withdraw your funds to your Skrill account, from which you can spend online or transfer them to your bank accounts.
Crypto
Thanks to the increasing acceptance of crypto, some brokers now permit crypto withdrawals. These cryptocurrencies are often highly traded assets like Bitcoin, Etherium, and other altcoins.
Other options include pioneer, neteller, transverse, and several online payment platforms.
Factors to Look Out For When Withdrawing Money from Forex
Withdrawal Fees
Withdrawal fees are fees charged by your broker to process your withdrawals. This could be a percentage of your withdrawal or a flat fee. Make sure the withdrawal fee being charged are reasonable fees, typically less than 5% of the withdrawal amount.
Processing Time
The processing time is the time taken for your withdrawal to be processed entirely. This could vary depending on your withdrawal method and amount.
Problems That Can Occur While Withdrawing Forex Money
Incomplete Account Registration
All regulated brokers require some vital information and means of identification before letting you trade, make profits, and withdraw. If you haven’t completed your KYC details, you would most likely veg required to do so before your withdrawal can be processed.
Besides your information, you may need to verify your withdrawal method and successfully connect it to your trading account.
Credit/Debit Card Mismatch
Some brokers have a rule that states that If you use a credit card to deposit funds into your account, you must use the same credit card to withdraw funds. Hence, you may not be able to get the money out of your account if you don’t have access to this card.
Insufficient Balance
You may face difficulties with processing your withdrawal if your account balance is less than the won’t be withdrawn
Check out Decode Global and start withdrawing money from Forex trading!
If you want to make seamless withdrawals from forex trading, sign up for a live account on a trading platform and start trading today! Make sure that you are with enough capital to meet your trading goals. Also, research the trading conditions, payment, and withdrawal methods offered by the trading platform and ensure they are compatible with your resources.