Cannot withdraw funds from FXCM to the bank account of my choice!

Hello,

I use 2 bank accounts for sending funds to brokers. I have one EUR and one USD based bank account. I funded my FXCM Active Trader account from my EUR based bank account. My FXCM Active Trader account is USD based so the EUR was converted into USD. I wanted to trade here by using an API but because of the low summer liquidity I cannot make profits with it so I decided to withdraw most of my funds temporarily. I was planning to send the funds back in late September when liquidity comes back. I needed USD so in my withdrawal request I asked them to send the funds to my USD based bank account. FXCM wrote me a letter in which they told me that since I did not trade the account heavily enough (as a punnishment…I suppose) I can withdraw the funds only to the bank account I was originally using when I deposited the funds. If I use that bank account then the funds would be converted back to EUR and I do not want that, I need USD now. With the unnecessary conversion I would loose a lot of money. I have been trading FOREX since 2005 and I have never experienced such inflexibility from a broker! And I had a lot of broker accounts!

Has anyone had similar experiences at any broker in the past? Can a broker legally force me to do this? Can anyone suggest a solution?

Thanks,

Herringtrader

I guess wait 2 weeks, meantime "trade havilly" by hedging your orders in the same account or better in diferent account with a diferent broker. That see if they will release your money the way you want it.

Another idea would be to transfer money from one account to another directly by hedging (one account sells euro, the othe account buys USD) when one account is loosing, money actually goes in the other account.

Herringtrader,

the same happened to one of my personal accounts about 6 months ago with FXCM UK.

I assume you are with FXCM here in the UK.

FXCM has a policy to allow withdrawals only to the original bank account, because they state it is for anti money laundering purposes, since the account did not trade very much or had no activity at all.

Here is what you need to do:

1.Request the name of the compliance officer from your FXCM representative

2.Go to the UK website of the FSA and file a complaint here:

http://www.fsa.gov.uk/Pages/consumer...ng/index.shtml

3.Challenge FXCM in writing, that you will file a complaint, unless they process your withdrawal like you requested

After another 2 or 3 Emails FXCM will process your withdrawal as you requested, if you pressure hard enough.

FXCM is not compliant with the regulators in the UK in its proceedings about the withdrawal policies and they know that, but still try to make money off clients.

PT

Anti-money laundering policies at most brokers don't allow you to do withdraw money into an account different from the account with original deposit.

You should know this if you've been doing this since 2005.

@akhtergroup,

yes, your post was unnecessary!

FXCM UK makes a transfer to another bank account or to another broker dependent on the trading activity in the account!

Maybe that is news to you and others.

Under normal circumstances a customer of broker A can transfer money to any bank account in the same name as the trading account.

Restricting transfers to only the original bank account needs to be part of the customer agreement.

Restricting transfers and making them dependent on trading activity in a broker account is nothing more than questionable and in the UK not in compliance with the regulators.

Unlike you, i have a nice E-Mail from FXCM UK, which i am glad to post, if you understand my native tongue.

PT

Thanks for the help everyone!

Yes I am with FXCM UK.

I forgot to tell you that my first smaller withdrawal was successfully completed to the bank of my choice. But when I wanted to withdraw almost all of my funds only than they refused the withdrawal to the bank of my choice.

PT please post the letter if it is in English!

the same thing happened to me also

Well … I thought that first I try to be nice and if that didn’t work I would threaten them with filing a complaint at the FSA. And sometimes being nice works! I just explained them the situation ….wrote them about the same as here at Forex Factory in my initial post and promised them to start trading the account immediately. They let me withdraw to the bank of my choice.

solution is - move to a broker that will allow this.

e.g. fxopen.

Hi,

If both accounts are withing the same bank that would be easy. Never new about such restriction. Also Imagine if you fund you account with a credit card they refuse to wire the money, Only refund to credit card. So in case you make big pips you will get them only on card a bit crazy!!!

Anti-money laundering policies require they check your identity not refuse to send to same bank different account.

Hope this helps
13

Basic anti-money laundering prevention, likely mandated by their compliance department & other regulations. Had the same issue once with another broker. It's nothing to discredit them for.